Strategic HR Management for Business Success

Human Resource Management in Small Businesses

The Small Business Administration (SBA) defines a small business as one that is independently owned and operated.

Country Culture in Global Business

A country's culture is the set of values, symbols, beliefs, languages, and norms that guide human behavior within that country.

The Strategic Planning Process

Corporate Mission

A company's mission is its continuing purpose or reason for being. The corporate mission is the sum total of the organization’s ongoing purpose.

Objective Setting

Objectives are the desired end results of any activity. Objectives should have four basic characteristics:

1. They should be expressed in writing.
2. They should be measurable.
3. They should be specific as to time.
4. They should be challenging but attainable.

Environmental Assessment

Once the mission has been determined, the organization should assess its strengths and weaknesses in the internal environment and the threats and opportunities from the external environment. This is often referred to as a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).

Strategy Setting

Strategies should be developed to take advantage of the company’s strengths and minimize its weaknesses to grasp opportunities and avoid threats. One primary strategic option is the lowest-cost strategy.

• Lowest-Cost Strategy: This focuses on gaining a competitive advantage by being the lowest-cost producer of a product or service within the marketplace. It requires the aggressive construction of efficient-scale facilities and a vigorous pursuit of cost minimization in areas such as operations, marketing, and HR.

Strategy Implementation

Strategy implementation requires changes in the organization’s behavior. These changes can be brought about by modifying one or more organizational dimensions, including management’s leadership ability, organizational structure, information and control systems, production technology, and HR.

Workforce Planning

Workforce planning is the systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specific period. HR planning has two components: requirements and availability.

Forecasting HR Requirements

A requirements forecast involves determining the number, skill, and location of employees the organization will need at future dates to meet its goals. Several techniques are used for forecasting HR requirements:

• Zero-Base Forecast: Uses the organization’s current level of employment as the starting point for determining future staffing needs.
• Bottom-Up Forecast: A method in which each successive level in the organization, starting with the lowest, forecasts its requirements, ultimately providing an aggregate forecast of employees needed.
• Sales Volume Analysis: Historically, one of the most useful predictors of employment levels is sales volume. The relationship between demand and the number of employees needed is a positive one.

Forecasting HR Availability

To forecast availability, the HR manager looks to both internal sources (current employees) and external sources (the labor market). An availability forecast is the determination of whether the firm will be able to secure employees with the necessary skills and from what sources.

Succession Planning

Succession planning is the process of ensuring that qualified persons are available to assume key managerial positions once those positions become vacant.