Aantekeningen Hoorcolleges & Theorie HRM
Hoorcollege 1 & Chapter 2 - Strategy-Driven Human Resource
Management
Human resources: People within organization
→ most valuable asset of organizations
Employee engagement: combination of job satisfaction, ability, and willingness to perform
for organization at a high level and over an extended period of time.
History of HRM
> - 1930: Taylorism and scientific management
> 1930 - 1960: Personnel management
> 1960 -: Human resource management
> 1970 - : Strategic human resource management
→ in the past HR department considered to be a cost centre (= department that brings no
revenue/profit for organization, function only costs the company money)
Present view
→ HR = revenue centre (= departments that generate monetary returns for organization)
> Productivity centre (= revenue centre that enhances profitability of the organization through
enhancing productivity of people within organization)
→ Productivity: amount of output that an organization gets per unit of input (human
input is usually expressed in terms of units of time)
Productivity is the end result of 2 components that managers create and improve:
> Effectiveness
→ getting the job done, whenever and however it must me done (‘Did we do the right things’)
> Efficiency
→ function of how many organizational resources are used in getting the job done (‘Did we
do the things right’)
Improve efficiency of workers → use of technology
Knowledge workers: workers who ‘use their head more than their hands’ → gather and
interpret information to improve product/process for their organizations
Dependent variables that managers must control in order to compete
1. Productivity (efficiency + effectivity)
, 2. Employee engagement
3. Turnover → permanent loss of workers from the organization
4. Absenteeism → temporary absence of employees from the workplace, costs the
organization money (indirectly) → company still needs to maintain benefits, but loses
productivity of other employes (they need to work harder)
=> managers can affect these variables by indirect action
- create conditions in which employee is willing to come to work
Importance of Strategic HRM
→ basis of strategic HRM: HRM is been redesigned to make organization more competitive
and create sustainable competitive advantage
Sustainable competitive advantage: Capability that creates value for customers that rivals
can’t copy quickly or easily and that allows the organization to differentiate its products or
services from those of competitors
Strategic choice
External environment
→ Includes series of influences of outside that affects the organization and that the company
cannot control:
> Customers → company must continually improve products to create value for their
customers
> Competitors → business must compete for customers, compete for same employees and
sometimes supplies; changes in competitor’s strategy often affect performance of
organisation
> Suppliers → important to develop close working relationships with suppliers
> Labor force → employees of organization and talent pool
> Shareholders → owners of corporation influence management
> Society → determines what an acceptable business practice is
,> Technology → constantly changing technologies require technologically savvy
(=slim/snugger) employees who have the ability to adapt to new processes
> Economy → economic growth, inflation, interest rates etc → no corporation has control
> Government → set laws and regulations that businesses must obey
Internal environment
→ Strategy, structure and culture of organisation
Strategy: plan of action designed to achieve particular set of objectives
→ What is our present situation (where are we now)
→ Where do we want to go
→ How do we plan to get there
> Question 1- What is our present situation?
→ broad question
> Are we making profit? Do we satisfy customers? Do we have the right kind of workforce in
place? Is our technology working?
> Question 2 - Where do we want to go?
→
Vision: What we expect to become as an organization at a particular point in time in the
future - Direction, Quantity, Time horizon
Vision direction → Industries vs. Needs
Industries
> They come with an expiration date
> Focused on stretching their products/services the longest possible
> Predictable and linear
Customer’s needs
> Timeless and compelling
> Focused on opportunities and variety
> Room for uncertainty
Vision quantity
Where are we and where do we want to be? => “ Quantification”
→ establishing the value gap
, Vision time horizon → each industry has another time horizon in which they operate and how
long their ‘unique’ product stays
unique/how long they can
compete in the market with their
Unique Selling Points → market
dynamics
Mission: ‘’what we are going to
do in order to become the
organization we have
envisioned.‘’
Strategic map - objectives -
“ State what is to be accomplished in singular, specific, and measurable terms, with a target
date.‘’
> Finance
- Productivity: What will be the source of productivity?
- Growth: What will be the source of revenue in the strategy?
- Investors: How will shareholders measure value creation?
> Market
- Positioning: How do I want to be recognized in the market and society?
- Market: Which segments should I conquer to achieve my financial goals?
- Differentiator: What attributes make me an attractive proposition to conquer my
segments?
> Processes
- Operation: How will i deliver on my finance productivity promises?
- Commercial: How will i keep my promises to the market and my customers?
- Innovation: Where should we innovate or look for new ways of working?
→ management of operations (suppliers, production, distribution);
→ management of clients (selection, acquisition, retention)
→ innovation (identify oport, R+D portfolio, new products)
→ alliances strategic (ecosystems, ROI of Alliances)
> Human Resources
Hoorcollege 1 & Chapter 2 - Strategy-Driven Human Resource
Management
Human resources: People within organization
→ most valuable asset of organizations
Employee engagement: combination of job satisfaction, ability, and willingness to perform
for organization at a high level and over an extended period of time.
History of HRM
> - 1930: Taylorism and scientific management
> 1930 - 1960: Personnel management
> 1960 -: Human resource management
> 1970 - : Strategic human resource management
→ in the past HR department considered to be a cost centre (= department that brings no
revenue/profit for organization, function only costs the company money)
Present view
→ HR = revenue centre (= departments that generate monetary returns for organization)
> Productivity centre (= revenue centre that enhances profitability of the organization through
enhancing productivity of people within organization)
→ Productivity: amount of output that an organization gets per unit of input (human
input is usually expressed in terms of units of time)
Productivity is the end result of 2 components that managers create and improve:
> Effectiveness
→ getting the job done, whenever and however it must me done (‘Did we do the right things’)
> Efficiency
→ function of how many organizational resources are used in getting the job done (‘Did we
do the things right’)
Improve efficiency of workers → use of technology
Knowledge workers: workers who ‘use their head more than their hands’ → gather and
interpret information to improve product/process for their organizations
Dependent variables that managers must control in order to compete
1. Productivity (efficiency + effectivity)
, 2. Employee engagement
3. Turnover → permanent loss of workers from the organization
4. Absenteeism → temporary absence of employees from the workplace, costs the
organization money (indirectly) → company still needs to maintain benefits, but loses
productivity of other employes (they need to work harder)
=> managers can affect these variables by indirect action
- create conditions in which employee is willing to come to work
Importance of Strategic HRM
→ basis of strategic HRM: HRM is been redesigned to make organization more competitive
and create sustainable competitive advantage
Sustainable competitive advantage: Capability that creates value for customers that rivals
can’t copy quickly or easily and that allows the organization to differentiate its products or
services from those of competitors
Strategic choice
External environment
→ Includes series of influences of outside that affects the organization and that the company
cannot control:
> Customers → company must continually improve products to create value for their
customers
> Competitors → business must compete for customers, compete for same employees and
sometimes supplies; changes in competitor’s strategy often affect performance of
organisation
> Suppliers → important to develop close working relationships with suppliers
> Labor force → employees of organization and talent pool
> Shareholders → owners of corporation influence management
> Society → determines what an acceptable business practice is
,> Technology → constantly changing technologies require technologically savvy
(=slim/snugger) employees who have the ability to adapt to new processes
> Economy → economic growth, inflation, interest rates etc → no corporation has control
> Government → set laws and regulations that businesses must obey
Internal environment
→ Strategy, structure and culture of organisation
Strategy: plan of action designed to achieve particular set of objectives
→ What is our present situation (where are we now)
→ Where do we want to go
→ How do we plan to get there
> Question 1- What is our present situation?
→ broad question
> Are we making profit? Do we satisfy customers? Do we have the right kind of workforce in
place? Is our technology working?
> Question 2 - Where do we want to go?
→
Vision: What we expect to become as an organization at a particular point in time in the
future - Direction, Quantity, Time horizon
Vision direction → Industries vs. Needs
Industries
> They come with an expiration date
> Focused on stretching their products/services the longest possible
> Predictable and linear
Customer’s needs
> Timeless and compelling
> Focused on opportunities and variety
> Room for uncertainty
Vision quantity
Where are we and where do we want to be? => “ Quantification”
→ establishing the value gap
, Vision time horizon → each industry has another time horizon in which they operate and how
long their ‘unique’ product stays
unique/how long they can
compete in the market with their
Unique Selling Points → market
dynamics
Mission: ‘’what we are going to
do in order to become the
organization we have
envisioned.‘’
Strategic map - objectives -
“ State what is to be accomplished in singular, specific, and measurable terms, with a target
date.‘’
> Finance
- Productivity: What will be the source of productivity?
- Growth: What will be the source of revenue in the strategy?
- Investors: How will shareholders measure value creation?
> Market
- Positioning: How do I want to be recognized in the market and society?
- Market: Which segments should I conquer to achieve my financial goals?
- Differentiator: What attributes make me an attractive proposition to conquer my
segments?
> Processes
- Operation: How will i deliver on my finance productivity promises?
- Commercial: How will i keep my promises to the market and my customers?
- Innovation: Where should we innovate or look for new ways of working?
→ management of operations (suppliers, production, distribution);
→ management of clients (selection, acquisition, retention)
→ innovation (identify oport, R+D portfolio, new products)
→ alliances strategic (ecosystems, ROI of Alliances)
> Human Resources
