ICORE Management - Chapter 1 PDF

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Management: Chapter One Business and Staffing Strategies  

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Success depends on employees’ motivations, competencies, and skills Resource-Based View of the Firm: Proposes that a company’s resources and competencies can produce a sustained competitive advantage by creating value for customers by lowering costs, providing something of unique value or some combination of the two o To create value, you must lower costs of products/services or differentiate o Focuses attention on quality of skills of a company’s workforce at various levels, and on the quantity of the motivational climate created by management Good human resource is valued for its ability to implement a given competitive strategy and its ability to generate strategic capabilities for the firm Requirements a resource must meet to give a firm a competitive advantage: o Valuable o Rare o Not easily imitated o Not easily substituted/replaced o Organized Business Strategy: How a company will compete in its marketplace o Hiring and retaining the right people are critical o To have a competitive advantage, must give customers superior value for their money Sources of a Competitive Advantage: o Innovation, Cost, Service, Quality, Branding, Distribution, Speed, Convenience, First to Market Cost-Leadership: Be the lowest-cost producer for a particular level of product quality o Walmart o Try to develop a competitive advantage based on operational excellence  Maximizing the efficiency of the manufacturing or product development process to minimize costs  Staffing goals include hiring people who are adaptable, efficiency oriented, team oriented, trainable, and willing to follow standardized procedures Differentiation Strategy: Developing a product or service that has unique characteristics valued by customers o Has products that it can charge for a premium price o Try to develop a CA based on product innovation  Developing new products/services Specialization Strategy: Focusing on a narrow market segment or niche and pursuing either a differentiation or cost-leadership strategy within that market segment o Can happen if company has lower costs serving the same niche o UnderArmour o Try to develop a CA based on customer intimacy  Delivering unique and customizable products or services that better meet customer’s needs and increase customer loyalty

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 Nordstrom with their high-quality customer service  Starbucks, even though expensive, focuses on relationship with customer Growth Strategy: A strategy to expand the company either organically or via acquisitions, increase the firm’s sales or allow the company to achieve economies of scale o Organic: Happening as the organization expands from within by opening new factories or stores o Mergers/Acquisitions: Helps expand internationally, can be a way for organizations to acquire the quality and amount of talent it needs to execute its business strategy, often fail because of people issues rather than financial/technological issues Talent Philosophy: A system of beliefs about how a firm’s employees should be treated o Reflects how a company thinks about its employees o Are they partners or can they be replaceable Human Resource Strategy: The linkage of the entire human resource function with the company’s business strategy o Aligns a company’s values and goals with the behaviors, values, and goals of employees Staffing Strategy: The constellation of priorities, policies, and behaviors used to manage the flow of talent into, through, and out of an organization over time o Reflects its business strategy, human resource strategy, and talent philosophy If company has high turnover, a better strategic choice might be to focus filing vacancies quickly and hiring people who can hit the ground running If company has low turnover and they invest a lot of money and time in employees, then the better strategic choice might be to hire employees for long-term careers A way organizations differ in their talent philosophies is in viewing their job applicants and employees as either assets or as investors o If they are assets, the staffing focus is on managing costs and controlling the asset, goal tends to focus on the acquisition and deployment of labor as cheaply and quickly as possible o If investors, the focus is on establishing a mutually beneficial relationship in which employees are recognized as investing their resources in the organization in exchange for a return on that investment, goal is to give them a return on their personal investment in the organization An organization’s staffing strategy should be derived from and be clearly supportive of its human resource strategy Tasks of the human resource function further involve providing support to networking and establishment of sustainable ways of operation Core Workforce: Regular employees who are central to the organization, company tries to retain them Flexible Workers: Temporary, contract workers, or independent contractors employed for shorter periods by firms as needed Internal Talent Focus: A preference for developing employees and promoting from within to fill job openings External Talent Focus: A preference for filling jobs with new employees hired from outside the organization Job-Oriented Staffing: Hiring to fill a specific job opening, local hiring

Talent-Oriented Staffing: Recruiting and even hiring without a specific job opening, nationally/regionally hiring  Centralized Staffing: A situation in which all of an organization’s staffing activities are channeled through one unit o Allows for greater economies of scale o Multiple positions can be filled from the same candidate pool, and optimal hiring practices can be leveraged across the organization  Decentralized Staffing: The different business units of a company each house their own staffing functions o Gives units more localized control over their recruiting and staffing activities o Less likely to be tracked, resulting in units duplicating the company’s staffing efforts and result in higher costs o More responsive to the needs of hiring managers  Combined Approach: A combination of centralized and decentralized staffing o Maximizes each business unit’s flexibility as well as standardize the staffing metrics used throughout the company, minimize redundancies, and leverage technology and best practices  Human Capital Advantage: Acquiring a stock of quality talent that creates a competitive advantage o Create is by hiring and retaining outstanding people, and producing a stock of exceptional talent  Human Process Advantage: Superior work processes that create a competitive advantage

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