MGMT 443 - Introduction and Strategy

+ Human Resource Management: Functions, Applications, and Skill Developement (2nd Edition)
* Course Assessments
	+ 3 Exams - 90% of Grade
		- All Cumulative
	+ Weekly Case Studies - 10% of Grade
* Variations on Human Resource Management
	+ HR vs. Management Rotation
	+ Degree of Centralization
		- Highly Centralized - Corporate HR
		- Highly Decentralized - Business HR
	+ Strategic Importance of HRM - Use people to make strategic advantage
	+ Degree of Formalization - Rules and Procedures
* Hard and Soft HRM
	+ Hard (Instrumental) HRM - Employees are replaceable
	+ Soft (Humanistic) HRM - Employees are human/assets

### **MGMT 443 - Strategic Perspectives in HRM**

* Impact of Human Resource Management
	+ Type of Human Capital
		- Training
		- Experience
		- Judgment
		- Intellifence
		- Relationships
		- Insight
	+ Behavior of Human Capital
		- Motivation
		- Effort
	+ Organizational Performance
		- Quality
		- Profitability
		- Customer Satisfaction
* Developing HR Strategies
	+ Where are we a a company
	+ Where do we want to be in 1, 2, 3 or even 5 years from now?
	+ How do we get there (Most important)
		- Who do we hire?
		- What avenues do we follow?
		- What training programs do we need?
		- Various strategies?
* Corporate Strategy
	+ How should we be operating
	+ For Example
		- Diversify
		- New Ventures
		- Acquisitions and Divestment
		- Resource Allocation
* Strategic Management
	+ Continuous cyclical process
		- Strategic Formulation
		- Strategic Planning
		- Implementation
		- Review
		- Updating
* Strategic HRM
	+ The overall direction of an organization

### **MGMT 443 - Stakeholders**

* Stakeholders
	+ Community at large
	+ Labor Unions
	+ Investors
	+ Managers
	+ Employees
* How strategies affect HRM
	+ Cost Leadership
		- Produce at lowest cost in industry
		- Maximize efficiency
	+ HRM Differentiation
		- Maximize Flexibility and Adaptability
		- Make something special
	+ Strategic mission statement
		- Future vision
		- Defines values
		- Sets Goals

### **MGMT 443 - SWOT Analysis and PESTEL Exercise 1**

* SWOT Analysis
	+ Strength (Internal)
	+ Weaknesses (Internal)
	+ Threats (External)
	+ Opportunities (External)
* PESTEL-Analysis
	+ Political Factors
	+ Economic Factors
	+ Socio-Cultural Factors
	+ Technological Factors
	+ Environmental Factors
	+ Legal Factors
* Exercise 1
	+ Think about PESTEL Strategy
	+ Purdue is making a satellite campus in southern Italy, perform a PESTEL Analysis

### **MGMT 443 - Strategic Fit**

* Strategic Fit
	+ Horizontal Fit - Fitting among HR Standard Practices
	+ Vertical Fit - Fitting among the Organization
* Configuration Approach "HR Bundles"
	+ Make sure all approaches are supportive - not in conflict
		- e.g. Make sure Training for Performance related pay.
* Best Practice Approach
	+ Belief that there's a best set of practices that will bring out best performance
* Best Fit Approach
	+ There's a best approach based on your organization

### **MGMT 443 - Tools for Measuring Strategic HRM**

* Economic Value Added
	+ Measure of the net profit on an operation
* Return on investment
	+ Compare cost and return
	+ More Dollar-to-dollar
* HR Scorecard - All areas related to HRM Success
	+ HR Deliverables
	+ HR System Alignment
	+ HR Efficiency Measure