Management and Planning SEMESTER 1 September 2009

C:\Allwork\geoff\Modules\M&P\M&P session 8a header -HRM.doc Geoff Leese

Semester 1

Session 8a

Functional strategy - HRM

Objectives

To be able to describe and discuss

• The concept of HRM • Is it different to Personnel Management? • HR functional areas • HR topics

o Resourcing o Training and development o Relations

• The four “C”s model

And to apply these concepts in a given business scenario. These are all likely to be tested in coursework and in the examination.

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Functional strategies –Human Resource

ManagementGeoff Leese August 2009

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Functional Strategies

Corporate strategy

FinanceStrategy(week 7)

Marketing Strategy(week 7)

HRMStrategy(week 8)

ManufacturingStrategy(week6)

Top level or SBUstrategy

Examples of functional strategies:• depends on level of SBU• depends on type of business• depends on organisation

IT/ISStrategy(week 8)

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Introduction

nWhat is HRM?n Is it different to Personnel Management?nHR functional areasnHR topics

ResourcingTraining and developmentRelations

n The four “C”s model

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The HR conceptnDevelop and implement HR strategies as part

of overall corporate strategynDevelop the culture, values and structure of

the organisationnDevelop the employees too!n Ensure quality, motivation and commitment of

employees

NOT just personnel management!

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HR functional areas

n StaffingnRewardsn Employee developmentn Employee maintenancen Employee and industrial relations

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HR topics

n Employee resourcingn Employee training and developmentn Employee relations

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Employee resourcing (1)

nHuman resource planningAnalysis of existing resourcesReviewing labour utilisationForecasting labour demandForecasting labour supplyDeveloping the manpower plan

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Employee resourcing (2)

nRecruitment and selectionJob analysis and post definitionAttracting the applicantsSelectionEvaluation

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Employee training and development (1)n Training needs analysis

OrganisationalDepartmentalJob functionIndividual

n Training methodsOn the job/Job rotationSimulation/lectures/demonstrationsGroup methodsSelf paced learning

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Employee training and development (2)

n Assessment and appraisalAssessment of performanceIdentification of potentialAction plan

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Employee Relations (1)nNegotiation with

ManagementUnionsEmployees

n ProceduresGrievanceDisciplinaryEqual opportunitiesRedundancy

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Employee Relations (2)

n Legislation and policiesEqual pay act (1970)Race relations act (1976)Disability Discrimination Act (1995)

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The Four “C”s model

nCommitmentLoyalty, motivation, liking for their work

nCompetenceSkills, abilities, training needs, potential

nCongruenceShared vision, shared goals

nCost-effectivenessOutputs maximised at lowest input cost

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Summary

nWhat is HRM?n Is it different to Personnel Management?nHR functional areasnHR topics

ResourcingTraining and developmentRelations

n The four “C”s model

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Further reading

n Bennett chapter 11n Butel et al Unit 7nThe ACCEL view

The subsequent pages are useful, too!nThe HRM Guide view

Title says it all, really.

Management and Planning SEMESTER 1 September 2009

C:\Allwork\geoff\Modules\M&P\M&P session 8a tutorial - HRM.doc Geoff Leese

Semester 1

Session 8a

Functional strategy - HRM

Tutorial questions

a) Describe and discuss the HRM strategies of your own organisation, within the bounds of commercial confidentiality.

b) Use the “checklist” of issues presented on the header sheet this week as a guide.

Be prepared to discuss your answers in next week’s tutorial.

Management and Planning SEMESTER 1 September 2009

C:\Allwork\geoff\Modules\M&P\M&P session 8b header - IS&IT.doc Created by Geoff Leese

Semester 1

Session 8b

Functional strategy – Information Systems

and Information Technology

Objectives

To be able to describe and discuss

• The need for IS and IT strategies • Where it fits in • Strategic IS/IT questions • Symptoms of an ineffective IS/IT strategy • Formulating an IS/IT strategy • Key inputs to IS/IT strategy • Strategy setting process • Managing the strategy

And to apply these concepts in a given business scenario. These are all likely to be tested in coursework and in the examination.

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Functional Strategy – IS & IT

Geoff Leese August 2009.

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Introduction

n The need for IS and IT strategiesnWhere it fits inn Strategic IS/IT questionsn Symptoms of an ineffective IS/IT strategyn Formulating an IS/IT strategyn Key inputs to IS/IT strategyn Strategy setting processnManaging the strategy

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Business advantages of IT/IS

n Instant communicationnAbility to handle large volumes of datan Integration of data from different

sourcesnAutomated analysis and presentation of

results

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The need for an IT strategyn An important source of competitive advantage

Linking to customers and suppliersImproving operational efficiencyEnabling faster response to environmental changeMakes switching more difficult if competitors IT systems are incompatibleFacilitates monitoring and analysis of Key performance indicatorsEnables flexible manufacturing and TQMImproves management control

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Where it fits inBusinessStrategy

DivisionalStrategy

DivisionalStrategy

DivisionalStrategy

ProductionStrategy

ISStrategy

MarketingStrategy

ITStrategy

Manual SystemsStrategy

ManagementStrategy

DataPolicy

CommsPolicy

ArchitecturePolicy

AcquisitionPolicy

OrganisationPolicy

ControlPolicy

etc

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Business,IS and IT strategies• Business strategy

• Describes where the business is heading

• Define what activities will be carried out by the organisation

• Will usually require some changes to existing information systems and / or development of new ones

• Information systems strategy• Describes the information and systems needed to support the

organisation’s activities

• It’s the “what” we need to do; demand part of the demand / supply equation

• Information technology strategy• Describes how the information and system needs will be met e.g. what

projects, what skills, what technologies• It’s the “how” we will do it; supply part of the demand / supply equation

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Strategic IS/IT questionsnWhat information systems do we need?nHow much are we going to invest in IS / IT?nHow are we going to organise the IS dept?nHow are we going to resource the IS dept?nHow much software are we going to buy in?nHow much software should we build

ourselves?nWhat technical standards should we employ?

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Symptoms of an ineffective IS/IT strategy

n organisational goals may become unattainable due to systems/technology limitations

n systems are not integrated, causing delays. duplication of effort, poor management

n systems implementation projects are late, over cost or fail to deliver expected benefits

n priorities & plans are always changing, causing conflict & poor productivity

n inefficient IS/IT resource usage & investment appraisal

n operational opportunities may be left unexploited

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Organisational & IS/IT Strategy

Definition of organisational strategy:‘an integrated set of actions aimed at increasing the long-term well-being & strength of the organisation’

IS/IT strategy involves three relevant strategies:

organisationalstrategy

IS strategy

IT strategy

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Inputs & outputs to IS/IT strategy

operationalopportunities

organisation’senvironment

external IS/ITenvironment

internal IS/ITenvironment

organisationstrategy

IS strategyWHAT?

IT StrategyHOW?

future applications

currentapplications

strategic IS/IT planningWHERE?

needs/priorities

servicesarchitecture

IS/IT opportunities

portfolio management

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The Strategies: The IS Strategy 1

IS strategy defines the information architecture and applications portfolio(s) at the organisation & function/department levelsorganisation

divisions

departments

functions

Need to define/integratestrategy level before ISstrategy can be set

Many organisations are simpler than this model - some are more complex.

Complexity produces problems of STRATEGIC ALIGNMENT

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The Strategies: The IS Strategy 2

Purpose:To define & integrate the organisation’s information resources at organisational, divisional & functional level

n establish needs & priorities for IS applicationsn align with business & IT strategiesn link with system development &

implementation processesn ‘feed forward’ into planning process

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The Strategies: The IT Strategy 1

Major input & linkage = IS strategy at organisational, divisional & functional levels

n decide on standards for hardware/systems & communications software - the infrastructure

n agree policies for acquisition, deployment & management of IT resources

n align with IS strategy & other organisational & functional strategies, particularly HRM

n link with systems development & systems implementation processes

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Key Inputs: External Environment

An assessment of the forces acting on the organisation & its operations:

n public economic conditionsn power structures & politicsn sources of funding

Factors of influence:n strategic use of IS/IT facilitates ‘downstream’ drift

of benefitsn operational, economic & technological

environments are changing more frequently n increased change places greater stress on IS/IT

effectiveness

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Key Inputs: Internal Organisational EnvironmentAn analysis of information & application needsbased on:n mission & objectives

must be expressed clearlymust be interpreted accurately

n operational activities & processesfuture directionsanalysing cost & value drivers

n strengths/weaknesses/competenciesn organisational structure & style

organisation structure & deploymentmanagement styleorganisational style & image

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Key Inputs: External IS/IT Environment

An assessment of opportunities/threats afforded by the technology ‘market-place’

n technology standards currently availablen technology trends emergingn How IS/IT is being used

by clientsby suppliers & customers

Need to balance:n organisation & IS/IT present & future needsn ‘durability & flexibility’ of new technologyn ‘cost & risk’ of new technologyn advantages/benefits vs cost/durability

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Key Inputs: Internal IS/IT Environment

An analysis of the effectiveness of IS/IT in the organisation in terms of:

n effectiveness of the IS/IT management process

n contribution of IS/IT to the organisationn reliability/performance of IS/ITn success of IS/IT implementation processesn skills of IS/IT developers & users

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n establish strategic directiondefine objectives/targets must be understood, agreed & supportedgenerate ideas/options for ways/means of achieving

n define strategyturn ideas and targets into policiesmake plansput selected options into practice

n implementationcommunicate plansimplement plansmonitor implementation

Three Stages of Strategy- setting Process

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Processes for Managing Strategy

Define mission & objectives,

Assess & selectoptions

Strategic planningof optionsselected

Implement

informal strategic thinkingvision & opportunity

establish strategic direction

define strategies achieve strategies

feedback feedback

The strategic process may be formal or informal

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Summary

n The need for IS and IT strategiesnWhere it fits inn Strategic IS/IT questionsn Symptoms of an ineffective IS/IT strategyn Formulating an IS/IT strategyn Key inputs to IS/IT strategyn Strategy setting processnManaging the strategy

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Further reading

nhttp://www.curtiscartwright.co.uk/IM_IS_IT_strategy.pdf

nThe LUCID IT viewGood stuff – includes a use of the five forces

model and a balanced score card.nBennett chapter 12

Management and Planning SEMESTER 1 September 2009

C:\Allwork\geoff\Modules\M&P\M&P session 8b tutorial - IS&IT.doc Created by Geoff Leese

Semester 1

Session 8b

Functional strategy – Information Systems

and Information Technology

Tutorial questions

a) Describe and discuss the IS and IT strategies of your own organisation, within the bounds of commercial confidentiality.

b) Use the “checklist” of issues presented on the header sheet this week as a guide.

Be prepared to discuss your answers in next week’s tutorial.