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COMPETITIVE 
ADVANTAGE 
THROUGH HUMAN 
RESOURCES
Competitive Advantage Through Human Resources 
Objectives 
• Competitive advantage: what and why? 
• How HRM activities may provide competitive 
advantage 
• Identify needed skills
Competitive Advantage Through Human Resources 
Competitive advantage 
• Customer value 
• Maintaining uniqueness 
HRM as a competitive advantage 
• HRM and strategy 
implementation 
• HR and the capacity for 
change 
• Human resources and 
strategic unity 
Skills required for HRM 
Competitiveness 
• General manager skills 
• HRM professional skills
Sample of Strategic Activities within HRM Domains 
Organizational Design 
• Formal/informal 
• Independence and 
responsiveness 
• Job design 
• Processes used 
Staffing 
• Criteria for bringing in new 
employees 
• Procedures for recruiting and 
orienting 
• Design of career paths and 
ladders 
• Processes for succession 
planning 
• Types of programs for 
terminated employees
Sample of Strategic Activities within HRM Domains 
Performance Appraisal and 
Management 
• Types of standards set 
• Types of performance review 
• Processes used to ensure 
feedback 
• Sources of data for 
measurement 
Reward and Benefits Systems 
• Types of financial incentives 
• Linkage of rewards to strategic 
plans 
• Individual vs. group incentives 
• Structure of nonfinancial 
rewards
Sample of Strategic Activities within HRM Domains 
Employee Training and 
Organizational Development 
• Desired outcomes of 
development 
• Types of participants in 
development programs 
• Content of programs and 
integration with strategic 
direction 
• Delivery of programs 
Health and Safety Issues 
• Compliance with health and 
safety (OSHA) 
• Reduce stress 
• Reduce illness and accidents
Sample of Strategic Activities within HRM Domains 
(continued) 
Employee/Employer 
Relationships 
• Types of information presented 
• Types of communication 
channels 
• Design of communication 
programs 
Productivity Improvement 
Programs 
• TQM 
• Design issues 
• Assessments of 
outcomes/deliverables 
• Customer based focus
Analysis of SWOT 
Organizational Environmental 
Capabilities Conditions 
Strengths Opportunities 
Weaknesses Threats 
Effective 
Human Resource 
Planning
A Diagnostic Framework: Internal and External Consistency 
1. Organization’s strategy 
Distinguish from competition 
Intended competencies 
Differentiating features 
2. Skills, abilities, attitudes and 
behaviors needed 
3. Current or proposed policies on: 
Recruitment 
Selection 
Compensation 
Career development 
Training 
Employment security 
Use of contract employees 
Ownership 
Performance appraisal 
Division of labor 
Organization of work 
4. Coordination of 1, 2 and 3 with 
organization’s strategy
HR Competencies Needed for Strategic Business Partners 
HRM Design and Delivery 
Competencies 
• Organization design 
• Staffing 
• Employee training and 
organization development 
• Performance appraisal and 
management 
• Reward and benefits systems 
• Employee/employer relationships 
• Productivity improvement 
• Health and safety 
Business Competencies 
• Financial or economic 
• Strategic or product capabilities 
• Technological 
Management-of-Change 
Competencies 
• Contracting 
• Diagnosing 
• Intervening 
• Implementing 
• Evaluating 
• Influencing
Seven Key Factors for Success in Making Change Happen 
Key Success Factors for Change 
Leading change (who) 
Shared need (why) 
Shaping a vision 
(what) 
Commitment 
(who else) 
Questions to Assess and Accomplish the Key Success 
Factors for Change 
Do we have a leader who champions? 
who commits personally? who commits resources? 
Do employees see the reason for and understand why the 
change? 
see how it will help them? 
Do employees see the outcomes of change? 
get excited and understand how customers are 
affected? 
Do the sponsors enlist support of all needed for the 
change to happen? 
build a responsibility matrix?
Seven Key Factors for Success in Making Change Happen 
(continued) 
Key Success Factors for 
Change 
Systems (how) 
Monitoring (how measured) 
Making it last (how long) 
Questions to Assess and Accomplish the Key Success 
Factors for Change 
Do the sponsors link change to other HR systems? 
recognize the implications of the change? 
Do the sponsors measure the success? 
benchmark progress and implement process? 
Do the sponsors know how to start and keep it going? 
have a plan of adaptation?
Human Resource Professional 
Staff Advisor 
Internal Consultant 
Change Agent 
Provider of Personnel Services Controller of 
Organizational Design Personnel Policies 
Staffing Auditing 
Employee and Organizational Stabilizing 
Development 
Performance Appraisal 
and Management 
Reward and Benefits Systems 
Employee/Employer 
Relationships Liason Role 
Productivity Improvement Coordination 
Health and Safety Integration
HRM Activities and Sample Issues 
Major Activities of HRM 
Professionals 
Organization Design 
Job Design 
Staffing 
Recruiting/interviewing/hiring 
Sample of Issues and Choices for 
HRM Practices 
Organization Design 
How can we design jobs so that 
individuals within the organization 
work on tasks which are rewarding 
and self-reinforcing 
Staffing 
What criteria do we set 
Short term vs. long term 
Full-time vs. part-time 
Contract vs. leased 
Job-focused vs. career focused 
Customer perspective
The Competitive Advantage of Marriott Corporation 
Objectives 
1. Identify HRM practices to create “employer of choice.” 
2. Connect “employer of choice” with “provider of choice.”
The Competitive Advantage of Marriott Corporation 
Part A: Individual Analysis 
Step 1: Generate a list of three HR actions to get to “employer of choice” 
Step 2: Identify the top three actions and justify using: 
• Marriott's competitive advantage 
• Major HR issues 
• Strategies 
• Complete Form 2.2.1 
• Complete Assessment Questions
The Competitive Advantage of Marriott Corporation 
Part B: Group Analysis 
Step 1: As a group: 
• Identify competitive advantage of accounting 
department 
• Review individual 2.2.1 forms 
• Reach consensus on top three issues 
• Discuss how the activities could bring Marriott 
“employer of choice” and develop HR competencies. 
• Identify benefits/drawbacks of each recommendation 
Step 2: Consensus recommendations to class
The Competitive Advantage of Marriott Corporation 
Priority List 
1. Survey new employees on job preferences 
Justification: Relative importance of the various options 
2. Study these data and run some cost figures 
Justification: Which options financially feasible. 
3. Increase the starting salary to the top of the competitive scale. 
Justification: Direct compensation important 
4. Look at indirect compensation 
Justification: Total cost less than perceived value
The Competitive Advantage of Marriott Corporation 
1. To what extent do your recommendations generalize to other 
organizations other than Marriott? 
Study preferences of potential employees generalizes to all 
organizations 
Recommendation for the travel package is unique to Marriott.
The Competitive Advantage of Marriott Corporation 
2. What additional information would assist you in developing the 
most valid list of HRM activities? 
List of all HRM activities now implemented 
Statistics on the success ratio and cost factors 
Current compensation policy
The Competitive Advantage of Marriott Corporation 
3. What other preparation could you have made for class discussion 
on the Marriott Corporation? 
Strategic plans 
Marriott's competitive position 
Interviews with Marriott employees
The Competitive Advantage of Marriott Corporation 
4.What competitive advantage principle did you 
consider in compiling your priority list? 
Financial capability enhances the "organizational 
capability" by: 
attracting and retaining more effective employees
1. What is meant by the term competitive advantage? Why is it 
important for an organization? 
• Strategies to exploit profitable opportunities 
• Perceived customer value and uniqueness 
• Maximizing return on investment 
• Necessary to survive and prosper
2. How can HRM activities be used to assist organizations in 
becoming competitive? 
• HRM activities: 
Hire 
Train 
Motivate 
Employee treatment 
Employee commitment 
• Competitive advantage through organizational capability 
Manage organizational systems and people to match customer 
and strategic needs 
Flexibility/adaptability in dynamic/turbulent environment 
Continuity and stability in more stable environments
3. To what extent do you consider corporate social responsibility 
when considering a product or service? Interview five friends to 
determine if any of them have considered social issues such as the 
environment or labor policies in their decision to purchase. 
Customer value 
Price 
Quality 
Convenience 
Service 
Dependability 
Operational excellence 
Customer intimacy 
Product leadership 
Diverse practices 
Fair labor practices 
Environmentally concerned
4. Provide some recommendations for how general managers and 
HRM professionals can acquire the skills they need to utilize HRM 
programs effectively. 
• Seminars, conferences/workshops, literature, networking 
• Develop interpersonal and management skills 
Self-paced learning 
Case studies 
Management games 
Assessment centers
5. Provide two examples of companies you are familiar with which are 
not using their HRM programs to utilize HRM programs effectively. 
Example of food manufacturing company in 
SE U.S. 
• Characteristics 
Controls 65% of local market 
Unionized 
• Problems 
Lack of HRM planning 
Employees feel manipulated by 
management 
Low morale 
Poor work scheduling 
(no one has two consecutive days 
off) 
• Possible HRM activities 
Cross training 
Flextime 
Job sharing 
Compressed work weeks
6. In the context of a SWOT analysis, evaluate the strategic state of 
Personnel Assessment Systems. What additional data do you need as a 
part of your SWOT analysis? 
Strengths Opportunities 
Scientifically valid testing International markets 
Stable customers Mass marketing 
Weakness Threat 
Change in testing media (Internet) Behind on on-line testing 
Additional data 
“Mass market” test similar to “core business” test? 
How far away PAS is from having web site? 
Will test be offered in host country dialects? 
What are the KASOC’s of the current personnel of PAS?
Competitive advantage through Human Resource

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Competitive advantage through Human Resource

  • 2. Competitive Advantage Through Human Resources Objectives • Competitive advantage: what and why? • How HRM activities may provide competitive advantage • Identify needed skills
  • 3. Competitive Advantage Through Human Resources Competitive advantage • Customer value • Maintaining uniqueness HRM as a competitive advantage • HRM and strategy implementation • HR and the capacity for change • Human resources and strategic unity Skills required for HRM Competitiveness • General manager skills • HRM professional skills
  • 4. Sample of Strategic Activities within HRM Domains Organizational Design • Formal/informal • Independence and responsiveness • Job design • Processes used Staffing • Criteria for bringing in new employees • Procedures for recruiting and orienting • Design of career paths and ladders • Processes for succession planning • Types of programs for terminated employees
  • 5. Sample of Strategic Activities within HRM Domains Performance Appraisal and Management • Types of standards set • Types of performance review • Processes used to ensure feedback • Sources of data for measurement Reward and Benefits Systems • Types of financial incentives • Linkage of rewards to strategic plans • Individual vs. group incentives • Structure of nonfinancial rewards
  • 6. Sample of Strategic Activities within HRM Domains Employee Training and Organizational Development • Desired outcomes of development • Types of participants in development programs • Content of programs and integration with strategic direction • Delivery of programs Health and Safety Issues • Compliance with health and safety (OSHA) • Reduce stress • Reduce illness and accidents
  • 7. Sample of Strategic Activities within HRM Domains (continued) Employee/Employer Relationships • Types of information presented • Types of communication channels • Design of communication programs Productivity Improvement Programs • TQM • Design issues • Assessments of outcomes/deliverables • Customer based focus
  • 8. Analysis of SWOT Organizational Environmental Capabilities Conditions Strengths Opportunities Weaknesses Threats Effective Human Resource Planning
  • 9. A Diagnostic Framework: Internal and External Consistency 1. Organization’s strategy Distinguish from competition Intended competencies Differentiating features 2. Skills, abilities, attitudes and behaviors needed 3. Current or proposed policies on: Recruitment Selection Compensation Career development Training Employment security Use of contract employees Ownership Performance appraisal Division of labor Organization of work 4. Coordination of 1, 2 and 3 with organization’s strategy
  • 10. HR Competencies Needed for Strategic Business Partners HRM Design and Delivery Competencies • Organization design • Staffing • Employee training and organization development • Performance appraisal and management • Reward and benefits systems • Employee/employer relationships • Productivity improvement • Health and safety Business Competencies • Financial or economic • Strategic or product capabilities • Technological Management-of-Change Competencies • Contracting • Diagnosing • Intervening • Implementing • Evaluating • Influencing
  • 11. Seven Key Factors for Success in Making Change Happen Key Success Factors for Change Leading change (who) Shared need (why) Shaping a vision (what) Commitment (who else) Questions to Assess and Accomplish the Key Success Factors for Change Do we have a leader who champions? who commits personally? who commits resources? Do employees see the reason for and understand why the change? see how it will help them? Do employees see the outcomes of change? get excited and understand how customers are affected? Do the sponsors enlist support of all needed for the change to happen? build a responsibility matrix?
  • 12. Seven Key Factors for Success in Making Change Happen (continued) Key Success Factors for Change Systems (how) Monitoring (how measured) Making it last (how long) Questions to Assess and Accomplish the Key Success Factors for Change Do the sponsors link change to other HR systems? recognize the implications of the change? Do the sponsors measure the success? benchmark progress and implement process? Do the sponsors know how to start and keep it going? have a plan of adaptation?
  • 13. Human Resource Professional Staff Advisor Internal Consultant Change Agent Provider of Personnel Services Controller of Organizational Design Personnel Policies Staffing Auditing Employee and Organizational Stabilizing Development Performance Appraisal and Management Reward and Benefits Systems Employee/Employer Relationships Liason Role Productivity Improvement Coordination Health and Safety Integration
  • 14. HRM Activities and Sample Issues Major Activities of HRM Professionals Organization Design Job Design Staffing Recruiting/interviewing/hiring Sample of Issues and Choices for HRM Practices Organization Design How can we design jobs so that individuals within the organization work on tasks which are rewarding and self-reinforcing Staffing What criteria do we set Short term vs. long term Full-time vs. part-time Contract vs. leased Job-focused vs. career focused Customer perspective
  • 15. The Competitive Advantage of Marriott Corporation Objectives 1. Identify HRM practices to create “employer of choice.” 2. Connect “employer of choice” with “provider of choice.”
  • 16. The Competitive Advantage of Marriott Corporation Part A: Individual Analysis Step 1: Generate a list of three HR actions to get to “employer of choice” Step 2: Identify the top three actions and justify using: • Marriott's competitive advantage • Major HR issues • Strategies • Complete Form 2.2.1 • Complete Assessment Questions
  • 17. The Competitive Advantage of Marriott Corporation Part B: Group Analysis Step 1: As a group: • Identify competitive advantage of accounting department • Review individual 2.2.1 forms • Reach consensus on top three issues • Discuss how the activities could bring Marriott “employer of choice” and develop HR competencies. • Identify benefits/drawbacks of each recommendation Step 2: Consensus recommendations to class
  • 18. The Competitive Advantage of Marriott Corporation Priority List 1. Survey new employees on job preferences Justification: Relative importance of the various options 2. Study these data and run some cost figures Justification: Which options financially feasible. 3. Increase the starting salary to the top of the competitive scale. Justification: Direct compensation important 4. Look at indirect compensation Justification: Total cost less than perceived value
  • 19. The Competitive Advantage of Marriott Corporation 1. To what extent do your recommendations generalize to other organizations other than Marriott? Study preferences of potential employees generalizes to all organizations Recommendation for the travel package is unique to Marriott.
  • 20. The Competitive Advantage of Marriott Corporation 2. What additional information would assist you in developing the most valid list of HRM activities? List of all HRM activities now implemented Statistics on the success ratio and cost factors Current compensation policy
  • 21. The Competitive Advantage of Marriott Corporation 3. What other preparation could you have made for class discussion on the Marriott Corporation? Strategic plans Marriott's competitive position Interviews with Marriott employees
  • 22. The Competitive Advantage of Marriott Corporation 4.What competitive advantage principle did you consider in compiling your priority list? Financial capability enhances the "organizational capability" by: attracting and retaining more effective employees
  • 23. 1. What is meant by the term competitive advantage? Why is it important for an organization? • Strategies to exploit profitable opportunities • Perceived customer value and uniqueness • Maximizing return on investment • Necessary to survive and prosper
  • 24. 2. How can HRM activities be used to assist organizations in becoming competitive? • HRM activities: Hire Train Motivate Employee treatment Employee commitment • Competitive advantage through organizational capability Manage organizational systems and people to match customer and strategic needs Flexibility/adaptability in dynamic/turbulent environment Continuity and stability in more stable environments
  • 25. 3. To what extent do you consider corporate social responsibility when considering a product or service? Interview five friends to determine if any of them have considered social issues such as the environment or labor policies in their decision to purchase. Customer value Price Quality Convenience Service Dependability Operational excellence Customer intimacy Product leadership Diverse practices Fair labor practices Environmentally concerned
  • 26. 4. Provide some recommendations for how general managers and HRM professionals can acquire the skills they need to utilize HRM programs effectively. • Seminars, conferences/workshops, literature, networking • Develop interpersonal and management skills Self-paced learning Case studies Management games Assessment centers
  • 27. 5. Provide two examples of companies you are familiar with which are not using their HRM programs to utilize HRM programs effectively. Example of food manufacturing company in SE U.S. • Characteristics Controls 65% of local market Unionized • Problems Lack of HRM planning Employees feel manipulated by management Low morale Poor work scheduling (no one has two consecutive days off) • Possible HRM activities Cross training Flextime Job sharing Compressed work weeks
  • 28. 6. In the context of a SWOT analysis, evaluate the strategic state of Personnel Assessment Systems. What additional data do you need as a part of your SWOT analysis? Strengths Opportunities Scientifically valid testing International markets Stable customers Mass marketing Weakness Threat Change in testing media (Internet) Behind on on-line testing Additional data “Mass market” test similar to “core business” test? How far away PAS is from having web site? Will test be offered in host country dialects? What are the KASOC’s of the current personnel of PAS?

Hinweis der Redaktion

  1. Maintaining uniqueness - Financial or economic capital capability; Physical capital capability; Human capital capability; Organizational capability General manager skills - Create a need for HRM changes; Create a vision of the importance of HRM practices; Generate commitment to using HRM activities; Learn and become proficient in the delivery of HRM practices HRM professional skills - Know the business; Manage the process of change; Design and deliver HRM programs; Integration
  2. Indirect compensation (travel accommodation benefit package that could be used only after six months of employment, career development program for the normal progression of graduates, compensation systems which are performance based, ESOP). Justification: total cost less than perceived value, cost of pay for performance negligible, and performance increases translated directly into increased revenues and customer satisfaction, sense of ownership.
  3. Three specific ways HRM activities can build organizational capability and sustain competitive advantage: Implementing a strategy, dealing with change, and building strategic unity (extent to which stakeholders share a core set of values and assumptions about a business).