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STRATEGIC HR MANAGEMENT TOOLS - Coggle Diagram
STRATEGIC HR MANAGEMENT TOOLS
-integrating human resources management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders.
changes in policies, processes, products, markets, culture, or mission
depend on HR on many levels
new approaches often require new ways of thinking and a shift to a more dynamic style of doing business
might demand the implementation of new technologies which require training programs.
managers use several tools to translate the company's strategic goals into human resource management policies and practices
these tools include
the strategy map
the HR scorecard
the digital dashboard
strategy map
is a strategic planning tool that shows the "big picture" of how each department's performance contributes to achieving the company's overall strategic goals.
example for a company could show its top-level target to increase revenue, profitability, and cut costs.
the HR scorecard
is a process for assigning financial and non-financial goals or metrics to the human resource management - related chain of activities required for achieving the company's strategic aims and for monitoring results.
is a strategic HR measurement system that helps to measure, manage, and improve the strategic role of the HR department.
derives from the "balanced scorecard" planning approach, which aims to balance hard data such as financial measures with soft data such as customer satisfaction in assessing a company's performance.
there are five steps to create an HR scorecard
1) is to create an HR strategy map
the strategy map helps to identify how HR is driving these business outcomes.
2) is concerned with policies, processes, and practices
the idea here is that HR should create a number of High-Performance Work Systems (HPWS).
an HPWS is a group of separate but interconnected HR practices designed to enhance effectiveness.
3) aligning HR systems
the digital dashboard presents the manager with desktop graphs and charts, and so a computerized picture of where the company stands on all these metrics from the HR scorecard process.
the importance of HRM has grown substantially over the years and HR expenditures are now viewed as a strategic investment rather than simply a cost to be minimized.