Module 1 Strategic Management

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CERTIFIED PROFESSIONAL

IN HUMAN RESOURCES
MANAGEMENT (CPHRM™)
Leading People.
Leading organizations.

© SHRM 1-1
Number: 124/CPHRM/HCI/X/2012

This is to certify that

THE SHRM
Sindoro Ardinal
LEARNING SYSTEM & CURRICULUM

successfully achieved as
Certified of Professional
Human Resources Management
(CPHRM)
completed course and examination requirement
www.human-capital-international.net

JACK ALENZO
COURSE LEADER
Period 2010/2012
Facilitator : Drs. Jack Alenzo, MM. MH
HP: 0821 2550 5699 – [email protected]

1. 1996 – 2000 : Staf HR & GA, PT AEG Indonesia (Mercedes


Benz Industry Group)
2. 2000 – 2003 : HRGA Supervisor, PT. Alstom Distribution
(Alstom Group FA)
3. 2004 : HRGA Head, BUT Samsung C&E
4. 2004 – 2008 : HR Head, DuPont Indonesia

5. 2008 – 2010 : HR Sr. Manager, PT. Bina Guna Kimia (FMC


Corporation)
6. Project Manager, MPC Total E&P Indonesia, 2010 - 2011

7. MD Human Capital International, 2011 – now

8. Guest Lecture : F Psychology UI, PIMI Paramadina, etc

9. Consultant, Associate Trainer: workshop subjects : Corporate Culture, Employee and Management
Cooperation, Industrial Relation Practitioner Certification, Supervisory skill, Employee Engagement,
Coaching in the Workplace, Seven Habits, Personnel Management Certification, The Workforce
Scorecard, Alignment, Exexcution, Strategy & Business Portfolio, etc

6. Service area: Pertamina, Vico Indonesia, Astra Otopart, KIEC, Honda Motor, Kemenhub, Krakatau
Steel, Kemen ESDM, Pelindo, BRI Syariah, CIMB Niaga, BII, Pertamina Retail, Jasindo, Garuda
Indonesia, Garuda Maintenence Facility, IBM Indonesia, Yamaha Indonesia, Sucofindo, Sinarmas,
Chevron, Infomedia, SJU, Tiga Serangkai, Wijaya Karya, Syngenta, Pertamina PHE, Kemenkeu,
Body Shop, Campina dll
HUMAN CA[PTAL INTERNATIONAL
www.human –capital-international.net

Our passion is become a trusted and reliable partner for our


Vision customers as their top choice in development strategy,
organization improvement and human capital management

Our mission is to help our clients make distinctive,


Mission lasting, and substantial improvements in their
performance and to build a great firm that attracts,
develop, excites, and retain exceptional people

For us this means always:


• Put the client’s interest ahead of our own
• Behave as professional
Values • Keep our client information confidential
• Tell the truth as we see it
• Deliver the best services to every client as cost
effectively as we can
Our Services

We deliver and facilitate workshops and


trainings : public and in-house. Its also We develop business plans, strategic
team buildng and outdoor learning plans, organization development and
programs human capital management system

Training Consulting

Outsourcing Head Hunting & Assesment

We offer customized services to provide We offer Executive Search and


flexbility and cost effective approaches Recrutment service as clients needed as
of the highest quality to our clients well as assesment service for your people

Plan + Consult + Great Implement = Your Business Succes


SHRM CURRICULUM
• Strategic Management • Total Rewards
• Workforce Planning • Employee and Labor
and Employment Relations
• Human Resource • Risk Management
Development

Case Study & Group Discussion

© SHRM 1-6
Module 1: Strategic Management

© SHRM 1-7
HR Roles

Historical: Current:
• Advice • Strategic
• Service • Operational
• Control • Administrative

Historical roles are still important, but roles have


broadened into today’s more strategic focus.
© SHRM 1-8
Evolution of Organizations

HR Focus:
Staffing Staffing and Compensation, HR planning, Change management
training training Outplacement
Crisis:
Bureaucracy Cross-training
Crisis: Change
Crisis: resistance
Delegation Need: Need:
Formal systems • Streamlined
Crisis: decision making
Leadership • Flexibility
Need: Clear
direction • Small-company
Need:
thinking
Creativity
Introduction Growth Maturity Decline

© SHRM 1-10
Management Functions

Planning Organizing Directing Controlling

Forecast Design Schedule Measure


Set goals Assist Implement

© SHRM 1-13
Balanced Scorecard

• Aligns business
Customers
function measures
with organizational
strategies.
Mission
Vision Business • Measures the
Finance
Values processes effectiveness of a
department or the
entire company.
Learning
and
• Considers perspective
growth of all stakeholders.

© SHRM 1-14
Strategic Planning Process

• Defines where the organization is now, where it wants to


be, and how it will get there.
• Gathers internal and external information.
• Develops alternative strategies.
• Selects appropriate strategies.
• Implements a plan.
• Evaluates and revises the plan as needed.
Phase 1 Phase 2 Phase 3 Phase 4
Strategy
Strategy Strategy Strategy
Implementa-
Formulation Development Evaluation
tion

© SHRM 1-15
Phase 1: Strategy Formulation

Strategy Formulation Must understand:


• What business the
• Develop vision and company is in.
mission statements.
• Define organizational
• When to change the
values. mission and alter
strategy.
• How and when to
communicate the mission.

© SHRM 1-16
Phase 2: Strategy Development

Strategy Development
S = Internal strengths
• Conduct a SWOT analysis,
including environmental
scan.
W = Internal weaknesses
• Establish long-term
objectives (three to five
O = External
years). opportunities
• Identify corporate, unit,
and functional strategies. T = External threats

© SHRM 1-17
Phase 3: Strategy Implementation

Strategy Resources needed to


Implementation achieve objectives:
• Establish short-term
• Financial
objectives (six months to • Physical
a year). • Human
• Develop action plans.
• Allocate resources. • Technological
• Motivate employees.

© SHRM 1-18
Phase 4: Strategy Evaluation

Strategy Evaluation • Assess strategies by


noting changes in:
• Review strategies at – Internal strengths and
planned intervals. weaknesses.
• Measure performance. – External opportunities
• Take corrective action. and threats.
• Take corrective action
when changes have
occurred.

© SHRM 1-19
Cost Leadership Strategy

Goal: To be the low-cost producer


• Requires:
– Exploitation of all sources of cost advantage.
– Efficiency and productivity.
– Sharing of information.
– Centralized decision making.
– Cross-training and job rotation.
– Process improvements.

© SHRM 1-25
Differentiation Strategy

Goal: Attempt to set the product apart from its


competition by giving it unique characteristics for
which customers will pay a premium price
• Requires:
– Reduced costs in areas not related to differentiation.
– Strong research and development and marketing.
– Product knowledge and quality training.
– Decentralized decision making for quicker speed to
market.

© SHRM 1-26
Other Strategies

• Emphasis on a buyer group, a segment of the


Focus product line, or a specific market

Human • Investment in people


capital
advantage

• Emphasis on understanding customer needs and


Customer helping them get the most out of their products
intimacy

© SHRM 1-27
Functional Structure

Info-Tech
President

HR Operations IT Accounting Marketing

© SHRM 1-29
Divisional Structure

Info-Tech
President

Electronic Office Virtual


HR
Publishing Automation Reality

Operations Operations Operations

IT IT IT

Accounting Accounting Accounting

Marketing Marketing Marketing

HR HR HR

© SHRM 1-30
Matrix Structure

President

Director, Design Manufacturing Marketing


Procurement
Product Vice Vice Vice Controller
Manager
Operations President President President

Product
Manager A

Product
Manager B

Product
Manager C Location of a two-
boss employee
Product
Manager D

© SHRM 1-31
Authority and Reporting Issues

Chain of Command Span of Control


• Line of authority • Number of individuals
within an organization who report to a
• Defines the boundaries supervisor
within which a – Narrow span (“tall”
manager can make organization)
decisions – Wide span (“flat”
organization)

© SHRM 1-32
Centralization and Decentralization

Centralization Decentralization

Decision Making
Authority resides Authority is shared
with upper with lower levels.
management.

Formalization: Degree of discretion individuals


have over the way in which they do their jobs.

© SHRM 1-33
HR Measurement Methods

• Organization’s most • Training investment


important issues (e.g., dollar factor
sales per employee or • Time to start
percentage of workforce that • Cost per hire
is unionized)
• Human capital ROI
• Turnover cost
• Compensation as a
percentage of operating
expense

© SHRM 1-35
HR Audit

• Analyzes effectiveness and


efficiency of HR programs.
• Keeps executives current on
HR activities.
• Allows HR managers to cut
or enhance programs and
address noncompliance.
• Conducted by HR staff or a
third-party contractor.

© SHRM 1-39
Scientific Method

• Problem analysis
1
• Hypothesis formulation
2

3 • Experimental design

• Data collection
4
• Data analysis
5

© SHRM 1-40
Budgeting Methods

• Prior budget and newly identified needs are the basis


Incremental
for funding.

• Usually stated as a percentage of increase or decrease


Formula
to general funding.

• All objectives and operations are ranked and funds


are allocated according to rank.
Zero-based • Budgets start at zero; all expenses must be justified.

© SHRM 1-41
Project Management Steps

1 2 3 4

Conception Planning, scheduling, Completion Evaluation


monitoring, and
control
Roles
Interpersonal Informational Decisional
• Leader • Communicator • Conflict resolver
• Liaison • Information disseminator • Resource allocator

© SHRM 1-42
Change Management Model

1. Determine the need or desire for


7. Implement and evaluate change.
the change.

6. Communicate the change. 2. Prepare tentative plans.

5. Establish a project plan 3. Discuss alternatives and


and a timetable. probable reactions.

4. Make a final decision.

HR challenge: To maintain the level of intensity and


consistency of effort throughout the change process
© SHRM 1-45
The Outsourcing Strategy

1. Analyze needs and 6. Choose contractor.


define goals. 7. Negotiate contract.
2. Define budget. 8. Implement and
3. Create RFP. monitor.
4. Send RFPs to 9. Evaluate.
contractors.
5. Evaluate contractor
proposals.

© SHRM 1-46
Ethical Issues

• Board of directors’ • Insider trading


training • Cultural clashes
• Workplace privacy • Copyrights
• Whistleblowing • Corporate responsibility
• Conflict of interest
• Bribes, payoffs, and
kickbacks
• Organizational abuse

© SHRM 1-47

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