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CHAPTER 4

THE EVOLVING/

STRATEGIC ROLE

OF HUMAN

RESOURCE

MANAGEMENT

(2)

Copyright © 2002 South-Western. All rights reserved. 4–2

Strategic Human Resource

Strategic Human Resource

Management

Management

Strategic Human Resource

Strategic Human Resource

Management

Management

Involves the development of a consistent, aligned

Involves the development of a consistent, aligned

collection of practices, programs, and policies to

collection of practices, programs, and policies to

facilitate the achievement of the organization’s

facilitate the achievement of the organization’s

strategic objectives.

strategic objectives.

Requires abandoning the mindset and practices of

Requires abandoning the mindset and practices of

“personnel management” and focusing on

“personnel management” and focusing on

strategic issues than operational issues.

strategic issues than operational issues.

Integration of all HR programs within a larger

Integration of all HR programs within a larger

framework, facilitating the organization’s mission

framework, facilitating the organization’s mission

and its objectives.

and its objectives.

Involves the development of a consistent, aligned

Involves the development of a consistent, aligned

collection of practices, programs, and policies to

collection of practices, programs, and policies to

facilitate the achievement of the organization’s

facilitate the achievement of the organization’s

strategic objectives.

strategic objectives.

Requires abandoning the mindset and practices of

Requires abandoning the mindset and practices of

“personnel management” and focusing on

“personnel management” and focusing on

strategic issues than operational issues.

strategic issues than operational issues.

Integration of all HR programs within a larger

Integration of all HR programs within a larger

framework, facilitating the organization’s mission

framework, facilitating the organization’s mission

(3)
(4)

Copyright © 2002 South-Western. All rights reserved. 4–4

Traditional HR versus Strategic HR

Traditional HR versus Strategic HR

Traditional HR versus Strategic HR

(5)

Copyright © 2002 South-Western. All rights reserved. 4–5

Barriers to Strategic HR

Barriers to Strategic HR

Barriers to Strategic HR

(6)
(7)
(8)

Copyright © 2002 South-Western. All rights reserved. 4–8

Reading 4.1: HR and Organizational

Reading 4.1: HR and Organizational

Excellence

Excellence

Reading 4.1: HR and Organizational

Reading 4.1: HR and Organizational

Excellence

Excellence

HR can help deliver organizational excellence by:

HR can help deliver organizational excellence by:

– Becoming a partner with senior and line managers in Becoming a partner with senior and line managers in strategy execution.

strategy execution.

– Becoming expert in the way work is organized, delivering Becoming expert in the way work is organized, delivering administrative efficiency to ensure that costs are reduced administrative efficiency to ensure that costs are reduced

while quality is maintained. while quality is maintained.

– Becoming a champion for employees, representing their Becoming a champion for employees, representing their concerns to senior management and working to increase concerns to senior management and working to increase

employee contributions. employee contributions.

– Becoming an agent of continuous transformation by shaping Becoming an agent of continuous transformation by shaping processes and organizational culture.

processes and organizational culture.

HR can help deliver organizational excellence by:

HR can help deliver organizational excellence by:

– Becoming a partner with senior and line managers in Becoming a partner with senior and line managers in

strategy execution.

strategy execution.

– Becoming expert in the way work is organized, delivering Becoming expert in the way work is organized, delivering

administrative efficiency to ensure that costs are reduced

administrative efficiency to ensure that costs are reduced

while quality is maintained.

while quality is maintained.

– Becoming a champion for employees, representing their Becoming a champion for employees, representing their

concerns to senior management and working to increase

concerns to senior management and working to increase

employee contributions.

employee contributions.

– Becoming an agent of continuous transformation by shaping Becoming an agent of continuous transformation by shaping

processes and organizational culture.

(9)

Copyright © 2002 South-Western. All rights reserved. 4–9

Reading 4.1: Five Critical Business

Reading 4.1: Five Critical Business

Challenges

Challenges

Reading 4.1: Five Critical Business

Reading 4.1: Five Critical Business

Challenges

Change, Change, and More Change

Change, Change, and More Change

Globalization

Change, Change, and More Change

(10)

Copyright © 2002 South-Western. All rights reserved. 4–10

Reading 4.1: HR as Strategy Execution

Reading 4.1: HR as Strategy Execution

Partner

Partner

Reading 4.1: HR as Strategy Execution

Reading 4.1: HR as Strategy Execution

Partner

Partner

HR is responsible for defining an organizational

HR is responsible for defining an organizational

structure as the model for the company’s way of

structure as the model for the company’s way of

doing business.

doing business.

HR must be accountable for conducting an

HR must be accountable for conducting an

organizational audit.

organizational audit.

HR is to identify methods to renovate part of the

HR is to identify methods to renovate part of the

organizational architecture.

organizational architecture.

HR must take stock of its own work and set clear

HR must take stock of its own work and set clear

priorities.

priorities.

HR is responsible for defining an organizational

HR is responsible for defining an organizational

structure as the model for the company’s way of

structure as the model for the company’s way of

doing business.

doing business.

HR must be accountable for conducting an

HR must be accountable for conducting an

organizational audit.

organizational audit.

HR is to identify methods to renovate part of the

HR is to identify methods to renovate part of the

organizational architecture.

organizational architecture.

HR must take stock of its own work and set clear

HR must take stock of its own work and set clear

priorities.

(11)

Copyright © 2002 South-Western. All rights reserved. 4–11

Reading 4.1: HR and Organizational

Reading 4.1: HR and Organizational

Culture

Culture

Reading 4.1: HR and Organizational

Reading 4.1: HR and Organizational

Culture

Culture

HR can help bring about a cultural change by:

HR can help bring about a cultural change by:

– Defining and clarifying the concept of cultural change.Defining and clarifying the concept of cultural change. – Articulating why cultural change is central to business Articulating why cultural change is central to business

success. success.

– Defining a process for assessing the current culture and the Defining a process for assessing the current culture and the desired new culture, as well as measuring the gap between desired new culture, as well as measuring the gap between

the two. the two.

– Identifying alternative approaches to creating culture Identifying alternative approaches to creating culture change.

change.

HR can help bring about a cultural change by:

HR can help bring about a cultural change by:

– Defining and clarifying the concept of cultural change.Defining and clarifying the concept of cultural change. – Articulating why cultural change is central to business Articulating why cultural change is central to business

success.

success.

– Defining a process for assessing the current culture and the Defining a process for assessing the current culture and the

desired new culture, as well as measuring the gap between

desired new culture, as well as measuring the gap between

the two.

the two.

– Identifying alternative approaches to creating culture Identifying alternative approaches to creating culture

change.

(12)

Copyright © 2002 South-Western. All rights reserved. 4–12

Reading 4.1: Four Changes for the Line

Reading 4.1: Four Changes for the Line

Reading 4.1: Four Changes for the Line

Reading 4.1: Four Changes for the Line

How senior operating management can create an

How senior operating management can create an

environment in which HR becomes focused on

environment in which HR becomes focused on

outcomes instead of activities:

outcomes instead of activities:

– Communicate to the organization that the “soft stuff” Communicate to the organization that the “soft stuff” matters.

matters.

– Explicitly define the deliverables from HR, and hold HR Explicitly define the deliverables from HR, and hold HR accountable for results.

accountable for results.

– Invest in innovative HR practices.Invest in innovative HR practices. – Upgrade HR professionals.Upgrade HR professionals.

How senior operating management can create an

How senior operating management can create an

environment in which HR becomes focused on

environment in which HR becomes focused on

outcomes instead of activities:

outcomes instead of activities:

– Communicate to the organization that the “soft stuff” Communicate to the organization that the “soft stuff”

matters.

matters.

– Explicitly define the deliverables from HR, and hold HR Explicitly define the deliverables from HR, and hold HR

accountable for results.

accountable for results.

(13)

Copyright © 2002 South-Western. All rights reserved. 4–13

Reading 4.2: Human Capital Management

Reading 4.2: Human Capital Management

Reading 4.2: Human Capital Management

Reading 4.2: Human Capital Management

To become effective human capital managers, HR

To become effective human capital managers, HR

mangers must develop competencies in:

mangers must develop competencies in:

– Knowledge of the business.Knowledge of the business.

– Human resource functional expertise.Human resource functional expertise. – The management of change.The management of change.

To become effective human capital managers, HR

To become effective human capital managers, HR

mangers must develop competencies in:

mangers must develop competencies in:

– Knowledge of the business.Knowledge of the business.

(14)

Copyright © 2002 South-Western. All rights reserved. 4–14

Reading 4.2: New Functional Role for HR

Reading 4.2: New Functional Role for HR

Reading 4.2: New Functional Role for HR

Reading 4.2: New Functional Role for HR

HR must focus on business level outcomes rather

HR must focus on business level outcomes rather

than HR level inputs.

than HR level inputs.

HR must become a strategic core competency

HR must become a strategic core competency

rather than a market follower.

rather than a market follower.

Strategic competencies are more important than

Strategic competencies are more important than

functional competencies.

functional competencies.

The most important missing element in the HR

The most important missing element in the HR

function expertise is a systems perspective.

function expertise is a systems perspective.

HR must focus on business level outcomes rather

HR must focus on business level outcomes rather

than HR level inputs.

than HR level inputs.

HR must become a strategic core competency

HR must become a strategic core competency

rather than a market follower.

rather than a market follower.

Strategic competencies are more important than

Strategic competencies are more important than

functional competencies.

functional competencies.

The most important missing element in the HR

The most important missing element in the HR

function expertise is a systems perspective.

(15)

Copyright © 2002 South-Western. All rights reserved. 4–15

Reading 4.3: Organization Culture

Reading 4.3: Organization Culture

Questionnaire

Questionnaire

Reading 4.3: Organization Culture

Reading 4.3: Organization Culture

Questionnaire

Questionnaire

Topics to be included in the questionnaire:

Topics to be included in the questionnaire:

– How is performance defined, measured and rewarded in the How is performance defined, measured and rewarded in the organization?

organization?

– How are information and resources allocated and managed How are information and resources allocated and managed in the organization?

in the organization?

– What is the operational philosophy of the organization with What is the operational philosophy of the organization with regard to risk-taking, leadership, and concern for overall regard to risk-taking, leadership, and concern for overall

results? results?

– Does the organization regard its human resources as costs Does the organization regard its human resources as costs or assets?

or assets?

Topics to be included in the questionnaire:

Topics to be included in the questionnaire:

– How is performance defined, measured and rewarded in the How is performance defined, measured and rewarded in the

organization?

organization?

– How are information and resources allocated and managed How are information and resources allocated and managed

in the organization?

in the organization?

– What is the operational philosophy of the organization with What is the operational philosophy of the organization with

regard to risk-taking, leadership, and concern for overall

regard to risk-taking, leadership, and concern for overall

results?

results?

– Does the organization regard its human resources as costs Does the organization regard its human resources as costs

or assets?

(16)

Copyright © 2002 South-Western. All rights reserved. 4–16

Reading 4.3: Analyzing Dysfunctional

Reading 4.3: Analyzing Dysfunctional

Cultures

Cultures

Reading 4.3: Analyzing Dysfunctional

Reading 4.3: Analyzing Dysfunctional

Cultures

Cultures

Which components of the culture are misaligned?

Which components of the culture are misaligned?

What priorities should be assigned each of the

What priorities should be assigned each of the

gaps between what the culture is and what people

gaps between what the culture is and what people

feel that it should be?

feel that it should be?

What resources are needed and how should they

What resources are needed and how should they

be used to change the culture?

be used to change the culture?

How should the change effort be managed and

How should the change effort be managed and

who does what?

who does what?

What role should HR strategy play in signaling,

What role should HR strategy play in signaling,

making and reinforcing the necessary changes?

making and reinforcing the necessary changes?

Which components of the culture are misaligned?

Which components of the culture are misaligned?

What priorities should be assigned each of the

What priorities should be assigned each of the

gaps between what the culture is and what people

gaps between what the culture is and what people

feel that it should be?

feel that it should be?

What resources are needed and how should they

What resources are needed and how should they

be used to change the culture?

be used to change the culture?

How should the change effort be managed and

How should the change effort be managed and

who does what?

who does what?

What role should HR strategy play in signaling,

What role should HR strategy play in signaling,

making and reinforcing the necessary changes?

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