and analyzing the company's value chain can also help the HR
manager create an HR system that makes sense in terms of the
firm’s strategy. For example, it can help him or her identify the
organizational outcomes the company absolutely must achieve if it
is to achieve its strategic goals. (For example, at Einstein Medical,
delivering new services was so critical to what they had to
accomplish, it was obvious it had to be a core value chain activity.)
This in turn can help the HR manager better understand what
employee behaviors and competencies are required, and what HR
policies and activities (HR system) would produce these behaviors
and competencies.
Consider another example. At Dell Computer, "phone technicians
competently and courteously assisting Dell customers with
problems" is a crucial (or "core") value chain activity; indeed, it is a
big part of what Dell has built its reputation on. The critical nature
of this activity would be apparent from any outlining of Dell's value
chain. Given this, Dell HR might well decide that, one way HR
could add value is by improving phone technicians' performance
through the use of special computerized job aids that show
technicians what series of questions to ask when customers call in
with problems.
Step 3: Identify the Strategically Required Organizational Outcomes:
Every company must produce critical, strategically relevant
outcomes if it is to achieve its strategic goals. At Einstein Medical,
a new service delivered was one such required organizational
outcome. At Dell, receiving quick, competent, and courteous
technical advice by phone is one such outcome. Based on his or
her understanding of how the company operates, and perhaps an
analysis of the firm's value chain, the manager, in this step, now
identifies and specifies the strategically relevant organizational
outcomes.