9279_strategic hrm.pdf
TRANSCRIPT
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Strategy is deciding where to go and the
means to get there.
Strategy is a declaration of intent.
Strategy
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Some Organisational Strategies
Company Strategic Principle
General Be number one or number two inElectric every industry in which we
compete, or get out
Wal-Mart Low prices, every day
3M Foster innovation
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Strategic PlanningTher
e are three levels of strategic planning -
Corporate
Strategy
Functional
Strategies
Business
Strategy
Business
Strategy
Business
Strategy
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Corporate-level strategy
Identifies the portfolio of businesses that, in total,comprise the company and the ways in which these
businesses relate to each other.
Diversification strategy
Vertical integration strategy
Consolidation strategy
Geographic expansion strategy
Types of Strategic Planning
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Business-level/competitive strategy
Identifies how to build and strengthen the businessslong-term competitive position in the marketplace.
Cost leadership
Differentiation
Focus
Types of Strategic Planning
(contd)
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Functional strategies
Identify the basic courses of action that each
department will pursue in order to help the
business attain its competitive goals.
Types of Strategic Planning
(contd)
B S O ll C
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Business Strategy = Overall CostLeadership
Common Organizational
Characteristics HR Strategies
Intense supervision of
labor
Tight cost controlrequiring frequent,
detailed control reports
Low-cost distribution
system Structured organization
and responsibilities
Products designed for
ease in manufacture
Detailed work planning
Emphasis on technical
qualifications and skills
Emphasis on job-specific
training
Emphasis on job-based pay
Use of performance
a raisal as a control device
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Business Strategy =Differentiation
Common OrganizationalCharacteristics
HR Strategies
Strong marketing
abilities
Product engineering
Corporate reputation for
quality or technological
leadership Amenities to attract
highly skilled labor,
scientists, or creative
people.
Emphasis on innovation
and flexibility Broad job classes
Loose work planning
External recruitment
Team-based training
Emphasis on individual-
based pay
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Business Strategy = Focus
Common OrganizationalCharacteristics
HRStrategies
Combination of cost-
leadership and
differentiation
strategy directed at a
particular strategictarget.
Combination of HR
strategies of the
other two
strategies.
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Michael Porter
Emphasizes the fit point of view that all of the firmsactivities must be tailored to or fit its strategy
Gary Hamel and C. K. Prahalad
Argue for stretch in leveraging resourcessupplementing what you have and doing more with what
you have
Achieving Strategic Fit
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Linking HRM with strategic goals and objectives to
improve business performance and develop
organizational cultures fostering innovation andflexibility.
Defines the organisationsintentions and plans on how
its business goals should be achieved through people.
STRATEGIC HUMAN RESOURCEMANAGEMENT
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Formulate Business
Strategy
Identify Employee Competencies andBehaviors that HR must deliver to achieve thestrategy
Formulate HR Policies & Activities that will leadto these Employee Competencies and Behaviors
Linking Corporate and HR Strategy
Externalenvironment
InternalStrengths &Weaknesses
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HR helps top management formulate strategy in a variety
of ways by.
Supplying competitive intelligence regarding the external
environment
Supplying information regarding the companys internal
human strengths and weaknesses.
Showing how the firms HR activities can and do
contribute to creating value for the company.
HRs Strategy Formulation Role
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The HR departmentsstrategies, policies, and
activities must make sense in terms of the
companys corporate and competitive
strategies, and they must support those
strategies.
HRs Strategy Execution Role
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Successful SHRM efforts begin with identification of strategic
needs.
Employee participation is critical to linking strategy and HR
practices.
Strategic HR depends on a systematic and analytical mindset.
Corporate HR departments can have an impact on their
organizations efforts to launch strategic initiatives.
Implications of SHRM
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Corporate strategy
HR function
Corporate strategy
HR operations
HRs evolving role asStrategic Partner
Corporate strategy
HR operations
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HRD CULTURE - O C T A P A C E
OOpenness
CCollaboration
TTrustAAuthenticity
PProactivity
AAutonomyCConfrontation
EExperimentation
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