9279_strategic hrm.pdf

8/9/2019 9279_Strategic HRM.pdf

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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


(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.


(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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