Copyright 2013 by The McGraw-Hill Companies, I nc. All rights reserved. McGraw-Hill/I rwin Learning Objectives 1. Describe the differences between strategy formulation and strategy implementation.
2. List strategic management process components.
3. Discuss HRM functions role in strategy formulation.
4. Describe the linkages between HRM and strategy formulation.
5. Discuss typologies of strategies and associated HRM practices.
6. Describe HR issues and practices associated with various directional strategies. 2-2 Introduction Goal of strategic management is to deploy and allocate resources in a way that gives an organization competitive advantage.
HRM function must be integrally involved in the companys strategic management process.
A business model is how the firm will create value for customers profitably. 2-3 What is Strategic Management? Strategic human resource management (SHRM) is the pattern of planned HR activities and deployments intended to enable an organization to achieve its goals.
Strategic management is a process to address the organizations competitive challenges by integrating an organizations goals, policies and action sequences into a cohesive whole.
External Analysis Opportunities Threats Internal Analysis Strengths Weaknesses 2-9 SHRM-Strategy Formulation Mission Goals Strategic Choice Internal Analysis 2-10 SWOT Analysis for Google Inc.
SWOT Analysis for Google, Inc. 2-11 Strategy Implementation Variables Types of Information Organizational Structure Task Design Select Train Develop People Reward Systems 2-12
HRMs 3 Implementation Variables: Task 2-13
Strategic Implementation
HR Practices Recruiting Training Performance management Labor relations Employee relations Job analysis Job design Selection Development Pay structure Incentives Benefits Human Resource Actions Behaviors Results -productivity -absenteeism - turnover Human Resource Capability Skills, Abilities Knowledge Human Resource Needs Skills Behavior Culture 2-14 HRM Practices 2-15 Recruitment /Selection Porters Strategies Cost 2-16 5 Categories of Directional Strategies Concentration Internal Growth External Growth Mergers & Acquisitions 2-17 Role Behaviors Behaviors that are required of an individual in his or her role as a jobholder in a social work environment.
Different role behaviors are required for different strategies. 2-18 Summary Human Resources are the most important asset and single largest most controllable cost within the business model.
HR professionals must develop business, professional-technical, change management and integration competencies.
HRM has a profound impact on the strategic plan implementation by developing and aligning HRM practices that ensure the company has motivated employees with necessary skills.