Professional Documents
Culture Documents
Management
(Lecture 2)
Strategic HR Management
Lecture outline:
1. Strategy & HR
2. Factors influencing Corporate & HR
Startegy
3. Definitions
4. HRs Strategic Challenges
5. HRs Strategic Role
Strategy and HR
Strategy A strategy is the companys plan
for how it will match its internal strengths and
weaknesses with external opportunities and
threats in order to maintain a competitive
advantage
Corporate-level Strategy A companys
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.
Strategic HR Management:
This is the
linking of HRM with strategic goals and
objectives to improve business performance
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Strategic HRM
The term HR Strategy refers to the
specific HR actions that organisation
pursues to achieve its goals.
For example one of FedExs strategic
aims is to achieve superior levels of
customer services and high
profitability through a highly
committed workforce
5
Figure 36
8
HR Involvement in Mergers
Source: Jeffrey Schmidt, The Correct Spelling of M & A Begins with HR, HR Magazine, June 2001, p. 105.
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Figure 37
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Creating a Strategy-oriented HR
System
13
Translating
Strategy
into HR
Policy and
Practice
Basic Model of
How to Align
HR Strategy
and Actions
with Business
Strategy
15
Figure 39
Creating an HR scorecard
Must know what the companys strategy is.
Must understand the causal links between HR
activities, employee behaviors, organizational
outcomes, and the organizations performance.
Must have metrics to measure all the activities
and results involved.
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Strategic HR Relationships
HR
Activities
Emergent
Employee
Behaviors
Strategically
Relevant
Organizational
Outcomes
Organizational
Performance
Achieve Strategic
Goals
Figure 310
2005 Prentice Hall Inc. All
rights reserved.
317
The HR
Scorecard
Approach
to
Formulating
HR Policies,
Activities,
and
Strategies
Figure 311
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