Chapter1

Strategic Management
Strategic Human Resource Planning
A Need for Strategic Management
It is important to match HRM Practices with
organizational goals.

Strategic management of the people within

organizations affects important organizational
outcomes such as survival, profitability, customer
satisfaction levels, and employee performance
Strategy
The formulation of organizational missions, goals, objectives
and action plans.
Five P’s of strategy
 Plan: Indented course of action to deal with a situation
 Purpose: Consistent stream of actions that sometimes are the
result of deliberate plan and sometimes result of emergent
actions for environmental changes or shifting of assumption
 Ploy : Specific maneuver at the tactical level with short time
horizon
 Position: Location of firm relative to its competitions & other
external factors:
 Perspective: The gestalt or personality of the organization
Descriptions of Strategy
Strategy : A declaration of Intent
Strategic Intent: A tangible corporate goal, a point of view
about the competitive positions a company hopes to build over
a decade
Strategic Planning: The systematic determination of goals and
plans to achieve them.
Strategy formulation: the entire process of conceptualizing the
mission of an organization, identifying the strategy, and
developing long-range performance goals.
Strategy Implementation: Those activities that employees and
managers of an organization undertake to enact the strategic
plan and achieve the performance goals
Descriptions of strategy
Objectives: the end, the goals

Plans: the product of strategy, the means to the end

Strategic plan: A written statement that outlines the

future goals of an organization, including long term

performance goals.
Policies: Broad guidelines to action , which establish

the parameters, or rules.

 The Reality of the Strategic Process
Emergent Strategy
Created from new
ideas and conditions

Intended Strategy Realized Strategy

The agreed upon strategy Executed representing
arrived at through the some planned and some
formal planning process emergent strategy

Discarded Strategy
Deemed inappropriate due to
changing circumstances
Strategic Types
1 Corporate Strategies
Restructuring Strategies: Turnaround, Divestiture,

Liquidation & bankruptcy

Growth Strategies: Incremental Growth,

International growth & Mergers ‘n’ Acquisitions

Stability Strategies

2 Business Strategies
Strategic Planning Process
Establish mission , vision & values

Develop Objectives

Analyze the external environment

Determine the competitive position

Identify the competitive advantage

Implement the strategy

Evaluate the performance

Benefits of Strategy Formulation
Clarity: To help focus and guide decision making about resource
allocation
Co ordination: Everyone is working towards the same goals
Efficiency: Daily decision making is guided towards the question “
does it fit our strategy?”
Incentives”: Employees understand the behaviors and performance
that will be rewarded
Change: if the major change is under consideration, then
understanding current strategy is essential
Career Development: A clear outline of organizational strategy can
help you decide if you want to work for the company, if there is a
skills fit and what training and development you will need in order
to facilitate the achievement of the strategy
 Strategic HR Planning Model
The
Strategic
Environment
Options
(3)
Demand
(7) Program
Restructuring
Organizationa Evaluatio
(10)
l Strategy n
(1) Job Forecasting Succession (14)
(6) International
Analysis Managemen
HRM
HRM (4) t
(9) (11)
Strategy
(2) Supply
(8) M&A
(12)

Information technology for HRM Outsourcing

(5) (13)
Thank you…