Strategic Role of HRM

Lecture 2
Learning Outcomes
Strategic Management Process
Types of strategy
Strategic HRM
The SHRM tools
Strategic Management Process
Strategy- A strategy is a course of action

Strategic plan- organizations plan for how it

aims to match or balance its internal
strengths and weaknesses with external
opportunities and threats to maintain
competitive advantages over the long-term

Strategic management- the process of

identifying and executing organizations
strategic plan by matching the internal
competencies with the demands of
environment
Strategic Management Process
(Cont.)
Step 1: Define the Current
Business
- What products to sell, where to sell and how
to differentiate
Step 2: Perform external and
Internal Audits
SWOT analysis for internal audit and external
audit
PEST analysis for external audit
SWOT Analysis
PEST Analysis
SWOT Analysis
Strategic Management Process
(Cont.)
Step 3: Formulate New Direction
What should our business be
Vision Statement (what do we want to
become?)
Mission Statement (what business are we
in?) (Why do we exist?)
(Ford- Where QUALITY is job one)
Strategic Management Process
(Cont.)
Step 4: Translate the Mission into Strategic
Goals
Fords goal- No more than 1 initial defect per 1000 car

Step 5: Formulate Strategies to Achieve

Strategic Goals

Step 6: Implement the Strategies

Evaluate Performance
Things dont always turned out as planned
Evaluation is the strategic imperative
Types of Strategies
Corporate Strategies
Competitive Strategy
Strategic Human Resources
Management
SHRM involves formulating and
executing human resource policies
and practices that produce the
employee competencies and
behaviors the company needs to
achieve the strategic aims.

SHRM aligns HR practices with

organizational strategic goals
http://www.cipd.co.uk/hr-resources/f
actsheets/strategic-human-resource-m
SHRM
Examples of SHRM
Ford (reducing defects)
Apple (more innovation)
John Lewis (great customer
service)
SHRM Tools
Balance Score Card
HRM Tools
Thank you!