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Lecture 2 Strategic HRM
Lecture 2 Strategic HRM
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Strategic HRM
• Strategic human resource management (SHRM)
involves a future-oriented process of developing and
implementing HR programs that address and solve
business problems and directly contribute to major
long-term organizational goals.
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Types of Strategy
Corporate Level
Strategy
Business 1 Business 2
Competitive Strategy Competitive Strategy
Business 1 Business 1
Functional Strategy Functional Strategy Business 2
Functional Strategy
Marketing Dept. HR Dept.
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Corporate Strategies
Corporate
Strategy
Vertical
Concentration Diversification Geographical
Integration
Competitive Strategy
Competitive
Strategy
Cost
Differentiation Focus
Leadership
Understanding ‘Strategic Fit’
• All of the firm’s activities must be tailored to
or fit the chosen strategy such that the firm’s
functional strategies support its corporate and
competitive strategies.
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STRATEGIC HR TOOLS
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