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Strategic HRM
Strategic HRM
HRM
What is a strategy
The company’s long-term plan for how it will balance its internal
strengths and weaknesses with its external opportunity and
threats to maintain a competitive advantage
At the core, its is the debate between best fit and best
practice
Used for gaining a competitive advantage
Innovation: Offer something new; different from competitors
Quality Enhancement: Products and services
Cost Reduction: to be the lowest cost provider
Optimal strategy depends on the wants of customers and
nature of competitors
Strategic Management is a process for analyzing
a company's competitive situation, developing
the company's strategic goals, and devising a
plan of action and allocation of resources that
will help a company achieve its goals.
1)To develop Strategic Competencies: to make sure that the company has needed
standards and competent and highly motivated employees for achieving sustainable
competitive advantage.
2)To give Sense of Direction: It guides the organization in the right direction so that the
business requirements of the organization and the individual as well as the co-
operative requirements of its employees are met by creation and attainment of
consistent and reasonable HR policies and programmes.
3)To achieve Integration: Target of SHRM is to give a united framework, so that the
organized HR system works synergistically in accordance with the organizational
strategic objectives.
4)To formulate Business Strategy: by focusing on the measures through which the
organization can use the power of its human resources for the increasing benefits.
ADVANTAGES AND DISADVANTAGES OF
STRATEGIC HRM
Advantages:
Help gain a competitive edge