1. Ms. Anubha Rastogi
Astt. Prof, Vidya School Of Business
2015-16

2. ‘Strategy is
problem solving
in unstructured
situations.’
Lester Dignam
‘There is a gap
between the
rhetoric and the
reality of SHRM.’
Lynda Grattan
‘Strategy consists
of illusions in the
board room.’
John Purcell
‘Strategy is
emergent and
flexible.’
Sean Tyson
‘Strategy is a
pattern in a
stream of
activities.’
Henry Mintzberg
‘Strategy is often
fragmentary,
evolutionary and
largely intuitive.’
James Quinn
THE CLOUDY NATURE OF STRATEGY

3. STRATEGY
 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
What is a strategy
• Text book definition: 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
• Simply speaking: A plan that is expected to make an
organization adaptive and competitive
• Simplest speaking: A plan to make money

4. What is Strategic Management?
The Meaning of “Strategy”
 A critical factor that affects Firm Performance
 A factor that contributes to Competitive Advantage in markets
 Having a long-term focus
 Plans that involve the top executives and/or board of directors
of the firm
 A general framework that provides a perspective for selecting
specific policies and procedures
• 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.
• Strategic human resource management is the pattern of
planned human resource deployments and activities
intended to enable an organization to achieve its goals.

5. Aware of
business
context
Understand
the
business
Appreciate
how HR
can add
value
See the big
picture
Act as
change
agent
Make
convincing
business
case
for
innovation
Practice
evidence-
based
management
SEVEN STEPS TO BEING STRATEGIC

6. TYPES OF STRATEGY
 Business
 Examines correspondence between each firm’s competitive
strategy and its system of high performance work practices
 Operations
 An internal approach; connected to the work organization inside
a firm
 Resource View
 Views human resources as sources of sustained competitive
advantage
Example Of Strategic Choices
• Defender vs. Prospector
• Exploitation vs. Exploration
• Quality vs. Quantity
• Focused vs. Diversified

7. Strategic HRM is the process of defining
how the organization’s goals will be
achieved through people by means of HR
strategies and integrated HR policies and
practices.
STRATEGIC HRM DEFINED
The Linking Of The Human Resource
Function With The Company’s Strategies
To Accomplish That Strategy.

8. HR Strategy: Strategic Fit
Training Rewards
Corporate Strategy
Business Strategy
HR Strategy
HR System
(Performance Mgmt.)

9. A good HR strategy:
Satisfy business needs
Is founded on detailed analysis
Can be turned into actionable programmes
Is coherent and integrated
Takes account of the needs of line managers, employees and other stakeholders

10. MODEL OF STRATEGIC HRM

11. SO WHAT IS STRATEGIC HUMAN RESOURCE
MANAGEMENT?
Is it about long-range strategic planning?
Is it about day-to-day strategic management?
Or is it about both?

12. •Aligned to corporate goals
•Set out clear aims
•Supported by business case
•Take account of individual as well as business
needs
•Contain realistic and achievable plans for
implementation
CRITERIA FOR HR STRATEGIES

13. STRATEGIC HRM GUIDELINES
• Be clear on what has to be achieved and why
• Ensure that what you do fits the business strategy, culture and
circumstances of the organization
• Aim for continuous improvement – evolution not revolution
• Don’t follow fashion – do your own thing
• Keep it simple – over-complexity is a common reason for
failure
• Don’t rush – it takes longer than you think
• Assess resource requirements and costs
• Manage change – involve,communicate and train

14. Advantages And Disadvantages Of
Strategic HRM
Advantages:
 Help gain a competitive edge
 Help solve HRM problems
 Make the efficient use of
employees and reduce costs
 Help anticipate and plan for
changes
 Benefit long term
Disadvantages:
 Difficulty in predicating the people
behavior
 Problems with predicating external
events affecting HR planning
 Needing constantly monitoring
 Leading to industrial relation
problems

15. The Flexible Workforce
Definition:
 A workforce that can respond quickly in quantity and
type to changes in demand a business may face.
Traditional HR versus Strategic HR

17. The Role of HRM in Strategy
Formulation
 Administrative Linkage — Lowest level of integration; HRM
function's attention is focused on day-to-day activities. No input
from the HRM function to the company's strategic plan is given.
 One-Way Linkage — The strategic business planning function
develops the plan and then informs the HRM function of the plan.
HRM then helps in the implementation.
 Two-Way Linkage — Allows for consideration of human resource
issues during the strategy formulation process. The HRM function
is expected to provide input to potential strategic choices and
then help implement the chosen option.
 Integrative Linkage — Is based on continuing, rather than
sequential, interaction. The HR executive is an integral member
of the strategic planning team.

18. Strategy Formulation
 Five components of the strategic management
process:
 A mission is a statement of the organization's reasons for being.
 Goals are what the organization hopes to achieve in the medium-to
long-term future
 External analysis consists of examining the organization's operating
environment to identify strategic opportunities and threats.
 Internal analysis attempts to identify the organization's strengths
and weaknesses.
 Strategic choice is the organization's strategy, which describes the
ways the organization will attempt to fulfill its mission and achieve
its long term goals.

19. Strategy Implementation
Organizational
structure
Types of
Information
Task design
Selection,
training, and
development
of people
Reward
systems
Product
market
strategy
Performance

20. Directional Strategies
External Growth
Strategy
Concentration
Strategy
Internal Growth
Strategy
Downsizing
Acquisitions Mergers

21. 1-21
1
Human
Resource
Management
Safety and
Health
Human Resource Management
Functions

22. Staffing
 Job Analysis
 Human Resource Planning
 Recruitment
 Selection
1-22
Human Resource Development
 Training
 Development
 Career Planning
 Career Development
 Organizational Development
 Performance Management
 Performance Appraisal

23. Compensation
Compensation - All rewards that individuals receive as a result
of their employment
1-23
Safety and Health
Employees who work in safe environment and enjoy good health are more
likely to be productive and yield long-term benefits to organization.
Employee and Labor Relations
 Private-sector union membership has fallen from 39 percent in 1958 to 7.8
percent in 2005.
 Business is required by law to recognize a union and bargain with it in
good faith if the firm’s employees want the union to represent them
 Human resource activity is often referred to as industrial relations
 Most firms today would rather have a union-free environment

24. Environment of Human Resource Management

25. The Five P’s Model of SHRM
 Philosophy: Statements of how organization values & treats
employees; essentially culture of the organization
 Policies: Expressions of shared values & guidelines for action on
employee-related business issues
 Programs: Coordinated & strategized approaches to initiate,
disseminate, & sustain strategic organizational change efforts
necessitated by strategic business needs
 Practices: HR practices motivate behaviors that allow individuals
to assume roles consistent with organization’s strategic
objectives.Three categories of roles:
 Leadership
 Managerial
 Operational
 Processes: Continuum of participation by all employees in specific
activities to facilitate formulation & implementation of other
activities