This document discusses various perspectives on strategy and strategic human resource management. It provides definitions of strategy from several scholars, such as Mintzberg, Quinn and Purcell. It also defines strategic management and strategic HRM. The document outlines different types of strategies, including business, operations and resource strategies. It discusses the role of HR in strategy formulation and implementation. Finally, it presents models of strategic HRM and discusses advantages and disadvantages of taking a strategic approach to HRM.
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.
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
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
16.
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.
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
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
