Basic Concepts of HR

•Linkage of HRM with organizational Strategies

•Linkage with TQM & Productivity

What is Strategy

Strategy- a way of doing something - includes the formulation of a goal

and set of action plans for accomplishment of that goal.

Strategic Management:

• SM is that set of managerial decisions and actions that determine the long term performance of a corporation.

• It includes environmental scanning, strategy formulation (SWOT), strategy implementation and evaluation & control

• The study of SM therefore emphasizes on monitoring & evaluating environmental opportunities and threats in the light of corporation’s strengths & weaknesses.

Strategic Management Process:

.

Environmental

Scanning

•External

•Internal

Strategy Formulation•Corporate

Strategy•Business

Unit strategy

•Functional strategy

Strategy Implementa

tion

•Programmes

•Budgets & procedure

Evaluation & Control

•Strategic Control,

Process & Performance

Environmental Scanning:

•Threats &• opportunitiesEx.: Oil crisisSuper markets

Strategy Formulation:Corporate level strategy: More than one line of business,Siyaram Poddar Companies- “To continuously innovate in all its businesses with right technology, relentlessly cut costs and focus on the overseas markets.- Time, What Business, Goal & expectations from each business.

Ex.:Growth,Stability,Retrenchment

Functional level strategy

ROLE OF HRMFormulation:Advanced incentive plansOpinion survey data from employees

Implementation:•Instituting HR practices that build employee commitment

Total Quality Management:

•A people focused management system that aims at continual increase in customer satisfaction at continually lower real cost.•TQM stresses learning and adaptation to continued change as key to organizational success.•Re-engineering•Benchmarking• Empowerment

Business level strategy:

Siyaram Poddar Companies:Siyaram Silk Mills•Increase market share from 4 to 5% in next two years•Launching new product with the look & feel of polyester wool.•Focus shifting to exports

Govind Rubber•Improving product mix to include more specialty products.