Group 9

Presented by : Madhu Rana Priyanka Jitendra Singh Bhumika Ratan Charu Goel

• Formulating HR policies and introducing practices that produce staff competencies and behaviors that the company needs to achieve its strategic goals.

• HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ strategies

• Top management wants to see, precisely, how the HR manager’s plans will make the company more valuable.

‘seeing the people of the organization as a strategic resource for the achievement of competitive advantage’

The set of managerial decisions and actions that determines the long-run performance of a corporation. It includes:

environmental scanning (internal & external) strategy formulation strategy implementation evaluation and control

It focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and computer information systems to achieve organizational success.

HR Practices Linked With Competitive Strategy

Recruitment Training Career Path Promotions Socialization Openness

Basics Of Strategic HRM

HR Programs to enhance overall organizational performance

HR in organization strategic planning from start

Pro-actively participate in big picture decision making

Redesign organizations and the work processes

Measure financial results of all HR activities

AIMS OF STRATEGIC HRM

“To generate strategic capability by ensuring that the organization has the skilled, engaged and well-motivated employees it needs to achieve sustained competitive advantage.”

Benefits of Strategic Management

Clearer sense of strategic vision Sharper focus on what is strategically important Improved understanding of rapidly changing environment Identifying and analyzing external opportunities and threats that may be crucial to

the company's success. Provides a clear business strategy and vision for the future. To supply competitive intelligence that may be useful in the strategic planning

process. To recruit, retain and motivate people. To develop and retain of highly competent people. To ensure that people development issues are addressed systematically. To supply information regarding the company's internal strengths and weaknesses. To meet the expectations of the customers effectively. To ensure high productivity. To ensure business surplus thorough competency

Role of HR Manager• HR managers

increasingly rely on IT to help support the company’s strategic aims

• Change Agent - translate vision statements into meaningful format.

• Strategic partner - training centre, design centre..

Strategic HRM is based on three propositions:

1. The human resources or human capital of an organization play a strategic role in its success and are a major source of competitive advantage.

2. 2. HR strategies should be integrated with business plans (vertical integration ) ‘The central premise of strategic human resource management theory is that successful organizational performance depends on a close fit or alignment between business and human resource strategy

3. 3. Individual HR strategies should cohere by being linked to each other to provide mutual support (horizontal integration)

Strategic Management Model

Strategy Formulation

Strategy Implementation

Evaluation and Control

Mission

Objectives

Strategies

Policies

Feedback/Learning

Environmental Scanning

Societal Environment

General Forces

Task Environment

Industry Analysis

Structure Chain of Command

Resources Assets, Skills

Competencies, Knowledge

Culture Beliefs, Expectations,

Values

Reason for existence

What results to accomplish by when Plan to

achieve the mission & objectives Broad

guidelines for decision making

Programs

Activities needed to accomplish a plan

Budgets

Cost of the programs Procedures

Sequence of steps needed to do the job

Process to monitor performanceand take corrective action

Performance

External

Internal

Stages in Strategic management

Environmental analysis - human resource environment, human resource legal environment – Establish organizational direction

Strategy formulation – Human resource planning Strategy implementation – Work force utilization and

employment practices – Reward and development system

Strategic control – Performance impact of human resource practices – Human resource evaluation.

Strategy Formulation

The process of developing long-range plans to deal effectively with environmental opportunities and threats in light of corporate strengths and weaknesses.

Composed of:

Mission Objectives Strategies Policies

Mission

The purpose or reason for the corporation’s existence. It tells who the company is, what they do as well as what they’d like to become.

Objectives

The end results of planned activity. They state WHAT is to be accomplished by WHEN. They should be quantified, if possible.

Should be specific, measurable and obtainable.

Strategies

A strategy is a comprehensive master plan stating HOW the corporation will achieve its mission and objectives. There are three types:

Corporate - a corporation’s overall direction and the management of its businesses.

Business - emphasizes improving the competitive position of a corporation’s products or services in a specific industry or market segment.

Functional - concerned with developing a distinctive competence to provide a company or business unit with a competitive advantage.

Strategic Planning

The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

3 questions in strategic planning Current business position Future business position expected to be How to get to expected future business

position

Policies

Broad guidelines for making decisions.

E.g. - 3M’s policy requiring researchers to spend 15% of their time working on something other than their primary project.

Key Concept of SHRM

HR Strategy: Strategic Fit

Training Rewards

Corporate Strategy

Business Strategy

HR Strategy

HR System

(Performance Mgmt.)

Conclusion

Strategic HRM is in some ways an attitude of mind that expresses a way of doing things.