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Human resource management

The document outlines the strategic management process, detailing steps from defining the current business to evaluating performance. It discusses corporate and competitive strategies, including concentration, diversification, and cost leadership, emphasizing the role of human resource management in creating competitive advantages. HR managers are highlighted as playing key roles in both strategy formulation and execution.

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2 views

Human resource management

The document outlines the strategic management process, detailing steps from defining the current business to evaluating performance. It discusses corporate and competitive strategies, including concentration, diversification, and cost leadership, emphasizing the role of human resource management in creating competitive advantages. HR managers are highlighted as playing key roles in both strategy formulation and execution.

Uploaded by

csv92
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Human resource

management
STRATEGIC HUMAN RESOURCE MANAGEMENT
Learning objectives
1. Outline the basic steps in the management planning process.
2. Explain and give examples each of companywide and competitive strategy.
3. Explain what a strategy-oriented human resource management system is and why it
is important.
THE STRATEGIC MANAGEMENT PROCESS
The strategic management
process
Step 1: Define the Current Business

Every company must choose: what products it will sell, where it will sell
them, and how its products and services will differ from its competitors.

Managers sometimes use vision and mission statements.


Business vision and mission
Vision
A general statement of an organization’s intended direction that evokes
emotional feelings in organization members.

Mission
Spells out who the firm is, what it does, and where it’s headed.
Objectives, strategies and
tactics
Objectives
The desires result or outcome [SMART]
Strategy
A course of action the organization intends to pursue to achieve its strategic
aims.
Tactics
Day-to-day tacks or activities that help to implement the strategy.
The strategic management
process
Step 2: Perform External and Internal Audits

Ideally, managers begin their strategic planning by analyzing their


external and internal situations.

Many managers use SWOT analysis.


The strategic management
process
The strategic management
process
Step 3: Formulate New Business and Mission Statements

Based on the situation analysis, what should our new business be?
What is our new mission and vision?

Step 4: Translate the Mission into Strategic Goals

Saying the mission is “to make quality job one thing; operationalizing
that mission for your managers is another.
The strategic management
process
Step 5: Formulate Strategies to Achieve the Strategic Goals

The strategies bridge where the company is now, with where it wants to
be tomorrow.

The best strategies are concise enough for the manager to express in
an easily communicated phrase that resonates with employees.
The strategic management
process
The strategic management
process
Step 6: Implement Strategies

Strategy implementation means translating strategies into actions

Step 7: Evaluate Performance


Strategies do not always succeed.
Managing strategy is an ongoing process.
Bottom line: strategic
management process
TYPES OF CORPORATE STRATEGIES

Corporate Strategy
Possibilities

Concentration Diversification Consolidation

Vertical Geographic
integration expansion
Types of corporate strategies
Concentration (single business)
The firm offers one product or product line, usually in one market.

Diversification
The firm will expand by adding new product lines.
Related and unrelated (conglomerate)

Geographic Expansion
Taking business abroad
Types of corporate strategies
Vertical Integration
The firm expands by, perhaps, producing its own raw materials, or selling its products
direct.

Consolidation
Reducing a firm’s size.
TYPES OF COMPETITIVE STRATEGIES

Business-Level
Competitive
Strategies

Cost leadership Differentiation Focus/Niche


Types of corporate strategies
Cost leadership
A firm is seeking to become the overall low-cost leader in an industry.
Differentiation
The firm seeks to be unique in their industry and is widely valued by buyers.
Focus
The firms that attempt to compete in a narrow market segment (niche) through the
cost leadership or differentiation
HR Role in creating competitive
advantage
Competitive advantages are “factors that allow an organization to differentiate its
product or service”.

To have an effective competitive strategy, the company must have one or more
competitive advantages.
HR Role in creating competitive
advantage

Figure 3-10 demonstrates the


relationship between human
resource strategy and the
company’s strategic plans.
Figure 3-13 presents a strategy
map example, in this case for
Southwest Airlines.
HRM´s strategic roles
HR Managers can play two basic strategic planning roles, in strategy formulation and in
strategy execution.

• The Strategy Formulation Role


 HRM’s traditional role in executing strategy has expanded to include top
management to formulate strategic plans.
 This expanded strategy formulation role should reflect the reality employers face
today.
HRM´s strategic roles
HR Managers can play two basic strategic planning roles, in strategy formulation and in
strategy execution.

• The Strategy Execution Role


 Strategy execution is traditionally the heart of the HR managers’ strategic job.
 Top management formulates the company’s corporate and competitive strategies.
HRM´s strategic roles

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