Lecture 2-The Strategic Role of HRM

8/10/2019 Lecture 2-The Strategic Role of HRM

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Lecture 2 :

The Strategic Role of

Human Resource Management


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1. Explain why strategic planning is important to all

managers.

2. Explain with examples each of the seven steps in the

strategic planning process.

3. List with examples the main generic types of corporate

strategies and competitive strategies.

4. Define strategic human resource management and give

an example of strategic human resource management

in practice.

5. Briefly describe three important strategic human

resource management tools.

LEARNING OBJECTIVES


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The firms strategic plan guides much of what

is done by all to accomplish organizational

goals.

Decisions made by managers depend on the

goals set at each organizational level in

support of higher level goals.

Why Strategic Planning Is Important

To All Managers

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FIGURE 31 Sample Hierarchy of Goals Diagram for a Company


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Strategy A course of action the organization intends to pursue

to achieve its strategic aims.

Strategic Plan How an organization intends to match its internal

strengths and weaknesses with its externalopportunities and threats to maintain a competitiveadvantage over the long term.

Strategic Management The process of identifying and executing the

organizations mission by matching its capabilities withthe demands of its environment.

The Strategic Management Process

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FIGURE 35 The Strategic Management Process


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FIGURE 36 Worksheet for Environmental Scanning


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FIGURE 37 SWOT Matrix, with Generic Examples


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FIGURE 38 Type of Strategy at Each Company Level


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Types of Corporate Strategies

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Concentration

Vertical

integration

Diversification

Corporate Strategy Possibilities

Consolidation

Geographic

expansion


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Types of Competitive Strategies

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Cost leadership Differentiation

Business-Level

Competitive Strategies

Focus/Niche


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FIGURE 310 Linking Company-Wide and HR Strategies


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FIGURE 311 Basic Model of How to Align HR Strategy

and Actions with Business Strategy


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Strategic HRM Tools

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Strategy map HR scorecard

Strategic HRM Tools

Digital dashboard


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FIGURE 315 Three Important Strategic HR Tools

HR ScorecardStrategy Map Digital Dashboard

A process for managing

employee performance

and for aligning all

employees with key

objectives, by assigning

financial and

nonfinancial goals,

monitoring and

assessing performance,

and quickly takingcorrective action.

A graphical tool that

summarizes the chain of

activities that contribute

to a company's success,

and so shows employees

the "big picture" of how

their performance

contributes to achieving

the company's overall

strategic goals.

An information

technology tool that

presents the manager

with desktop graphs and

charts, so he or she gets

a picture of where the

company has been and

where it's going, in terms

of each activity in the

strategy map.


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FIGURE 313 Strategy Map for Southwest Airlines


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FIGURE 314 The Basic HR Scorecard Relationships

HR activities

Organizational

performance

Emergent employee

behaviours

Strategically relevant

organizational outcomes

Achieve strategic goals

Lecture 2-The Strategic Role of HRM

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