Final term Project of

Human Resource Management

Topic:

Linking Between Human Resource Management and Business Strategy

Course:

BS Aviation Management

Course instructor:

Sir Hammad

Submitted by:

“Skylark” Group

Group members:

Hafiz Syed Asad BAM-9211

Arslan Khalid BAM-9222

Arslan Aslam BAM-9234

Human Resource Management“Putting the right person at right place to maximize productivity and reducing cost or effective and efficient use of talent within an organization is called human resource management.”

Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

Role of Human Resource Management in organizationsEmployee AdvocateAs an employee sponsor or advocate, the HR manager plays an integral role in organizational success via his knowledge about and advocacy of people. This advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing, and happy.

Fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organization. The HR professional helps establish the organizational culture and climate in which people have the competency, concern and commitment to serve customers well. In this role, the HR manager provides employee development opportunities, employee assistance programs, gain sharing and profit-sharing strategies, organization development interventions, due process approaches to problem solving and regularly scheduled communication opportunities.

Change Champion/ agent or problem solverThe constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both knowledge about and the ability to execute successful change strategies

make the HR professional exceptionally valued. Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change.

The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He also sponsors change in other departments and in work practices. To promote the overall success of his organization, he champions the identification of the organizational mission, vision, values, goals and action plans. Finally, he helps determine the measures that will tell his organization how well it is succeeding in all of this.

Advisor/ InnovatorHRM takes part in developing thinking and brings innovation in the environment (external and internal) of the organization. It works as an advisor because it contributes in decision making or strategic planning.

Service providerHRM manages human resource that affects the effectiveness and efficiency of the task given to the employees and creates value in operations; it is also a service providers.

Business strategy“The definition of business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives.”

Strategy is management's game plan for strengthening the performance of the enterprise. Without a strategy management has no roadmap to guide them. Creating a business strategy is a core management function. It must be said that having a good strategy and executing the strategy well, does not guarantee success. Organizations can face unforeseen circumstances and adverse conditions through no fault of their own. The strategy needs to be frequently reviewed against prevailing external and internal environment (SWOT analysis ).This is where business intelligence comes in where you need to constantly monitor how the strategy and the objectives are being executed.

Note, the word strategy derives from the Greek word “strategos”, which derives from two words: “stratus” (army) and “ago” (ancient Greek for leading). It could be said that a strategy is a leadership plan. 

Levels of strategy

Business strategy can be formulated and implemented at three different levels:

1. Corporate level2. Business unit level3. Functional or departmental level

At the corporate level, you are responsible for creating value through your businesses. You do so by managing your portfolio of businesses, ensuring that your businesses are successful over the long term, developing business units, and sometimes ensuring that each business is compatible with others in your portfolio.

Products and services are developed by business units. The role of the corporation is to manage its business units, products and services so that each is competitive and so that each contributes to corporate purposes.1. Corporate Level Strategy

”Corporate level strategy fundamentally is concerned with selection of businesses in which your company should compete and with development and coordination of that portfolio of businesses.”

Corporate level strategy which has the largest domain. By definition, corporate level strategy concerns itself with the whole corporation as a unit and consequently, aims to answer the purpose or the mission of the organization.

There are four strategies that fall in corporate level and are designed by senior management as shown below:

Diversification StrategyDiversification is a company strategy wherein a company tries to increase profitability through increased sales volume from new products and new markets. Diversification means venturing out into new business, new products or new markets to increase profits. It is a form of growth strategy involving a significant increase in the performance objectives beyond past performance records. Diversification allows a company to venture out into new lines of business that are different from the present operations. Companies employ different diversification strategies to expand firms' operations by adding markets, products, services, or stages of production to the existing business. Diversification in the form of growth strategy is viewed by many investors as “bigger the better”. Higher sales volume is seen as a measure of performance irrespective of the profit margins, increase in sales is always welcomed.

Samsung's Diversification Strategy: Samsung Motors Inc.

In 1995, the Korean chaebol Samsung diversified into automobile manufacturing with the establishment of Samsung Motors Inc (SMI). The timing of this venture turned out to be rather unfortunate, as SMI's first car rolled off the Pusan production line in the middle of the Asian economic crisis. In serious financial distress, Samsung had to abandon SMI, selling it to Renault in 2000 and then company knew the importance of strategic management/ planning after the crisis.

Diversification of Starbucks

For companies, they all want to have bigger market share and earn more profit. So they will find many ways to penetration into the market like diversification. Diversification strategies are used to expand firms' operations by adding markets, products, services, or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations. Starbucks is the largest coffeehouse company in the world; they not only sell coffee and coffee beans also sell other drinks, salads, sandwiches and snacks. Besides they bought the Hear Music Company and develop other business except coffee.

Diversification of Super Asia Company;

Super Asia is a company that manufacture washing products like washing machine and spinner and it diversified into a new business like Super Asia motorbike.

Vertical integration strategy

“A strategy in which several steps In the production and/or distribution of a product or service are controlled by a single company or entity, in order to increase that company's or entity's power in the

marketplace.”

A business strategy that seeks to own and control all the activities including production, transportation, and marketing of a product.

Vertical integration strategies aim to increase the firm's coverage of the value‐added chain of an industry by extending backward into the production of components or raw materials or forward into wholesaling and distribution toward end users. Such moves can aim at full integration, participating in all stages of the value to partial integration where the firm is engaged in part of the process. It has been claimed that the only good reason for investing company resources in vertical integration is to strengthen the firm's

competitive position. Thus, unless such a strategy produces competitive advantage or produces cost savings that create shareholder value, it should not be undertaken.

Consolidation Strategy

“In business, consolidation can mean the combining of accounting information of subsidiaries and a parent company or combining two or more firms through a number of different options such as mergers. Because these issues often take copious amounts of time and effort to complete, strategies can help companies create a smooth transition for these processes.”

Consolidation strategies may involve the use of a plan for changing business operations. Business owners and managers can establish a plan to set specific goals or objectives and create a team for managing the consolidation, communicating issues to involved employees and controlling activities to ensure changes enhance the company's operations and add value. Businesses may use a consolidation strategy as part of a retrenchment philosophy. Under retrenchment, companies reduce production output to improve profit, a plan that could include liquidating an entire division that is no longer generating sales to cover its expenses. This can help a company redefine its mission to ensure it remains in business

Geographic expansion strategy

“A business strategy in which growth is obtained by increasing the number of stores in which customers can buy a company's products and services. Unlike relocation, business expansion entails opening up new stores in different physical locations while still maintaining the current business locations.” 

In today’s rapidly globalizing economy, a well-planned and prioritized geographic expansion strategy is an absolute requirement. If managed properly, geographic expansion can help you reduce costs, gain access to new markets and talent pools, and perhaps, most importantly, provide a robust pipeline to fuel your company’s future growth. Leverage best-practice guidebooks and toolkits to protect your company from country-specific economic downturns and reduce risk by broadening your presence.

For instance,

Gourmet in Lahore expanded his business out of the city and now its products are sold in Faisalabad and other small cities like Shahdara and Sheikhupura and Mureedkay.

For instance,

McDonald’s (a fast food company of America) expanded his business from west side to east side and now his business is in Pakistan, India and other Asian countries.2. Business Unit Level StrategyBusiness level strategy is concerned with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining competitive advantage over competitors, creating new opportunities.

Business level strategies are essentially positioning strategies whereby businesses tend to secure for themselves an identity and position in the market.

Here, three strategies fall in business unit level strategy as shown below:

Cost leadership strategy

“A business strategy in which a company tries to provide a product at a lower cost than any of its competitors”

Cost leadership strategies are business tools that give companies a competitive advantage in the economic marketplace. Industry leading companies usually have the best plan for obtaining business inputs at the lowest cost and transforming those inputs to consumer goods or services the cheapest way possible. These two elements are important factors when developing a leading cost strategy. Understanding the needs and wants of consumers is another important factor in cost strategies.

Cost leadership strategy means selling the goods at the cheapest price in the market. Some good examples of cost leaders in the market are Wal-Mart, australiawholesalers.com dailytrader.com or francewholesalers.com which sell relatively cheap products due to the advantage of bulk quantities at wholesale prices.

Wal-Mart

Wal-Mart's founder, Sam Walton, developed the every day low prices (EDLP) strategy. This strategy hinged upon Wal-Mart's ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers. In order to achieve EDLP, Wal-Mart began developing close relationships with its suppliers and vendors. These relationships allowed Wal-Mart to achieve cost savings through large volume purchases. EDLP also helped Wal-Mart drive up the total dollar amount customers spent on trips to the store.

Wal-Mart also developed its own distribution network for supplying its retail outlets with consumer goods. This distribution network allowed Wal-Mart to cut out external supply chains and middlemen, further driving down business costs. Owning its own distribution network also helped Wal-Mart avoid costly rate increases from traditional shipping methods.

McDonalds

A leading cost strategy for McDonalds is the ability to purchase the land and buildings of its restaurants. McDonalds also developed a strong division of labor for its production processes, tight management control and product development strategy. Creating a strong top-down style of management is another leading cost strategy for McDonalds. Using fewer in-store managers allows the company to hire lower-wage workers to complete tasks. Limiting autonomy is also central to avoiding costly and unnecessary restaurant expenditures like improvements or altering business processes.

Apple, Inc.

After nearing complete bankruptcy in the 1980s, Apple clawed its way back into the personal electronic industry through smart business practices and highly desirable consumer goods. Apple uses low-cost direct materials to develop the cheapest consumer goods possible. Creating long-standing business agreements with companies like AT&T for web hosting and other applications helps Apple stay focused on developing products rather than Internet hosting or access. Apple may also choose to price its goods higher than the normal margin, attempting to create a sense of exclusiveness in consumers. This feeling drives consumers to purchase goods regardless of price increasing company profits.

Differentiation strategy

“ An Approach under which a firm aims to develop and market

unique products for different customer segments. Usually employed where a

firm has clear competitive advantages, and can sustain

an expensive advertising campaign.”

For instance, Ferrari company differentiates its product than other other

automobile industry.

Focus strategy

“Strategic plan under which a firm concentrates its resources on entering or

expanding in a narrow market or industry segment. It is

usually employed where the firm knows its segment and

has products to competitively satisfy its needs.”

For instance,

Hardee’s used focus strategy and providing the best quality food (low

fat or cholesterol food) to his customers as compared to his competitors

3. Functional Level Strategy

The third level of strategy is the operational level which primarily is concerned with successfully implementing the strategic decisions made at Corporate and business unit level through optimal utilization of resources and competencies of the business unit. This level of strategy is extremely significant in shaping the success of other strategies as it translates strategic decisions into strategic actions by directly impacting the design of operational processes and networks, human and other resources etc.

The functional level of your organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to functional business processes and value chain. Functional level strategies in R&D, operations, manufacturing, marketing, finance, and human resources involve the development and coordination of resources through which business unit level strategies can be executed effectively and efficiently.

Functional units of your organization are involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on customer feedback or on resources and capabilities on which the higher level strategies can be based.

The above diagram shows the overall view of strategy sequencely; first of all corporate strategy, then business unit level strategy and at the end operational strategy.

Strategic Managers for All Levels

The diagram below shows strategic managers at different levels in an organization and

they participate in strategy formulation in their own area or field.HRM in Strategic Types Different strategies require different types of employees as explained from above diagram.

Role Behavior

Role behavior is the behavior required of an individual in his or her role as job holder in a social work environment. Managers observe the role behavior of job holders whether he is working with motivation/ passion and with his interest or not. Integration in HRM Integration is the heart of HRM because it integrates all departments within an organization. It has two forms;

Overall objectives & strategy of business

HR Practices

Vertical Integration

Horizontal IntegrationVertical Integration A company's domination of a market by controlling all steps in the production process, from the extraction of raw materials through the manufacture and sale of the final product. It is also acquiring suppliers and distributors so as to control more stages of the production process.

It is a qualitative estimate/ overview of that HR practices are according to overall objectives and strategy of business. Vertical integration is about Effectiveness of HR. HR is effective when it contributes to the mission and objectives of the organization.

'Do the right things' it means we have to do such HR practices that meet organizational objectives, vision and mission.

Examples

Steel industry

One of the earliest, largest and most famous examples of vertical integration was the Carnegie Steel company. The company controlled not only the mills where the steel was made, but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore and the railroads that transported the coal to the factory, the coke ovens where the coal was cooked, etc.

Oil industry

Oil companies, both multinational (such as Royal Dutch Shell ) or and national (e.g. Petronas) often adopt a vertically integrated structure. This means that they are active along the entire supply chain from locating crude oil deposits, drilling and extracting crude, transporting it around the world, refining it into petroleum products such as petrol/gasoline, to distributing the fuel to company-owned retail stations, for sale to consumers.

Horizontal Integration

Vertical integration

Horizontal integration is the widening of a business at the same point in the

supply chain. For example, supermarkets that are moving towards selling a

larger variety of non-food items are increasing their level of horizontal

integration.

The advantages of horizontal integration can lie in reaching the customers (if

you are already selling them one thing, use the opportunity to sell more) but

can include economies of scale in purchasing, logistics and operations.

The merger of companies at the same stage of production in the same or different industries, When the products of both companies are similar, it is a merger of competitors. When all producers of a good or service in a market merge, it is the creation of a monopoly. If only a few competitors remain, it is termed an oligopoly. It is also called lateral integration as shown below. 

“Do the things in right way” it means we have to focus on the functions performed by HRM practices that influences on insivisual capability.

Examples

When any company buys the competitor of the company or merge it called horizontal integration. We can have the examples, Tata Steel and Corus: Both they were producing the same components like steel but beside this they have other products also. They have good market of the steel in many counties. So that we can say is that it comes under horizontal integration.

HR Strategic FitHR Strategic fit mean HR practices are able to meet the objectives of the organization vertically and horizontally and HR strategic fit is shown below;

HR system training rewards

Resourcing

T & D

Motivation

Maintenance

HR Practices

Horizontal integration

Corporate strategy

Business strategy

HR strategyVertical fit

Horizontal fit

Strategic managementStrategic management is a field that deals with the major intended and

emergent initiatives taken by general managers on behalf of owners,

involving utilization of resources, to enhance the performance of fi rms  in

their external environments.[1] It entails specifying the organization's mission,

vision and objectives, developing policies and plans, often in terms of

projects and programs, which are designed to achieve these objectives, and

then allocating resources to implement the policies and plans, projects and

programs. A balanced scorecard is often used to evaluate the overall

performance of the business and its progress towards objectives. Recent

studies and leading management theorists have advocated that strategy

needs to start with stakeholders expectations and use a modified balanced

scorecard which includes all stakeholders.

Strategic management is a level of managerial activity under setting goals

and over Tactics. Strategic management provides overall direction to the

enterprise and is closely related to the field of Organization Studies. In the

field of business administration it is useful to talk about "strategic alignment"

between the organization and its environment or "strategic consistency."

According to Arieu (2007), "there is strategic consistency when the actions of

an organization are consistent with the expectations of management, and

these in turn are with the market and the context." Strategic management

includes not only the management team but can also include the Board of

Directors and other stakeholders of the organization. It depends on the

organizational structure.

“Strategic management is an ongoing process that evaluates and controls

the business and the industries in which the company is involved; assesses

its competitors and sets goals and strategies to meet all existing and

potential competitors; and then reassesses each strategy annually or

quarterly [i.e. regularly] to determine how it has been implemented and

whether it has succeeded or needs replacement by a new strategy to meet

changed circumstances, new technology, new competitors, a new economic

environment., or a new social, financial, or political environment.”

It is useful to consider strategy formulation as part of a strategic management process that comprises three phases: diagnosis, formulation, and implementation.

Diagnosis includes: (a) performing a situation analysis (analysis of the internal environment of the organization), including identification and evaluation of current mission, strategic objectives, strategies, and results, plus major strengths and weaknesses; (b) analyzing the organization's external environment, including major opportunities and threats; and (c) identifying the major critical issues, which are a small set, typically two to five, of major problems, threats, weaknesses, and/or opportunities that require particularly high priority attention by management.

Formulation, the second phase in the strategic management process, produces a clear set of recommendations, with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategies for accomplishing them. In formulation, we are trying to modify the current objectives and strategies in ways to make the organization more successful. A good recommendation should be: effective in solving the stated problem(s), practical (can be implemented in this situation, with the resources available), feasible within a reasonable time frame, cost-effective, and acceptable to key "stakeholders" in the organization. It is important to consider "fits" between resources plus competencies with opportunities, and also fits between risks and expectations.

There are four primary steps in this phase:

* Reviewing the current key objectives and strategies of the organization, which usually would have been identified and evaluated as part of the diagnosis

* Identifying strategic alternatives to address the three levels of strategy formulation outlined below, including but not limited to dealing with the critical issues

* Doing a balanced evaluation of advantages and disadvantages of the alternatives relative to their feasibility plus expected effects on the issues and contributions to the success of the organization

* Deciding on the alternatives that should be implemented or recommended.

This third and final stage in the strategic management process involves

developing an implementation plan and then doing whatever it takes to make the new strategy operational and effective in achieving the organization's objectives.

There are two components of Strategic Management Process;

1.Strategy Formulation

2.Strategy Implementation1.Strategy Formulation:In formulation, we are trying to modify the current objectives and strategies in ways to make the organization more successful.

Strategy Formulation components

Five major components of strategic management process are relevant to strategy formulations that are shown in the diagram below;Mission: the first component is the organization’s mission. The mission is the statement of the organization’s reason for being; it usually specifies the customers served, the needs satisfied or the values received by the customers and technology used.

Goals: an organization’s goals are what it hopes to achieve in the medium to long-term future. They reflect how the mission will operationalize.

External analysis: consists of examining the organization’s operating environment to identify the strategic opportunities and threats. Examples of opportunities are the customer markets that are not served technological advances that can aid the company and labor pools that have not been tapped. Threats include potential labor shortages, new competitors entering in the market and their technological innovations.

Internal analysis: attempts to identify the organization’s strengths and weaknesses. It focuses on the quantity and the quality of resources available to the organizational financial, capital, technological, and human resources. Organizations have to honestly assess each resource to decide whether it is a strength or weakness.

For that organizations go through the SWOT analysis. After going through SWOT analysis, the strategic planning team has all the information it needs to generate a numbers of strategic alternatives. The strategic managers compare these alternatives’ ability to attain the organization’s strategic alternatives.

Mission- reason for being

Goals- what it hopes to achieve

StrategicChoice

ExternalAnalysis- opportunities- threats

InternalAnalysis- strengths- weaknesses

- ways to fulfill goals and mission

AdministrativeLinkage

One-WayLinkage

Two-WayLinkage

IntegrativeLinkage

Strategic choice: it is the organization’s strategy which describes the ways an organization will attempt to fulfill its mission and achieve its long term goals.

Role of HRM in strategy formulationFour levels of integration seem to exist between the HRM function and

strategic management function, which are; administrative linkage, one-way linkage, two-way linkage and integrative linkage. Administrative linkage:

It is the lowest level of integration. In this linkage the HRM function’s attention is focused on day-to-day activities. The HRM executives have no time or opportunity to take a strategic outlook toward HRM issues. The department simply engages in administrative work unrelated to the company’s core business needs.One-way linkage:

In one-way linkage the firm’s strategic business planning function develops the strategic plan and then informs the HRM function of the plan. Many believe this level of integration constitutes strategic HRM, which is the role of the HRM function is to design systems that implement the strategic plan. Although one-way linkage does recognize the importance of humane resources in implementing the strategic plan, it precludes the company from considering human resource issues while formulating the strategic plan. This level of integration often leads to strategic plans that the company cannot successfully implement. Two-way linkage:

Two-way linkage allows for consideration of human resource issues during the strategy formulation process. This integration occurs in three sequential steps. Integrative linkage:

This consideration allows full integration between human resource management and strategic planning.

Strategy formulation

Five key steps in strategy formulation:Creating a strong strategy for an organization is not an easy task. It takes several of the organization's leaders to articulate and agree on vision and direction.Here are five tips for strategy formulation:

1. Analyze the current situation. Determining where your organization stands is an important first step that some leaders take for granted. Ask yourself, “Where are we now?” At a bare minimum, conduct a SWOT analysis.

2. Set a clear strategic direction. Use mission and vision statements to articulate direction, then set out an action plan for how to reach them.

3. Develop a small set of initiatives. Outline 3-5 key change initiatives that support the organization's goals and assign them to key employees to execute.

4. Establish a detailed action plan - for everyone. An individual plan for every employee, one that is reviewed between employee and team leaders weekly, gives everyone status updates and enough time for corrective action in the case that goals are at risk. Include measures for monitoring progress.

Organizational

structure

Task design

Types of

information

Reward

system

Selection,

T&D of people

Performance

Product

market

strategy

5. Align the organization. Execution of strategy requires every person, every day. Make sure you disseminate the strategy to all employees. How can they execute on it, if they're not continually aware of what's really important? 2.Strategy implementation

The implementation of organization strategy involves the application of the management process to obtain the desired results. Particularly, strategy implementation includes designing the organization's structure, allocating resources, developing information and decision process, and managing human resources, including such areas as the reward system, approaches to leadership, and staffing.

Each of these management functions has been the subject of extensive writing and research by scholars and practitioners and has covered in management books.

Since full coverage of each management function is beyond the scope of this thesis, I shall focus only on the factors that are most critical to effective implementation strategy.

In the diagram below, after the development of strategy, there are five elements like, organizational effectiveness, structure and reward system, T&D, task design and types of information in which there is a need for change for implementation of strategy.

Role in Strategy Implementation

HRM supplies the company with a competent and willing workforce for executing strategies. It is important to remember that linking strategy and HRM effectively requires more than selection from a series of practice choices. The challenge is to develop a configuration of HR practice choices that help implement the organization’s strategy and enhance its competitiveness.Strategic Human Resource Management“All those activities affecting the behavior of individuals in their efforts to formulate and implement the strategic needs of the business and achieve organizational goals.” (SHRM) Strategic human resource management is designed to help companies best meet

the needs of their employees while promoting company goals. Human resource

management deals with any aspects of a business that affects employees, such as

hiring and firing, pay, benefits, training, and administration. Human resources may

also provide work incentives, safety procedure information, and sick or vacation

days.

Strategic human resource management is the proactive management of people. It

requires thinking ahead, and planning ways for a company to better meet the needs

of its employees, and for the employees to better meet the needs of the company.

This can affect the way things are done at a business site, improving everything

from hiring practices and employee training programs to assessment techniques

and discipline

An important aspect of strategic human resource management is employee

development. This process begins when a company is recruiting and interviewing

prospective employees. Improved interviewing techniques can help to weed out

applicants that may not be a good match for the company.

After being hired on, a strong training and mentoring program can help a new

member of the staff get up to speed on company policies and any current or

ongoing projects they will be working on. To help employees perform at their best, a

company can follow up with continual training programs, coaching, and regular

assessment. Investing in the development of its employees can allow a company to

turn out more consistent products

StrategicChoice

FirmPerformance- productivity- quality- profitability

HR Needs- skills- behaviors- culture HR

Capability- skills- abilities- knowledge

HR Actions

- behaviors- results

HR Practices- recruitment- training- performance management- labor relations- HR planning

- job analysis- job design- selection- development- pay structure- incentives- benefits

Strategic human resource management is essential in both large and small

companies. In small companies, this may be as simple as the owner

or manager taking a little time every day to observe, assist, and assess employees,

and provide regular reviews. Larger companies may have a whole department in

charge of human resources and development. By meeting the needs of the

employees in a way that also benefits the company, it is possible to improve the

quality of staff members. Taking the effort to provide

employees with the tools they need to thrive is

worth the investment.

Emergent strategies

Strategic Human Resource Management

Integrity

Social Responsibil

ity

Link of HR Plan/

Strategy with Org

Obj

Cost containme

nt

Customer

serviceOrg

Effectiveness

Analyze the problems in business

Diagnose factors influencing the situation

Strategic HRM Objectives and PlansThe objectives of strategic HR management are displayed in the diagram below; these are five objectives like; integrity, cost containment, social

responsibility,

customer service, organizational effectiveness.

Strategic Formulation of HRMStrategic objectives and plans

According to diagram of strategic formulation of HRM, first we analyze the problem that has to be faced by a firm and we diagnose the factors/causes related to issues and we conclude and recommend alternative strategies and then we prepare action plan that guide us what we have to do or how we could overcome problems and we allocate resources that are necessary to solve problems and we see the benefits of the whole formulation of HRM whether it satisfies the needs of business or not.

Strategic Implementation of HRM Strategic Human Resource Implementation

Strategic Staffing

Strategic Performance Management

Strategic Compensation Management

After the formulation of strategy, we have to implement it and we do staffing according to the developed strategy, we measure performance of the firm

and individuals and then we give rewards them and whole this process is strategic human resource implementation.

HRM ScorecardIt is a report card to measure the effectiveness of specific person. It is an annually or monthly report about specific person that define tasks are completed or not or tasks completion leads to the accomplishment of the goals or objectives of the organization.

Basic Model of How to Align HRM with Business StrategyThe diagram shows that we first formulate the strategy and then we change the behaviours of the people because we require different workforce for different strategies then procedures and policies are designed and tasks are performed according to policies and at the end we measure performance through HR scorecard to measure that whether we are going to the way of accomplishment of organizational goals

Strategy designing and implementation are very difficult tasks. A famous saying is that “If you are failing to plan,

then you are planning to fail.”