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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
315
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
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