1. What is Strategic HRM?
Strategic human resource management: The pattern of planned human resource deployments and activities intended to enable an organization to achieve its strategic goals.

2. Strategic HRM To be strategic, the HR function should
Have direct, integral involvement in strategy formulation and implementation.
Know what employee skills, behaviors, and attitudes are needed to support strategic plan.
Develop those skills, behaviors, and attitudes among employees.

3. Components of the Strategic Management Process
Strategy Formulation:
Strategic planning group decides on a strategic direction
Defining the company's mission and goals
Identify external opportunities and threats
Identify internal strengths and opportunities for growth

4. Strategy Formulation External analysis Opportunities Threats Strategic
Mission
Goals
Strategic
Choice
Internal
analysis
Strengths
Weaknesses
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

5. Components of the Strategic Management Process
2. Strategy Implementation:
Follow through on the chosen strategy.
Includes structuring the organization, allocating resources,
Involves ensuring that the firm has skilled employees in place
Utilizes reward system that align employee behavior with the strategic goals.

6. Model of the Strategic Management Process
Strategy Formulation
Strategy Implementation
External
Analysis
Opportunities
Threats
HR Practices
Recruiting,
Training,
Performance management,
Labor relations,
Employee relations,
Job analysis
Job design,
Selection,
Development,
Pay structure,
Incentives,
Benefits
Firm
Performance
Productivity,
Quality,
Profitability
Mission
Goals
Strategic
Choice
Human
Resource
Needs
Skills
Behavior
Culture
Human
Resource
Capability
Skills,
Abilities,
Knowledge
Human
Resource
Actions
Behaviors,
Results
Internal
Analysis
Strengths
Weaknesses
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

7. Levels of HRM integration in Strategy Formulation
Administrative Linkage — Lowest level; HRM focused on day-to-day activities. No input from the HRM function to the company's strategic plan.
One-Way Linkage — The strategic business planning function develops the plan and then informs the HRM function of the plan. HRM helps with implementation.
Two-Way Linkage — HR issues considered during the strategy formulation process. HR function provides input on potential strategic choices and helps implement chosen option.
Integrative Linkage — Continuing, rather than sequential, interaction. HR is an integral member of the strategic planning team.

8. Strategy Formulation Five relevant components:
Mission: statement of the organization's reasons for being.
Goals: what the organization hopes to achieve in the medium-to long-term future
External analysis consists of examining the organization's operating environment to identify strategic opportunities and threats.
Internal analysis attempts to identify the organization's strengths and weaknesses.
Strategic choice is the organization's strategy, which describes the ways the organization will attempt to fulfill its mission and achieve its long term goals.

9. Strategy Implementation
Organizational
structure
Task design
Types of
Information
Performance
Product
market
strategy
Reward
systems
Selection,
training, and
development
of people

10. Strategic Types
Porter's Generic Strategies —competitive advantage comes from creating value by:
reducing costs or
charging a premium price for a differentiated product or service (differentiation).

11. HRM and Strategic Types
Different strategies call for different types of employees.
Role behaviors are the behaviors required of an individual in his or her role as a jobholder in a social work environment.
Cost strategy calls for efficiency--carefully define the skills employees need. Seek employees’ cost-saving ideas.
Differentiation firms need creative risk takers.

12. The Role of HR in Providing a Competitive Advantage
Emergent Strategies - Those that evolve from the grass roots of the organization.
What actually is done versus what is planned.
HR plays an important role in facilitating the communication of emergent strategies between levels in the hierarchy.
Enhancing Firm Competitiveness
By developing a rich pool of talent, HR can assure the company's ability to adapt to a dynamic environment.

13. Competencies of Strategic Human Resource Consultants
Four basic competencies:
Business Competencies: Understand company's economic and financial capabilities.
Professional/Technical Knowledge: In HR practices
Change Management or Organizational Development Techniques: Ability to diagnose need for change; develop and implement the appropriate intervention.
Integration Competencies: Holistic perspective with the skills of a specialist in the above three areas.

14. Human Resource Competencies
Professional and
Technical
Knowledge
Business
Competence
HR Professional
Integration
Competence
Ability to
Manage Change