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2. Describe the competitive environment of human resource management
Identify three types of strategies and relate each to human resource management
Discuss human resource strategy formulation and relevant organizational factors
Discuss the processes through which human resource strategy is implemented
Discuss how the human resource function in organizations can be evaluated

3. The Competitive Environment
Organizations gain competitive advantage through management of human resources
Human resource manager adds value to the organization by providing expertise concerning how to use firm’s human resources
To accomplish its objectives and gain competitive advantage

4. 4.1 Strategic Human Resource Management

5. The Competitive Environment
Strategic perspective
A firm gains a competitive advantage when it implements a strategy that its competitors are unable to implement
Influence of organizational purpose and mission
Describes the importance an organization places on its human resources

6. The Competitive Environment
Influence of the top management team
Sets the tone for the organization and plays a major role in shaping its culture
Role of corporate governance
Monitors the actions of the top management team to ensure that stockholders’ interests are protected

7. Types of Strategies
Corporate strategy: Determines what businesses the corporation will operate
Business strategy: Deals with how the firm will compete in each market where it conducts business
Functional strategy: Deals with how the firm will manage each of its major functions

8. Corporate Level Strategies
Pursued internally by opening additional locations or externally through mergers, joint ventures, or the acquisition of other businesses
Growth strategy
Occurs when an organization finds that its current operations are not effective, and major changes are needed to rectify the problem
Retrenchment strategy
Calls for maintaining status quo
Stability strategy
Used by companies that are adding new products, product lines, or businesses to their existing core products, product lines or businesses
Diversification strategy

9. Business-Level Strategy
Adaptation model: Managers in an organization should try to match the organization’s strategy with the basic conditions of its environment
Defender strategy
Prospector strategy
Analyzer strategy

10. Other Competitive Strategies
Attempts to develop an image or reputation for its product or service that sets the company apart from its competitors
Differentiation strategy
Focuses on minimizing the costs as much as possible
Cost leadership strategy
Undertaken when an organization tries to target a specific segment of the marketplace for its products or services
Focus strategy

11. 4.3 Human Resource Strategies

12. Components of HR Strategy
Organizational design
Corporate culture
Unionization

13. Interpersonal Processes
Overall set of expectations held by an individual with respect to what they will contribute to the organization and what the organization will provide to individual in return
Psychological contract
Relatively stable set of psychological attributes or traits that distinguish one person from another
Personality
Set of forces that causes people to behave in certain ways
Motivation
Person’s adaptive response to a stimulus that places excessive psychological or physical demands on that person
Stress

14. Strategy Implementation
Human resource managers help identify potential leadership qualities among existing employees
To help structure procedures for developing and enhancing those qualities
Communication is an interpersonal process directly related to the implementation of human resource strategy

15. 4.1 Human Resource Management That May Lead to Improved Firm Performance

16. Organization gains competitive advantage through its management of human resources
Key to strategic operations is developing and implementing effective strategies
Interpersonal processes are important because of the role they play in affecting the performance effectiveness exhibited by each employee in a firm

17. Adaption model
Business strategy
Corporate strategy
Cost leadership strategy
Culture
Differentiation strategy
Diversification strategy
Focus strategy
Functional strategy
Growth strategy
Mission
Motivation
Organization design
Personality
Psychological contract
Purpose
Related diversification
Retrenchment strategy

18. Stability strategy
Stress
Top management team
Unrelated diversification