1. Strategic Human Resource Management
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What is strategic HRM?
Strategic HRM is developed through three steps:
Decide on the strategic goals
Identify employee skills and behaviors necessary for success
Formulate HR management policies and practices that will produce these required skills
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3. The Strategic Management Process
The process begins by developing a strategic plan that describes how internal strengths and weaknesses will be matched with external opportunities and threats
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4. Steps in Strategic Management
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5. Step 1: Define the current business
Begin by asking these questions:
What products do we sell?
Where do we sell these products?
How do our products or services differ from our competitors?
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6. Step 2: Perform External and Internal Situational Audits
The key to success is adaptation
Situational audits require SWOT (strengths, weaknesses, opportunities, and threats) analysis
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7. Step 3: Formulate a New Business Direction
What should our new business be in terms of product, placement and competitive advantage?
The vision statement describes the following: What do we want to become?
The mission statement explains the following: Where are we now?
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8. Step 4: Translate the Mission into Strategic Goals
Operationalize the mission for managers
What does the mission mean to each department?
What goals follow implementation?
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9. Step 5: Formulate Strategies to Achieve the Strategic Goals
What is the game plan?
Decide on a course of action
Best strategies are concise
Easily communicated
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10. Step 6: Implement the Strategies
Get the game plan going
Do what needs to be done
Hire or fire people
Build or close plants
Adding or eliminating products and product lines
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11. Step 7: Evaluate Performance
Evaluate, evaluate, evaluate
Ongoing process vis-à-vis strategic control
Addresses the following questions:
Are resources being utilized as planned?
Are discrepancies explained?
Do changes in our situation suggest change?
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Types of Strategies
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Corporate Strategy
Top-level, company-wide
Identifies the portfolio of existing business segments
Strategic possibilities include the following:
Diversification or vertical integration
Consolidation
Geographic expansion
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Competitive Strategy
Identifies how to build upon and strengthen the business’s long-term marketplace position
Identifies and develops competitive advantage
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15. Competitive Advantage
Cost leadership indicates that the enterprise intends to become the low-cost leader in the industry
Differentiation strategies seek to be unique in its industry along dimensions valued by buyers
Focusers carve out niche markets and compete by providing a product/service that customers can get through no other means
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16. Functional Strategies
Identifies basic courses of action that each department will pursue to achieve strategic goals – consider Southwest Airlines
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17. The Importance of Leverage
Leverage means supplementing what you have and doing more with what you’ve got!
Human resources can be a crucial competitive advantage!
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18. HRM Creates Competitive Advantage
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19. Four Important Strategic HR Issues
HR must understand that employees play a key role in employers’ performance improvement efforts
HR teams should support corporate productivity and performance improvement efforts
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20. Four Important Strategic HR Issues, cont.
HR units must be more involved in designing – not just executing – the strategic plan
HR managers must understand how to create value
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21. How Involved Is HR in Strategic Management?
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What Roles Does HR Play?
Strategy execution
Strategy formulation
SWOT analysis
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23. Translating Strategy into HR Policy and Practice
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24. HR’s Role in Mergers and Acquisitions
Early HR involvement creates synergy
HR involvement increases M and A success rates
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Specific HRM M&A Roles
Manage the deal price
Manage the messages
Secure top team and key talent
Prioritize and manage activities
Define and implement an effective HR service delivery strategy
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26. Specific HRM M&A Roles, cont.
Develop a workable change management plan
Design and implement the right staffing model
Align total rewards
Measure synergies
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