1. Human Resource Management: Gaining a Competitive Advantage
Chapter 02
Strategic Human Resource Management
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
Describe the differences between strategy formulation and strategy implementation.
2. List strategic management process components.
3. Discuss HRM function’s role in strategy formulation.
4. Describe the linkages between HRM and strategy formulation.
5. Discuss typologies of strategies and associated
HRM practices.
Describe HR issues and practices associated with various directional strategies.
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3. Introduction
Goal of strategic management is to deploy and allocate resources in a way that gives an organization competitive advantage.
HRM function must be integrally involved in the company’s strategic management process.
A business model is how the firm will create value for customers profitably.
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4. What is Strategic Management?
Strategic human resource management (SHRM) is the pattern of planned HR activities and deployments intended to enable an organization to achieve its goals.
Strategic management is a process to address the organization’s competitive challenges by integrating an organization’s goals, policies and action sequences into a cohesive whole.
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5. Strategy Strategy Formulation Implementation 2 Phases of Strategic
Management
Strategy Formulation
Strategy
Implementation
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6. Strategic Management Process Model
Strategy Formulation
Strategy Implementation
HR Practices
Recruiting
Training
Performance management
Labor relations
Employee relations
Job analysis
Job design
Selection
Development
Pay structure
Incentives
Benefits
External Analysis
Opportunities
Threats
Firm
Performance
Productivity
Quality
Profitability
Mission
Goals
Strategic
Choice HR
Needs
Skills
Behavior
Culture HR
Capability
Skills,
Abilities
Knowledge
HR Actions
Behaviors
Results
Internal
Analysis
Strengths
Weaknesses
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7. Strategy- Competition Decisions
With What?
How?
Where?
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8. Strategic Planning and HRM Linkages
Administrative
One-way
Two-way
Integrative
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9. Strategy Formulation External Analysis Opportunities Threats Mission
Goals
Strategic
Choice
Internal
Analysis
Strengths
Weaknesses
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10. SHRM-Strategy Formulation
Mission
Goals
External Analysis
Strategic Choice
Internal Analysis
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11. SWOT Analysis for Google Inc.
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12. Strategy Implementation Variables
Organizational
Structure
Task
Design
Types of
Information
Product
Market
Strategy
Performance
Reward
Systems
Select
Train
Develop
People
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13. HRM’s 3 Implementation Variables:
Task
People
Reward
systems
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14. Strategic Implementation
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
Strategic
Choice
Human
Resource
Needs
Skills
Behavior
Culture
Human
Resource
Capability
Skills,
Abilities
Knowledge
Human
Resource
Actions
Behaviors
Results
-productivity
-absenteeism
- turnover
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15. HRM Practices Job Analysis/Design Recruitment /Selection
Performance
Management
Recruitment/ Selection
Training/Development
Pay Structure/ Incentives/ Benefits
Labor-employee Relations
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16. Porter’s Strategies Cost Differentiation
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17. 5 Categories of Directional Strategies
Concentration
5 Categories of Directional Strategies
Internal Growth
External Growth
Downsizings
Mergers & Acquisitions
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18. Role Behaviors
Behaviors that are required of an individual in his or her role as a jobholder in a social work environment.
Different role behaviors are required for different strategies.
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19. Summary
Human Resources are the most important asset and single largest most controllable cost within the business model.
HR professionals must develop business, professional-technical, change management and integration competencies.
HRM has a profound impact on the strategic plan implementation by developing and aligning HRM practices that ensure the company has motivated employees with necessary skills.
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