1. Strategic Role of HRM
Lecture 2

2. Learning Outcomes Strategic Management Process Types of strategy
Strategic HRM
The SHRM tools

3. Strategic Management Process
Strategy- A strategy is a course of action
Strategic plan- organization’s plan for how it aims to match or balance its internal strengths and weaknesses with external opportunities and threats to maintain competitive advantages over the long-term
Strategic management- the process of identifying and executing organization’s strategic plan by matching the internal competencies with the demands of environment

4. Strategic Management Process (Cont.)
Step 1: Define the Current Business
- What products to sell, where to sell and how to differentiate
Step 2: Perform external and Internal Audits
SWOT analysis for internal audit and external audit
PEST analysis for external audit

5. SWOT Analysis

6. PEST Analysis

7. SWOT Analysis

8. Strategic Management Process (Cont.)
Step 3: Formulate New Direction
What should our business be
Vision Statement (what do we want to become?)
Mission Statement (what business are we in?) (Why do we exist?)
(Ford- Where QUALITY is job one)

9. Strategic Management Process (Cont.)
Step 4: Translate the Mission into Strategic Goals
Ford’s goal- No more than 1 initial defect per 1000 car
Step 5: Formulate Strategies to Achieve Strategic Goals
Step 6: Implement the Strategies
Evaluate Performance
Things don’t always turned out as planned
Evaluation is the strategic imperative

10. Types of Strategies Corporate Level Strategy Business 1
Completive Strategy
Business 1 Functional Strategy
Marketing Dept.
HR Dept.
Business 2
Competitive Strategy
Business 2 Functional Strategy

11. Corporate Strategies Corporate Strategy Concentration Diversification
Vertical Integration
Geographical

12. Competitive Strategy Competitive Strategy Cost Leadership
Differentiation
Focus

13. Strategic Human Resources Management
SHRM involves formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve the strategic aims.
SHRM aligns HR practices with organizational strategic goals
resources/factsheets/strategic-human- resource-management.aspx

14. SHRM
SHRM
Strategic alignment
Strategic Goals
Behavior and skills

15. Examples of SHRM Ford (reducing defects) Apple (more innovation)
John Lewis (great customer service)

16. SHRM Tools
Balance Score Card

17. HRM Tools

18. Thank you!