1. Concept of Strategy

2. What is strategy?
“…determines direction in which the enterprise is going in relation to its environment in order to achieve sustainable competitive advantage.”
(Armstrong and Baron)
It is a
Plan- a direction, a guide, a course of action
A pattern- consistency of behaviour over time
A Perspective- fundamental way of doing things
A Ploy- manoeuvre to outwit competitor
Mintzberg

3. Strategy Management Aims for competitive advantage
Formulating strategy requires
Defining strategic intent
Achieving strategic fit (matching resources to opportunities)
This requires strategic capability
Ability to determine strategic goals and implement strategic plans- (strategic management)

4. What strategies? Differentiation Focus Innovation Quality
Cost Leadership

5. Resource Based Strategy
“..firms consist of bundles of unique resources and that, if these resources meet the four criteria of value, rarity, inimitability and non-substitutability, then they can constitute a source of sustained competitive advantage to the firm (Boxall, 1996).
Such unique capability is called distinctive capability or core competencies

6. Process of Strategy Formulation
External Analysis
Internal Analysis
Corporate Strategy
Functional Strategy
Implementation Plans
Implementation
Monitor and evaluate

7. Strategic HRM

8. Defining Strategic HRM
“… an approach to making decisions on the intentions and plans of organisations in shape of policies, programmes and practices concerning the employment relationship..”
Armstrong (2006)
“… means of aligning the management of human resources with strategic content of business..”
Walker (1992)

9. Meaning of Strategic HRM
Use of Planning
Coherent approach to design and management of personnel systems based on employment policy and manpower strategy and often underpinned by a philosophy
Matching HRM activities and policies to some explicit business strategy
Seeing the people of the organisations as a “strategic resource” for achievement of “competitive advantage”
Armstrong (2006)

10. Different HR strategies
Overarching strategies
General intentions of organisations about how people should be managed and developed
Specific HR Strategies
These setout what organisations intend to do in different areas

11. HR Strategies Overarching strategies
Eg. “We want GSK to be a place where the best people do their best work”
GlaxoSmithKline
Specific HR Strategies
Talent Management
Continuous improvement
Learning and development
Reward

12. Strategic Fit Vertical integration Horizontal integration
Integration of HR strategies with business strategies
Horizontal integration
Ensuring that different elements of HR strategy fit together and are mutually supportive

13. Resource based Strategic HRM
Human resources, it has been argued, can constitute a particularly strong source of sustained competitive advantage, provided the firm is organized to exploit them
(Truss 2004)

14. RBV Ideas
Competitive advantage is obtained if a firm can obtain and develop human resources that enable it to learn faster and apply its learning more faster than its competitors
Hamel and Prahald (1989)
Human Resources includes.. experiences, knowledge, judgment, risk-taking propensity and wisdom of individulas
Barney (1995)

15. RBV Aim Improve resource capability Achieving strategic fit
Obtaining added value from effective deployment of resources

16. Human Capital Human Capital Advantage
General skills that are available to all firms are, it is argued, a potential source of competitive parity, whereas firm-specific skills, such as knowledge of particular systems or culture, are more likely to constitute a resource

17. Human Process Advantage:
HR systems (set of interrelated activities, functions and processes directed at attracting, developing and maintaining HR) add value by facilitating development of firm-specific competencies, produce complex social relationships and generate tacit organizational knowledge
Both processes needs to be dove-tailed to get human resource advantage.( It is not enough to recruit people with talents and ability, it needs to have in place processes, systems and practices to ensure that people work effectively)

18. Models of Strategic HRM
How to achieve competitive advantage through people
Best Practice (Universalistic )
Best Fit (Contingency)
Configurational- (Bundling)
What to do to achieve competitive advantage
High-Performance Management (HP Working)
Enhancing skills and engaging enthusiasm- r/s, pm, t/d, inc
High-Commitment Management
Enhancing mutual commitment-career l, func flex, hierarchy, team
High Involvement Management
Treating people as partnwrs-commn, partcpn

19. Linking HR Strategies with Business Strategies
Sequential Approach
Assess feasibility, determine desirability, determine goals, decide means to goals (fit)
Empirical Need-Based Approach
Identify business issues, needs and intentions
Determine options
Make strategic choices
Plan implementation

20. Linking HR and Competitive strategies