Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)
Al-Qurmoshi Institute of Business Management,
Hyderabad - 500005
What is Human Resource
HRM is the effective use of human resources in order to
enhance organizational performance
HRM is the art of procuring, developing & maintaining
competent workforce to achieve the organisational goals in
an effective & efficient manner
What is Strategy?
The determination of the basic long-term goals and
objectives of an enterprise and the adoption of courses
of action and the allocation of resources necessary for
carrying out these goals.
Hierarchy of Strategy
Corporate: organization’s overall direction and
general philosophy. Key question: What business
are we in?
Business: Make each business unit more
competitive in market-place. Key question: How
do we compete?
Functional: major functional operations to
maximize resource productivity. Key question:How
do we support the business-level competitive
What is Strategic HRM?
Strategic HRM is developing and implementing HR
policies and practices that will enable the organization
to achieve its strategic objectives.
It is about how the employment relationships for all
employees can be managed in such a way as to
contribute optimally to the organization’s goal
HR Practices Linked With
High Performance Practices
Comprehensive selection/recruitment procedures
Incentive based compensation
Extensive employee involvement/training
Improved knowledge, skills, and abilities of employees
Enhance retention of quality employees
High Commitment Practices
Sophisticated selection and training
Emphasis on values, human relations skills, and
Single status policies
Contingent pay systems
Core responsibilities of the HR
function in Strategic HRM
Right number of qualified employees.
Right skills and knowledge.
Meet organization’s motivational needs.
Strategic HRM - Matching
Integration or ‘external fit’ of business
strategy with HR strategy
1. Link HR policies/practices with strategic
2. Line managers internalize importance of HR.
3. Integration of the workforce to foster
commitment to strategic goals.
Strategic HRM - Matching Model
Link between corporate strategy and HR strategy.
‘HR strategies’: patterns of decisions regarding HR
policies and practices that are used by management to
design work and select, train, develop, appraise,
motivate and control workers.