This document discusses strategic human resource management fundamentals including strategic intent, resource-based strategy, strategic capability, and strategic management. It defines strategic intent as expressing an organization's leadership position and goals. Resource-based strategy matches resources to opportunities for competitive advantage. Strategic capability is an organization's ability to develop and implement strategies for sustained competitive advantage. Strategic management formulates and implements strategies through strategic planning to achieve organizational objectives and enable future actions.
2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
3. Fundamentals of Strategy
• Fundamentally, strategy is
about defining intentions
(strategic intent) and
achieving strategic fit by
allocating or matching
resources to opportunities
(resource-based strategy).
4. Fundamentals of Strategy
• The effective development
and implementation of
strategy depends on the
strategic capability of the
organization, which will
include the ability not only to
formulate strategic goals but
also to develop and
implement strategic plans
through the processes of
strategic management and
strategic planning.
5. Strategic intent
• In its simplest form, strategy
could be described as an
expression of the intentions
of the organization – what it
means to do and how or, as
Wickens (1987) put it, how
the business means to ‘get
from here to there’.
6. Strategic intent
• As defined by Hamel and
Prahalad (1989), strategic
intent refers to the
expression of the leadership
position the organization
wants to attain and
establishes a clear criterion
on how progress towards its
achievement will be
measured.
7. Strategic intent
• Strategic intent could be a
very broad statement of
vision or mission and/or it
could more specifically spell
out the goals and objectives
to be attained over the
longer term.
8. Strategic intent
• The strategic intent sequence
has been defined by Miller
and Dess (1996) as:
– A broad vision of what the
organization should be;
– The organization’s mission;
– Specific goals, which are
operationalized as:
– Strategic objectives.
9. Resource-based strategy
• The resource-based view of
strategy is that the strategic
capability of a firm depends
on its resource capability.
Resource-based strategy
theorists such as Barney
(1991) argue that sustained
competitive advantage stems
from the acquisition and
effective use of bundles of
distinctive resources that
competitors cannot imitate.
10. Resource-based strategy
• As Boxall (1996) comments:
‘Competitive success does not
come simply from making
choices in the present; it
stems from building up
distinctive capabilities over
significant periods of time.’
Teece, Pisano and Shuen
(1997) define ‘dynamic
capabilities’ as ‘the capacity of
a firm to renew, augment and
adapt its core competencies
over time’.
11. Strategic capability
• Strategic capability is a concept
that refers to the ability of an
organization to develop and
implement strategies that will
achieve sustained competitive
advantage. It is therefore about
the capacity to select the most
appropriate vision, to define
realistic intentions, to match
resources to opportunities and
to prepare and implement
strategic plans.
12. Strategic capability
• The strategic capability of an
organization depends on the
strategic capabilities of its
managers. People who display
high levels of strategic capability
know where they are going and
know how they are going to get
there. They recognize that,
although they must be
successful now to succeed in the
future, it is always necessary to
create and sustain a sense of
purpose and direction.
13. Strategic management
• The purpose of strategic
management has been
expressed by Rosabeth Moss
Kanter (1984) as being to ‘elicit
the present actions for the
future’ and become ‘action
vehicles – integrating and
institutionalizing mechanisms
for change’.
14. Strategic management
• Strategic management has
been defined by Pearce
and Robinson (1988) as
follows: ‘Strategic
management is the set of
decisions and actions
resulting in the formulation
and implementation of
strategies designed to
achieve the objectives of
an organization.’
15. Strategic management
• Strategic management means
that managers are looking
ahead at what they need to
achieve in the middle or
relatively distant future. It deals
with both ends and means. As
an end it describes a vision of
what something will look like in
a few years’ time. As a means,
it shows how it is expected that
the vision will be realized.
16. Strategic management
• Strategic management is
therefore visionary
management, concerned
with creating and
conceptualizing ideas of
where the organization
should be going. But it is also
empirical management,
which decides how in
practice it is going to get
there.
