2. Environmental Orgn Self
Analysis Assessment
• Competition/I • Resources
ndustry • Financial
Analysis • Physical
• Regulations • Human
• Technology • Technological
Mission Goals and
Statement • Market Trends • Culture
• Structure Objectives Strategy
• Economic
• Power
Trends
• Decision Making
• Performance
• Work systems
Mello 2

3. Types of Strategy
 Competitive Advantage
something which gives the organisation some
advantage over its rivals
 Cost advantage
A strategy to seek out and secure a cost advantage of
some kind - lower average costs, lower labour
costs, etc.

4. Types of Strategy
 Market Dominance Achieved through:
 Internal growth
 Acquisitions – mergers and takeovers
 New product development:
to keep ahead of rivals and set the pace
 Contraction/Expansion
focus on what you are good at (core
competencies) or
Seek to expand into a range of markets?

5. Types of Strategy
 Price Leadership
through dominating the industry – others follow your
price lead
 Global
seeking to expand global operations
 Reengineering – thinking outside the box
looking at news ways of doing things to leverage the
organisation’s performance

6. Types of Strategy
Internal business level strategies –
 Downsizing – selling off unwanted parts of the
business – similar to contraction
 Delayering – flattening the management
structure, removing bureaucracy, speed up decision
making
 Restructuring – complete re-think of the way the
business is organised

7. Understand…
 Business Objectives
 Clearly understand what the Objectives are
 Ex – be a 100 crore company by 2010
 Ex – be a 1000 people company by 2009
 Strategies
 Understand How the Objectives would be met
 Ex – Open offices in 2 countries
 Increase sales force by 50%
 Introduce new Product line

8.  Resources
 Understand what resources would be needed to meet
these Objectives
 Ex – offices in 4 locations in 2 countries
 Ex - ERP solution to streamline processes
 Ex - Sales force of 80 and a production force of 200
 As Is – To Be Analysis
 You need to understand what you have (As Is) and what
you need (To Be)
 Ex – You have a sales force of 20 and need 60 more
 Ex – you need a specialized Admin dept. to handle all
admin functions which currently is being done by HR

9. Revisiting HR Policies
 Set Procedures & Process for routine tasks
 Ex - Joining formality
 Ex – Availing Leaves
 Set boundary conditions for Human Behavior and Activities
 Ex – Working Hours is 9 AM to 6 PM
 Ex – Dress Code
 Ex - Sexual Harassment Policy
 Motivational tool to Retain People and improve
productivity
 Ex – Compensation
 Ex – Benefits
 Ex – Incentives and Bonuses
 Ex – Birthday celebrations

10. HR Policies – Myth
 Policies are for the employees and not for Management
 Policies are for the Organization and every one working in it for it
irrespective of the Hierarchy.
 Good policies will cater to the hierarchy in the way it has been
framed
 One size fits all
 Different organizations need different policies
 Policy for a 50 people organization would be different from a 200
people org. which would be different from a 2000 people org.
 Policy for a org with one location would be different from org with
multiple locations

11. Sum up…
 We know where we want to be…(Objectives)
 We know how to get there… (Strategies)
 We know what we have…(As Is)
 We know what we need to reach where we want to be…(To Be)
 We know we need a Framework (HR Policies)
 We know what to avoid in this Framework (Myths)
 We know what to consider when drafting this Framework
(Complexities)
To Create an appropriate framework to Get what we need and
maintain what we have to reach where we want to be is Aligning
HR to Business Objectives