2. • Strategic HRM refers to HR that is coordinated and consistent with the overall
business objectives in order to improve business performance.
• According to Purcell, SHRM focuses on actions that differentiate the business from
its competitors.
MEANING
3. • Long-term focus
• Associated with goal setting
• Interrelated with business strategies
• Fosters corporate excellence skills
NATURE OF SHRM
4. Scope of SHRMSCOPE OF
SHRM
1. SHRM in Personnel
Management
2. SHRM in Employee
Welfare
3. SHRM in industrial
Relations
5. Benefits of SHRM
• Allows identification, prioritisation and exploitation of opportunities.
• Provides an objective view of management problems.
• Represents a framework for improved co-ordination and control of
activities.
• Minimises the effects of adverse conditions and changes.
• Allows major decisions to better support established objectives.
6. Professor Michael Porter, a prominent strategic management the
orist from Harvard University, has proposed a generic strategies fra
mework utilizing the 2 broad strategies of cost leadership and diff
erentiation.
According to Porter, business-level strategic decisions are driven by tw
o basic factors:
Market scope: managers should ask the question:. 'How broad or
narrow is our market target?’
Source of competitive advantage — managers should ask the quest
ion: ‘How will we compete for competitive advantage, by lo
Porter’s Model
7.
8. According to PORTER, the previously mentioned factors combine to create 4
generic strategies that organizations can pursue.
The Motor Vehicle industry is used as an example in the analysis of these
four strategies:
COST LEADERSHIP — where the organization's resources and attention are
directed towards minimizing costs to operate more efficiently than the
competition
(for example, Hyundai and KIA).
DIFFERENTIATION — where the organization's resources and attention are
directed towards distinguishing its products from those of the competition
(for example, BMW and Volvo).
9. Focused cost leadership — where the organization concentrates on one special
market segment and tries in that segment to be the provider with lowest costs
(for example, Suzuki).
Focused differentiation — where the organization concentrates on one special
market segment and tries to offer customers in that segment a unique product
(for example, Land Rover and Subaru).
10.
11. Steps in SHRM
Step 7Step 5Step 4Step 3Step 2Step 1
Develop a
thorough
understanding
of your
company’s
objectives
Evaluate your
HR capability
Analyze your
current HR
capacity in light
of your goals
Estimate your
company’s
future HR
requirement
Determine the
tools required
for employees
to complete the
job.
Evaluation and
corrective action
Implement
the HRM
strategy
Step 6
