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Hr & Organizational Strategies


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HR and Corporate Strategy. HR and Business Strategy. Human resource strategy framework.

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Hr & Organizational Strategies

  1. 1. HR & Organizational Strategies Chapter 3 Nisha Hariyani HR & Organizational Strategies
  2. 2. HR and Corporate Strategy <ul><li>“corporate Strategy is the overall plan for diversified business” – Michael Porter </li></ul><ul><li>Three types of Corporate Strategy are </li></ul><ul><ul><li>Growth </li></ul></ul><ul><ul><li>Stability </li></ul></ul><ul><ul><li>Retrenchment </li></ul></ul>
  3. 3. HR & Business Strategy <ul><li>Corporate strategy is seen as the overall strategy related to business interests, while business strategy is designed to serve the interests of a particular business unit. </li></ul><ul><li>Three types are: </li></ul><ul><ul><li>Cost Leadership </li></ul></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Focus </li></ul></ul>
  4. 4. Dyer & Holder Typology for Strategies <ul><li>It’s a fit between HR Strategy and Org Strategy to drive Corporate performance </li></ul><ul><li>Three strategy are: </li></ul><ul><li>An investment strategy is adopted by org that keeps track of changing market and encouraging innovation and creativity </li></ul><ul><li>Inducement strategy aims at retaining the employees by encouraging loyalty </li></ul><ul><li>Involvement strategy is one where the organization gives importance to both innovation and cost cutting. </li></ul>
  5. 5. HR strategy framework <ul><li>The steps in strategy frame work are: </li></ul><ul><li>External environmental scan </li></ul><ul><ul><li>Competitor/industry analysis </li></ul></ul><ul><ul><li>Stakeholder analysis </li></ul></ul><ul><ul><li>PEST analysis </li></ul></ul><ul><ul><li>Environmental Situational Factors </li></ul></ul><ul><li>Internal capital assessment </li></ul>
  6. 6. Competitor / industry analysis Intensity of Rivalry Bargaining power of Buyers Threat of New Entrants Barriers to entry Bargaining power of suppliers Threat of substitutes Competitor Analysis
  7. 7. Stake Holder Analysis <ul><li>A stake holder anaysis identifies and assesses the importance of key people, groups of people, or institutions for the organization’s success. </li></ul><ul><li>Stake holders include </li></ul><ul><ul><li>Shareholders, </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Customers, </li></ul></ul><ul><ul><li>Owners </li></ul></ul><ul><ul><li>Government </li></ul></ul><ul><ul><li>Communities </li></ul></ul><ul><ul><li>Unions </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul>
  8. 8. PEST Anaysis <ul><li>P – Political </li></ul><ul><li>S – Social </li></ul><ul><li>E - Economical </li></ul><ul><li>T – Technological </li></ul>
  9. 9. Environmental Situational Factors <ul><li>The two major challenges that the human resources field has to face with the changing business environment. They are: </li></ul><ul><li>Managing Diversity </li></ul><ul><li>Demographic Trends </li></ul>
  10. 10. Reasons for evolution of diverse workforce <ul><li>Shift from manufacturing to service economy </li></ul><ul><li>Globalization of the markets </li></ul><ul><li>Changing business strategies </li></ul><ul><li>Mergers and acquisitions </li></ul><ul><li>Changing labor market </li></ul>
  11. 11. Managing diversity paradigms <ul><li>Managing diverse employees is a strategic issue and has an impact on an organization’s productivity and success. </li></ul><ul><li>According to David Thomas and Robin J. Ely there are Three paradigms which guide the diversity initiatives in an organization they are </li></ul>
  12. 12. <ul><li>Discrimination and fairness paradigm </li></ul><ul><ul><li>Here diversity is measured by a company’s recruitment and how it maintains a diverse workforce </li></ul></ul><ul><li>Access and legitimacy paradigm </li></ul><ul><ul><li>Diversity is measured by how an organization matches internal demographics with the external diverse customers. </li></ul></ul><ul><li>Learning and effectiveness paradigm. </li></ul><ul><ul><li>Diversity is measured by connecting unique contribution to work </li></ul></ul>
  13. 13. Diversity processes <ul><li>Diversity processes help in managing diverse employees. The main processes are: </li></ul><ul><li>Cultural Audit Surveys </li></ul><ul><ul><li>A survey is conducted to know employees attitude towards diversity, organizational values and norms and the position of different diversity groups in organization. </li></ul></ul><ul><li>Awareness training </li></ul><ul><ul><li>To make employees understand and sort the cultural differences. </li></ul></ul><ul><li>Skill building trainings </li></ul><ul><ul><li>This helps employees to focus on the behavior and skills needed to work in a heterogeneous environment. </li></ul></ul><ul><li>Diversity enlargement hiring strategies. </li></ul>
  14. 14. Diversity enlargement hiring strategies <ul><li>An organization will become more multicultural if it hires a more diverse workforce. </li></ul><ul><li>For these practices should include </li></ul><ul><ul><li>Creating diversity awareness </li></ul></ul><ul><ul><li>Involving the top management in diversity initiative program </li></ul></ul><ul><ul><li>Developing a plan of action for diversity programs </li></ul></ul><ul><ul><li>Identifying the changes required in the human resource functions. </li></ul></ul>
  15. 15. <ul><li>Management of work teams </li></ul><ul><li>Management of virtual teams </li></ul>
  16. 16. HR strategy framework <ul><li>The steps in strategy frame work are: </li></ul><ul><li>External environmental scan </li></ul><ul><ul><li>Competitor/industry analysis </li></ul></ul><ul><ul><li>Stakeholder analysis </li></ul></ul><ul><ul><li>PEST analysis </li></ul></ul><ul><ul><li>Environmental Situational Factors </li></ul></ul><ul><li>Internal capital assessment </li></ul>
  17. 17. Internal capital assessment <ul><li>ICA helps analyze a firm’s strengths and weaknesses in financial, technological and human resources. </li></ul><ul><li>The rapid growth of the internet has also significantly affected how organizations are managed. </li></ul><ul><li>HR assessment includes the analysis of the workforce, organizational culture, the changes to be implemented in the org culture and the technology to be used for effective performance of the employees. </li></ul>
  18. 18. Strategy Formulation <ul><li>Organization has to have a vision and mission for the successful implementation of HR strategy. </li></ul><ul><li>Vision presents a core ideology and an envisioned future of the org </li></ul><ul><li>Mission statement should describe the company’s business and its activities and the position it plans to achieve in its fields. </li></ul><ul><li>The next step is to integrate HR plan with Org Plans. </li></ul>
  19. 19. Snapshot <ul><li>HR and Corporate Strategy </li></ul><ul><li>HR and Bisness Strategy </li></ul><ul><li>Human Resources Strategy Framework </li></ul><ul><ul><li>External environmental scan </li></ul></ul><ul><ul><ul><li>Competitor/industry analysis </li></ul></ul></ul><ul><ul><ul><li>Stakeholder analysis </li></ul></ul></ul><ul><ul><ul><li>PEST analysis </li></ul></ul></ul><ul><ul><ul><li>Environmental Situational Factors </li></ul></ul></ul><ul><ul><ul><ul><li>Managing Diversity </li></ul></ul></ul></ul><ul><ul><li>Internal capital assessment </li></ul></ul><ul><ul><li>Strategy Formulation </li></ul></ul>
  20. 20. End to chapter no: 3 The End