Human Resource Management Business Strategy

1. Human Resource Management
(Business Strategy)
Prepared by
Grace Amin, M.Psi, Psikolog

2. The strategic management process
• Strategic plan =
“where are we now
as a business, where
do we want to be
and how should we
get there?”
A
B
SW
OT

3. The strategic management process
1
Define the
current
business and
mission
2
Perform
external and
internal
audits
3Formulate
new
business and
mission
statements
4
Translate the
mission into
goals
5
Formulate
strategies to
achieve the
strategic
goals
6
Implement
the strategy
7
Evaluate
performance
Strategic Planning
Strategic
execution
Strategic
evaluation

4. Types of strategies
Corporate wide
strategic planning
Competitive (or
business unit)
strategic planning
Functional (or
departmental)
strategic planning
Corporate
wide
Competitive
Functional
Functional
Competitive

5. Corporate wide strategic planning
“how many and what kind of business should we be in?”
• Several standard
corporate strategy
possibilities:
– Concentration (single
business) strategy
– Diversification
– Vertical integration
– Consolidation
– Geographic expansion
The portfolio of
business that
comprise the
company and
the way in which
these businesses
relate to each
other

6. Competitive strategy
• Standard competitive
strategy
– Cost leadership
– Differentiation
– Focusers
HUMAN RESOURCES AS
A COMPETITIVE
ADVANTAGE
Identifies how to
build and strengthen
the business’s long
term competitive
position in the
marketplace

7. Functional strategy
• The broad activities that
each department will
pursue in order to help the
business accomplish its
competitive goals

8. Top Manager’s Role is devising a
strategic plan
• Departmental Managers roles are :
–Help devise the strategic plan
–Formulate supporting, functional/
departmental strategies
–Execute the plans

9. Strategic HRM
Formulate business
strategy
Identify
workforce
requirements
Formulate HR
strategic policies
and activities
Develop detailed
HR scorecard
measures
Formulating and executing HR policies
and practices that produce the
employee competencies and
behaviors the company needs to
achieve its strategic aims

10. Strategic HRM tools
• Strategy Map
– “Big pictures” – how each
department’s contributes to achieving
company’s strategic goals
• The HR scorecard
– Take the strategy map and to quantify
it
• Digital Dashboards
– Desktop graphs and charts

11. • New strategy
– Produce new services
– Capitalize on opportunities
– Offer consistently high quality services
• New employee competencies and behaviors
• New HR policies and practices
– New training programs
– Enriching work
– Appropriate returns
– Improved selection, orientation and dismissal
procedures
HIGH
Performance
work
systems