The document discusses human resource management strategy. It defines strategy and explains why HR is critical to firm performance, noting that 85% of firms are service firms and effective knowledge management translates to competitive advantage. It also notes that HR is multidisciplinary, applying various fields like economics, psychology, sociology, and law. Finally, it discusses the importance of strategic fit between the corporate strategy, business strategy, and HR strategy as well as consistency in HR policies to send employees a clear message.

1. Human Resource Management Strategy
(HRMS)
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2. Human Resource Management Strategy
“Strategy” means -
 A critical factor that affects company’s performance,
 A factor that contributes to Competitive Advantage in
markets,
 Plans that involve the top executives and/or board of
directors of the firm,
 A general framework that provides a perspective for
selecting specific policies and procedures keeping long
term focus.
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3. Human Resource Management Strategy
Why is HR critical to firm performance?
 85% of all firms are service firms.
 Low quality HR leads to low quality customer service.
 Effective knowledge management translates into
competitive advantage and profits.
 Knowledge comes from a firm’s people,
 Buying an ATS (Applicant Tracking System) is also a
strategic question.
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4. Human Resource Management Strategy
What is unique about Human Resource Management?
 HR is multidisciplinary: It applies the disciplines of
Economics (wages, markets, resources), Psychology
(motivation, satisfaction), Sociology (organization
structure, culture) and Law (min. wage, labor contracts,
EEOC)
 HR is embedded within the work of all managers, and
most individual contributors due to the need of managing
people (subordinates, peers and superiors) as well as
teams to get things done.
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5. HR Strategy: Strategic Fit
Training Rewards
Corporate Strategy
Business Strategy
HR Strategy
HR System
(Performance Mgmt.)

6. HR Strategy: Strategic Roles
Critical Thinking Questions:
1. Which roles are Strategic?
2. What are the advantages of focusing on foot
soldiers with the company HR policies?
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7. HR Strategy: Consistency
Consistency is an important quality related to the
execution of HR policies. Employees should
receive a undiluted message of what behaviors
are important and desirable. When there is a fit
between HR systems, employees are likely to
receive consistent feedback.
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