This document discusses strategic human resource management and strategy concepts. It defines strategy as setting long-term goals and ways to achieve them. It outlines three concepts that strategy is based on: competitive advantage, distinctive capabilities, and strategic fit. It also discusses four fundamentals of strategy: strategic intent, resource-based strategy, strategic capability, and strategic management.

1. Lecture 2
Strategic HRM

4. Lets Talk about
HRM in your
organization

5. • Identify the 2 major things you want to
improve/change in your organization?

6. Strategy: Concept & Process

7. Strategy
This is what we want to do and this is how we
intend to do it.
• Setting Long-term goals
• Ways to achieve goals

8. The Concept of Strategy
• The concept of strategy is based on three
subsidiary concepts:
1. Competitive advantage,
2. Distinctive capabilities
3. Strategic fit.

9. 1. Competitive Advantage
• Michael Porter (1985)
• Value Creation for customers
Markets
Products
Processes

10. How to Sustain Competitive
Advantage?

13. 2. Distinctive Capabilities
People
Marketing
Technology
Innovation

15. 3. Strategic Fit

17. The Fundamentals of Strategy
Strategic
Intent
Resource-
based Strategy
Capability of
Organization
Strategic
Management

18. 1. Strategic Intent
• Mission and Vision of organization
• Specific goals
• Strategic Objectives

20. 2. Resource-based Strategy
• Strategic capability of a firm depends on its
resource capability.

22. 3. Strategic Capability
• Ability of an organization to utilize resources
in the most efficient manner.

23. Outsourcing

24. 4. Strategic Management
• Set of decisions and actions in implementation
process.
• Deals with End and Means.
• Importance of Flexibility.