Strategic management and strategic human resource management (SHRM) are discussed. Strategy is defined as a perspective, position, plan, and pattern that provides general guidance for actions to achieve organizational ends. SHRM involves integrating HR policies and practices to support business strategy and goals. Effective SHRM requires aligning HR with strategy, developing employees' skills and commitment, and ensuring HR strategies and policies work coherently together to fulfill organizational strategy. The document discusses various models and approaches to strategic management and SHRM.

1. Presented By
Maksudul Huq Kanan
Strategic Management and Strategic HRM

2. What is strategy?
Is it a plan?
Does it refer to how we will obtain the ends we
seek? Is it a position taken?
might a business take the position of low-cost
provider?
does strategy refer to perspective, to the view one
takes of matters, and to the purposes, directions,
decisions and actions stemming from this view?
Does strategy refer to a pattern in our decisions and
actions?
does repeatedly copying a competitor’s new
product offerings signal a "me too" strategy?

3. Strategy is
Strategy is all these—
it is perspective, position, plan, and pattern.
Strategy is the bridge between policy or high-order
goals on the one hand and tactics or concrete actions
on the other.
Strategy and tactics together straddle the gap between
ends and means.
strategy is a term that refers to ideas, insights,
experiences, goals, expertise, memories, perceptions,
and expectations that provides general guidance for
specific actions of particular ends.

4. Strategy is...
Strategy is at once the course we chart, the journey we
imagine and, at the same time, it is the course we steer,
the trip we actually make. Even when we are
embarking on a voyage of discovery, with no
particular destination in mind, the voyage has a
purpose, an outcome, an end to be kept in view. It is
a unified and integrated plan made to achieve the basic
objectives of the enterprise like:
Effectiveness
Handling events and problems
Taking advantage of opportunities
Full resource utilization

5. Strategy is...
Strategy is a combination of flexibly designed
corporate moves, through which an organization can
compete with its rivals successfully. The following are
the features of the Strategy:
It should be formulated from the top level
management, however, sub-strategies can be made by
middle level management.
It should have a long range perspective.
It should be dynamic in nature.
The main purpose is to overcome from uncertain
situations.
It should be made in such a way, to make the best
possible use of scarce resources.

6. What is Policy?
The policy is also regarded as a mini – mission
statement, is a set of principles and rules which directs
the decisions of the organization. Policies are
framed by the top level management of the
organization to serve as a guideline for operational
decision making. It is helpful in highlighting the rules,
value and beliefs of the organization. In addition to
this, it acts as a basis for guiding the actions.
Policies helps the management of an organization to
determine what is to be done, in a particular situation.
These have to be consistently applied over a long
period of time to avoid discrepancies and overlapping.

7. Differences Between Strategy and Policy
The following are the major differences between
strategy and policy:
Strategy is the best plan opted from a number of plans,
in order to achieve the organizational goals and
objectives. Policy is a set of common rules and
regulations, which forms as a base to take day to day
decisions.
Strategy is a plan of action while the policy is a
principle of action.
Strategies can be modified as per the situation, so they
are dynamic in nature. Conversely, Policies are
uniform in nature, however relaxations can be made
for unexpected situations.

8. Differences Between Strategy and
Policy...
Strategies are concentrated toward actions, whereas
Policies are decision oriented.
Strategies are always framed by the top management
but sub strategies are formulated at the middle level.
In contrast to Policy, they are, in general made by the
top management.
Strategies deals with external environmental factors.
On the other hand, Policies are made for internal
environment of business.
The difference between Strategy and Policy is, a little
complicated because Policies come under the
Strategies and policies are made to support strategies
in several ways. Both of them are made by the
top management as well as made after a deep analysis.

9. What is strategic management?
A continuous, iterative process aimed at keeping an
organization as a whole appropriately matched to its
environment
Keeping the business in tune with management and
marketing forces both outside and inside the firm
Strategic management provides overall direction to the
enterprise and involves specifying the organization's
objectives, developing policies and plans designed to
achieve these objectives, and then allocating resources
to implement the plans.
Strategic management is not static in nature; the
models often include a feedback loop to monitor
execution and inform the next round of planning.

10. Strategic Management Process
Strategic Management Process:
Determining what needs to be done to achieve
corporate objectives over 3 - 5 years
Examining organization & competitive environment
Establishing optimal fit between organization & its
environment
Reviewing & revising strategic plan

11. Models of Strategic Management Process

12. More on Strategic Management Process

13. Human Resource Management (HRM)
Activities that managers engage in to attract and
retain employees and to ensure that they perform at
a high level and contribute to the accomplishment of
organizational goals.
Traditional HRM activities:
- Recruitment and selection
- Training and development
- Performance appraisal and feedback
- Pay and benefits
- Labor relations
- etc.

14. HRM Activities

15. The Resource – Based view of the organization
and its link to HRM.
Resource-based theory conceives of organizational
resources as unique bundles that have the power to
give an organization a competitive advantages over
others in the same industry or sphere of operations.
Resources: Physical, human and organizational.
Six resources: financial, physical, human,
technological, reputation and organizational
Uniqueness or heterogeneity is stressed over sameness
or homogeneity.

16. Resource-based approach to strategy

17. Policy of HRM
The overall policy of human resource management is to
ensure that the organization is able to achieve success
through people. ‘HRM systems can be the source of
organizational capabilities that allow firms to learn and
capitalize on new opportunities.’
Twelve policy goals for HRM have been identified by
Caldwell (2004):
1. managing people as assets that are fundamental to the
competitive advantage of the organization;
2. aligning HRM policies with business policies and
corporate strategy;
3. developing a close fit of HR policies, procedures and
systems with one another;
4. creating a flatter and more flexible organization capable
of responding more quickly to change;

18. Policy of HRM
5. encouraging team working and cooperation across
internal organizational boundaries;
6.creating a strong customer-first philosophy throughout the
organization;
7. empowering employees to manage their own self-
development and learning;
8. developing reward strategies designed to support a
performance-driven culture;
9. improving employee involvement through better internal
communication;
10. building greater employee commitment to the
organization;
11. increasing line management responsibility for HR
policies;
12. developing the facilitating role of managers as enablers.

19. Strategic Management & its link to HRM
These different approaches to strategic management have
corresponding implications for the formation of human resource
strategy.
To be strategic, HRM needs to demonstrate a two – way link to
strategy. In this way, HRM will be informed by organizational
strategy as well as helping to shape the nature of that strategy.
This idea of strategic integration is a key concept in definition of
strategic HRM.
The most significant feature of HRM is the importance attached to
strategic integration, which flows from top management’s vision
and leadership, and which requires the full commitment of
people to it.
This is a key policy goal for HRM, which is concerned with the
ability of the organization to integrate HRM issues into its
strategic plans, to ensure that the various aspects of HRM cohere,
and to encourage line managers to incorporate an HRM
perspective into their decision making.

20. What is Strategic Human Resource Management
Is it about long-range strategic planning?
Is it about day-to-day strategic management?
Or is it about both?

21. Strategic Human Resource Management
Strategic Human Resource Management (SHRM)
is the process by which managers design the
components of a HRM system to be consistent
with each other, with other elements of
organizational architecture, and with the
organization’s strategy and goals.
is the process of defining how the organization’s
goals will be achieved through people by means of
HR strategies and integrated HR policies and
practices.

22. Strategic Human Resource Management ..
Requires abandoning the mindset and practices of
“personnel management” and focusing on
strategic issues than operational issues.
Integration of all HR programs within a larger
framework, facilitating the organization’s mission
and its objectives.

23. Requirements of HR Policies And Procedures
HR policies and procedures are required to ensure
that human resource management issues are dealt
with consistently in line with the values of the
organization on how people should be treated,
and that legal requirements are met.

24. Distinction Between HR Policies And Procedures
A policy provides continuing guidelines and
generalized guidance on how HR issues should be
dealt with to ensure that an appropriate approach
is adopted throughout the organization.
A procedure spells out precisely what steps
should be taken to deal with major employment
issues such as grievances, discipline, capability
and redundancy.

25. Specific HR Policies
Specific HR policies cover:
age and employment; • grievances;
work–life balance • health and safety;
bullying; • managing diversity;
discipline; • promotion;
e-mails and the internet; • redundancy;
employee development; • reward;
employee relations; • sexual harassment;
employee voice; • substance abuse;
employment;

26. Traditional HR versus Strategic HR

27. Barriers to Strategic HR

28. Outcome of Strategic HR

30. Overall:
• performance
• Engagement
• human capital
advantage
• HRM process
advantage
• etc
Specific:
• organization
development
• corporate social
responsibility
• resourcing
• talent management
• learning and
development
• employee reward
• employee
relations
• employee
well-being
HR STRATEGY AREAS

31. Criteria for HR Strategy
•Aligned to corporate goals
•Set out clear aims
•Supported by business case
•Take account of individual as well as business needs
•Contain realistic and achievable
 plans for implementation

32. Conducting a Strategic Review
1. Analysis
2. Diagnosis
3. Conclusions and
recommendations
4. Action planning
Involve senior
management
and
line managers
Involve Employees
And their
representatives

33. Main Principles of SHRM
A stress on the integration of personnel policies to
form a coherent package, and with business
planning more generally.
The focus of responsibility for personnel
management no longer resides with specialist
managers but is now assumed by senior line
management.
The focus shifts from management-trade union
relation to management-employee relations, from
collectivism to individualism.
There is stress on commitment and exercise of
initiative, with managers now assuming the role of
‘enabler’, ‘empowerer’ and ‘facilitator’.

34. Main Theoretical Approaches To SHRM

35. Universal Approach
The Universal Approach assumes that there are
‘Best HR practices’ which promises success
irrespective of organizational circumstances.
It is suggested that there is ‘one best way’ of
achieving HR effectiveness. The link between
organizational strategy and HR strategy is still
emphasized but advocates of universalistic school
argue that this involves top management giving
‘HR practices the profile they deserve in the senior
management process’.

36. Pfeffer’s Seven Practices of successful organization

37. Matching Model ( Closed )
This model specifies HR policies and practices
which are relevant to specific organizational
situations.
This thinking has argued that there is a clear and
mutually supportive relationship between
organizational strategy and HR strategy and goes
on to say that this relationship gives rise to the
implementation of specific HR initiatives.
This is to say that the match between the
organizational strategy and HR strategy is closed
and prescribed in the sense that a particular type
of organizational strategy suggests the need for a
specific HR strategy and set of practices.

38. Matching Model ( Open )
This model defines the employee behaviours
necessitated by the organization’s overall strategy.
These behaviours are delivered through HR
strategy.
The open approach to SHRM also argues the
existence of a clear and mutually supportive
relationship between organizational strategy and
HR Strategy. However, it differs from the closed
approach in that the HR strategy initiatives should
not be prescribed, following from the
organizational strategy, but should be left open.
In other words, the test of the degree to which the
HR strategy is truly ‘strategic’ is a test of
appropriateness to the organizational strategy.

39. The ‘ Open ‘ SHRM Model

40. History of SHRM
Derived in 1980s due to changes in the external
environment. For example, American Industry ,
particularly motor car production, was being
outperformed significantly by Japanese
companies. Other factors also Social, Technological
and labour market etc.
Peter Drucker emphasized the importance of
employees as key organizational assets over 50
years ago.

41. Changes in the HRM operating environment
of the 1980s and 1990s

42. The Contribution of SHRM to organizational performance
All studies in SHRM indicate that SHRM practices
have an effect on the bottom line of the
organization.
According to UK’s chartered Institute of Personnel
Development:
More than 30 studies carried out in the UK and the
US since the early 1990s leave no room to doubt that
there is a correlation between people management
and business performance, that the relationship is
positive, and that it is cumulative: the more and
more effective the practices, the better end results’.

43. HR STRATEGY
HR Strategy means a system of human resource
practices for a particular job or a collections of jobs
aimed at the best employee performance possible
to meet the firm’s ultimate goal.
HR Strategy emphasis a system of HR practices
because, it is the broad array of practices that
matters in terms of employee performance and not
individual test, recruiting or interview techniques
for example.

44. HR STRATEGY
HR Strategies always stay focus on getting the best
performance from employees. Usually these means getting
the employees to;
Have something (skills, competencies, abilities)
Feel something (commitment, engagement and motivation)
Do something (come to work, be productive, serve customer,
stay with the organization)
The purpose of HR strategies is to guide development and
implementation Program. They provide a means of
communicating to all concerned the intentions of the
organization about how its human resources will be
managed.
Because all organizations are different, all HR strategies are
different. There is no such things as a set of standard
characteristics.

45. kanan3008@yahoo.com