Framework of Strategic Human Resource

Management

committed and well-motivated

workforce it needs.

HR Role Framework (Dave Ulrich)

Knowledge Management
Any process or practice of creating,
acquiring, capturing and using
knowledge, wherever it resides, to
enhance learning and performance in
organizations.
HRM aims to support the development
of firm-specific knowledge and skills
that are the result of organizational
learning.
AIMS of HRM
The overall purpose of human
resource management is to ensure that
the organization is able to achieve
success through people
As Ulrich and Lake (1990) remark:
HRM systems can be the source of
organizational capabilities that allow
firms to learn and capitalize on new
opportunities.
Specific concern of HRM: achieve
objectives in the following areas:
Organizational effectiveness
Human capital
Knowledge management
Reward management
Employee relations
Meet diverse needs
Rhetoric and reality
Organizational Effectiveness
HRM strategies aim to support
programs for improving organizational
effectiveness by developing policies in
such areas as knowledge management,
talent management, and generally
creating a great place to work
More specifically, HRM strategies can
be concerned with the development of
continuous improvement and customer
relations policies.
Human Capital
Human capital represents the human
factor in the organization; the
combined intelligence, skills and
expertise that gives the organization its
distinctive character.
Regarded as the prime asset of an
organization, and businesses need to
invest in that asset to ensure their
survival and growth.
HRM aims to ensure that organizations
obtains and retains the skilled,

Reward Management
HRM aims to enhance motivation, job
enlargement and commitment by introducing
policies and processes that ensure that people
are valued and rewarded for what they do and
achieve and for the level of skills and
competence they reach.
Employee Relations
The aim is to create a climate in which
productive and harmonious relationships can
be maintained through partnerships between
management and employees and their trade
unions.
Meet Diverse Needs
HRM aims to develop and implement policies
that balance and adapt to the needs of its
stakeholders and provide for the management
of a diverse workforce, taking into account
individual and differences in employment,
personal needs, work style and aspirations, and
the provision of equal opportunities for all.
Rhetoric and Reality
Managements may start with good
intention to do some or all of these
things, but the realization of them
theory in use is often very difficult.
Gratton (1999) found that there was
generally a wide gap between the sort
of rhetoric expressed above and reality.
Due to other business priorities, shorttermism, lack of support from the
managers, an inadequate
infrastructure of supporting processes,
lack of resources, resistance to change
and lack of trust.
Internal Assessment
The organizations performance is
assessed vis--vis its given or its
adopted mandate.

Gauge the capabilities of the people in

the organization to carry out chosen
strategies and objectives.
See if resources are being put behind
the strategies to realize organizational
objectives
Evaluate the systems, processes and
procedures instituted by the
organization to implement its
strategies.
Assess the different operational
functions of the organization. Its
different programs, projects, and
activities. Are they carried out
efficiently and effectively?
Examine the leadership and teams of
people as to their styles, attitudes,
value systems, relationships, ethics,
team efforts, service orientation and
performance.
Study organizations facilities and
physical set-up to see whether they are
responsive to organizational needs and
conducive to good performance.
Scan the organizations connection,
communication, linkages, networks and
allies/ collaborator as well as
detractors/competitors.
Assess the over-all consistency or fit
among strategies adopted, the
structures, systems and resources
applied and the people of the
organization in relation to the adopted
vision, mission and objectives.
Evaluate the leaders ability to elicit
support and performance from the
staff, the decision-making skills, and
their over-all effect in the organization.

Strategy
Large-scale, future-oriented plans for
interacting with competitive
environment to achieve organizational
objectives.
Is about deciding where you want to
go and how you mean to get there
Is a declaration of intent: This is what
we want to do and this is how we
intend to do it .
A good strategy is one that works, one
that guides purposeful action to deliver
the required result.
Concept of strategy is based on 3
subsidiary concepts:
Competitive advantage
Distinctive capabilities
Strategic fit
Competitive Advantage

Was formulated by Michael Porter

(1985)
Competitive advantage arises out of a
firm creating value for its costumers
To achieve competitive advantage
firms select markets in which they can
excel and continually improve their
position.
Porter emphasized the importance of:
differentiation, which consists of
offering a product or service that is
perceived as being unique and focusseeing a particular buyer group or
product market more effectively or
efficiently than competitors.
Michael Porters Generic Competitive Strategy
Innovation being the unique producer
Quality delivering high-quality goods and
services to customers
Cost leadership the planned result of
policies aimed at managing away expense
Distinctive Capabilities or Core
Competencies
Distinctive capability or competence
can be described as an important
feature that confers superiority on the
organization.
Cannot be replicated by competitors, or
can only be imitated with great
difficulty.
Strategic Fit
The concept of strategic fit states that
to maximize competitive advantage a
firm must match its capabilities and
resources to the opportunities available
in the external environment.
Matching organizational competencies
with the opportunities and risks created
by environmental change in ways that
will be both effective and efficient.
Strategic Management
The set of decisions and actions that result in
the formulation and implementation of plans
designed to achieve organizations objectives.
3 Levels of Strategic Planning
1. Strategic Planning
Takes a longer term perspective
established by an organization to
guide short term decision.
It is the determination of the most
effective means by which an
organization can achieve its ends
given the resources it can muster
and conditions it must operate in.
It is concerned with the choice of
preferred clients, beneficiaries or
markets.

It is concerned with the major

securement and deployment of
resources.
It is concerned with the
identification of specific key result
areas which proceed from the
vision and objectives of the
company.
2. Tactical or Development Planning
It defines the outcomes required
for the organization to succeed
during the relatively short period of
time, such as an organizations
one-year budgeting cycle.
It includes the over-all activities,
measurable outcomes, responsible
individuals, and targeted
completion dates required to
succeed during the relatively short
period of time.
The tactical plan must be
monitored regularly during the year
(monthly or quarterly) to measure
progress toward the targeted
outcomes, to reassess priorities, to
redeploy resources, and to make
other necessary adjustments.
Tactical development planning
elaborates the strategic decisions
made by top management into
programs and projects
3. Project Planning
The detailed activities, responsible
individuals, and timings required to
complete a specific project
Project plans are the most
commonly developed plans and are
the type of planning most of us
have most experience doing.
Project plans have tangible and
measurable outcomes.
The duration is generally fixed,
with a specific starting date and a
targeted completion date.
Action Planning
Strategic Options and Choices
Strategic Management Models

Step 1
Developing and generating strategic options
and then making strategic choices.
Choices must anticipate the critical needs of
the business, incorporating the experienced
and collective judgement of top management
Step 2
From a pile of information, the strategists pick
out what are critical for evaluation and
decision-making.

The information and data are screened

according to their relevance, magnitude,
importance and urgency.
Relevance refers to how the information
relates to the mission, objectives, purposes and
rationale of an issue taken from the point of
view of an organization.
Magnitude refers to the quantitative extent
and scope of influence certain factors have
over an issue or problem.
Importance refers to the qualitative or
significant degree of influence which certain
factors exercise over a given situation.
Urgency screens data according to time
considerations or the response that must be
made to a given issue over time.
Step 3
After going through either the vision setting or
environmental analysis, the organization
proceeds to develop strategic options.
A juxtaposition of strengths (S) and
weaknesses (W) of the organization with the
opportunities (O) and threats (T) in the
environment can be made to generate options.
This is called the SWOT Analysis where four
combinations can be made:

Strengths-Opportunities (S-O)
How can strengths be employed to take
advantage of development and opportunities?
Strengths-Threats (S-T)
How can strengths be used to counteract
threats that tend to hinder achievement of
objectives?
Weaknesses-Opportunities (W-O)
How can we overcome weaknesses to take
advantage of development and opportunities?
Weaknesses-Threats (W-T).
How do we overcome weaknesses to
counteract threats that tend to hinder
achievement of opportunities?
Step 4
The strategic options are then established
according to criteria established by the
organization or strategists.
Factors of Effective Strategies
Good strategies must have:
1. Foresight

2.

3.

4.

5.

It must determine the most likely

scenario in order to properly
position the organization
Strategies are fundamentally sound
and correct. It must be anchored on
realities of the environment. It
must recognize major trends and
directions in the environment.
It must take into account what the
organization can do and cannot do,
what it has and does not have.
Focus efforts of a few but critical
activities
Effective strategies are rifle shots
at a chosen target, not shotgun
blasts that scatter the resources of
the organization
Have Force behind the Chosen Few
Things
They must put their money where
their mouth is.
Have a Fit
Among the Objectives, Tasks,
People and Structure of the
Organization.
Avoid mismatches
Have a Finite time frame

Strategies must be:

1. Feasible
Strategies must be do-able by the
organization.
Take a Full and Holistic Approach.
Compartmentalized approaches
lead to partial solutions that often
lead to a greater problems
Organizations must look at the
implications of relationships among
variables employed in the
strategies
They have to make sure that
variables reinforce rather than
cancel each other
2. Getting Feedback through Good
Monitoring and Evaluating
Systems
Every action produces a reaction
and this reaction must be
monitored closely and assessed as
to whether it is moving towards the
desired objectives.
3. Be Felt with Sufficient Impact
Strategies must positively affect
the lives of the people they are
serving
4. Be Final result oriented
At the end of the day, the
organization must be responsible
for its intended results and be
accountable to the beneficiaries for
such results

5. Be Flexible Depending on
Environmental Changes
There may be a need to alter,
modify or overhaul strategies in the
face of environmental changes
Tree, Fishbone and Force Field Analysis:
Tools to a Strategic Management Plan
Problem Tree / Solution Tree Analysis
Provides an overview of all known
causes and effects to an identified
problem
Important in in planning a community
engagement or behavior change
project
Establishes the context and help reveal
complexities
A problem tree involves writing causes
in negative form (ex. Lack of
knowledge, not enough money etc.)
Reversing the problem tree, by
replacing negative statements with
positive ones, create a solution tree
A solution tree identifies means-end
relationships as opposed to causeeffects

Cause and Effects Analysis / Fishbone

Analysis
Also known as Cause & Effect
Diagrams, Fishbone Diagrams, Ishikawa
Diagrams, Herringbone and Fishikawa
Diagrams
When you have a serious problem, it is
important to explore all of the things
that could cause it, before you start to
think about a solution Cause and Effect
Analysis was devised by Prof. Kaoru
Ishikawa, a pioneer of quality
management in the 1960s.
Used as a quality control tool and may
also be used to:
- Discover the root cause of a
problem
- Uncover bottlenecks in your
processes
- Identify where and why the
processes isnt
working

4 steps in using the tool:

1. Identify the problem
2. Work out the major factors involved
(ex. Site, task, people, equipment
& control)
3. Identify possible causes
4. Analyze your diagram
Force Field Analysis by Kurt Lewin
A powerful strategic tool used to
understand whats needed for change
in both corporate and personal
environments
The concept : Two equal forces , a
driving force and a resisting or
restraining force, working to keep the
equilibrium or status quo

May the force be with you, or against you

An issue is held in balance by the interaction
of two opposing set of forces those seeking to
promote change (driving forces) and those
attempting to maintain the status quo
(restraining forces) Kurt Lewin
Using the Force Field Analysis
1. Define the changes you want to see
( write goal or vision of a future desired
state )
2. Brainstorm or Mind Map the Driving
Forces (favorable to change )
3. Brainstorm or Mind Mao the Restraining
Forces (unfavorable to change )
4. Evaluate the Driving & Restraining
Forces (rating the forces from 1 to 5 /
weak to strong, and total on each side)

5.
6.
7.

Review the forces decide which forces

have some flexibility for change or
which can be influenced
Strategize create a strategy to
strengthen the driving forces or
weaken the restraining forces, or both.
Prioritize action steps what action
steps can you take that will achieve the
greatest impact?

2.

3.

Models of Institutional Strategies

Institutional strategies
Vertical integration
Horizontal integration
Diversification
Conglomerate diversification
Stability strategy
Retrenchment
Selling out
Bankruptcy or liquidation
1. Concentration Through Vertical
Integration
Backward integration manufacture
own supplies

4.

5.
6.
7.

8.

Forward integration take-over a

function previously performed by
distributors
Concentration Through Horizontal
Integration
Expand the firms activities in other
locations or increase range of products
or services
Concentric Diversification
niching finding a niche
Focus on company distinctive
competence
Conglomerate Diversification
Growth in diversification out of an
industry
Introduce unrelated industry, but
still support own business
Ex. PAL bought Summit
Stability Strategy
Pursue or proceed with caution
NO CHANGE strategy
Retrenchment
Selling Out
Bankruptcy or Liquidation