Strategic Human Resource

Management
Name:-
Roll No:-
 Strategic Human Resource
Management
SHRM is part of strategic planning
Strategic Plan : The Companys plan
for how it will match its internal
strengths and weaknesses with its
external opportunities and threats to
maintain a competitive advantage
Essence is to ask Where are we now
as a business, where we want to be,
and how should we get there
 Then formulates specific strategies
(Human resources and other) to take
the company from where it is now to
where he or she wants it to be
Strategy : The companys long term
plan for how it will balance its internal
strengths and weaknesses with its
external opportunities and threats to
maintain a competitive advantage
 SHRM means formulating and
executing human resource policies
and practices that produce the
employee competencies and
behaviors the company needs to
achieve its strategic aims
E.g.Reliance
 Traditional View
Personnel Research & Finance
Development
Staffing
Pay Production Marketing
Training
Need and Importance
Changing demand from customers or
the market place
New technology and increasing
pressure from competitors (Philip
Mirvis)
Changes in the basic business
environment (Randall Schuler)
High levels of uncertainty about
basic business conditions
 Rising costs
Rapid technological change
Changing demographics
More limited supplies of highly
trained labor
Rapidly changing government
legislation and regulations
Increased globalization of industries
 Strategic Management
Process
Strategy : The companys long term plan for
how it will balance its internal strengths and
weaknesses with its external opportunities
and threats to maintain a competitive
advantage

Strategic Management : The process of

identifying and executing the organizations
mission by matching its capabilities with the
demands of its environment
 Essence of strategic planning - Where
are we now as a business, where we want
to be, and how should we get there

Steps in Strategic Management

SM entails both strategic planning and
implementation

The process of identifying and executing

the organizations strategic plan, by
matching the companys capabilities with
the demands of its environment
 SM process consist of 7 steps
1-5, strategic planning
6-7, implementation
Step1 - define the current Business
Choose the terrain on which it will
compete what product it will sell,
where it will sell them, how to
differentiate products from its
competitors
 Managers use statements like
Vision A general statement of its
intended direction that evokes
emotional feelings in organization
members
Broad terms what we want to
become
Gives the direction
What the business should be
 Mission What our main task are
now
Spells out who the company is, what
it does, and where its headed
Step 2 Perform external and
internal audits
Analyzing external and internal
situations
SWOTs
SWOT analysis
 SWOT chart

Strengths Weakness
*Strong R&D *Aging Machinery

Opportunities Threats
*Expanding Market * Merger of
Competitors
 Step 3 : Formulate new Business
and mission statements
Based on situation analysis
What should our business be
What products
Where it will sell
How to differentiate from competitors
New vision and mission
 Step 4 : Translate the mission into strategic
goals
Operationalizing the mission for managers
strategic goals
For each department
Step 5 : Formulate strategies to achieve the
strategic goals
Strategies, Course of action how to move
from the current business to what it wants
to
 Strategies act as bridge between
these two
Step 6 : Implement the strategies
Translating strategies into action
Hiring, firing people, building plants,
adding products, product lines
This include managerial functions like
Planning, organizing, staffing,
leading, and controlling
 Step 7 : Evaluate performance
Management Monitors the extend to
which the firm meeting its strategic
goals
Strategic Control keep strategy up
to date
According to the environmental
changes
Competitors action
 Types of Strategies
Three types of strategic planning
A)Corporate strategy
Company wide level (corporate level)
Diversification- expand by adding
new product lines
Vertical integration expands by
producing its own raw material
Relationships among strategies in multiple business
Firms

Corporate
Strategy

Business 1 Business 2
Business 3
Competitive Strategy Competitive Strategy
Competitive Strategy

Functional Functional
Functional
Strategies Strategies
Strategies
 Consolidation reducing the
companys size
Geographic expansion taking
business abroad
B)Competitive Strategy (Business level
)
E.g., Pizza hut
Next level down, each of the
business need
How to build and strengthen the
businesss long term competitive
position in the market place
How pizza hut will compete with Papa
Johns
 Strategies like
Cost leadership, low cost leader, dell by
direct selling
Differentiation, Firm seeks to be unique,
Toyota by quality, woodland/timberland
by adventure shoes
Focusers, Carve out a market niche, like
ferrari, by providing products and services
customers can get in no other way
 Functional strategy
Business composed of departments
manufacturing, selling, finance, HRM
This identify the basic courses of
action that each department will
pursue in order to help the business
attain its competitive goals
Thank You