Human Resource Management
Strategy and Analysis
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Chapter outline
• What is strategic management?
• The Management planning Process
• What is strategic planning?
• The strategic management process
• 8 steps of the strategic management process
• Types of strategies:-
A. Corporate Strategy
B. Competitive Strategy
C. Functional Strategy
• What is strategic human resources management?
• HR strategic tools:-
A. Strategy map
B. HR scorecard
C. HR digital dashboard
D. HR audit
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The Strategic Management Process
The Strategic Management Process – is defined
as the process of identifying and executing the
organization's strategic plan by matching the
company’s capabilities with the demands of the
environment.
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The Management Planning Process
• The Hierarchy of Goals
• Policies and Procedures
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The Management planning Process – The basic management planning process consists
of five steps: setting objectives, making basic planning forecasts, reviewing alternative
courses of action, evaluating which options are best, and then choosing and
implementing your plan.
The Hierarchy of Goals – In companies, it is traditional to view the goals from the top of
the firm down to front-line employees as a chain or hierarchy of goals. Figure 3-1
illustrates this.
Figure 3-1 (picture). At the top, the president sets long-term or “strategic” goals (such as
“double sales revenue to $16 million in fiscal year 2017”). His or her vice presidents then
set goals for their units that flow from, and make sense in terms of accomplishing, the
president’s goal. Then their own subordinates set goals, and so on down the chain.
Policies and Procedures – Policies provide day-to-day guidance employees need to do
their jobs in a manner that is consistent with the company’s plans and goals. Policies set
broad guidelines delineating how employees should proceed. For example, “It is the
policy of this company to comply with all laws, regulations, and principles of ethical
conduct.”
Procedures spell out what to do if a specific situation arises.
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The management planning process:
The basic Managerial planning process involves:-
1) Setting objectives.
2) Developing forecasting.
3) Developing the alternatives.
4) Evaluating these alternatives “know the advantages
&disadvantage .”
5) Selecting the appropriate alternatives.
6) Implementing the selected one.
7) Evaluating the result.
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?What is a plan
• A plan: shows the course of action for getting
from where you are to the goal. Planning is
always “goal-directed” . In companies, it is
traditional to view the goals from the top of
the firm down to front-line employees as a
chain or hierarchy of goals.
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?What is Strategic Planning
A strategic plan is the company’s overall plan for how it will
match its internal strengths and weaknesses with its external
opportunities and threats in order to maintain a competitive
position. The strategic planner asks, “Where are we now as a
business, and where do we want to be?” He or she then
formulates a strategic plan to help guide the company to the
desired destination.
A strategy is a course of action.
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The Strategic
Management Process
Strategic management is the process of identifying and executing the
organization’s strategic plan by matching the company’s capabilities with the
demands of its environment.
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8 steps of the strategic management process
include:
1. Determining where we are now.
2. Sizing up the situation.
3. Create strategic options.
4. Review the strategic options.
5. Making strategic choices.
6. Translate the selected one into goals.
7. Implement the strategies.
8. Evaluating performance.
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Types of Strategies:
Let’s examine some of the types of strategies:
[Link] Strategy
[Link] Strategy
[Link] Strategy
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Sustainability and Strategic Human
Resource Management
Today’s emphasis on sustainability has important
consequences for human resource management.
Strategic human resource management means having
human resource policies and practices that produce the
employee skills and behaviors that are necessary to
achieve the company’s strategic goals, and these
include sustainability goals.
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Figure 3-7
Strategy Map
for Southwest
airlines
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A digital
dashboard
presents
the manager
with
desktop
graphs and
charts,
showing a
computerized
picture of how
the company
is doing on all
the
metrics from
the HR
scorecard
process.
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High-Performance Work Systems
One reason to measure, benchmark, and scientifically
analyze HR practices is to promote high-performance
work practices. A high-performance work system
(HPWS) is a set of human resource management
policies and practices that together produce superior
employee performance.
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