Human Resource
Management
TWELFTH EDITION
1
GARY DESSLER
BIJU VARKKEY
Part 1 | Introduction
Chapter 3
The Manager’s Role in Strategic Human Resource
Management
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
The Strategic Management Process
• Strategic Management
The process of identifying and executing the
organization’s mission by matching its capabilities
with the demands of its environment.
• Strategy
A chosen course of action.
• Strategic Plan
How an organization intends to balance its internal
strengths and weaknesses with its external
opportunities and threats to maintain a competitive
advantage over the long-term.
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–2
Business Vision and Mission
• Vision
A general statement of an organization’s intended
direction that evokes emotional feelings in
organization members.
• Mission
Spells out who the company is, what it does, and
where it’s headed.
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–3
FIGURE 3–5 The Strategic Management Process
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Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–4
FIGURE 3–7 A SWOT Chart
Strengths Weaknesses
Example: Market leadership Example: Large inventories
Opportunities Threats
Example: New overseas markets Example: Market saturation
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–5
FIGURE 3–8 Relationships Among Strategies in Multiple-Business Firms
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Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–6
Types of Strategies
Corporate-Level
Strategies
Vertical Geographic
Diversification Consolidation
Integration Expansion
Strategy Strategy
Strategy Strategy
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Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–7
Types of Strategies (continued)
Business-Level/
Competitive
Strategies
Cost Leadership Differentiation Focus/Niche
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Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–8
Achieving Strategic Fit
The “Fit” Point of View (Porter) consists of the
idea that each department’s strategy needs to fit
the parent business’s competitive aims.
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Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–9
Strategic Human Resource Management
• Strategic Human Resource Management
The linking of HRM with strategic goals and
objectives in order to improve business performance
and develop organizational cultures that foster
innovation and flexibility.
Involves formulating and executing HR systems—HR
policies and activities—that produce the employee
competencies and behaviors that the company needs
to achieve its strategic aims.
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–10
FIGURE 3–6 Linking Company-Wide and HR Strategies
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Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–11
Creating the Strategic Human Resource
Management System
Components of a
Strategic HRM System
Human Resource Employee
Human Resource
Policies and Behaviors and
Professionals
Practices Competencies
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Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–12
FIGURE 3–12 Three Important Strategic HR Tools
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Source: Adapted from Brian Becker et al., The HR Scorecard: Linking People,
Authorized adaptation from the United States edition of Human
Strategy, and Performance (Boston: Harvard Business School Press, 2001), p. 12.
Resource Management, 12/e
3–13
Creating an HR Scorecard
The 10-Step HR Scorecard Process
Identify required HR policies
1 Define the business strategy 6
and activities
Choose HR Scorecard
2 Outline value chain activities 7
measures
Summarize Scorecard
3 Outline a strategy map 8 measures on digital dashboard
and monitor, predict, and
Identify strategically required evaluate
4
outcomes
Identify required workforce
5
competencies and behaviors
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
3–14