Strategic Management
Strategic Human
Resource
Management
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.
– Formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors the company needs to achieve its strategic aims.
Linking Corporate and HR
Strategies
Effective HR Strategy
Formulation and
Implementation
Organizational
Strategies
Fit
Consistency
Consistency
Fit
Organizational
Characteristics
Environment
Consistency
HR Strategies
Fit
Improved
Firm
Performance
Fit
Consistency
Organizational
Capabilities
Selected HR Strategies That Fit
Porter’s Three Major Types of
Business Strategies
Business
Strategy
Overall
cost leadership Common Organizational
Characteristics
• Sustained capital investment and access to capital
• Intense supervision of labor • Tight cost control requiring frequent, detailed control reports
• Low-cost distribution system • Structured organization and responsibilities
• Products designed for ease in manufacture
HR Strategies
• Efficient production
• Explicit job descriptions
• Detailed work planning
• Emphasis on technical qualifications and skills
• Emphasis on job-specific training • Emphasis on job-based pay • Use of performance appraisal as a control device Selected HR Strategies That Fit
Porter’s Three Major Types of
Business Strategies
Business
Strategy
Common Organizational
Characteristics
Differentiation
• Strong marketing abilities • Product engineering
• Strong capability in basic research
• Corporate reputation for quality or technological leadership • Amenities to attract highly skilled labor, scientists, or creative people. HR Strategies
• Emphasis on
Resource
Management
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.
– Formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors the company needs to achieve its strategic aims.
Linking Corporate and HR
Strategies
Effective HR Strategy
Formulation and
Implementation
Organizational
Strategies
Fit
Consistency
Consistency
Fit
Organizational
Characteristics
Environment
Consistency
HR Strategies
Fit
Improved
Firm
Performance
Fit
Consistency
Organizational
Capabilities
Selected HR Strategies That Fit
Porter’s Three Major Types of
Business Strategies
Business
Strategy
Overall
cost leadership Common Organizational
Characteristics
• Sustained capital investment and access to capital
• Intense supervision of labor • Tight cost control requiring frequent, detailed control reports
• Low-cost distribution system • Structured organization and responsibilities
• Products designed for ease in manufacture
HR Strategies
• Efficient production
• Explicit job descriptions
• Detailed work planning
• Emphasis on technical qualifications and skills
• Emphasis on job-specific training • Emphasis on job-based pay • Use of performance appraisal as a control device Selected HR Strategies That Fit
Porter’s Three Major Types of
Business Strategies
Business
Strategy
Common Organizational
Characteristics
Differentiation
• Strong marketing abilities • Product engineering
• Strong capability in basic research
• Corporate reputation for quality or technological leadership • Amenities to attract highly skilled labor, scientists, or creative people. HR Strategies
• Emphasis on