Académique Documents
Professionnel Documents
Culture Documents
of Human Resource
Management
on Strategy
iti
fin
De
HR operations
Corporate strategy
HR operations
Corporate strategy
HR function
Some Organizational Strategies
3M Foster innovation
Strategic Planning
There are three levels
of strategic planning -
Corporate
Strategy
Functional
Strategies
Types of Strategic Planning
l Corporate-level strategy
l Identifies the portfolio of businesses that,
in total, comprise the company and the ways
in which these businesses relate to each
other.
l Diversification strategy
l Vertical integration strategy
l Consolidation strategy
l Geographic expansion strategy
Types of Strategic Planning (cont’d)
l Business-level/competitive strategy
l Identifies how to build and strengthen the
business’s long-term competitive position in
the marketplace.
l Cost leadership
l Differentiation
l Focus
Types of Strategic Planning (cont’d)
l Functional strategies
l Identify the basic courses of action
that each department will pursue in
order to help the business attain its
competitive goals.
Business Strategy = Cost Leadership
Common Organizational HR Strategies
Characteristics
l Michael Porter
l Emphasizes the “fit” point of view that all of
the firm’s activities must be tailored to or fit
its strategy
l Gary Hamel and C. K. Prahalad
l Argue for “stretch” in leveraging resources—
supplementing what you have and doing more
with what you have
HR’s Strategic Roles
HR ACTIVITY VALUE
COST
ADDED
Strategic
10% (Planning) 60%
Operational
30% (Service delivery) 30%
Administrative
60% (Record keeping 10%
and Compliance)
The Bottomline
l Getting results
l The bottom line of managing