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This

discipline covers the concepts and practices

that guide and align Human Resource Management philosophy, tactical planning and practice with the strategic and long term goals of the organization, with a particular focus on human capital.

It

deals with the macro-concerns of the organization regarding

structure, quality, culture, values, commitment, matching resources to future needs and other longer term people issues.

Strategic HRM gives direction on how to build the foundation for strategic advantage by creating --an effective organizational structure design, culture,

employee value proposition,

systems thinking, an appropriate communication strategy and preparing an organization for a changing landscape, which includes downturns and mergers & acquisitions.

Sustainability and corporate social responsibility come within the ambit of this discipline, especially with reference to organizational values and their expression in business decision making.
Strategic HRM emphasizes organizational codes of ethics, managing the societal impact of business decisions, philanthropy and the role of the human resource professional in improving the quality of life of employees, their families and the community at large

Its a pattern of planned Human Resource Development & Activities which intends an organization to achieve its Goals.
SHRM is the process of linking the HR functions with the strategic objectives of the organization to enhance performance. HR has a great role to play in the execution of strategies.

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 Strategic

Human Resource Management

Involves aligning initiatives involving how people are managed with organizational mission & objectives

Strategic

Management Process

Determining what needs to be done to achieve corporate objectives over 3 - 5 years Examining organization & competitive environment Establishing optimal fit between organization & its environment Reviewing & revising strategic plan
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 Mission

statement Environmental analysis Organizational self-assessment Formulating Strategies Establishing goals & objectives

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 Explains

purpose & reason for existence Usually very broad Serves as foundation for everything organization does

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 Critical

components of external environment Competition Industry structure Government regulations Technology Market trends Economic trends

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Business Level Strategies

Porter;s Five Force Model
New Entrants

Supplier's Bargaining Power Rivalry

Customers Bargaining Power

Substitutes Strategic management Naval Arora

 Identify

primary strengths & weaknesses Find ways to capitalize on strengths Find ways to improve or minimize weaknesses Examine resources Physical Human Technological Capital

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 Examine

internal management systems Organization structure Policies Decision-making processes Past strategy & performance Work systems

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 It

compiles of Specific plans with effective action to achieve a specific Goal.

planning, sequencing, balancing directions which leads to the advantageous positions.

Organizing,

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 Goals

should be:SMART S-specific M-measurable A-achievable R-relevant T-timebound

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Business Level Strategies

Competitive Advantage
Degree of Product Differentiation
Low-cost Differentiation

Broad Target

Cost leadership

Differentiation

Competitive Scope of Activities

Integrated Low-Cost/Differentiation

Narrow Target

Cost Focus

Differentiation Focus

Strategy Management

Naval Arora

 Increases

in efficiency & cutting of costs, then passing savings to consumer Assumes price elasticity in demand for products or services is high Assumes that customers are more price sensitive than brand loyal HR strategy focuses on short-term performance measures of results & promoting efficiency through job specialization & cross-training
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 In

order to demand a premium price from consumers

Attempting to distinguish organizational products or services from other competitors or Creating perception of difference

Organization

offers employees incentives & compensation for creativity HR strategy focuses on external hiring of unique individuals & on retaining creative employees

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 Business

attempts to satisfy needs of only a particular group or narrow market segment Strategic intent is to gain consumer loyalty of neglected groups of consumers Strategic HR issue is ensuring employee awareness of uniqueness of market segment

Thorough employee training & focus on customer satisfaction are critical factors Hiring members of target segment who are empathetic to customer in target segment

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 Facilitates

development of high-quality workforce through focus on types of people & skills needed Facilitates cost-effective utilization of labor, particularly in service industries where labor is generally greatest cost Facilitates planning & assessment of environmental uncertainty & adaptation of organization to external forces

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