Chap 2

Phu Nguyen Nhut | 31201028852

Strategic management is a
process, an approach to
addressing the competitive
challenges an organization
faces.
- During strategy formulation: the strategic planning
Strategic human resource groups decide on a strategic direction by defining
management (SHRM): can be thought the company?s mission and goals, its external
of as ?the pattern of planned human opportunities and threats, and its internal strengths
resource deployments and activities and weaknesses.
intended to enable an organization to Definition - During strategy implementation: the organization
achieve its goals.? follows through on the chosen strategy.

SHRM

Strategic Management
Phases Model

- Generic approach to competing.

- Specific adjustments and actions taken to deal
with a particular situation. Aspects

Components of the strategic

management process
The HRM function?s attention
Concentration strategies: require that is focused on day-to-day
External Growth Strategy: attempts to the company maintain the current skills activities.
expand a company?s resources or to that exist in the organization.
strengthen its market position through
acquiring or creating new businesses. Administrative Develops the strategic plan and then
Linkage informs the HRM function of the plan.
STRATEGIC HUMAN One-way
RESOURCE MANAGEMENT Linkage
Internal growth strategies: present Directional Strategies
unique staffing problems. Allows for consideration of human
resource issues during the
strategy formulation process.
Two-way
Linkage

Mergers and Acquisitions: Strategy Integrative linkage is dynamic and

these mergers more frequently Downsizing: In spite of the Implementation multifaceted, based on continuing
consist of global mega-mergers, increasing frequency of downsizing, rather than sequential interaction.
Role of HRM in Strategy
in spite of some warnings research reveals that it is far from Integrative
Formulation
that these might not be effective. universally successful for achieving Linkage
the goals of increased productivity
Strategic types
and increased profitability.
Five winning variables

- Cost: The ?overall cost leadership?

strategy focuses on becoming the lowest
cost producer in an industry.
Providing Strategic - Organizational structure.
- Differentiation: attempts to create the
Competitive - Task design.
impression that the company?s product or
Advantage - Selection, training nad
service is different from that of others in
the industry. development of people. Strategy Formulation
- Reward systems.
- Types of information.

Emergent Strategy: consist of Enhancing Firm Competitiveness:

the strategies that evolve from the through developing a human capital
grassroots of the organization and pool that gives the company the unique
Role behaviors: are the behaviors required
can be thought of as what ability to adapt to an ever-changing
of an individual in his or her role as a
organizations actually do, as environment. Recently managers have - Job Analysis and Design.
jobholder in a social work environment.
opposed to what they intend to become interested in the idea of a - Recruitment and Selection.
These role behaviors vary on a number of
do. Strategy can also be thought ?learning organization,? in which - Training and Development.
dimensions. Additionally, different role
of as ?a pattern in a stream of people continually expand their - Performance Management.
behaviors are required by the different
decisions or actions.? capacity to achieve the results they HRM Practices - Pay structure, incentives and
strategies.
desire. benefits.
- Labor and Employee Relation.