INSTITUTO TECNOLÓGICO

DE CULIACÁN

Human Resources Management

“Unit 1. Strategies Management”

 Teacher:
Jorge Adolfo Obregón Aragón.

 Student:
Ochoa Iribe Ana Cristina

 Class and Classroom:

UA 03
08:00 a.m. – 9:00 a.m.
September/17/2019.
1.1. Concept and Importance of Strategic Management

 Definition.

“That strategic management is derived from the concept of enterprise policy. This
concept explains the organization as a system in which economic resources are
applied effectively with the company’s functional activities coordinated around
generating profit”
 (Mainar, 2014)

 Importance.

“As more and more organizations have started to realize that strategic planning is
the fundamental aspect in successfully assisting them through any sudden
contingencies, either internally or externally, they have started to absorb strategy
management starting from the most basic administration levels. In actuality,
strategy management is the essence of an absolute administration plan. For large
organizations, with a complex organizational structure and extreme regimentation,
strategizing is embedded at every tier.
Apart from faster and effective decision making, pursuing opportunities and
directing work, strategic management assists with cutting back costs, employee
motivation and gratification, counteracting threats or better, converting these
threats into opportunities, predicting probable market trends, and improving overall
performance.”
(Bhattacharyya, 2006)

In summary, Strategic Management is essential for the constitution and

motorization of a Company, as well as the problems that it can present either
external or internal. It is of great importance because by it we can have a basis of
how to carry out the company, how to design those mechanisms, instruments to
direct it in a correct way; Although the problems will not always be as they are
studied since in practice it is different, but it is always good to have that basis to
guide us and the research already carried out by the authors mentioned, are a
great example of that help.

1.2. Strategic Management Process

1. “Strategy Intent: Environmental scanning refers to a process of collecting,

scrutinizing and providing information for strategic purposes. It helps in
analyzing the internal and external factors influencing an organization. After
executing the environmental analysis process, management should evaluate it
on a continuous basis and strive to improve it.
2. Strategy Formulation: Strategy formulation is the process of deciding best
course of action for accomplishing organizational objectives and hence
achieving organizational purpose. After conducting environment scanning,
managers formulate corporate, business and functional strategies.
3. Strategy Implementation: Strategy implementation implies making the strategy
work as intended or putting the organization’s chosen strategy into action.
Strategy implementation includes designing the organization’s structure,

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 distributing resources, developing decision making process, and managing
human resources.
4. Strategy Evaluation: Strategy evaluation is the final step of strategy
management process. The key strategy evaluation activities are: appraising
internal and external factors that are the root of present strategies, measuring
performance, and taking remedial / corrective actions. Evaluation makes sure
that the organizational strategy as well as it’s implementation meets the
organizational objectives.”

(Juneja, 2015)

These points mentioned above, are the ones that help us determine what is the
appropriate method to solve the problem, even sometimes it is these same
steps who find the problem itself, since many times we know that there is
something wrong in our Company, but We do not know what it is, and that is
one of the advantages of this process. But I want to emphasize that it is not
only for problems, but also to meet objectives that the Company wants to meet
or needs to do. These phases are a great and powerful tool for diagnosing and
analyzing them and in turn; When you finish these steps correctly in your
company, an environment of efficiency remains.

1.3. The Role of HRM in the Creation of a Competitive Advantage

“What is a competitive advantage? A competitive advantage is all the factors that
allow an organization to differentiate its product or service from those of the
competition, in order to increase its market share.
Human capital refers to the knowledge, studies, skills, abilities and experience of
workers in a company and that now has more importance than ever before. One
reason is the increase in jobs in the field of services: jobs as advisory services,
give more importance to the studies and knowledge of workers than to traditional
manufacturing jobs.
Human capital management is the function of organizations that facilitates the best
use of people (employees), to achieve the goals of companies and individuals.
Whether or not there is a human resources function or department in the company,
all managers should be interested in the person.
In order to better understand the role that the personnel department plays in
organizations today, it should be understood what is causing this change.
However, perhaps the most important thing is that organizations are under
enormous pressure to be better, faster and more competitive.
Globalization, technological advances and deregulation are three of the trends that
would explain these competitive pressures. Other trends would be diversity and
change in the workforce.”

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 (Armstrong, 2008)

A company has a competitive advantage when the whole market or part of it

prefers its products or services. Thanks to the changes and challenges that have
been presented by globalization, which makes all organizations have the same
competitive resources, human resources and their management become one of
the main sources of sustainable competitive advantage in companies and,
therefore, it has become the foundation of modern business competitiveness. And
to obtain this advantage, we rely heavily on the resources of the Company.

1.3.1. Strategic Administration of HRM

“The organizations are constituted by: material, financial and human resources.
The human resource is a core point within the organization, either because of the
knowledge, skills and experience of its people.
In order to increase the level of productivity of the organization, strategies are
aimed at capturing, training, loyalty and evaluation of human resources. The need
to employ creative solutions to complex resource management challenges and to
identify additional tools that improve the recruitment, selection and evaluation of
new human resources has been emphasized.
Human Capital allows to have a clear vision of the steps to follow to reach its
maximum development and effectiveness. It is defined as the set of knowledge,
training and skills possessed by people to perform productive tasks with varying
degrees of complexity and specialization.
The Human Capital administration encompasses all functions and responsibilities
aimed at attracting, hiring, developing, retaining people's resources and
maximizing the value of human capital. An essential part of the successful
personnel selection process includes clearly defined positions, objective
assessment instruments and standardized recruitment processes.
Some of the advantages of an adequate Administration of Human Capital are:
A) For Employees:
o The development of its potential within the organization.
o Align staff with goals and objectives.
o Breaking organizational barriers that do not allow the integration of an
administration.
B) For the Company:
o The organization becomes more competitive within the market.
o Their systems and processes are becoming efficient and this allows cost
reduction.
o Improves productivity.

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 o Long-term success is guaranteed.”
(Chiavenato, 1979,119-121)

The Human Capital Administration is in charge of everything related to have a

successful staff and Company, in addition, one of its objectives is to measure the
gap between current and desired. And ensure that each of the attributes is
connected to the strategy, that is, that the staff of all their potential, are working
correctly as estimated, among other things and that the Company improves its
productivity by reducing costs and making the most competitive organization for
the market. And since the gaps that need to be closed to meet the strategic
requirements were cleared up, development programs must be built to bring the
state of human capital to the desired point.

1.3.2. Strategic Challenge of HRM

“The main challenge of human resources managers is to improve the
organizations we are part of, making them more efficient and effective.
Organizations improve through the most effective and efficient use of all their
resources, especially the human. A more efficient use of its resources means
producing goods and services acceptable to society. A more efficient use implies
that the organization should use only the minimum amount of resources necessary
for the production of its goods and services. The sum of these two factors leads to
better levels of productivity.
Productivity is the relationship between the products generated by the organization
(goods and services) and those required for its operation: personnel, capital, raw
materials and energy.
 Competitive Challenges (Local, National and International Challenge) =
- LOCAL CHALLENGE: External challenges arise from factors such as
technological, economic and cultural changes, and those generated by the public
sector. Each of these factors influences the way in which the organization achieves
its objectives. The organization and its personnel department frequently exercise
minimal control over their external environment. These challenges shape the way
in which the organization operates and for this reason influence the personnel
department. Unions play an important role and it is certainly a challenge Both they
and the trade organizations constitute a challenge when they operate within an
organization and a potential challenge in non-union organizations.
- NATIONAL CHALLENGE: Economic Changes The economic difficulties
experienced by Latin American economies in recent years are considerable, but an
undeniable fact is that even under these difficult circumstances, numerous
companies have managed to consolidate, grow and prosper.
 Strategy, value creation and intangible assets =
1. 70% of organizations fail to implement the strategy.
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2. The real problem is not a bad strategy but its bad application.
3. The ultimate goal of organizations is to create value for customers, staff,
community, etc.
4. In the industrial economy, companies created value with their material assets.”
(Tomasini, 1990, 42-45)

For the Companies to be competitive, effective and with the correct administration
is a challenge, involving the creation of value and reducing expenses, an
organizational climate of high satisfaction and quality of working life, achieving
commitment and loyalty of the employees. In addition, the Management has 3
challenges, which are the Environment, Organization and Individuals. In short, we
can not only see a challenge as the elements of the economy, but we have to take
into account everything that affects Employees, from their family environment and
acceptance or tranquility in the Workplace. For example, as an Organization, we
can be more flexible, so we avoid the brain drain, which is one of the things that
matter most to us.

1.4. System HRM Creating

“It is based on the theory, origin and evolution of human capital is specific and
developed to education and specific training as investments made by people with
the determination to increase their productive efficiency and income; human capital
is also conceived as the investment in giving knowledge, training and information
to people that allows them to give greater performance and productivity in the
modern economy and they take advantage of talent.
This theory considers the person as an economic agent because when investing in
his education, decide between the benefits he invests in the future if he continues
to train and will continue if the costs and advantages are positive.
The strategic models of human resources management are results of the
sharpening of competition in developed countries, in which to subsist companies
are compelled to find niche markets and used as a competitive advantage of
human resources. They are models for obtaining profits, they require to guarantee
the business strategy and the positioning of the market company, and they are not
conceived to contribute to satisfying social needs, but for the rivalry and the offer of
products or services between competitors.”
(Breña, 2013)

The creation of the Human Capital System aims to increase the future study of
workers so that the organization has a greater increase in its productive efficiency
and income. In this System, the Administration invests in giving knowledge and
training to people and thus have greater performance and productivity to the
modern economy and take advantage of their talent.

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 1.4.1.The High Performance Work System
“A high performance work system (HPWS) can be defined as a specific
combination of human resources practices, work structures and processes that
maximizes employee knowledge, skills, commitment and flexibility.
The notion of high performance work systems was originally developed by David
Nadler to capture the "architecture" of an organization that integrates technical and
social aspects of work.
There are four simple steps to powerful principles:
1. Shared information:
The principle of shared information typifies a change in organizations that moves
you away from the mindset of order and control, and directs them to a more
focused on employee engagement.
2.Knowledge development:
Knowledge development is the twin of shared information. High performance work
systems depend on the change to move from a contact job to a knowledge job.
3.Performance-reward links:
When rewards are associated with performance, employees will of course try to
obtain beneficial results for both them and the organization.
4.Equalism:
The more egalitarian work environments eliminate differences in status and power,
and in the process, increase collaboration and teamwork.”
(Galicia, 1999, 54-56)

The system is a practical combination of people from Human Resources and

maximizing the knowledge and skills of the employee and for this there are 4 steps
to these high performance principles which are familiar with the same objective: to
have benefits for them and for the Organization. But you always have to keep in
mind that the “end does not justify the means”, because, although everyone has
the same goal, each mind is different and not everyone does the same to reach it,
even if there are instructions on how to achieve it.

1.4.2. Strategic Translation of Human Capital Policies and

Practices
“The business strategy is the result of the process of specifying the objectives, the
strategy of an organization must be appropriate for its resources.
The strategy must connect the vision with the mission and the probable future
trends.
The formulation of the strategy implies:

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 1. Make a situation analysis: internal and external
2. Develop your statements of vision (long-term view of a possible
future), of mission (the role of the organization itself is given in
society).
These objectives should, taking into account the analysis of the situation, suggest
a strategic bread.
Competitive compensation programs that include incentives serve to motivate and
reinforce performance results, disciplinary actions serve as messages to
employees that behavior violations waiting to be tolerated.
For the selection handle the following procedure:
 Preliminary reception of applications.
 Suitability tests.
 Selection interview.
 Verification of data and references.
 Medical exam.
 Interviews with the supervisor.”
(Galicia, 1999,325-326)

A Company or Organization must be clear about its Mission and Vision, so later on
in any situation it can be based on its internal and external advantages or
disadvantages; As an example, this topic which you need from them in order to
obtain the best strategy.

1.5. Model of Formal Organizations of the Department of Human

Capital
“Models are required that support organizations for the best performance of the
company, facilitating its operation and thus having a better performance in
organizations. Within the company it is where the activities of the workers are
organized, directed, coordinated, paid and studied, in administrative procedures
actions such as selection procedures, the realization of contracts, payroll and
social insurance are carried out.
Of course, if the company is large, this department also deals with everything
related to improving the conditions of the work environment such as that of the
workers themselves.
I. Staff planning.
It determines the needs of personnel in the company, determines the objectives,
policies, procedures and programs of personnel administration within the
company. It consists of carrying out studies aimed at the projection of the structure
of the organization in the future, including analysis of projected positions and study
of the possibilities of development of workers to occupy them, in order to

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determine training and development programs, where appropriate Recruitment and
selection.
II. Staff pick.
It is the first question that regarding the personnel is posed to the company;
selection to be given both for the entry of personnel in the company and to affect
the personnel admitted to the different jobs to be filled.
The personnel selection process is the one in which it is decided whether the
candidates found in the search previously performed will be hired. This selection
has different steps:
1. Determine if the candidate meets the minimum skills this work.
2. Evaluate the predetermined relative skills for the position
of the candidates who passed the previous stage, through technical and / or
psychological evaluations.”
(Galicia, 1999, 376-377)

It is one of the most important models that the Human Capital Management has,
said model directs, organizes, remunerates, coordinates and studies the tasks of
the workers at the same time that it administers the social insurance, payroll and
performs the contracts of the same; It is the one that has the main word of the type
of personnel that you want or need in the Company and how you can improve it by
applying point number 2 (the selection of personnel), based on this point we can
accept or reject any person In the Company, it depends on whether or not it meets
the requirements, since only one person is needed to affect the work environment.

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