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HRM Strategy and Analysis

The document discusses the strategic management process and strategic human resource management. It describes the 7 steps of the strategic management process as defining the current business, performing audits, formulating a new direction, translating the mission into goals, formulating strategies, implementing strategies, and evaluating performance. It also discusses types of strategies like corporate, competitive, and functional strategies. Finally, it outlines tools for strategic human resource management like strategy maps, scorecards, dashboards, benchmarks, metrics, and high-performance work systems.

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Muhammad Bilal
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60 views27 pages

HRM Strategy and Analysis

The document discusses the strategic management process and strategic human resource management. It describes the 7 steps of the strategic management process as defining the current business, performing audits, formulating a new direction, translating the mission into goals, formulating strategies, implementing strategies, and evaluating performance. It also discusses types of strategies like corporate, competitive, and functional strategies. Finally, it outlines tools for strategic human resource management like strategy maps, scorecards, dashboards, benchmarks, metrics, and high-performance work systems.

Uploaded by

Muhammad Bilal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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HRM STRATEGY AND

ANALYSIS
LECTURE 2
CHAPTER 3
THE STRATEGIC MANAGEMENT PROCESS
THE STRATEGIC
MANAGEMENT PROCESS
STRATEGIC MANAGEMENT- the process of
identifying and executing the organisation’s strategic plan
by matching the company’s capabilities with the demands
of its environment.

STRATEGIC PLAN- the company’s plan for how it will


match its internal strengths and weaknesses with external
opportunities and threats in order to maintain a
competitive advantage.
THE STRATEGIC
MANAGEMENT PROCESS
Step 2: Perform Step 4: Translate
Step 1: Define the Step 3: Formulate
external and the mission into
current business a new direction
internal audits strategic goals

Step 5: Formulate
strategies to Step 6: Implement Step 7: Evaluate
achieve the the strategies performance
strategic goals
THE STRATEGIC
MANAGEMENT PROCESS
1. What business are we in?

2. Are we in the right business given our strengths and weaknesses and the challenges
that we face?

3. What should our new business be?

4. Translate the desired new direction into strategic goals

5. Choose strategies that will enable the company to achieve its goals

6. Strategy execution

7. The manager evaluates the results of his or her planning and execution
TYPES OF
STRATEGIES

1. Corporate Strategies
2. Business Strategies
3. Functional Strategies
CORPORATE STRATEGY

• Type of strategy that identifies the portfolio of


businesses that, in total, comprise the company
and the ways in which these businesses relate to
each other.
CORPORATE STRATEGY
• Concentration Corporate
Strategy- the company offers
one product or product line,
usually in one market.

• Diversification Corporate
Strategy- the firm will expand
by adding new product lines.

• Vertical Integration Corporate


Strategy- the firm expands by,
perhaps, producing its own raw
materials or selling its products
directly.
CORPORATE STRATEGY

• Consolidation Corporate
Strategy- the company reduces
its size.

• Geographic Expansion- the


company grows by entering
new territorial markets.
COMPETITIVE
STRATEGY

A strategy that identifies how


to build and strengthen the
business’s long-term
competitive position in the
marketplace.
TYPES OF COMPETITIVE
STRATEGY

• 1. Cost Leadership- low cost industry leader.

• 2. Differentiation- unique dimension to their


products/services.

• 3. Focusers- market niche.


FUNCTIONAL STRATEGIES

• A strategy that identifies the broad activities that


each department will pursue in order to help the
business accomplish its competitive goals.
STRATEGIC HUMAN
RESOURCE MANAGEMENT
• Formulating and executing human resource
policies and practices that produce the
employee competencies and behaviours the
company needs achieve its strategic aims.
STRATEGIC HUMAN RESOURCE
MANAGEMENT TOOLS

• STRATEGY MAP

A strategic planning tool that shows the “big picture” of how


each department’s performance contributes to achieving the
company’s overall strategic goals.
STRATEGIC HUMAN RESOURCE
MANAGEMENT TOOLS
• HR SCORECARD

A process for assigning financial and non-financial


goals or metrics to the human resource
management-related chain of activities required for
achieving the company’s strategic aims and for
monitoring results.
STRATEGIC HUMAN RESOURCE
MANAGEMENT TOOLS

• DIGITAL DASHBOARD

Presents the manager with desktop graphs and


charts, and so a computerised picture of where the
company stands on all those metrics from the HR
scorecard process
BENCHMARKING &
DATA ANALYTICS

• HR METRICS

The quantitative gauge of a


human resource management
activity, such as employee
turnover, hours of training
per employee, or qualified
employees per position.
STRATEGY-BASED METRICS

• Metrics that specially focus


on measuring the activities
that contribute to achieving
a company’s strategic aims.
HR AUDIT

• An analysis by which an
organisation measures
where it currently stands
and determines what it has
to accomplish to improve its
HR functions.
HIGH-PERFORMANCE
WORK SYSTEM (HPWS)
• A HPWS is a set of HRM
policies and practices that
together produce superior
employee performance.

• Example- HP companies
recruit more job candidates,
use more selection tests, and
spend many hours training
employees.
STRATEGIC PRIORITIES
• INNOVATION

• BRAND

• PRICE

• DESIGN

• QUALITY

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