Strategic HRM, Stephen P. Robbins

8/4/2019 Strategic HRM, Stephen P. Robbins

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STRATEGIC HUMANRESOURCE

MANAGEMENT



Chapter 01

THE CONCEPT OFHRM AND SHRM

By: Wendell L. French

&

Michael Armstrong



Management:

It is the process of achieving organizationalgoals through four major functions, planning,organizing, leading and controlling.

By: Kathryn M. Bartol



Planning Organizing

LeadingControlling

ManagementFunctions



Planning: The process of setting goals and deciding

how best to achieve them.

IMPORTANT TERMS

Goal Strategy

Planning and Forecasting

Ambiguity, uncertainty and Risk



Organizing: Determining what tasks are to be done, who

is to do them, how the tasks are to begrouped, who reports to whom, and wheredecisions are to be made.

Hierarchy

Span of Management

Chain of Command



Leading:

A function that includes motivating

employees, directing others, selectingthe most effective communicationchannels, and resolving conflicts.

Leadership

Leader



Controlling:

Monitoring activities to ensure they are beingaccomplished as planned and correcting any

significant deviations.

PERT



Management:

The process of achieving organizational

goals by effectively and efficiently throughplanning, organizing, leading and controlling

the organization's human, physical, financialand information resources.



Human Resources Management:

It refers to the utilization of human resources moreeffectively and efficiently for the achievement of

organizational goals.



◦ Efficiency: “Doing things right”

Getting the most outputfor the least inputs

◦ Effectiveness: “Doing the right things”

Attaining organizationalgoals



Human Resources Management:

HRM refers to the philosophy, policies, procedures and practices related to the management of peoplewithin an organization.

By: Wendell L. French Philosophy

Policy

Procedure

Rule



Employee

• Assist employees in achieving their personal goals.

• Worker performance may decline or employees may leave the organization if employeeobjectives are not considered.

Organization

• Contribute to organizational effectiveness.• Means of helping the organization to achieve its primary objectives.• Provide level of service appropriate to the organization’s needs.

Society

• Should respond to the needs and challenges of society.• Minimize negative impacts of these demands on the organization.• HR strategies need to reflect society’s concerns e.g. ecological.



Strategic Management:

The ongoing process of formulating, implementingand controlling broad plans to guide theorganization in achieving its strategic goals, givenits internal and external environment.

Strategic goals



Strategic Human Resource Management (SHRM):

Strategic human resource management can be

defined as “the linking of human resources withstrategic goals and objectives” in order to improvebusiness performance and develop innovativeorganizational culture that foster innovation andflexibility.

Creativity

Innovation

Intelligence



THE AIM OF STRATEGIC HRM:

The basic aim of strategic HRM is to develop

strategic capability by ensuring that theorganization has the skilled, committed and wellmotivated employees to achieve the competitiveadvantage.



Development of consistent, aligned collection of practices,

programs, and policies to facilitate achievement of strategic

objectives.

Put extra efforts for “personnel management,” and focusing on

strategic issues, rather than solely on operational issues.

Integration of all HR (strategies, tactics, and) programs within the

larger framework, facilitating mission and objectives.

Writing down strategy facilitates involvement and buy-in of

senior executives and other employees.



1 –18Increased Performance

Customer & Employee

Satisfaction

Enhanced Shareholder

Value

To have

Effective Management of Staffing, Retention and Turnover, throughselection of employees that fit both the strategy and the organizational

culture.

Cost effective utilization of employees through investment (T&D) inidentified human capital with potential for high retention.

Integrated HR Programs and policies that clearly follow from CorporateStrategy.

Facilitation of change and adoption through a flexible, more dynamicorganization.

Tighter focus on Customer needs, key and emerging markets, and quality.





Chapter 02

MUTUAL RELATIONSHIPB/W STRATEGIC

MANAGEMENT AND

STRATEGIC HRM



It results in higher organizational performance. It requires that managers examine and adapt to

business environment changes.

It coordinates diverse organizational units, helping

them focus on organizational goals.

It is very much involved in the managerial decision-making process.



Step 1: Identifying the organization’s current mission, goals, and strategies

Step 2: Doing an external analysis

The environmental scanning of specific and generalenvironments

Focuses on identifying opportunities and threats

Step 3: Doing an internal analysis

Assessing organizational resources,

capabilities, and activities



Step 4: Formulating strategies

Develop and evaluate strategic alternatives

Select appropriate strategies for all levels inthe organization that provide relativeadvantage over competitors

Match organizational strengths toenvironmental opportunities

Correct weaknesses and guard against threats



Step 5: Implementing strategies

Implementation: effectively fitting

organizational structure and activities to theenvironment.

Step 6: Evaluating results

How effective have strategies been?

What adjustments, if any, are necessary?



EnvironmentalAnalysis

Analysis ofOrganizational

Strengths &Culture

Analysis ofOrganizational

Strategies

Choice &Implementation

of HRStrategies

Review &Evaluation of

HRStrategies

Organizational

Mission,

Goal and strategy

Analysis

CORPORATE LEVEL STRATEGY:



CORPORATE-LEVEL STRATEGY:

A Type of strategy that addresses what the business theorganization will operate, how the strategies of those

businesses will be coordinated to strengthen theorganization’s competitive position, and how resourceswill be allocated among the business.

GRAND STRATEGY:A Master strategy that provides the basic strategicdirection at the corporate level.

Grand strategy can be grouped into three basic

categories: Growth, Stability, and defensive strategy.

FORMULATING CORPORATE LEVEL



GRAND

STRATEGIESSTABILITY

DEFENSIVE

GROWTH

CONCENTRATION

VERTICAL

INTEGRATION

DIVERSIFIACTION

HARVEST

TURNAROUND

DIVESTITURE

BANKCRUPCY

LIQUIDATION

FORMULATING CORPORATE-LEVELSTRATEGY

FORWARD

INTEGRATION

BACKWARDINTEGRATION

CONGLOMERATE

DIVERSIFICATION

COCENTRIC

DIVERSIFICATION



GROWTH STRATEGY:

Strategy that involve organizational expansion alongsome major dimension.

Concentration: It focuses on the growth of single product or

service or small number of closely related products or service.

Vertical Integration: Effecting growth through the

production of inputs previously provided by supplier or

through the replacement of customers role.

ForwardIntegration

Backward

Integration



GROWTH STRATEGY:

Strategy that involve organizational expansion alongsome major dimension.

STABILITY STRATEGY:

A strategy that involves maintaining the status quo or

growing in a methodical but slow manner.



DEFENSIVE STRATEGY:

Strategy that focus on the desire or need to reduce theorganizational operations usually through cost and or

assets reductions.

Harvest: Minimizing investments while attempting to maximize

short-run profits and cash flow.

Divestiture: Organization’s selling or divesting of a business or part

of a business.



Turnaround: Reverse the negative trend and restore the

organization to appropriate level of profitability.

Bankruptcy: Organization that is unable to pay its debts and seek

court protection from creditors and from certain contract obligations.

Liquidation: Selling or dissolving an entire organization .



Business (or Competitive) Strategy:

A strategy focused on how an organization should

compete in each of its SBUs (strategic businessunits).



Competitive Advantage:

An organization’s distinctive competitive edge.

Quality as a Competitive Advantage:

Differentiates the firm from its competitors.

Can create a sustainable competitive advantage.

Represents the company’s focus on quality

management to achieve continuous improvement and

meet customers’ demand for quality.



Cost Leadership Strategy:

Seeking to attain the lowest total overall costs relativeto other industry competitors.

Differentiation Strategy:

Attempting to create a unique and distinctive product

or service.

Focus Strategy:

Using a cost or differentiation advantage to exploit aparticular market segment rather a larger market.



New Directions in Organizational Strategies

e-business

Customer service

Innovation



Create knowledge bases that employees can tapinto anytime, anywhere.

Turn customers into collaborative partners whohelp design, test, and launch new products.

Become virtually paperless in specific tasks such

as purchasing and filing expense reports. Manage logistics in real time

Change the nature of work tasks throughout theorganization.



Giving the customers what they want. Communicating effectively with them.

Providing employees with customer service training.



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Strategic HRM, Stephen P. Robbins