Human Resource Management

Strategy and Analysis

Jehanzaib W. Gadgore
gadgore@gmail.com
Factors affecting HRM in global markets
Strategic Management Process
 Strategic Planning
1. Define the current business

o What products do we sell ?

o Where do we sell them ? and
o How do our products or services differ from our
competitor’s ?

For example
Rolex and Casio both sell watches.
Rolex sells a limited line of expensive watches.
Casio sells a variety of relatively inexpensive but
innovative specialty watches with features like
compasses and altimeters.
2. Perform internal and external audits

o Are we heading in the right direction?

Prudent managers periodically assess what’s

happening in their environments.

Managers need to audit both the firms

environment, and the firms strengths and
weaknesses.
Environmental Scanning
SWOT Matrix with generic examples
3. Formulate a new direction

On the basis of environmental scan and SWOT analysis, what

should our new business be? in terms of what products we
will sell? where we will sell them? and how our products or
services will differ from competitor’s products?

Managers sometimes formulate a vision statement to

summarize how they see the essence of their business down
the road. The vision statement is a general statement of the
firm’s intended direction; it shows, in broad terms, what we
want to become?

Whereas vision statements usually describe in broad terms

what the business should be,
the company’s mission statement summarizes what the
company’s main tasks are now.
4. Translate the mission into strategic goals
Translate the mission into strategic objectives.
The company and its managers need strategic goals.

At Ford, for example, what exactly did making

“Quality Job One” mean for each department in terms
of how they would boost quality?

The answer is that its managers had to meet strict

goals such as no more than 1 initial defect per 10,000
cars.
 5. Formulate Strategies to achieve the
strategic goals
The manager chooses strategies -- courses of action --
that will enable the company to achieve its strategic
goals.

For example, what strategies could Ford pursue to hit its

goal of no more than 1 initial defect per 10,000 cars?

Perhaps open two new high-tech plants, reduce the

number of car lines to better focus on just a few, and put
in place new more rigorous employee selection, training,
and performance appraisal procedures.
 Strategic Execution
Implement the strategies.

It means translating the strategies into action.

The company’s managers do this by:

- Actually hiring (or firing) people,
- Building (or closing) plants, and
- Adding (or eliminating) products and product lines.
 Evaluate Performance
Things don’t always turn out as planned.

For example, Ford bought Jaguar and Land Rover as a

way to reduce reliance on lower-profit cars. With auto
competition brutal, Ford announced in 2009 it was
selling Jaguar and Land Rover (to Tata, a company in
India).

Ford wants to focus its scarce resources on modernizing

and turning around its North American operations.

Like all companies, Ford continually needs to assess its

strategic decisions.
 Thanks!

Questions are welcome.