Human Resource Management:

Gaining a Competitive Advantage

Chapter 02

Strategic Human Resource
Management

Copyright 2013 by The McGraw-Hill Companies, I nc. All rights reserved. McGraw-Hill/I rwin
Learning Objectives
1. Describe the differences between strategy formulation and
strategy implementation.

2. List strategic management process components.

3. Discuss HRM functions role in strategy formulation.

4. Describe the linkages between HRM and strategy
formulation.

5. Discuss typologies of strategies and associated
HRM practices.

6. Describe HR issues and practices associated with various
directional strategies.
2-2
Introduction
Goal of strategic management is to deploy and
allocate resources in a way that gives an
organization competitive advantage.

HRM function must be integrally involved in the
companys strategic management process.

A business model is how the firm will create
value for customers profitably.
2-3
What is Strategic Management?
Strategic human resource management (SHRM) is
the pattern of planned HR activities and deployments
intended to enable an organization to achieve its goals.

Strategic management is a process to address the
organizations competitive challenges by integrating an
organizations goals, policies and action sequences into
a cohesive whole.



2-4
2 Phases of
Strategic
Management
Strategy
Formulation
Strategy
Implementation
2-5
Strategic Management Process Model
Strategy Formulation Strategy Implementation
HR Practices
Recruiting
Training
Performance management
Labor relations
Employee relations
Job analysis
Job design
Selection
Development
Pay structure
Incentives
Benefits
HR
Capability
Skills,
Abilities
Knowledge
HR
Needs
Skills
Behavior
Culture
Strategic
Choice
Goals
Mission
Internal
Analysis
Strengths
Weaknesses
2-6
Strategy- Competition Decisions
How?
2-7
Strategic Planning and HRM Linkages
Administrative
2-8
Strategy Formulation

External
Analysis
Opportunities
Threats
Internal
Analysis
Strengths
Weaknesses
2-9
SHRM-Strategy Formulation
Mission
Goals
Strategic Choice
Internal Analysis
2-10
SWOT Analysis for Google Inc.


SWOT Analysis for Google, Inc.
2-11
Strategy Implementation Variables
Types
of
Information
Organizational
Structure
Task
Design
Select
Train
Develop
People
Reward
Systems
2-12

HRMs 3 Implementation Variables:
Task
2-13




Strategic Implementation


HR Practices
Recruiting
Training
Performance management
Labor relations
Employee relations
Job analysis
Job design
Selection
Development
Pay structure
Incentives
Benefits
Human
Resource
Actions
Behaviors
Results
-productivity
-absenteeism
- turnover
Human
Resource
Capability
Skills,
Abilities
Knowledge
Human
Resource
Needs
Skills
Behavior
Culture
2-14
HRM Practices
2-15
Recruitment
/Selection
Porters Strategies
Cost
2-16
5 Categories of Directional Strategies
Concentration
Internal Growth
External Growth
Mergers &
Acquisitions
2-17
Role Behaviors
Behaviors that are required of an individual
in his or her role as a jobholder in a social
work environment.

Different role behaviors are required for
different strategies.
2-18
Summary
Human Resources are the most important asset and
single largest most controllable cost within the business
model.

HR professionals must develop business,
professional-technical, change management and
integration competencies.

HRM has a profound impact on the strategic plan
implementation by developing and aligning HRM
practices that ensure the company has motivated
employees with necessary skills.


2-19