CHAPTER 2

Strategic Management of Human

Resource
Fisher, C.D; Schoenfeldt, L.F; and Shaw, J.B (1993). Human Resource Management 2 nd ed. Boston: Houghton Miffin
Coy.
Quality as a strategic weapon
 Quality  Manufacturing
 Research &
development
 Human resources
 Marketing & sales
 Information and
analysis
 Corporate
leadership and
administration.
Scoring criteria and weights for the Malcolm Baldrige National Quality
Award.
100
Leadership
40
 Senior executive leadership
15
 Quality values
25
 Management for quality
20
 Public responsibility
70
Information and Analysis
20
 Quality of Data and information
30
 Competitive comparisons and benchmarks
20
 Analysis of quality data and information
60
Strategic quality planning
35
 Strategic quality planning process
25
 Quality goals and plans
150
Human resource utilisation
20
 Human resource management
40
 Employee involvement
40
 Quality education and training
25
 Employee recognition and performance management
25
 Employee well-being and morale
140
Quality assurance of products and service
35
 Design of quality products and services
20
 Process quality control
20
 Continuous improvement of process
15
 Quality assessment
10
 Documentation
20
 Business process and support service quality
20
 Supplier quality
180
Quality results
90
 Product and service quality results
50
 Business process quality results
40
 Supplier quality results
300
Customer satisfaction
30
 Determining customer requirements and expectation
50
 Customer relationship management
20
 Customer service standards
15
 Commitment to customers
25
 Complaint resolution for quality improvement
20
 Determining customer satisfaction
70
 Customer satisfaction results
70
 Customer satisfaction comparison
1000
TOTAL
Strategic management
 Strategic management is the set of
decisions and subsequent actions used to
formulate and implement strategies that
will optimise the fit between the
organisation and its environment in an
effort to achieve organisational objectives.
 Strategic plan is the overall blueprint that
defines how an organisation will deploy its
capital resources, budgetary resource, and
human resources in pursuit of its goals.
 Steps in the strategic management process
Eksternal forces:
social, economic,
technological,
political

Environmental
opportunities and
threats
Define mission Establish goals Formulate Implement
& objectives strategies strategies
Organisational
strengths and
weaknesses

Eksternal forces:
structure, culture,
politics, past
strategy
Human resource practice choices
 Once a strategic plan is formulated,
the focus must shift to
implementation, a process of aligning
the functions of organisation with the
business strategy.
 It includes staffing, appraising,
compensating, training and
development, employee influence,
and work system.
Grand strategies
 Stability
 Growth
 Retrenchment/turnaround (decline)
Growth strategies
.
Product present new
market
Product
present development
Concentric

Market
new development diversification
Adaptive business strategies
 Prospector
 Defender
 Analyser
HRM practices for adaptive strategies

.
Competitive strategies
.

Cost Differentiation
leadership

Cost Differentiation
leadership focus
focus