Strategic Human Resource Management Lecture 2

Lecture 2

Strategic HRM

Lets Talk about

HRM in your organization

• Identify the 2 major things you want to improve/change in your organization?

Strategy: Concept & Process

Strategy

This is what we want to do and this is how we intend to do it.

• Setting Long-term goals

• Ways to achieve goals

The Concept of Strategy

• The concept of strategy is based on three subsidiary concepts:

1. Competitive advantage,2. Distinctive capabilities 3. Strategic fit.

1. Competitive Advantage

• Michael Porter (1985)• Value Creation for customers

Markets

Products

Processes

How to Sustain Competitive Advantage?

2. Distinctive Capabilities

People

Innovation

3. Strategic Fit

The Fundamentals of Strategy

Strategic Intent

Resource-based Strategy

Capability of Organization

Strategic Management

1. Strategic Intent

• Mission and Vision of organization

• Specific goals

• Strategic Objectives

2. Resource-based Strategy

• Strategic capability of a firm depends on its resource capability.

3. Strategic Capability

• Ability of an organization to utilize resources in the most efficient manner.

Outsourcing

4. Strategic Management

• Set of decisions and actions in implementation process.

• Deals with End and Means.

• Importance of Flexibility.