Lecture 3

Strategic HRM

Case Study – Taj Hotel India

Strategic HRM

Strategic HRM

Major Factors affecting HRM!!

1. Human capital as competitive advantage

2. People implement the strategic plan

3. Systematic approach to define organization’s goals

• Strategic HRM addresses BROAD organizational issues.

• Deals with any major people issues that affect strategic plans.

Aims of Strategic HRM

• Generate strategic capability by ensuring right people in organization.

• Provide a sense of direction in an often turbulent environment.

• Implementation of coherent and practical HR policies and programmes.

Soft HRM

Hard HRM

Which is more important?

Organization Goals 100%

Marketing 25%

HR Department 25%Finance 25%

Operations 25%

Approaches to Strategic HRM