Lecture Human resource management: Gaining a competitive advantage (9/e) – Chapter 2: Strategic human resource management

Chapter 2

Strategic Human Resource Management

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What is Strategic Management?

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Strategic Management Process Model
   Strategy

Strategy
HR Practices
Implementation
•Recruiting

Formulation
External Analysis
•Opportunities
•Threats

Mission

Goals

Strategic
Choice

Internal
Analysis

•Strengths
•Weaknesses

HR
Needs

•Skills
•Behavior
•Culture

•Training
•Performance management
•Labor relations
•Employee relations
•Job analysis
•Job design
•Selection
•Development
•Pay structure
•Incentives
•Benefits

HR
Capability

•Skills,

•Abilities
•Knowledge

Firm
Performance
•Productivity
•Quality
•Profitability

HR Actions
•Behaviors
•Results

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Strategic Planning and HRM Linkages

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Strategy Formulation
External
Analysis
•Opportunities
•Threats

Internal
Analysis
•Strengths

•Weaknesses

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SHRM-Strategy Formulation
Mission
Mission
Goals
Goals

Strategic
Strategic Choice
Choice
Internal
Internal Analysis
Analysis
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Strategy Implementation Variables
Organizational
Structure
Types
of
Information
Product
Market
Strategy

Task
Design
Performance

Reward
Systems

Select
Train
Develop
People
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Strategic Implementation
HR Practices

Human
Resource
Needs
•Skills
•Behavior
•Culture

•Recruiting
•Training
•Performance management
•Labor relations
•Employee relations
•Job analysis

•Job design
•Selection
•Development
•Pay structure
•Incentives
•Benefits

Human
Resource
Capability
•Skills,
•Abilities
•Knowledge

Human
Resource
Actions
•Behaviors
•Results
-productivity
-absenteeism
-turnover
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HRM Practices

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5 Categories of Directional Strategies
Concentration
Concentration
Internal
Internal Growth
Growth
External
External Growth
Growth

Mergers
Mergers &
&
Acquisitions
Acquisitions
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Summary
 HR are most important asset and single largest most
controllable cost within the business model.
 HR professionals must develop business, professionaltechnical, 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.
 HRM must be integrally involved in the company’s
strategic management process.
 HRM has primary responsibility for three implementation

variables: task, people, and reward systems.

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