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

Chapter 2 - Strategic human resource management. In this chapter, the learning objectives are: Describe the differences between strategy formulation and strategy implementation, list the components of the strategic management process, discuss the role of the HRM function in strategy formulation,...

Chapter Strategic Human Resource Management Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education What is Strategic Management? 2­2 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 2­3 Strategic Planning and HRM Linkages 2­4 Strategy Formulation External Analysis •Opportunities •Threats Internal Analysis •Strengths •Weaknesses 2­5 SHRM-Strategy Formulation Mission Mission Goals Goals Strategic Strategic Choice Choice Internal Internal Analysis Analysis 2­6 Strategy Implementation Variables Organizational Structure Types of Information Product Market Strategy Task Design Performance Reward Systems Select Train Develop People 2­7 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 2­8 HRM Practices 2­9 Categories of Directional Strategies Concentration Concentration Internal Internal Growth Growth External External Growth Growth Mergers Mergers & & Acquisitions Acquisitions 2­10 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 2­11 ...What is Strategic Management? 2­2 Strategic Management Process Model    Strategy Strategy HR Practices Implementation •Recruiting Formulation External Analysis •Opportunities •Threats Mission... Internal Internal Analysis Analysis 2­6 Strategy Implementation Variables Organizational Structure Types of Information Product Market Strategy Task Design Performance Reward Systems Select Train... Linkages 2­4 Strategy Formulation External Analysis •Opportunities •Threats Internal Analysis •Strengths •Weaknesses 2­5 SHRM-Strategy Formulation Mission Mission Goals Goals Strategic Strategic