strategic human resource management – an overview

Strategic Human Resource Management – An Overview

Chapter 1

Nisha Hariyani

STRATEGIC HR MANAGEMENT DEFINED

• “Strategic HRM refers to the overall direction the organization wishes to pursue in achieving its objectives through people. It is argued that because intellectual capital is a major source of competitive advantage and in the last analysis, it is people who implement the strategic plan, top management must take these key considerations fully into account in developing its corporate strategies” (Michael Armstrong, 2001)

Jeffrey Mello – Defined

• Strategic Human Resource Management as “the development of a consistent, aligned collection of practices Programs and Polices to facilitate the achievement of organization's Strategic Objectives.

People as strategic Assets

• To attain the Strategic goals of the organization, employees must first understand and share the values and objectives of the organization.

• The challenges faced are– Integrating People with the Strategic Goals of

the organization– Managing employees Effectively.

The process of Strategic Management

MISSION STATEMENT

MISSION STATEMENT

ENVIROMENTALANALYSIS

ENVIROMENTALANALYSIS

• Competition analysis

• Regulations• Technology• Markets• Trends• Economic

trends

• Competition analysis

• Regulations• Technology• Markets• Trends• Economic

trends

GOALS AND

OBJECTIVES

GOALS AND

OBJECTIVES

• Resources– Financial– Physical– Human– Technology– Capital

Management Systems

– Culture– Structure– work

systems

• Resources– Financial– Physical– Human– Technology– Capital

Management Systems

– Culture– Structure– work

systems

STRATEGYSTRATEGY

ORGANIZATION SELF

ASSESSMENT

ORGANIZATION SELF

ASSESSMENT

Formulating Strategy

• There are five important variables that determine the success of strategy. – Organizational structure– Task design– Employee training– Reward system– Information system

Formulating Strategy

• Strategy formulation usually takes place with the involvement of the top management

• Hr and strategic management process can be linked in four ways– Administrative linkage– One way linkage– Two way linkage– Integrative linkage.

Value Chain Analysis

Challenges For HRM

• Global Business Enviroment

• Profitability through growth

• Technology

• Intellectual capital

• Adaptability

End to Chapter