Utilizing human resources in a manner that enables a firm to reap long term benefits, in terms of profits, ,core competence and other goals.

What do you mean by Strategic HRM

Strategy Formulation: Strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external

opportunities and threats, and its internal strengths and weaknesses.

Strategy Implementation: The organization follows through on the strategy that has been chosen. This includes structuring the

organization, allocating resources, ensuring that the firm has skilled

employees in place, and developing systems that align employee behaviour

with the strategic goals.

Components of the Strategic Management Process

Strategy Formulation

Strategy Formulation

©a Times Mirror Higher Education Group, Inc., company, 1997

IRWIN

Mission

- reason for being

Strategy Formulation

Strategy Formulation

©a Times Mirror Higher Education Group, Inc., company, 1997

IRWIN

Mission

- reason for being

Goals

- what it hopes to achieve

Strategy Formulation

Strategy Formulation

©a Times Mirror Higher Education Group, Inc., company, 1997

IRWIN

Mission

- reason for being

Goals

- what it hopes to achieve

ExternalAnalysis

- opportunities- threats

InternalAnalysis

- strengths- weaknesses

Strategy Formulation

Strategy Formulation

©a Times Mirror Higher Education Group, Inc., company, 1997

IRWIN

Mission

- reason for being

Goals

- what it hopes to achieve

StrategicChoice

ExternalAnalysis

- opportunities- threats

InternalAnalysis

- strengths- weaknesses

- ways to fulfill goals and mission

©a Times Mirror Higher Education Group, Inc., company, 1997

IRWIN

Mission

- reason for being

Goals

- what it hopes to achieve

StrategicChoice

ExternalAnalysis

- opportunities- threats

InternalAnalysis

- strengths- weaknesses

- ways to fulfill goals and mission

HR Input

Strategy Formulation

Strategy Formulation

Strategy Implementation

•It helps analyze the opportunities and threats that are crucial, from the point of view of the company.

•It is possible to develop strategies and have a vision for the future.

•The attrition rate can be reduced, if strategic HRM is implemented properly. It also performs the important task of motivating employees.

•Development and maintenance of competency among employees, is the most important benefit offered by strategic HRM.

Advantages

Inability of the management in communicating the vision and mission of the

company clearly to the employees.

Interdepartmental conflict and lack of vision among the senior management

in implementing the HR policies.

The diversity of workforce that makes it difficult for the management to

handle them accordingly.

Disadavantages

Thank You