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Click To Edit Master Title Style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Strategic Human Resource Management,After reading this chapter,you should be able to:,Describe the differences between strategy formulation and strategy implementation.,List the components of the strategic management process.,Discuss the role of the HR function in strategy formulation.,Describe the linkages between HR and strategy,formulation.,Chapter,2,Strategic Human Resource Management,Discuss the more popular typologies of generic strategies and the various HR practices associated with each.,Describe the different HR issues and practices associated with various directional strategies.,List the competencies the HR executive needs to become a strategic partner in the company.,Chapter,2,Macro,Labor Market,Economics,Technology,Culture,Politics,HRM Environment,Micro,Strategy and Structure,HRM Subjects,Leader,HRM Professionals,Functional managers,The goal of strategic management in an organization is to deploy and allocate resources in a way that gives it a competitive advantage.,Human resource managers should:,have input into the strategic plan,have specific knowledge of the organizations strategic goals,know what types of employee skills,behaviors,and attitudes are needed to support the strategic plan,and,develop programs to ensure that employees have those skills,behaviors,and attitudes.,Introduction,McGraw-Hill/Irwin,2006 The McGraw-Hill Companies,Inc.All rights reserved.,What is Strategic Management?,Strategic Management,is a process for analyzing a companys competitive situation,developing the companys strategic goals,and devising a plan of action and allocation of resources that will help a company achieve its goals.,Strategic human resource management,is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.,2006 The McGraw-Hill Companies,Inc.All rights reserved,McGraw-Hill/Irwin,Components of the Strategic Management Process,Strategy Formulation:,Strategic planning groups decide on a strategic direction by defining the companys 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 reward systems that align employee behavior with the strategic goals.,2006 The McGraw-Hill Companies,Inc.All rights reserved.,McGraw-Hill/Irwin,Model of the Strategic Management Process,HR Practices,Recruiting,Training,Performance management,Labor relations,Employee relations,Job analysis,Job design,Selection,Development,Pay structure,Incentives,Benefits,Firm,Performance,Productivity,Quality,Profitability,Human,Resource,Actions,Behaviors,Results,Human,Resource,Capability,Skills,Abilities,Knowledge,Human,Resource,Needs,Skills,Behavior,Culture,Mission,Goals,Strategic,Choice,Internal,Analysis,Strengths,Weaknesses,External,Analysis,Opportunities,Threats,Strategy Formulation,Strategy Implementation,2006 The McGraw-Hill Companies,Inc.All rights reserved.,McGraw-Hill/Irwin,The Role of HRM in Strategy Formulation,Administrative Linkage,Lowest level of integration;HRM functions attention is focused on day-to-day activities.No input from the HRM function to the companys strategic plan is given.,One-Way Linkage,The strategic business planning function develops the plan and then informs the HRM function of the plan.HRM then helps in the implementation.,Two-Way Linkage,Allows for consideration of human resource issues during the strategy formulation process.The HRM function is expected to provide input to potential strategic choices and then help implement the chosen option.,Integrative Linkage,Is based on continuing,rather than sequential,interaction.The HR executive is an integral member of the strategic planning team.,2006 The McGraw-Hill Companies,Inc.All rights reserved.,McGraw-Hill/Irwin,Strategy Formulation,Goals,Mission,Strategic,Choice,Internal,analysis,Strengths,Weaknesses,External,analysis,Opportunities,Threats,2006 The McGraw-Hill Companies,Inc.All rights reserved.,McGraw-Hill/Irwin,Strategy Formulation,Five components of the strategic management process:,A mission,is a statement of the organizations reasons for being.,Goals,are what the organization hopes to achieve in the medium-to long-term future,External analysis,consists of examining the organizations operating environment to identify strategic opportunities and threats.,Internal analysis,attempts to identify the organizations strengths and weaknesses.,Strategic choice,is the organizations strategy,which describes the ways the organization will attempt to fulfill its mission and achieve its long term goals.,2006 The McGraw-Hill Companies,Inc.All rights reserved.,McGraw-Hill/Irwin,Strategy Implementation,Organizational,st
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