Basic Concepts of HR

Linkage of HRM with organizational Strategies Linkage with TQM & Productivity

What is Strategy
Strategy- a way of doing something - includes the formulation of a goal and set of action plans for accomplishment of that goal.

Strategic Management:
SM is that set of managerial decisions and actions that determine the long term performance of a corporation. It includes environmental scanning, strategy formulation (SWOT), strategy implementation and evaluation & control The study of SM therefore emphasizes on monitoring & evaluating environmental opportunities and threats in the light of corporations strengths & weaknesses.

Strategic Management Process:

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Environm ental Scanning
External Internal

Strategy Formulation Corporate Strategy Business Unit strategy Functional strategy

Strategy Implementa tion

Evaluation & Control Strategic Control, Process & Performance

Programm es Budgets & procedure

Environmental Scanning: Threats & opportunities Ex.: Oil crisis Super markets

Strategy Formulation:

Corporate level strategy: More than one line of business, Siyaram Poddar CompaniesTo continuously innovate in all its businesses with right technology, relentlessly cut costs and focus on the overseas markets. - Time, What Business, Goal & expectations from each business. Ex.: Growth, Stability, Retrenchment

Functional level strategy

ROLE OF HRM
Formulation:
Advanced incentive plans Opinion survey data from employees

Implementation:
Instituting HR practices that build employee commitment

Total Quality Management:

A people focused management system that aims at continual increase in customer satisfaction at continually lower real cost. TQM stresses learning and adaptation to continued change as key to organizational success. Re-engineering Benchmarking Empowerment

Business level strategy:

Siyaram Poddar Companies: Siyaram Silk Mills
Increase market share from 4 to 5% in next two years Launching new product with the look & feel of polyester wool. Focus shifting to exports

Govind Rubber
Improving product mix to include more specialty products.