STRATEGIC HRP

HR AS COMPETITIVE ADVANTAGE!

People are the key to success

Most companies view Human Resource (HR) rather
than financial or technological resources can offer a
competitive advantage

That is, source of competitive advantage have shifted
from financial resource to technological resources and
now to human capital !

To gain a competitive advantage from human capital ,
there is growing importance to think HRM from strategic
point of view and to relate HR strategy with the
overall business strategy

NOW THE QUESTION ARISES
What is Strategy?
A plan of action to defend oneself or to defeat rivals

What is Business Strategy?
Business Strategy is the way in which management
chooses to utilize the firms resources within its
environment to reach its objectives

What is SHRM?
Relating HR strategy with the overall business strategy
FACTORS AFFECTING HRM IN GLOBAL MARKET
HRM
ORGANISATION STRATEGY & HUMAN
RESOURCE PLANNING
Organisation strategy
HR planning
Determine number and types of jobs to be filled.
Match human resource availability with job openings.
Retrenchment strategy
Downsizing
Business sale
Shut down
Growth strategy
Internally generated
growth
Acquisitions, mergers
or joint ventures
Stability Strategy
Maintain status quo
(-)
(0)
(+)
FEED-
BACK
OBJECTIVES OF STRATEGIC HRP
Ensure adequate human resources to meet the strategic
goals and operational plans of your organization - the
right people with the right skills at the right time
Keep up with social, economic, legislative and
technological trends that impact on human resources in
your area and in the sector
Remain flexible so that your organization can manage
change if the future is different than anticipated
Where are we going?
How will we develop HR strategies to successfully get
there, given the circumstances?
What skill sets is needed to achieve the objectives

STRATEGIC HRP PROCESS
Assessing
current HR
practices
Step 1
Forecasting
HR
requirements
Step 2

Gap
Analysis
Step 3

Developing HR
strategies to
Support Org
Strategies


Step 4