STRATEGIC HUMAN RESOURCE PLANNING

INSRUCTOR: MD MIZANUR RHMAN

PROFESSOR, B A DISCIPLINE, KU
Concept of strategy and planning
Chapter -01
Book : Strategic Human Resources
Planning
By: Monica Belcourt
 CHAPTER CONTENTS
 Strategy
 Mintzberg 5P’s to understand strategy
 Strategy formulation and implementation
 Strategic types
 Models of business strategies

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Q. STRATEGY

 The company’s long-term plan for how it will balance

its internal strengths and weaknesses with its external
opportunities and threats to maintain a competitive
advantage.
 Strategy is the formulation of organizational missions,
goals, objectives and action plans.

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 Q. MINTZBERG 5P’S TO UNDERSTAND STRATEGY

Mintzberg has developed a useful framework for

understanding strategy. The 5P’s of strategy he described
are :
 Plan: an intended course of action a firm has selected to
deal with a situation.
 Purpose: a consistent stream of actions that sometimes are
the result of a deliberate plan and sometimes the result of
emergent actions based on reactions to environmental
changes or shifting of assumptions.
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 Ploy: a specific maneuver at the tactical level with a
short time horizon.
 Position: the location of an organization relative to
its competitors and other environmental factors.
 Perspective: The gesture or personality of the
organization.

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 Herein, we consider strategy as both a purpose and a plan.
This perspective views strategy as a rational process in
which ends are defined in measurable terms and resources
are allocated to achieve those ends.
Example:
 Organization set objectives : 25% market share by 2020.
then org. develops plans, which include HRM programs, to
achieve those goals.

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 Q. STRATEGY FORMULATION AND IMPLEMENTATION

1. Define the vision, and thus provide the organization with a

sense of purpose, a mission, and a clear direction.
2. Convert this vision into measurable objectives and
performance targets.
3. Determine the plan to achieve the strategy.
4. Implement the plan in ways that are both effective and
efficient.
5. Measure the results against goals and revise plans in light of
actual experience, changing condition, new ideas, and new
opportunities.
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 Q. STRATEGIC PLANNING

 Strategic planning requires thinking about the future. In a perfect

world, the strategic planner would establish an objective for five
to ten years and then formulate plans for achieving the goals.
Other experts do not perceive strategy in such a simplistic, linear
fashion. They assert that the future is not that predictable. (9/11).
Emergent strategy: the plan that changes incrementally due to
environmental changes.
Intended strategy: intended strategy is one that was formulated
at the beginning of the period.
Realized strategy: the implemented plan .
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Q. STRATEGIC TYPES

 These identifiable, basic strategies can be classified into-

 Corporate strategies
 Business strategies
 Corporate strategy: Organizational level decisions that
focus on long-term survival. It has three options :
1. Restructuring strategies
2. Growth strategies
3. Maintenance strategies
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1. Restructuring strategies :
a) Turnaround : An attempt to increase the viability of
an organization.
b) Divestiture: The sale or removal of a business.
c) Liquidation : The termination of a business and the
sale of its assets.
d) Bankruptcy : A formal procedure in which an
appointed trustee in bankruptcy takes possession of
a business’s assets and disposes of them in an orderly
fashion
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2. Growth strategies.
a) Incremental growth : incremental growth can be attained
by
I. expanding the client base (by introducing care lotion
and hair conditioner for babies,)
II. Increasing the products (by adding Pringles potato chips
to a product mix of cleaning and health-care products)
III. Using technology to manage just-in-time customer
purchasing.

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 a) International growth : Seeking new customers or
markets by expanding internationally is another
growth option.
b) Mergers & Acquisitions : Aacquisition means
purchase of one company by another. And merger
means two organizations combine resources and
become one.
3. Maintenance Strategies: Do not wish to see their
companies grow just wish to maintain the status quo.
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BUSINESS STRATEGIES

 Business strategy focuses on one line of business, while

corporate strategy examines questions about which
competitive strategy to choose. Business strategy is all
about means and ends. These strategies focus on the best
ways to complete in a particular sector.

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 Corporate strategy Business strategies
Organizational level decisions that focus on A business strategy is the action plan
long-term survival for managing a single line of business.
It focus on overall strategy of the company Concerns itself with how to build a
and its interest. strong competitive position.
Raise question: Raise question:
Should we be in business ? How should we compete?
What business should we be in ? How to build competitive position ?
Decisions to compete internationally or to Decisions to manager a single line of
merge with other companies. business.

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 MODELS OF BUSINESS STRATEGIES

There are three popular models for analyzing businesses:

1.Boston consulting group model
2.Miles and snows organizational types
3.Porters model.

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 1.BOSTON CONSULTING GROUP MODEL

Relative market share

High Low
( above 1.0) (Below 1.0)
Industry High Star Question marks
Growth
Rate
Low Cash cows Dogs

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 Stars : Stars are found in the upper left-hand
quadrant. These businesses offer excellent profit
and growth opportunities , and parent companies
will pour cash into expanding them. In some cases,
stars can generate enough cash to fund their own
expansion.
 Example: Microsoft does this better than most
companies.
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 Question marks : Question marks are found in the upper right-hand
quadrant of the matrix. This is because the industry growth rate
suggests lots of opportunities, but the firm has a limited market
share and does not seem to be capitalizing on the opportunity. The
questions to be asked are these:
 does the firm have the strength to compete?
 Does the parent company have the cash ( or resources) to make it
competitive ?
 The firm is left with two options : divest or invest and expand
aggressively.

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 Dogs : dogs, found in the lower right-hand quadrant, have
no potential and cannot generate enough cash to fortify
and defend themselves. Strategy is almost close through
harvesting, divesting or liquidation.
 Cash cows : cash cows are firms with a relatively high
market share in a low growth market. This type of business
typically generates more cash than is needed to grow or
reinvest. The strategy is a defensive one : keep the cow
healthy to subsidize the stars or deal with the problem
children.
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 MILES AND SNOWS ORGANIZATIONAL TYPES

 They identify four organizational types

1. Defender: the defender type competes in a relatively
stable and predictable environment and pursues low cost
operations, focusing on efficiency through standardized
jobs, formalization and centralization.
2. Prospector: This types of org. operates in a dynamic
environment . Innovation and adaptation are critical to
success. Any company operating in the
telecommunications sector.

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3. Analyzer: Combination of the defender and the prospector,
attempting to achieve efficiency with an interest in new
markets and products. These companies scan competitors
actions and react promptly by developing better ways to get
products to market.
4. Reactor: it has no apparent strategy and indeed, Miles and
snow see it as an imperfect type that lacks a consistent
response to changing conditions. Research has shown that
reactors are always ineffective that an organization with a
strategy is better off than one without one.
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 PORTERS MODEL
 Porters model classified into five generic competitive
strategies:
1. Low cost provider strategy
2. Broad differentiation strategy
3. Best- cost provider strategy
4. Focused or market niche strategy based on lower
cost
5. Focused or market niche strategy based on
differentiation 23
1. Low cost provider strategy: to provide a product or service at
a price lower than that of competitors while appealing to a
broad range of customer.
2. Broad differentiation strategy: seeks to differentiate its
products from competitors products in ways that will appeal
to a broad range of buyers.
3. Best- cost provider strategy: to give customers more value for
the money by emphasizing a low-cost product or service and
an upscale differentiation. The product has excellent features
that are offered at low cost.
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4. Focused or market niche strategy based on lower
cost : To offer a low cost product to a select group
of customers.
5. Focused or market niche strategy based on
differentiation: To offer a niche product or service
customized to the tastes and requirements of a
very narrow market segment.

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