Business Strategy and Significance to SHRM • Differentiation strategy (focusing on making the • Strategies (these are the steps
re the steps where the
What is business strategy?
 is a plan of action for achieving an
organization's goals. It takes into account the
organization's external environment and
internal resources. A good business strategy
will help the organization to achieve its goals,
guide its decisionmaking, and allocate
resources effectively.
Business Strategy
 outlines the plan of action to achieve the
vision and set objectives of an organization
and guides the decision-making processes to
improve the company’s financial stability in a
competing market.
Different types of business strategies
organizations’ product and product & services
valuable to customer. Meaning if you have a good
employee that will provide a good service to
customer that will be your strategy)
• Low-cost leadership strategy (focus on providing
product or services at a low cost than a
competition, as an HR you increase the skill of your
employee or look for a supplier that has low cost of
materials)
• Focus strategy (focus on servicing specific
market, they are the one who are expert on
identifying their market)
• Growth strategy (increasing the organization size
& market share. The marketing want to increase its
market share to the market like increase volume of
products and once they increase they will need
more employees but as HR u need to analyze
whether you need another)
• Stability strategy (maintain those position in the
market)
(the best strategy will depend on the goal of the
company, it should be based on thorough
understanding organizational environment &
resources)
Key components of a business strategy
• Mission statement (helps identify what will be
the purpose & what to achieve)
• Vision statement (describe the organization’s
desire for future state)
• Goals and objectives (its should be measurable,
it’s important that it is numerical)
organizational will take into strategies, so it’s
important that the strategy will achieve the goal
and objective)
• Tactics (track progress & success of the
organization)
• Metrics/KRA/KPI
Why is business strategy important?
• Helps the organization to achieve its goals
(ensuring that the organization has the right
people w/ the right skill & experience in the right
place, it will help the organization to create a
culture that support the achievement of the goal)
• Guides the organization's decision-making (can
help provide valuable insight in decision-making in
the workplace, make the organization that help
make a better decision that more likely achieve its
goals since you are guided by your principles then
it will be easy for you to accept)
• Provides a framework for allocating resource
(helps the organization to allocate resources such
as time of the employee, talent & most likely to
achieve goals)
What is strategic human resources management?
• The process of aligning the organization's human
resources with its business strategy
• Includes activities such as recruitment, selection,
training, development, and performance
management
Why is strategic human resources management
important?
• Helps the organization to attract, develop, and
retain the talent it needs to achieve its goals
(nakakatulong sa tao to see that they are important
to the organization)
• Improves employee morale and productivity
• Reduces employee turnover

Relationship between Business Strategy and

Strategic HRM
• Strategic human resources management should
be aligned with the organization's business strategy
• This means that HR activities should be designed
to support the organization's goals and objectives

How do business strategy and strategic human

resources management interact?
 Business strategy provides the framework for
strategic human resources management
 Strategic human resources management
provides the tools and resources for
implementing business strategy

How can strategic human resources management

be used to support business strategy?
• By attracting and developing the right talent
• By creating a high-performance work
environment
• By aligning employee compensation and benefits
with the organization's goals