Strategy !!

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 HR in News

Why do you think this is happening ?

Is this related to organization strategy ?

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 Planning Process

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 What is Strategy ?

Strategy is defined as;

• determination of the long-term goals and objectives,

• adoption of courses of action

• allocation of resources necessary for carrying out these goals.

Based on Reflects
Large-scale, Provides a Reflects
competitive understanding
framework for awareness
future-oriented environment to about
managerial regarding
plan achieve org organisation
decisions competition
goals capabilities

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 The Strategic Management Process

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 Strategic vs Tactical

What is the difference between Strategic plan & Tactical plan ?

Strategic Plans Tactical Plans

• Designed with the entire org in mind • Translate strategic plans into smaller plans
• Begin with an org mission • for a distinct area of the organization.

• Look ahead to • Concerned with the responsibility and

• where the org wants to be functionality of lower-level depts
• In Long term. • to fulfill their parts of the strategic plan.

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 Developing Strategy

What is Manager‘s role in developing strategy?

Devising overall strategic plan is

top management’s responsibility.

Should entry-level managers be included in

strategy formulation? Why ?

Process should involve frequent discussions among and between top and lower-level managers.
• Can be used to drive down the strategic plan.
• Give ownership of implementation to managers
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 Types of Strategy

Corporate Strategy • Identifies the portfolio of businesses that comprise the full org
• How these businesses relate to each other.
• In what set of businesses should the Org be in?
• Determines the roles that each business or brand will play in the org.

Competitive Strategy • Identifies, build & strengthen the competitive position

• Of each business unit or brand or product in respective market place.
Business level strategy • Seeks to answer the question,
• How should we compete in each of our businesses?

• A strategy that identifies the broad activities that each department will
Functional Strategy
pursue in order to accomplish its goals. Eg: HRM dept.

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 Types of Strategy

Corporate Strategy

Competitive Strategy

Business level strategy

Functional Strategy
Examples ?

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 Types of Strategy

Corporate Strategy Diversification Restructuring

Integration
Expansion Growth

Consolidation (size) Maintenance

Concentration (product)
Competitive Strategy Differentiation

Cost Leadership
Business level strategy
Focus /Niche

Functional Strategy
How will these impact HRM ?

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 Strategic Human Resource Management

• Produce the employee competencies /behaviors/commitment  What

Define • Required to achieve its strategic aims (Functional)  Why

• Formulating and executing HR policies and practices  How

 Entire organization focused  Enhances alignment with Leadership

SHRM  Continuous scanning of environment  Meets the changing needs
Benefits
 Facilitates change management  Meets expectations of the customers
 Optimum utilization of resources  Cost-effective engagement of labour

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 Models of SHRM

Strategic Fit Model Business-oriented Model

• Vertical fit -extent of alignment between the • Value creation through HR

HR and org goals/strategies • by developing an HR system
• Horizontal fit -the extent of alignment among • HR System that creates and sustains
the components of the HR the competitive advantage

Strategic Labour Allocation Model

• HRM as a continuous process Can HR be a

Competitive
• of balancing the demand for and the supply of labour. advantage ?
• Focuses on the interdependences
• Between HR strategy, business strategy and org change
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 Barriers to Execution

For SHRM execution ?

 Union Resistance
 Fear of failure
 Rigidity of HR practices
 Fear of attrition

 Lack of support from Leadership

 Absence of long-term orientation
 Lack of strategic reasoning intent
 Absence of measurement techniques
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How can HR show or prove the
utility of SHRM activities?
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 SHRM Tools

Strategic Map Digital Dashboard

 Shows the “big picture” in summary  Desktop graphics and charts

 How each dept performance contributes  Showing how the company is doing
 to company’s overall strategic goals.  on all the required metrics
 Helps each employee visualize and understand
 The role his or her department plays

How do you know which

Line of sight metric to use ?

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 Balanced Score Card

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 Balanced Score Card

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 SHRM Tools

HR Score Card

 Refers to a process
 Assigning goals or metrics
 to HRM –related activities.
 to achieve the strategic aims
 & For monitoring results.

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 Diversity as a Strategic Tool

Have a fundamental and basic desire to be treated with

respect and dignity by their employer

Most People
Have a capacity for being reasonable and
understanding when confronted with reasonable
behavior by others

Trends in Workforce Diversity

Diversity as a
Changing Employment Increasing
source of
demographics in legislation and globalization
competitive
the labor force legal actions of business
advantage

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 Diversity & Society

Common Aspects of Workforce Diversity

Age Gender Ethnicity Disability

• Diversity - both facilitates and is facilitated by social change

• Organizations affect social change through the images they use to promote themselves
and their products.

• Organizations that use diverse groups as representatives convey a message of their

sensitivity toward diversity.
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 Diversity & Conflict

• Conflict can arise when an individual thinks that someone has been hired, promoted, or
fired because of their diversity status.

• Diversity that is misunderstood, misinterpreted, or that causes inappropriate interactions

between people of different groups can promote conflict.

Strategies for Dealing with Diversity

Understanding Empathy Tolerance Communication

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