Linking corporate strategies and HR

Robert L. Mathis  John H. Jackson

Learning Objectives
– human resources can be a core competency for organizations. – Significance of strategic human resource management – To know about external environment – To know about the internal environment – Workforce diversity

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chart

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Achieving Strategic Fit

Michael Porter

– Emphasizes the “fit” point of view that all of the firm’s activities must be tailored to or fit its strategy, by ensuring that the firm’s functional strategies support its corporate and competitive strategies.

Gary Hamel and C. K. Prahalad

– Argue for “stretch” in leveraging resources— supplementing what you have and doing more with what you have—can be more important than just fitting the strategic plan to current resources.

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Model Translating Strategy into HR Policy and Practice Basic Model of How to Align HR Strategy and Actions with Business Strategy

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Formulating HR Policies, Activities, and Strategies

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Possible HR Areas for Core Competencies

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Strategy and the Basic HR Process

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Linkage of Organizational and HR Strategies

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Scanning the External Environment

Environmental Scanning
– The process of studying the environment of the organization to pinpoint opportunities and threats.

Environment Changes Impacting HR
– Political - legal (Governmental regulations) – Economic conditions – Impact of globalization (competitive concerns) – Workforce composition

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External forces

Political- legal The legislature The executive The judiciary  Economic The economic growth of the country Suppliers Competitors Customers Industrial labour

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Impact of globalization Internal forces

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External Factors Influencing the Personnel function

Technological changes New skills required Downsizing Collaborative work Telecons Internet and intranet revolution

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External Factors Influencing the Personnel function

ECONOMIC CHALLENGES  POLITICAL FACTORS  SOCIAL FACTORS  LOCAL GOVERNMENT POLICIES  UNIONS  EMPLOYERS DEMANDS  WORKFORCE DIVERTY

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Internal factors Mission  Policies  Organization culture  Organization structure  HR systems

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Work force diversity
Composition Inexperienced Impulsive Selfish/manipulative Difficult to change Go by book rule Workaholic inflexible

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Other diversity characteristics in India
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Castes Sons of the soil Physically disabled Priority for ex-service men Gender issues Contract labor Child labor Other minority groups

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HR mangers role in addressing these issues

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Designing appropriate HR systems

Nature of employment  Recruitment  Selection  Training and development  Job security  Employee welfare

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Designing appropriate HR systems

Nature of employment  Recruitment  Selection  Training and development  Job security  Employee welfare

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The new competitive global environment HR is a key lever in addressing these challenges!

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