Strategic Human Resource

Management
INTRODUCTION/MEANING/DEFINITION/NEED FOR STRATEGIC HRM
SESSION -01

DR.SREE LAKSHMI K
A S S I S TA N T P R O F E S S O R
G O V T. R . C . C O L L E G E
BENGALURU
 INTRODUCTION
STRATEGY
Strategy is a high-level plan to achieve one or more goals under
conditions of uncertainty.
Strategy is an action that managers take to attain one or more of the
organization’s goals.
Strategy can also be defined as “A general direction set for the
company and its various components to achieve a desired state in the
future. Strategy results from the detailed strategic planning process”.
NATURE OF STRATEGY
Strategy is a major course of action through which an organization relates itself to its
environment particularly the external factors to facilitate all actions involved in meeting the
objectives of the organization.
Strategy is the blend of internal and external factors. To meet the opportunities and threats
provided by the external factors, internal factors are matched with them.
Strategy is future oriented. Strategic actions are required for new situations which have not
arisen before in the past.
 Strategy requires some systems and norms for its efficient adoption in any organization.
 Strategy provides overall framework for guiding enterprise thinking and action.
CONCEPT OF STRATEGY

The concept of strategy is based on three subsidiary concepts:

 Competitive advantage
 Distinctive capabilities and
 Strategic fit.
1. Competitive advantage

The concept of competitive advantage was formulated by Michael Porter (1985). Competitive
advantage, Porter asserts, arises out of a firm creating value for its customers. To achieve it,
firms select markets in which they can excel and present a moving target to their competitors by
continually improving their position.
2. Distinctive capabilities
A distinctive capability or competence can be described as an important feature that confers
superiority on the organization’. Kay extends this definition by emphasizing that there is a
difference between distinctive capabilities and reproducible capabilities. Distinctive capabilities
are those characteristics that cannot be replicated by competitors, or can only be imitated with
great difficulty. Reproducible capabilities are those that can be bought or created by any
company with reasonable management skills, diligence and financial resources. Most technical
capabilities are reproducible.
3. Strategic fit
The concept of strategic fit states that to maximize competitive advantage a firm must match its
capabilities and resources to the opportunities available in the external environment.

A critical aspect of top management’s work today involves matching organizational competences

(internal resources and skills) with the opportunities and risks created by environmental change

in ways that will be both effective and efficient over the time such resources will be deployed.
 FORMULATION OF STRATEGY
Strategy formulation refers to the process of choosing the most appropriate course of action for
the realization of organizational goals and objectives and thereby achieving the organizational
vision.
The process of strategy formulation basically involves six main steps
STRATEGY IMPLEMENTATION

Strategy implementation is the translation of chosen strategy into

organizational action so as to achieve strategic goals and objectives.

Strategy implementation is also defined as the manner in which an

organization should develop, utilize, and amalgamate organizational
structure, control systems, and culture to follow strategies that lead
to competitive advantage and a better performance.
Steps in implementing a strategy:

1. Developing an organization having potential of carrying out strategy

successfully.
2. Disbursement of abundant resources to strategy-essential activities.
3. Creating strategy-encouraging policies.
4. Employing best policies and programs for constant improvement.
5. Linking reward structure to accomplishment of results.
6. Making use of strategic leadership.
Introduction