CHAPTER #3

Strategic HRM

Gary Dessler (Eleventh Edition )

Lecture Prepared & delivered By

Ms. Asma Khan (MPhil Management Sciences)
What is Strategic Plan?

◦ A company’s plan for how it will match its internal strengths and weaknesses with external
opportunities and threats in order to maintain a competitive advantage.

Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
 What Is 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.

Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
Strategic Management
◦The process of identifying and executing the organization’s mission by watching its capabilities with the
demands of its environment.

Strategic planning comprises strategic management steps

1.Defining the business

2.Evaluating the firm’s internal and external strengths
3.Formulating a new business statement
4.Translating the mission into strategic goals
5.Formulating strategies or courses of action
6.Implement the strategies
7.Evaluate performance

8. Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
SWOT Analysis

◦The use of SWOT Chart to compile and organize the process of identifying
company strengths, weaknesses, opportunities and threats.

Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
Types of Strategy
1. Corporate Strategy

2. Competitive Strategy

3. Functional Strategy

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Ms. Asma Khan (MPhil Management Sciences)
Achieving Strategic Fit

◦ Strategic planning expert Michael Porter emphasizes the “fit” point of view. He says the manager should ensure
that the firm’s functional strategy aligns with and support it corporate and competitive strategies; it’s this ’fit’ that
breathes life into the firm’s strategy

Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
 HRM Role in Creating Competitive Advantage

To have an efficient competitive strategy, the company must have one or more competitive advantages,
factors that allow an organization to differentiate its product or service.

Example: SouthWest Airline

Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
 Strategic HRM

◦ Formulating and executing HR systems HR policies and activities that produce the employee
competencies and behaviors the company needs to achieve its strategic aims.

Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
Strategic HR Challenges
1. Corporate Productivity and Performance Improvement Effort.
2. Employees play an extended role in employer’s performance improvement efforts.

Lecture delivered By
Ms. Asma Khan (MPhil Management Sciences)
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