STRATEGIC HUMAN RESOURCE

MANAGEMENT
= Course 2=

Associate professor PhD. Valentina Mihaela GHINEA

 WHAT A STRATEGY IS

CHALLENGING
ENVIRONMENT

SCOPE
Fulfill the
stakeholders’
expectations
ADVANTAGES through
CONFIGURATION

direction

long term ADVANTAGES

through RESOURCES

Meet the needs of

the market
STRATEGY = bundle of
DECISIONS and ACTIVITIES
for reaching
LONG-TERM OBJECTIVES

strategic thinking

!!! no one can say that one strategy is better than other

!!! all types of strategies could work and be effective in certain

conditions

!!! there is no guarantee for success

a.constant adjustment of the organizational culture parts, as they respond to the propagation
of causal impulse triggered by the decision-maker;

b. constant readjustment of leadership manifestation shaped by the influence of

organizational parts themselves and organizational culture depictions’.
1– cultural advantage 13– organizational and functional structure
2– education within the family 14– creativity
3– school education 15- tacit knowledge
4– self-education 16– individualism level
5– native feelings models 17– competitive environment
6- Individual World Map (IWM, personal representation of the world) 18– team work
7– enthusiasm 19– rules and regulations
8– capacity of setting a vision/mission 20– bureaucracy
9- motivation 21– business processes
10– leadership abilities 22– fear of the unknown
11– intrinsic motivation 23– resistance to change
12- ICT adoption 24– change of values, believes, behaviours, etc =
 3D modelling of the
organizational culture dynamics
As organizations often count more than one leadership positions, a cornucopia of visions,
values, believes and distinct behaviours trying to shape the organization upon their own
image and likeness could lead at least to stagnation, if not even confusion. A more visual
depiction would portray more organizational culture tornados disputing the organization
taking over.
 GENERIC STRATEGIES = the core strategy  high degree of generalization

Porter’s: - cost leadership strategy

- differentiation strategy
- focus strategy

Society for HRM’s: - low-cost leadership strategy

- differentiation strategy
- customer relationship management strategy
- network effect strategy

BUSINESS STRATEGIES (grand strategies): - growth strategy

- market development strategy
- product development strategy
- innovation strategy
Functional strategies (operational)
- merger & acquisition strategy
HR Mk. Prod Fin. ... - concentric diversification
str. str. . str. str. - turn around strategy
- divestiture strategy
- bankruptcy strategy, etc.
COHERENCE  HORIZONTAL ALIGNMENT
 CORPORATION

COUNTRY 1 COUNTRY 2

BUSINESS UNIT 1 BUSINESS UNIT 2 BUSINESS UNIT 3

SUBSIDIARY 1 SUBSIDIARY 2
Abc city Xyz city
HR str. PROD. MK. str.
str.

HR str. PROD. MK. str.

str.
CORPORATE STRATEGY  replicates the general perspective of the organization in terms
of what products or service markets to compete on, which geographic locations to operate in
and it is designed to meet the stakeholders’ expectations

BUSINESS-UNIT STRATEGY  provides solutions to how the company needs to compete

successfully in a particular market and it is concerned with achieving synergy through
coordinating and integrating unit activities so they fit the corporate strategy

FUNCTIONAL (operational) STRATEGY

 is concerned with coordinating functional areas of the organization such as finance,
production, research and development, marketing, human resource, etc. Therefore each
department contributes to the individual business level strategy and the overall corporate-
level strategy.
 ensure an efficient use of the specialists within the functional area and must be aligned
with the business-unit strategy and the corporate one
 Vertical and horizontal integration of functional strategies

VERTICAL INTEGRATION = alignment 

functional (operational) strategies backing up
the business (generic) strategy

HORIZONTAL INTEGRATION = coherence 

mutual support provided by operational functions
of an operational strategy
strong

=2=
Cost leadership =3=
strategy Focus strategy
(resource based)

=1= =4=
Beginning Differentiation
Restructuring strategy
weak

weak strong

Firm specific advantages (FSA)

FOR-PROFIT COs ---> to increase the range of PROFITABILITY =

WHAT the customers are willing to pay –

CO's cost of providing its goods / services

CORNUCOPIA OF STRATEGY FRAMEWORKS:

- low-cost leadership
- diversification
- merger-acquisition
- customer focus
- product leadership
- vertical integration
- flexibility
- product/service differentiation
- NETWORK EFFECT
- Etc.
 DIFFERENTIATION
= every successful strategy
(even the low-cost leadership)
is about differentiation
CUSTOMER RELATIONSHIP
= customer loyalty
= customers' willingness for
paying more because of the
LOW-COST personal connection they
experience while doing business
LEADERSHIP COMPANY with these COs

NETWORK EFFECT
= the value of a product increases
as more units are sold

= the WINNER-TAKES-ALL
STRATEGY