Day 2 -Strategic HRM

Question 1

Strategic HRM

Answer 1

Linked to the strategic needs of an organization - corporate, business, & functional levels

HR strategies and tactics must be mutually consistent (horizontal alignment)

HR strategies need to be consistent with organizational priorities

Question 2

Step 1: Environmental Scan

Answer 2

Continuous monitoring of economic, technological, demographic, legal and cultural forces (external factors)
Includes the following economic forces:
Economic cycles, global trade, productivity improvement, global competitiveness

Question 3

Internal Analysis

Three C’s

Answer 3

Culture
Competencies
Compositon

Question 4

Step 2: Organizational Mission and Goals Analysis

Answer 4

The organization’s overall mission and goals guide the human resources needed to fulfil the mission and goals

Goals such as productivity, organizational growth, employee satisfaction, efficiency, and ability to adapt will help to identify HR strategies

Question 5

Step 3: Internal Analysis

Character and Culture

Answer 5

Human resource strategies should be formulated only after a careful look at the organization’s character
employees, objectives
technology, size, age, unions
policies, successes, failures
Each organization has a unique culture

Question 6

Step 3: Internal Analysis

Capabilities and Composition

Answer 6

Resource-Based Value of the Firm:

• Valuable
• Rare (difficult to find on the labor market, have skills that are transferable, when ppl have firm specific skills hard for people to leave)
• Difficult to imitate
• Organized (resources and employees are organized and set up in the most beneficial way)

Question 7

Step 4: Analysis of Organizational Strategies (3 types)

Answer 7

Cost Leadership strategy
Aims to gain competitive advantage through lower costs

Differentiation strategy
Focuses on creating a distinctive or unique product

Focus strategy
Concentrates on segment of the market (age group or demographic)

Question 8

Step 5: Choice and Implementation of HR strategies

Answer 8

There should be a clear line of sight between HR strategy and corporate goals

Question 9

Step 5: Choice and Implementation of HR Strategies

5 groups

Answer 9

1) Planning human resources
2) Attracting human resources
3) Placing, developing and evaluating human resources
4) Motivating and rewarding
5) Maintaining High performance

Question 10

Step 6: Review and Evaluation of Human Resource Strategies

Answer 10

Strategies should be examined periodically in consideration of changing factors e.g. technology, environment, etc.

HR Audit
Holistic examination of the HR policies, practices, and systems of a firm

HR departments must focus on looking to the future i.e. proactive

Question 11

Assessing the HR Function

Answer 11

Compliance

Client satisfaction

Culture management

Cost control

Contribution