HRM

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HRM Strategy
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Strategy

• 1. The process of determining articulating the
  organisations
• vision, mission, values, goals objectives,
  and
• its internal external environments then

2. Formulating plans to attain outcomes
consistent with the above then
3 Implementing those plans (including evaluation)
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HR Strategy
The pattern of planned human resource
deployments and activities intended to enable the
organisation to achieve its goals
Focus To provide the organisation with
sustained competitive advantage
through procurement, development alingment of
people, skills, HR policies etc.
Competitive advantage might arise from having
best people, but also from being best at
managing what you do have
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Link to Corporate Strategy
External competitive environment
Corporate strategy formulation
Input
Input
HR FUNCTION
OTHER FUNCTIONS
HR strategy
Division strategies
Corporate strategy implementation
Evaluation (measurment etc)
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Role of HRM in Strategy Formulation
HR Function
Strategic Planning
Administrative linkage
HR Function
Strategic Planning
One-Way linkage
HR Function
Strategic Planning
Two-way linkage
HR Function
Strategic Planning
Integrative linkage
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Strategic Formulation Overview
VISION
EXTERNAL ANALYSIS Opportunities Threat
INTERNAL ANALYSIS Strengths Weaknesses
MISSION
GOALS / OBJECTIVES
STRATEGIC CHOICE
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Strategic Formulation Step 1 Vision
Core ideology
Organisational Vision
Envisaged future
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Core Ideology
Core values
Core Purpose
Essential, enduring tenants
Reason for being
What the organisation offers to society
What is important?
What is inviolate?
Controlling desire, Dominant aspiration
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Examples Core Purposes
3M to solve unsolved problems innovatively Hewle
tt-Packard to make technical contributions for
the advancement and welfare of humanity Mary Kay
Cosmetics to give unlimited opportunity to
women Nike to experience the emotion of
competition, winning, and crushing the
competition Walt Disney to make people happy
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Example Core Values

• Walt Disney
• No Cynicism
• Nurturing promulgation of wholesome American
  values
• Creativity, dreams and imagination
• Fanatical attention to consistency and detail
• Preservation and control of the Disney Magic

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Strategic Formulation Step 1 Vision
Core ideology
Organisational Vision
Envisaged future
BHAGS Vivid Description
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Envisaged Future
BHAGS
Vivid Description
Huge, daunting goals
Making goals imaginable
Clear compelling, tangible
The minds eye
Unifying, inspiring, engaging
Hopeful, passionate, inspiring images symbols

• Difficult Target
• Common enemy
• Role-model
• Internal -
• transformation

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Examples BHAGS
Ford (1900s) Democratise the automobile (Target
BHAG) (Nike, 1960s) Yamaha wo tsubusu! We will
destroy Yamaha (Common Enemy BHAG) Stanford
(1940s) Become the Harvard of the west
(Role-Model BHAG) GE (1980s) 1 or 2 in every
market we serve revolutionise this company to
have the strengths of a big company combined with
the leanness agility of a small company    
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Examples Vivid Description
Sony We will create products that become
pervasive around the worldWe will be the first
Japanese company to go into the U.S. market and
distribute directlyWe will succeed with
innovations that U.S. companies have failed at -
such as transistor radio50 years from now our
brand name will be as well known as any in the
worldand will signify innovation and quality
that rival most innovative companies
anywhereMade in Japan will mean something
fine, not something shoddy. 
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Strategic Formulation Step 2 SWOT Analysis
Brings balance to the more unchanging vision
Organisations internal external
environment Change is often a constant here!
S W O T
Internal strengths weaknesses of organisation
External opportunities threats of organisation
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Strategic Formulation Steps 3, 4 5 Mission,
Goals Objectives
Eternal of Vision
Now of SWOT
Mission What business / markets are we in to
realise our vision?
Goals The tasks that need to be done to enable
mission
Objectives The quantifiable targets that are set
through the goals
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Examples Missions
Microsoft A computer on every desktop Saturn Th
e mission of Saturn is to market vehicles
developed and manufactured in the United States
that are world leaders in quality and customer
satisfaction through the integration or people,
technology, and business systems and to transfer
knowledge, technology and experience throughout
General Motors. Chevrolet Manufactirug safe
and reliable economy cars, sports cars, sedans
and trucks.  Electronic Data Systems Designing
operating information systems for both public
and private organisations
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Strategic Formulation Step 6 Strategic Choice
Vision Mission Goals Objectives
Everyday operations
Emergent (organic, evolutionary) strategy

Deliberate planning
Eventual plans
Example A new customer service process is
planned for through consideration of new aims
Example Customer service people discover new
process through dealing with customers
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HR Corporate Strategic Choice
Deliberate planning
Limit or enable choices
Eventual plans
HR Function
Surface, communicate integrate suggestions
Emergent strategy
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Strategic Types
Categorisations under which any strategy can be
typified
Porter Overall cost leadership Differentiation Fo
cus
Miles and Snow Defenders Prospectors Analysers Rea
ctors
Directional Strategies Concentration Internal
growth External growth Divestment
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Strategic Implementation Overview
2nd major part of strategy
Implementation by all functions, but six major
implementation musts

• Organisational structure
• Task design
• Selection, training
• development of people
• Reward systems
• Leadership, power culture
• Information information systems

Not in textbook
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HR Function and Implementation
HR enables the six implementation musts through
various HR tasks

• Job analysis and design
• Recruitment and selection
• Training selection
• Performance management
• Rewards and benefits
• Labour relations
• etc!

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Culture, Leaders, Strategy
These can support or hinder strategy
b
Leadership
a
c
Culture
d
Strategy
e

• There is a complex interaction between culture,
  leadership strategy
• Culture affects how leaders will lead (a)
• Leaders can have a hand in shaping culture (b)
• Culture can have a direct impact on the type of
  strategies leaders choose now (c)
• Culture can have an indirect impact on the
  strategies chosen through historical patterns (d)
• Strategy can have a hand in shaping future
  culture (e)

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Culture, Leaders, Strategy
Culture is influential! Leaders must learn to
shape and manipulate corporate cultures

• What they pay attention to
• How they react to critical incidences
• Deliberate role behaviour
• Rewarding right things
• Type of people they work with
• ETC!!!

Leadership Top management!

• HR function must shape culture by shaping
• leadership throughout the organisation
• Teaching
• Enabling
• Releasing
• Sharing of knowledge
• Attitudes

ETC!
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Strategic Types and HR Tasks
Different strategic types work better with some
HR practices than others, e.g.
Porter / Miles and Snow
Cost / defender efficiency, consistency Differen
tiation / prospector quality, effectiveness,
knowledge, creative Focus / analyser flexibility
Directional Strategies
Concentration current skills focus Internal
growth new employees, new targets, new
training External growth harmony,
cooperation Divestment minimising loss
(retrenchments, morale, severance)
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Strategic Measurement Control
Strategic Implementation
Strategic Formulation
Strategic evaluation
Sets standards (esp objectives)
Measurement of outcomes

• Thus
• Evaluation is the judgment of how the standards
  set in strategic formulation were achieved in
  strategic implementation
• Evaluation is fed back into the formulation of
  plans and the knowledge base of how to implement
  them