HR Strategy
HR Strategy
Strategy
Strategy:
1. The process of determining &
articulating the organisation’s:
Corporate
Input strategy Input
N
S
formulation IO
T
N
C
HR FUNCTIO
U
F
Corporate
HR Division
R
strategy
strateg strategies
H
E
implementation
y O
T
Evaluation
(measurment etc)
Role of HRM in
Strategy Formulation
HR Strategic Administrative
Function Planning linkage
HR Strategic One-Way
Function Planning linkage
HR Strategic Two-way
Function Planning linkage
HR Strategic Integrative
Function Planning linkage
Strategic Formulation:
Overview
VISION
EXTERNAL INTERNAL
ANALYSIS: ANALYSIS:
Opportunities Strengths
Threat Weaknesses
MISSION
GOALS / OBJECTIVES
STRATEGIC CHOICE
Strategic Formulation:
‘Step’ 1: Vision
Core
ideology
Organisational
Vision
Envisaged
future
Core Ideology
What the
What is organisation
important? offers to society
• 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’
Strategic Formulation:
‘Step’ 1: Vision
Core
ideology
Organisational
Vision
Envisaged
future
BHAGS
Vivid Description
Envisaged Future
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
Examples:
Missions
Microsoft: A computer on every desktop
Emergent
Deliberate
planning
+ (organic,
evolutionary)
strategy
Eventual plans
Example: Example:
A new customer Customer service
service process is people discover
planned for through new process
consideration of through dealing
new aims with customers
HR & Corporate
Strategic Choice
Deliberate
planning
Limit or
enable choices
HR Eventual
Function plans
Surface,
communicate
& integrate
suggestions
Emergent
strategy
Strategic Types
Porter:
Overall cost leadership
Differentiation
Focus
Miles and Snow
Defenders
Prospectors
Analysers
Reactors
Directional Strategies
Concentration
Internal growth
External growth
Divestment
Strategic
Implementation:
Overview
2nd major part of strategy
1) Organisational structure
2) Task design
3) Selection, training &
development of people
4) Reward systems
5) Leadership, power & culture*
6) Information & information systems
* Not in textbook
HR Function and
Implementation
HR enables the six implementation
musts through various HR tasks:
b Leadership
a
c
Culture
d Strategy
e
•Teaching
•Enabling
ETC!
•Releasing
•Sharing of knowledge
•Attitudes
Strategic Types
and HR Tasks
Different strategic types work better
with some HR practices than others, e.g.:
Directional Strategies
Strategic
evaluation
Thus:
Evaluation is the judgment of how the
standards set in strategic formulation were
achieved in strategic implementation