HRM Chapter 2

Integration Competencies

A generalist perspective with the skills of a specialist in the above three areas

Strategy Formulation- Five components of the strategic management process

A mission , goals, external analysis, internal analysis, strategic choice

Strategic Management

A process for analyzing a company's competitive situation, developing the company's strategic goals, and devising a plan of action and allocation of resources that will help a company achieve its goals

The role of HRM in Strategy Formulation

Administrative Linkage, One-Way Linkage, Two-Way Linkage, Integrative Linkage

Two-Way Linkage

Allows for consideration of human resource issues during the strategy formulation process. The HRM function is expected to provide input to potential strategic choices and then help implement the chosen option.

Strategic Human Resource Executives-Four basic competencies

Business Competencies, Professional/technical Knowledge, Change Processes or organizational development techniques, and integration competencies

HR Competencies=HR Professional

Business competence, Integration competence, professionsl and technical knowledge, ability to manage

Directional Strategies

External Growth strategy,Concentration strategy, downsizing,internal growth strategy, acquisitions, mergers

Professional/technical knowledge

In HR pratices such as selection techniques and compensation systems

Integrative Linkage

Is based on continuing, rather than sequential, interaction. The HR executive is an integral member of the strategic planning team.

Administrative Linkage

Lowest level of integration; HRM function's attention is focused on day-to-day activities. No input from the HRM function to the company's strategic plan is given

StrategicTypes-Porter's Generic Strategies

Michael Porter has hypothesized that competitive advantage comes from creating value by: reducing costs,(overall cost leadership) or charging a premium price for a differentiated product or service (differentiation)

Strategy Formulation

Strategic ploanning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.

Components of the Strategic Management Process

Strategy Formulation and Strategy Implementation

change processesor organizational development techniques

The ability to diahnose the need for change and develop and implement the appropriate intervention

Strategy Implementation

The organization follows through on the strategy that has been chosen. This includes structuring the organization, allocating resources, ensuring that the fir has skilled employees in place, and developing reward systems that align employee behavior with strategic goals.

One-Way Linkage

The strategic business planning function develops the plan and then informs the HRM function of the plan. HRM then helps in the implementation

Internal Analysis

attempts to identify the organization's strengths and weaknesses

external analysis

consists of examining the organization's operating environment to identify strategic opportunities and threats

Mission

is a statement of the organization's reasons for being

strategic choice

the organization's strategy, which describes the ways the organization will attempt to fulfill its mission and achieve its long term goals

Strategic Human resource Management

the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals

Business Competencies

understanding the company's economic and financial capabilities