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