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î Core competencies: Activities that the firm performs

especially well when compared to its competitors and through
which the firm adds value to its goods and services over a long
period of time.
î Competitive advantage: It comes from a firm's ability to
perform activities more distinctively and more effectively than
rivals. To attain competitive advantage, firms need to add value
to customers and offer a product or service that cannot be
easily imitated or copied by rivals (Uniqueness).
î Value: Sum total of benefits received and costs paid by the
customer in a given situation.




  
 
 
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-
 aims at achieving organisational goals, meet the

expectations of employees; develop the knowledge, skills and
abilities of employees; improve the quality of working life and
manage human resources in an ethical and socially
responsible manner.

- Importance of

- rom an organisational standpoint, good
practices help in
attracting and retaining talent, train people for challenging
roles, develop their skills and competencies, increase
productivity and profits and enhance standard of living




  
 
 
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î attract and retain talent
î train people for challenging roles
î develop skills and competencies
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î develop loyalty and commitment
î increase productivity and profits
î improve job satisfaction
î enhance standard of living
î generate employment opportunities




  
 
 
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A managerial process req iring h man

reso rce policies and practices to be
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moc s Employee Relations Partnerships with internal and
external c stomers
Role of HR Transactional change Transformational change leader
follower and respondent and initiator
Initiatives Slow, reactive, fragmented mast, proactive and integrated
Time horizon Short-term Short, medi m and long (as
req ired)
Control B rea cratic-roles, policies, Organic-flexible, whatever is
proced res necessary to s cceed
Job design Tight division of labo r; Broad, flexible, cross-training
independence, teams
specialisation
Key investments Capital, prod cts People, knowledge
Acco ntability Cost centre Investment centre
Responsibility for HR Staff specialists Line managers




  
 
 
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* Strategic (long term)
* Managerial (medi m term)
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* Employee selection/placement
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* |rowth
* Profits
* S rvival

  
* Expands awareness of possibilities
* Identifies strengths and weaknesses
* Reveals opport nities
* Points to the need to eval ate the impact of internal
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Strategic Management Process

 Environmental Scanning
 Strategy morm lation
* Corporate level
* B siness nit level
* m nctional level
 Strategy Implementation
 Strategy Eval ation


 

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B siness Vision and Mission
‡ Vision
X A general statement of an organization¶s intended
direction that evokes emotional feelings in
organization members.
‡ Mission
X Spells o t who the company is, what it does, and
where it¶s headed.




  
 
 
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The Strategic Management Process
‡ Strategic Management
X The process of identifying and exec ting the
organization¶s mission by matching its capabilities
with the demands of its environment.
‡ Strategy
X A chosen co rse of action.
‡ Strategic Plan
X How an organization intends to balance its internal
strengths and weaknesses with its external
opport nities and threats to maintain a competitive
advantage over the long-
long-term.

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‡ The ³mit´ Point of View (Porter)
X All of the firm¶s activities m st be tailored to or fit
the chosen strategy s ch that the firm¶s f nctional
strategies s pport its corporate and competitive
strategies.
‡ Leveraging (Hamel and Prahalad)
X ³Stretch´ in leveraging reso rces ²s pplementing
what yo have and doing more with what yo have² have²
can be more important than j st fitting the strategic
plan to c rrent reso rces.




  
 
 
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Strategic H man Reso rce Management
‡ Strategic H man Reso rce Management
X The linking of HRM with strategic goals and
objectives in order to improve b siness performance
and develop organizational c lt res that foster
innovation and flexibility.
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for H man Reso rce Mgmt. via Copyright Clearance Center.



  
 
 
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- orter's Generic Strategies ²

- ichael orter has hypothesized that
competitive advantage comes from
creating value by:
X reducing costs (overall
(overall cost
strategy), or
leadership strategy),
X charging a premium price for a
differentiated product or service
(differentiation strategy).
strategy).


 
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- mergent Strategies - Those that evolve from the grass

roots of the organization.
X hat actually is done versus what is planned.
X
plays an important role in facilitating the communication of
emergent strategies between levels in the hierarchy.
- nhancing irm Competitiveness
X By developing a rich pool of talent,
can assure the
company's ability to adapt to a dynamic environment.


 
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- our basic competencies:

X Business Competencies -Understanding the company's
economic and financial capabilities. -
X rofessional/Technical Knowledge - In
practices such as
selection techniques and compensation systems.
X Change rocesses or Organizational Development Techniques -
The ability to diagnose the need for change and develop and
implement the appropriate intervention.
X Integration Competencies - A generalist perspective with the
skills of a specialist in the above three areas.


 
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 moc s on Strategy

‡ How can h man reso rce management

s pport and contrib te to organizational
strategy?

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 KEY TERMS

strategic plan
strategic management
vision
mission
SWOT analysis
strategy
strategic control
competitive advantage
leveraging
strategic h man reso rce management
HR Scorecard
metrics
val e chain analysis




  
 
 
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