STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategy:

“Strategy is a way of doing something. It includes the formulation of goals and set of action plans for accomplishment of that goal.”

Strategic Management:

“A Process of formulating, implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management”

Definition of Strategic Management: -

“Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.”

The study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the light of a corporation’s strengths and weaknesses.

Steps in Strategic Management:

1.      Environmental Scanning: Analyze the Opportunities and Threats in External Environment

2.      Strategy Formulation: Formulate Strategies to match Strengths and Weaknesses. It can be done at Corporate level, Business Unit Level and Functional Level.

3.      Strategy Implementation: Implement the Strategies

4.      Evaluation & Control: Ensure the organizational objectives are met.

IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT

·           Allows identification, prioritization and exploration of opportunities.

·           Provides an objective view of management problems.

·           Represents framework for improved co-ordination and control

·           Minimizes the effects of adverse conditions and changes

·           Allows major decisions to better support established objectives

·           Allows more effective allocation of time and resources

·           Allows fewer resources and lesser time devoted to correcting ad hoc decisions

·           Creates framework for internal communication

·           Helps to integrate the individual behaviors

·           Provides basis for the clarification of responsibilities

·           Encourages forward thinking

·           Encourages favorable attitude towards change.

ROLE OF HRM IN STRATEGIC MANAGEMENT

Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. Details regarding advanced incentive plans used by competitors, opinion survey data from employees, elicit information about customer complaints, information about pending legislation etc. can be provided by HRM. Unique HR capabilities serve as a driving force in strategy formulation.

Role in Strategy Implementation: HRM supplies the company with a competent and willing workforce for executing strategies. It is important to remember that linking strategy and HRM effectively requires more than selection from a series of practice choices. The challenge is to develop a configuration of HR practice choices that help implement the organization’s strategy and enhance its competitiveness.