Reading: The Manager’s Role in Strategic Human Resource Management

Business Management for Every Enterprise

Unit 4

The Manager’s Role in Strategic Human Resource Management

Goal Setting and the Planning Process

A plan shows the course of action for getting from where you are to where you want to go

Planning involves:
- Setting objectives
- Making basic planning forecasts
- Reviewing alternate courses of action
- Evaluating which options are best
- Choosing and implementing your plan

The Hierarchy of Goals

In companies, it is traditional to view the goals from the top down to front line employees as a chain or hierarchy of goals.

At the top, the president sets long term or strategic goals

His or her vice president then sets goals 

Then the vice president subordinates set their own goals, and so on down the chain of command 

Hierarchy of Goals Diagram

Strategic Planning

Strategic plan:

- The company’s plan for how much it will match internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage

Strategy:

- A course of action a company can pursue to achieve its strategic aims

Strategic Management:

- The process of identifying and executing the organizations strategic plan, by matching the company’s capabilities with the demands of its environment

Leveraging:

-  Capitalizing on a firm’s unique competitive strength while underplaying its weaknesses

Strategic Planning Process

SWOT Matrix

Types of Strategies

Managers formulate three strategies:
- Corporate-wide strategic planning
- Business unit (or comprehensive) strategic planning
- Functional (departmental) strategic planning

Type of Strategy at Each Company Level

Corporate Strategy

A company’s corporate-level strategy identifies the portfolio of businesses that, in total, comprise the company and how these businesses relate to each other.

Concentration (single business) corporate strategy, the company offers one product or product line, usually in one market

Concentration growth strategies include market penetration, product development, and horizontal integration

Diversification corporate strategy implies that the firm will expand adding new product lines

A related diversification strategy implies that the firm will expand by adding new product lines and diversifying so that a firm’s lines of business still possess some kind of fit.

A conglomerate (unrelated) diversification strategy means diversifying into products or markets not related to a firm’s current businesses or to one another. 

A vertical integration strategy means the firm expands by, perhaps, producing its own raw materials, or selling its product 

With consolidation strategy, the company reduces its size

With geographic expansion, the company grows by entering new territorial markets

Types of Corporate Strategies

Strategic Human Resource Management

How to Align HR Strategy and Actions with Business Strategy

Strategic HRM Tools

Strategy Map

The strategy map provides an overview of how each department’s performance contributes to achieving the company’s overall strategic goals.

It helps the manager understand the role his or her department plays in helping to execute the company’s strategic plan. 

The HR Scorecard

Strategic Human Resources Management Tools