Premium Essay

Integrating Hr Strategy with Business Strategy

In: Business and Management

Submitted By shellykwatra
Words 566
Pages 3
Chapter 3
Integrating HR Strategy with
Business Strategy

Human Resource Management, 5E

1

Learning Objectives
• Understanding the Nature of Strategic
HRM
• Describe the Strategic Management
Process
• Integrate HR Functions with Strategic
Management Process

Human Resource Management, 5E

2

Traditional HRM vs. Strategic HRM
Traditional HRM

Strategic HRM

Responsibility for
HRM

Staff specialists

Line managers

Focus

Employee relations

Partnership with internal and external customers

Role of HR

Transactional, change follower and respondent

Transformational, change leader and initiator

Initiatives

Slow, reactive, fragmented

Fast, proactive, integrated

Time horizon

Short term

Short, medium, long

Control

Bureaucratic roles, policies, procedures Organic-flexible, whatever is necessary to succeed

Job design

Tight division of labour, independence, specialisation

Broad, flexible, crosstraining teams

Key investments

Capital, products

People, knowledge

Accountability

Cost centre

Investment centre

Human Resource Management, 5E

3

Strategic HR Model
Institutional/
Political forces

Firm strategy

Resource dependence institutional

Resource-based view of the firm
HRM Practices
Cybernetic Agency/
Transaction Costs
HR Capital Pool
(skills, abilities)

HR Behaviours

Behavioural
Approach

Firm-level Outcomes
(performance, satisfaction, absenteeism, etc.)

Human Resource Management, 5E

4

Strategic Management Process
• Environmental Scanning
• Strategy Formulation
– Corporate level
– Business unit level
– Functional level

• Strategy Implementation
• Strategy Evaluation

Human Resource Management, 5E

5

Benefits of Strategic Management















Allows identification,

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