Human Resource Strategy The Idea of Strategic HRM No definitive, robust theory. No agreement on meaning, factors, es. how is SHRM linked anisational performance? difficult to establish firm relationships given intervening factors: structure, culture & wider environment various typologies of business and associated HR strategies Empirical studies tend to use large-scale questionnaire surveys (Storey) case-studies on SHRM. Theoretical &empirical gaps between rhetoric and real experience - downsizing and redundancies etc. Stages in a Corporate Strategy Process Organisation Mission and Goals (Define the business) Strategic Analysis (current situation, programmes and performance) Strategic Choice (bounded rationality, shaping the environment) Strategy Implementation (programmes, resources & responsibilities) Rational, logical versus interpreted & political Planning Levels CEO Corporate Level Corporate HQ Business Level Aviation Heating Trucks Plastics Consultancy Functional Level Manufacturing Marketing Accounting R & D Strategy Formulation Managers analyse the situation & develop strategies to achieve the mission. SWOT analysis: planning to anizational Strengths: manufacturing ability, marketing skills Weaknesses: high labor turnover, weak financials. Environmental Opportunities: new markets Threats: economic recession, competitors Long-term - 5+ yrs Intermediate-term 1- 5 yrs. Corporate & business plans Short-term - less than 1 yr. Functional plans? Rolling cycle - amend plans constantly? Corporate strategy develop a plan of policies, allocations, programmes to maximise long-run value SWOT + STEEPLE Internal & external analysis Grow Stabilize Retrench React/Panic Concentrate Diversify Globalize Vertically Integrate Down-size Flexible firm Standard Corporate Planning Picture Manifestation of Strategy and Policy Maintenance Standing plans (programmed decisions) policies, rules, and standard operating procedures (SOP). general
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