Overview of Strategic
Management
The Strategic Management Process
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Types of Strategic Planning
Relationships Among Strategies in Multi-Business Firms
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Types of Strategic Planning
Corporate Strategies – Company-wide
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Types of Strategic Planning
Corporate Strategies – Business level
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Strategic Human Resource
Management
Strategic Human Resource Management
– The linking of HRM with strategic goals and
objectives in order to improve business
performance and develop organizational cultures
that foster innovation and flexibility.
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Linking Corporate and HR
Strategies
Linking Company-Wide and HR Strategies
Source: Gary Dessler, Ph.D.
3–6
HRM’s Strategic Roles
Effective HR managers are able to:
– Handle a larger portfolio
– Work closely with top management to
formulate and implement company’s strategic
plans
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Creating A Strategic
HR System
Figure 3.7
Three Main Strategic Human Resource System Components
Source: Adapted from Brian Becker et al., The HR Scorecard: Linking People, Strategy,
and Performance (Boston: Harvard Business School Press, 2001), p. 12. Copyright © 2001
by the Harvard Business School Publishing Corporation; all rights reserved.
3–8
The High-Performance Work
System
Characteristics of a High-Performance Work Organization
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Translating Strategy into HR
Policy and Practice
HR managers to translate:
– Company’s strategy into employee
competencies and behaviors
– These employee competencies and
behaviors into specific HR policies and
practices to achieve company’s goals.
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Translating Strategy into HR
Policy and Practice
Formulate business strategy
“What are the strategic goals of the business?”
Identify workforce requirements
“What employee competencies and behaviors must HR deliver to
enable the business to reach its goals?”
Formulate HR strategic policies and activities
“Which HR strategies and practices will produce these employee
competencies and behaviors?”
A Basic Model of How to Align HR
Strategy and Actions with Business
Strategy
Source: Adapted from Garrett Walker and J.
Randal MacDonald, “Designing and
Implementing an HR Scorecard,” Human
Resources Management 40, no. 4 (2001), p.
370.
Develop detailed HR Scorecard measures
“How can HR measure whether it is executing well for the business,
in terms of producing the required workforce competencies and
behaviors?”
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The HR Scorecard Approach
HR Scorecard
– Measures the HR function’s effectiveness and
efficiency in producing employee behaviors needed
to achieve the company’s strategic goals.
To create an HR scorecard, you:
– Must know what the company’s strategy is.
– Must understand the causal links between HR
activities, employee behaviors, organizational
outcomes, and the organization’s performance.
– Must have the metrics to measure all the activities
and results involved.
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Basic HR Scorecard
Relationships
HR activities
Organization
performance
Emergent employee
behaviors
Achieve
strategic goals
Strategically relevant
organizational
outcomes
Basic HR Scorecard Relationships
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Using the HR Scorecard
Approach
1. Define the Business Strategy
2. Outline the Company’s Value Chain
3. Outline a Strategy map
4. Identify the Strategically Required
Organizational Outcomes
5. Identify the Required Workforce
Competencies and Behaviors
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Using the HR Scorecard
Approach
6. Identify the Strategically Relevant HR
System Policies and Activities
7. Create HR Scorecard
8. Design the HR Scorecard Measurement
System
9. Summarize Scorecard Measures in a Digital
Dashboard
10. Periodically Evaluate the Measurement
System
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A Simple Value Chain for Hotel
International
Source: Copyright © Gary Dessler, Ph.D.
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