BU354 Chapter Notes - Chapter 1: Performance Appraisal, Systematic Review, Millennials
Document Summary
Strategy = game plan large scale, future-oreinted, integrated plans to achieve organizational goals and respond to uncertain environments: how the org will create value. Strategies formulated at 3 levels: corporate : entire organization, business : involving major activity business / division in large multi-business org. Functional : involving managers of different activities, services or geographical areas. Important that hr strategies are mutually consistent and reflect org mission and strategy. Employee salaries may account for more than 50% of operating expenses. Understanding the strategic hrm process: hrm strategy should o(cid:374)ly (cid:271)e (cid:272)reated after (cid:272)areful (cid:272)o(cid:374)sideratio(cid:374) of a(cid:374) org"s e(cid:374)(cid:448)iro(cid:374)(cid:373)e(cid:374)t, (cid:373)issio(cid:374) a(cid:374)d o(cid:271)je(cid:272)ti(cid:448)es, strategies and internal strengths and weaknesses, including culture. 3 major generic strategies firm can pursue: cost leadership : aim to gain a comp adv through lower costs. Seek efficiencies in production and use tight controls: differentiation : creating distinctive / unique product unsurpassed in quality, innovative design or other feature, might be able to charge more for products.
