HST5504 Lecture Notes - Lecture 3: Strategic Management, Ikea
WEEK 3: HR INVOLVEMENT IN STRATEGY
Strategic Management:
• Uderstadig the strategi positio of a orgaisatio;
• Makig strategi hoies for the future; ad
• Turig strateg ito atio.
Strategic Management Process:
• strateg forulatio
• strateg ipleetatio
HR Involvement in the Strategic Management Process:
HR should be an active participant in both the formulation & implementation phases of strategic
management
Academic and practitioner literature suggests that generally HR is not fully involved in strategy formulation.
H‘ is also seldo represeted o opa oards i.e. o seat at the tale.
How to Align HRM with Business Strategy:
Step 1: Formulate business strategy (What are the
strategic goals of the business?)
Step 2: Identify workforce requirements (What
employee competencies and behaviours must HR
deliver to enable the business to reach its goals?)
Step 3: Deelop H‘ odel Whih H‘ odel ill
produce these employee competencies and
behaviours?)
Step 4: Develop HR scorecard measures (How can HR
measure whether its executing well for the business,
in terms of producing the required workforce
competencies and behaviours?)
Strategies for gaining competitive advantage:
• Innovation strategy (e.g. Apple)
• Quality enhancement strategy (e.g. Toyota)
• Cost reduction / leadership strategy (e.g.
IKEA)
Why is linking HRM to strategy problematic?
Strategy making is not a highly rational affair; it is quite an intuitive, evolutionary and reactive process.
Not all organisations have an explicit strategy.
There may also be a disconnect between intended (stated) strategy and implemented strategy.
Strategy may be emergent (trial and error – what works id called the organisations ‘strategy’)
HR Strategy options: • Viability (economic survival)
• Sustained advantage (industry leadership)
Challenges in the Strategic Management process:
• Strategi aageet is ogitiel ople.
• Strategi aageet is soeties politiall fraught eause of poer struggles etee
differet groups ho hae a stake i the orgaisatio ad politial i-fightig ithi the seior
aageet group.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Strategic management: u(cid:374)dersta(cid:374)di(cid:374)g the strategi(cid:272) positio(cid:374) of a(cid:374) orga(cid:374)isatio(cid:374), maki(cid:374)g strategi(cid:272) (cid:272)hoi(cid:272)es for the future; a(cid:374)d, tur(cid:374)i(cid:374)g strateg(cid:455) i(cid:374)to a(cid:272)tio(cid:374). Strategic management process: strateg(cid:455) for(cid:373)ulatio(cid:374, strateg(cid:455) i(cid:373)ple(cid:373)e(cid:374)tatio(cid:374) Hr should be an active participant in both the formulation & implementation phases of strategic management. Academic and practitioner literature suggests that generally hr is not fully involved in strategy formulation. H is also seldo(cid:373) represe(cid:374)ted o(cid:374) (cid:272)o(cid:373)pa(cid:374)(cid:455) (cid:271)oards (cid:894)i. e. (cid:374)o (cid:858)seat at the ta(cid:271)le(cid:859)(cid:895). Step 1: formulate business strategy (what are the strategic goals of the business?) Step 2: identify workforce requirements (what employee competencies and behaviours must hr deliver to enable the business to reach its goals?) Step 3: de(cid:448)elop (cid:858)h (cid:373)odel(cid:859) (cid:894)whi(cid:272)h (cid:858)h (cid:373)odel(cid:859) (cid:449)ill produce these employee competencies and behaviours?) Step 4: develop hr scorecard measures (how can hr measure whether its executing well for the business, in terms of producing the required workforce competencies and behaviours?)
