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Strategic Human Resources Management

Strategic management is the process of formulating, implementing and evaluating business strategies to achieve oganisational objectives.

Concerns of Strategic HRM

Analyse the opportunities and threats existing in the external environment. Formulate strategies that will match the organization's (internal) strengths and weakness with environmental ( external) threats and opportunities. Implement the strategies so formulated. Evaluate and control activities to ensure that organizations objective are duly achieved.

Benefits of strategic HRM


Allows identification, prioritisation and exploitation of opportunities. Provides an objective view of management problems. Reprints a framework for improved co-ordination and control activities. Minimizes the effects of adversed conditions and changes. Allows the major decisions to better support established objective. Allows more effective allocation of time and resources to indentified opportunities.

Contd.Benefits of strategic HRM


Allows fewer resources and lesser time to be devoted to correcting erroneous or adhoc decisions Creates a framework for internal communication among personnel. Helps to integrate the behaviours of individuals into a total effort. Provides a basis for the clarification of individual responsibilities. Give encouragement to forward thinking. Provide a co-operative, integrated and enthusiastic approach to tackling problems and opportunities. Encourages a favourable attitude towords change. Give a degree of discipline and formality to the management of business.

Strategic HRM in Essar steel Ltd.


Right sizing HR Developing a learning culture through continuous learning. Web based Customer relationship Management Introduction of Open House Organization of Extensive Leadership Camp to Develop Corporate Pride among the Employees Introduction of Willy Korf(for new ideas) Award scheme. Regular training with a target of Seven Mandays per Employees. Training Programmes on Areas of Concern. Special Programme.

Strategic Responses of Organizations


Item Related Quarries: 1. Acquisition/Takeover of Units (Acquiring stocks to attain 51% or more in a company including taking over of the Management) Rating Scale 5 4 3 2 1 NA

Strategic Responses of Organizations


Items Merger/Amalgamation Demerger/Spinoff(Creating a stand alone new company out of an existing firm with distribution of shares to the existing shareholders of the original firm) Responses 5 4 3

NA

Strategic Responses of Organizations


Items
3. Diversification 4. Share Purchases/ share Buyback 5. Divestiture of Business Units/ Components (Selling of assets, product lines, subsidiaries, divisions, or selling part of stocks)

Responses
5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 NA NA NA

Strategic Responses of Organizations


Disinvestment Joint venture Collaboration 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 NA NA NA

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