Professional Documents
Culture Documents
Chapter-2
The Strategic Role of HRM
Strategic plan is the company’s plan for how it will match its
internal strengths & weaknesses with external opportunities &
threats in order to maintain a competitive advantage.
Vision
– A general statement of an organization’s intended direction
that evokes emotional feelings in organization members.
– where the organisation wants to go in the future
Mission
– Spells out who the company is, what it does, and where it’s
headed.
– summary of the beliefs of the organisation and where it is
now
While its aim was to be one among the world’s five best tyre
companies.
– Employee Performance
– Growth
– International Acquisition
Strategic Strategic
Strategic Planning Execution Evaluation
Eg:- Rolex & Seiko are both in the watch business, but Rolex sells a
limited product line of high-priced quality watches. Seiko sells a wide
variety of relatively inexpensive but innovative watches.
For Instance, in terms of the products or services they will sell, the
geographic locales in which they will sell them & how they will distinguish
their products or services from competitors.
Lect.Naziya Lakhani, TNRCMS
They have to see Company’s opportunities & threats and its strength &
weakness.
Eg:- one eye care company says “Our vision is caring for your Vision”
Visions are usually longer term, broader images; most managers also
formulate mission statements to “…. Communicate ‘who we are, what we
do, & where we’re headed.’”
Lect.Naziya Lakhani, TNRCMS
Whereas visions usually lay out in broad terms what the business should be,
the mission lays out in broad terms what our main tasks are now.
Eg:- In the popular movie Chak De India, the mission of the women’s hockey
team was to win the world cup hockey tournament & prove to the country,
the world, & themselves that the Indian women’s team can win the world
cup.
The strategic plan should provide a direction for the firm that make sense,
in terms of the external opportunities & threats for the firm faces & the
internal strengths & weaknesses it possesses.
Based on the situation analysis, what should our new business be, in
terms of
What exactly does that mission mean, for each dept, in terms of how we’ll
boost quality?
Eg:- Citicorp can’t function solely with a mission like , “to provide
integrated, comprehensive financial service world wide”
It shows how the enterprise will move from the business it is now to the
business it wants to be in, given the firm’s opportunities, threat, strength,
& weaknesses
The strategy should be the best to reach the specific goal & it should be
easily communicate with the emp.
Eg:- Nokia’s strategy helps to explain how the firm can make thousands of
decisions each week so easily.
Planning
Organizing
Staffing
Leading
Controlling
Business 1 Business 3
Business 2
Competitive Competitive
Competitive
strategy strategy
strategy
Corporate-Level
Strategies
Vertical Geographic
Diversification Consolidation
Integration Expansion
Strategy Strategy
Strategy Strategy
Business-Level/
Competitive
Strategies
Eg:- Jet Airways, India’s largest full-service private airline attained the
market-leader status partly through its highly trained & motivated emps who
provide better service to the customers.
Strategic
Planning
Roles
Strategy Strategy
Execution Formulation
Role Role
Then the hr manager designs strategies, policies & practices that make
sense in terms of the company’s corporate & competitive strategies.
For that they require the SWOT analysis of the emp & their org.
Components of a
Strategic HRM System