It is the direction and scope of an

organization over the long term,

which matches its resources to its
changing environment, and in
particular, to its markets, customers
and clients to meet stakeholder
expectations.

SWOT is an acronym for

strengths, weaknesses,
opportunities and threats.
While strengths and
weaknesses are internal to
the company, threats and
opportunities are a critical
appraisal of the
environment outside the
organization.

Ambani's strategy:
Consider how he went about it. Starting with trading in textiles and yarn, he
went into manufacturing (textiles), and then integrated relentlessly backward
from textiles to polyester yarn and fibre. Since yarn and fibre were
manufactured from petrochemicals (purefied terephthalic acid, et al), he
went into petrochemicals and plastics (polyethylene, polypropylene, PVC,
paraxylene, ethylene, etc). The need to make petrochemicals took him further
backwards to petroleum refining and retailing, which then took him further to
oil and gas exploration. (At one point,Dhirubhai even tried buying Larsen &
Toubro, an engineering and construction company that could oversee his frenetic
plant and project construction activities, but he didn't pursue the idea when the
financial institutions balked at this, but that is another story).

The basis of SHRM is the following three propositions:

Human resources of an organization are the

cornerstone of success of an organization and
hence are a source of competitive advantage to the
organization.

HR strategies should be in line with the business

strategy.

Individual HR strategies should work as a whole by

being linked to one another to give mutual support.

HR
strategies
articulate
the
organizations
intention about its human resource management
policies, about how they would fit in with the
business strategy, and how the policies would
reinforce one another to achieve the business
objectives.
The HR strategies articulate the beliefs and the
philosophy of the organization about people
practices, policies and procedures.
The philosophy might advocate a broad framework
of HR practices (usually when initiating a
transformational change) or depending on the
requirement of the business it may dwell on some
aspect of human resource management.

Specific HR strategies work for a particular identified area of

attention for the organization. The specific HR strategies can
be around each of the sub-functions of HR:
Human capital management strategy
High performance management strategy
Corporate social responsibility strategy
Organization development strategy
Employee engagement strategy
Knowledge management strategy
Resourcing strategy
Talent management strategy
Learning and development strategy
Reward and recognition strategy

This approach to people management

involves
systematic
analysis,
measurement and evaluation of how
people policies and practices create
value.

The underpinning concept of a strategy

around human capital management is
the use of metrics to guide an approach
to managing people.

Possible Metrics
Attrition: Employee
turnover rates for
different categories
of management and
employees

Possible Use Analysis Leading to Action

Analysis will show which 20% reasons contribute to
80% of voluntary regrettable turnover. (for example,
if its team management) Learning Intervention for
Team Leaders on team management. Analysis of
involuntary turnover may show up concerns in the
recruitment policy.
Indicate extent to which talent management
programmes are successful.
Analyse the extent of diversity. Analyse the long
term implications of the composition of people.

Internal promotion
rate
Workforce
composition (age,
gender, race, etc.)
Percentage of
Demonstrate the extent to which pay for
employees under the performance has become a part of the work culture
variable pay scheme in the organization

High performance management strategy

means an ecosystem of HR policies,
procedures and practices which help the
organization in creating a performance
culture in it.

This would mean that all policies, procedures

and practices work with one another to
improve and enhance the performance of
individuals, teams and in turn the entire
organization.

CSR strategy is concerned with ethical behaviour

of the organization and the HR function is also the
conscience keeper of the organization.
The ethical behaviour of the organization has two
aspects one outside the organization and one
inside.

Ethical behaviour outside the organization can be

classified in three areascommunity, environment and
the marketplace.
Ethical behaviour inside the organization would mean
creating a working environment where personal and
employment rights are upheld and HR policies and
practices provide for the ethical and fair treatment of
employees.

Organization development according

to Cumming and Worley (1997) is a
system-wide application and transfer
of behavioral science knowledge to the
planned development, improvement,
and reinforcement of the strategies,
structures, and processes that lead to
organization effectiveness.

HR
strategies
working
around
engaging employees to work with
passion, feel a profound connection to
their company, drive innovation and
move the organization forward can be
termed as employee engagement
strategies.

The knowledge management (KM)

strategy seeks to create, acquire,
capture, share and use knowledge to
enhance knowledge and performance.
KM is a framework to institutionalize
processes
to
fully
leverage
the
collective knowledge in an organization.
Example: Hindustan Lever Ltd.

These are strategies to devise ways of

attracting and retain high quality
people in the organization

These are strategies to ensure that the

organization has talented people to
fulfill its needs to achieve its
objectives. In fact, talent management
strategy in a way encompasses all
other strategies to deliver the right
talent to the organization at the right
time and also keep it talent ready to
deliver in the future too.

This strategy is all about providing a learning

environment
to
employees
within
the
organization to develop and grow the
organization too.

This strategy is about defining the posture that

the organization wants to take in the corporate
marketplace in terms of compensation and
rewards. This is about developing sound
reward and recognition practices within the
organization to sustain and drive the growth of
the organization in line with the competitive
strategy of the organization.

This strategy is about defining the posture

that the organization wants to take in the
corporate marketplace
in
terms
of
compensation and rewards. This is about
developing sound reward and recognition
practices within the organization to sustain
and drive the growth of the organization in
line with the competitive strategy of the
organization.

 Periodically test
the HR measure
against the
business
strategy and
adjust where
required