LINKING CORPORATE STRATEGIES AND POLICIES WITH HUMAN RESOURCE MANAGEMENT

BY PRIYABRATA

STRATEGY
Strategy is deciding where to go and the means to get there. Strategy is a declaration of intent.

CORPORATE STRATEGY
Identifies the portfolio of businesses that, in total, comprise the company and the ways in which these businesses relate to each other. It formulates the strategies of business for future . Diversification strategy Vertical integration strategy Consolidation strategy Geographic expansion strategy

Types of Strategic Planning

Business-level/competitive strategy
Identifies how to build and strengthen the businesss long-term competitive position in the marketplace.
Cost leadership
Differentiation

Focus

Types of Strategic Planning (contd)

Functional strategies
Identify the basic courses of action that each department will pursue in order to help the business attain its competitive goals.

STRATEGIC HUMAN RESOURCE MANAGEMENT

Linking HRM with corporate strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility. Defines the organisations intentions and plans on how its business goals should be achieved through people.

LINKING CORPORATES STRATEGIES WITH HR STRATEGIES

HRs Strategic Roles

Identify the human issues that are vital to business strategy. Help establish and execute strategy. Provide alternative insights. Are centrally involved in creating responsive and market-driven organizations. Conceptualize and execute organizational change.

HRs Strategy Formulation Role

HR helps top management formulate strategy in a variety of ways by.
Supplying competitive intelligence regarding the external environment Supplying information regarding the companys internal human strengths and weaknesses. Showing how the firms HR activities can and do contribute to creating value for the company.

HRs Strategy Execution Role

The HR departments strategies, policies, and activities must make sense in terms of the companys corporate and competitive strategies, and they must support those strategies.

HRs Strategy Execution Role

The HR departments strategies, policies, and activities must make sense in terms of the companys corporate and competitive strategies, and they must support those strategies.

Implications of SHRM
Successful SHRM efforts begin with identification of strategic needs. Employee participation is critical to linking strategy and HR practices.

Strategic HR depends on a systematic and analytical mindset.

Corporate HR departments can have an impact on their organizations efforts to launch strategic initiatives.