Human Resource Management Gaining a Competitive Advantage Chapter

Human Resource Management Gaining a Competitive Advantage Chapter 2 Strategic Human Resource Management Mc. Graw-Hill/Irwin Copyright © 2008 by The Mc. Graw-Hill Companies, All Rights Reserved. 1 -1

Model of the Strategic Management Process Forecasts of Strategy Formulation Labor Demand External Analysis Strategy Implementation HR Practices Opportunities Threats Mission Goals Strategic Choice Internal Analysis Strengths Weaknesses Human Resource Needs Skills Behavior Culture Recruiting, Training, Performance management, Labor relations, Employee relations, Job analysis Job design, Selection, Development, Pay structure, Incentives, Benefits Human Resource Capability Skills, Abilities, Knowledge Firm Performance Productivity, Quality, Profitability Human Resource Actions Behaviors, Results 2 -2

Strategy Implementation Organizational structure Types of Information Task Design Product market strategy Performance Reward systems Selection, training, and development of people 2 -3

HRM Needs in Strategic Types • Different strategies require different types of employees. • Role Behaviors: – Cost strategy firms seek efficiency and therefore carefully define the skills they need in employees and use worker participation to seek cost-saving ideas. – Differentiation firms need creative risk takers. 2 -4