Strategic HRM

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STRATEGIC HRM
PMAP Luzon Summit
Baguio City
November 19-20, 2010
Efren B. Alberto, FPM

Session Outline
1. A review of Strategic Management:
concept and process
2. Strategic HRM: concept and process
3.
HR Strategies and Business Strategy
4.
People as sustained competitive
business advantage

Strategic Management

“Pattern of decisions and actions” undertaken by the upper
echelons of the company
– Changes
– Long term performance
– Survival
– Growth

3 Interdependent Poles
– Owner’s/ Leaders’ values
– Environment
– Resources

Strategy formulation
– corporate,
– business,
– functional
( strategic decision-making hierarchy)

Corporate and business-level strategies, as well as
environmental pressures, dictate the choice of HR program,
policies, and practices.

Strategic Mgt. Process
STRATEGIC PLANNING
STRATEGIC THINKING
1.
Values and Management
1.
Why am I?
philosophy

Who am i?

Vision, Mission
2.
Where am I ?
2.
Environmental analysis
-
Key success factors

External scan
-
Distinctive competencies

Internal scan
3.
Long Term Goals
3.
Where do I want to go?
4.
Strategy formulation
4.
How do I get there?

Strategic choice
5.
Strategy implementation
5.
How do I do it ?

Leadership
-
Action plans

Structure

Control systems

Human resources
6.
Am I there?
6.
Strategy evaluation

Operating performance

Financial performance

Values and Management Philosophy
Why are we?
What’s our business (es)?
Who are your customers?
What are we?
What is our added value
to our customers?
What is our contribution to
society as a whole?
What are we especially,
distinctively, uniquely
good at? (core
competence)

Environment Scanning- External
What?
• Customers / Market
• Industry
Competition
• STEP Analysis

STEP Analysis
Socio cultural Factors
population demographics, income distribution,
consumerism, lifestyle changes, customs and norms
Technological Factors
Technological developments and trends,
obsolescence, R&D, IT,
Economic Factors
GNP, Inflation, Interest rates, Business cycles,
unemployment rates, etc.
Political/legal Factors
Gov’t stability, employment laws, tax laws,
regulations, etc.
Environment
Protection, CSR, pressure groups,

Environment Scanning- External
What?
How?

Customers / Market
1. Structural analysis of

Industry Competition
the Industry (Porter)

STEP Analysis
2. Industry and
competitive analysis
3. Strategic Mapping
4. Identifying Key success
factors
5. Spotting Opportunities
and Threats

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Environment Scanning- Internal
Strengths and Weaknesses
1. Value Chain
2. Core Competence

Strategic Competencies

Distinctive Competence

Sustainable Competitive Advantage