Professional Documents
Culture Documents
Models of Strategy
Industrial Organization (I/O) Model
External environment is primary determinant
of organizational strategy rather than internal
decisions of managers
Environment
presents
threats
and
opportunities
All competing organizations control or have
equal access to resources
Resources are highly mobile between firms
provides
support
for
both
positions
What drives strategy?
economies of scale
in operations and functions
Enhancing competitive
position
Providing opportunities for
employee professional
development and
advancement
HR Issues
Planning for new hiring
Alerting current employees
Ensuring quality &
performance standards are
maintained
Internal Methods
Developing
new markets
Penetration of existing
markets
Developing new products or
services for existing or new
markets
External Methods
Acquiring other organizations
Vertical integration
HR Issues
Merging organizations
Dismissing redundant
employees
Strategic HR
Responsibility for HR
Staff Specialists
Line Managers
Focus
Employee relations
Role of HR
Transactional, change
-follower
Transformational, change
leader
Initiatives
Slow,reactive,fragmented
Time Horizon
Short-term
Control
Bureaucratic
Organic, flexible
Job design
Flexible, teams
Key Investments
Capital, products
People, knowledge
Accountability
Cost centre
Investment centre
Exhibit 4-7
Outcomes of Strategic HR
Facilitates
development of high-quality
workforce through focus on types of
people and skills needed
Barriers to Strategic HR
Short-term
mentality/focus
on
current
performance
Inability of HR to think strategically
Lack of appreciation for what HR can
contribute
Failure to understand line managers role
as an HR manager
Difficulty in quantifying many HR outcomes
Perception of human assets as higher-risk
investments
HR and Leadership
HR professionals are uniquely well placed to
Strategic partner
HRs
leadership
in
organization
development is also essential for the
organizations success.
Developing Leading
HR
Change
Strategy
Aligning
HR
Processes
Achieving
Results
Understand
the business
context and
develop
plans to
achieve
competitive
advantage.
Identify
peoplerelated
issues and
formulate
plans to
address
them.
Change
roles,
activities and
systems to
achieve
desired
outcomes.
Implement
actions and
processes to
achieve
results.
Enable the
organization
to implement
change
effectively
Source: Adapted from Human resource leaders: Capability, strengths and gaps.
(2003). In Building a strategic HR function. New York: The Human Resource
Planning Society.
Conclusion
The