UNIT 2

HRP & Corporate Strategies

 HRP & Corporate Strategies
 HRP as Strategic Process
 Strategic Planning
 Strategic HRP Model
 Staffing
 Staffing System
 HRP & Corporate Strategies

 HRP & Corporate Strategies

– What is Strategy

– Strategy at different levels

– Relationship between Corporate Strategy & HRP

 Porter Framework
 Miles & Snow Framework
 HRP & Corporate Strategies
 What is Strategy

– Strategy is the determination of the basic long term

purpose and objectives of an enterprise and the
adoption of courses of action and allocation of
resources necessary for carrying out these goals.

– Strategy is the direction and scope of an organization

over the long-term: which achieves advantage for
the organization through its configuration of
resources within a challenging environment, to meet
the needs of markets and to fulfill stakeholder
expectations".
HRP & Corporate Strategies
– Where is the business trying to get to in the long-term ( direction)

– Which markets should a business compete in and what kind of

activities are involved in such markets? ( markets; scope)

– How can the business perform better than the competition in those
markets? (advantage)?

– What resources (skills, assets, finance, relationships, technical

competence, facilities) are required in order to be able to compete?
(resources)?

– What external, environmental factors affect the businesses' ability to

compete? (environment)?

– What are the values and expectations of those who have power in and
around the business? (stakeholders)
HRP & Corporate Strategies
 Strategy at Different Levels of a Business

 Corporate Strategy - is concerned with the overall

purpose and scope of the business to meet
stakeholder expectations. Corporate strategy is often
stated explicitly in a "mission statement".

 Business Unit Strategy - is concerned more with

how a business competes successfully in a particular
market.

 Operational Strategy – It focuses on issues of

resources, processes, people etc.
Porter Framework of Relationship
between Business Strategy & HRP
 Miles & Snow Framework of Relationship
between Business Strategy & HRP
 Defender
 Follows Cost Leadership Strategy
 “Grow” Human Resources

 Prospector
 Launch new products and venture into new markets
 “Buy” Human Resources

 Analyzer
 Launch ventures new to the firm but not new to the
market
 “Buy” And “Make” Human Resources
 HRP & Corporate Strategies

 HRP as a Strategic Process

– Concept of Strategic HRP
– Benefits of Strategic HRP
– Challenges of Strategic HRP

– Employees as Resources for Goal Attainment

 VRIO Framework
 Concept of Strategic HRP
– Strategic HRP is a dynamic, proactive, ongoing
process of systematically attracting, identifying,
developing, mentoring, and retaining employees to
support current and future organizational goals.

– Strategic HRP requires development of strategy of

appropriate recruitment, development, and
retention as well as timeliness to address gaps and
surpluses to ensure the organization will have
appropriate manpower to meet its future
functional requirements.
 Benefits of Strategic HRP
– Encouragement of Proactive rather than
Reactive Behavior
– Ongoing Examination of Policies &
Programs
– Identification of Gaps between Current
Situation and Future Vision
– Encouragement of Line Manager’s
Participation
– Creation of Common Bonds
Challenges of Strategic HRP
– Maintaining a Competitive Advantage
– Reinforcing Overall Business Strategy
– Identification of Gaps between Current
Situation and Future Vision
– Coping with the Environment
– Securing Management Commitment
– Translating the Strategic Plan into Action
– Combining Intended and Emergent
Strategies
– Accommodating Change
Resource-Based Organizational Strategies

Jay Barney’s VRIO framework

I. Value
 Human resources that can create value are those that can respond
to external threats and opportunities.
 Having this ability means that employees can make decisions and
be innovative when faced with environmental changes.

II. Rareness
 The special capabilities of people in the organization provide it
significant advantages.
 Training and development to enhance their capabilities, so that they
are continually seen as “the best” by customers and industry
colleagues.
 This rareness also helps in attracting and retaining employees with
scarce and unique knowledge, skills, and abilities.
Resource-Based Organizational Strategies
III. Inimitable
 Human resources have a special strategic value when they cannot be
easily imitated by others.
 Disney, Birla and Tata, each have created images with customers and
competitors that they are different and better at customer service.
 Any competitors trying to copy the HR management “culture” created
in these organizations would have to significantly change many
organizational and HR aspects.

IV. Organized
 The human resources must be organized in order for an entity to take
advantage of the competitive advantages.
 This means that the human resources must be able to work
effectively together, and have HR policies and programs managed in
ways that support the people working in the organization.

– Using a VRIO framework means that people are truly seen as assets,
not as expenses.
– It also means that the culture of organizations must be considered
when developing organizational and HR strategies.
 VRIO Framework

The competitive implications of Barney’s framework

 Strategic Planning

Strategic planning can be defined as the process of

identifying organizational objectives and the actions
needed to achieve those objectives.

It involves analyzing such areas as finance, marketing, and

human resources to determine the capacities of the
organization to meet its objectives.
Strategic Planning
 Linking Business Planning & HRP
Nature of Business Planning HRP Activities
Plan Activities
Strategic Plan Organizational Objectives, External Environment Scanning,
(5 years and Goals, Philosophy, Value Labour Demand Forecasting,
more) System, Product, Market, Supply Projection
Resources
Intermediate Plan Strategy Implementation, HR Programming, Implementation
(3 - 5 years) Internal Development,
Acquisitions, Divestments

Operational Plan Detailing for specific actions, Detailing of HR activities during

(1 year) Cost Benefit Analysis the year

Activity Plan Daily & Weekly Plans, Daily & Weekly assignments of HR
(Daily/Weekly) Schedules for day today work dept
 Strategic HRP Model

Source: A Strategic Human Resource Management System for the 21st Century.
Naval Personnel Task Force, September 2000
 Steps of Strategic HRP Model

 Setting the strategic direction

 Designing the Human Resource
Management System
 Planning the total workforce
 Generating the required human resources
 Investing in human resource development
and performance
 Assessing and sustaining organizational
competence and performance
I. Setting the strategic direction
II. Designing the Human Resource
Management System
III. Planning the total workforce
IV. Generating the required human
resources
V. Investing in human resource
development and performance
VI. Assessing and sustaining organizational
competence and performance