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STRATEGIC PERSPECTIVE
Defining Strategy, Strategic
Management, and Strategic Plan
The word strategy means “general” in Greek and, in
a military sense, is linked to the planning of battles
and military campaigns.
Most authors would probably agree that it has to
do with long-term, large-scale plans for future-
oriented, competitive success.
Involves allocation of organizational resources.
Its ultimate objective is to achieve a company’s
competitive advantage.
Defining Strategy, Strategic
Management, and Strategic Plan…
A strategy, whether it is an HR strategy or any other
kind of management strategy, must have two key
elements:
there must be strategic objectives (i.e. things the
strategy is supposed to achieve), and
there must be a plan of action (i.e. the means by which it
is proposed that the objectives will be met).
Defining Strategy, Strategic
Management, and Strategic Plan…
Strategic management can be defined as the art and
science of formulating, implementing, and evaluating
cross-functional decisions that enable an organization
to achieve its objectives.
Strategic management focuses on integrating
management including marketing, finance/accounting,
production/operations, research and development,
information systems, and other units of an organization
to achieve organizational success.
Defining Strategy, Strategic
Management, and Strategic Plan…
Strategic planning is the process of defining an
organizational strategy, or direction, and making
decisions on allocating the resources of the organization
(capital and people) to pursue this strategy.
Contribution
Unless HR can demonstrate its impact on the bottom
line, it will continue to be seen as "overhead," as a
department that grabs resources while contributing
nothing.
Sophisticated and integrated HRM practices have a
positive effect on employee performance: they
increase knowledge, skills, and abilities; improve
motivation; and increase retention of competent
employees.