Strategic human resource management

ØStrategy::p>:p>
Ø“Strategy is a way of doing something. It includes the formulation of goals and set of action plans for accomplishment of that goal.”:p>:p>
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ØStrategic Management::p>:p>
Ø“A Process of formulating, implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management”:p>:p>
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ØDefinition of Strategic Management: -:p>:p>

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Ø“Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.”:p>:p>
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ØThe study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the light of a corporation’s strengths and weaknesses. :p>:p>
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ØSteps in Strategic Management::p>:p>
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ØEnvironmental Scanning: Analyze the Opportunities and Threats in External Environment:p>:p>
ØStrategy Formulation: Formulate Strategies to match Strengths and Weaknesses. It can be done at Corporate level, Business Unit Level and Functional Level. :p>:p>
ØStrategy Implementation: Implement the Strategies:p>:p>
ØEvaluation & Control: Ensure the organizational objectives are met. :p>:p>
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ØIMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT:p>:p>

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ØAllows identification, prioritization and exploration of opportunities. :p>:p>
ØProvides an objective view of management problems. :p>:p>
ØRepresents framework for improved co-ordination and control:p>:p>
ØMinimizes the effects of adverse conditions and changes:p>:p>
ØAllows major decisions to better support established objectives:p>:p>
ØAllows more effective allocation of time and resources:p>:p>
ØAllows fewer resources and lesser time devoted to correcting ad hoc decisions:p>:p>
ØCreates framework for internal communication:p>:p>
ØHelps to integrate the individual behaviors :p>:p>
ØProvides basis for the clarification of responsibilities:p>:p>
ØEncourages forward thinking:p>:p>
ØEncourages favorable attitude towards change. :p>:p>
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ØROLE OF HRM IN STRATEGIC MANAGEMENT:p>:p>

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ØRole in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. Details regarding advanced incentive plans used by competitors, opinion survey data from employees, elicit information about customer complaints, information about pending legislation etc. can be provided by HRM. Unique HR capabilities serve as a driving force in strategy formulation. :p>:p>
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ØRole in Strategy Implementation: HRM supplies the company with a competent and willing workforce for executing strategies. It is important to remember that linking strategy and HRM effectively requires more than selection from a series of practice choices. The challenge is to develop a configuration of HR practice choices that help implement the organization’s strategy and enhance its competitiveness. :p>:p>
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