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Human Resource Management (Business Strategy). Prepared by Grace Amin , M.Psi , Psikolog. Questions. Do you have any plans for 3 – 5 years later? What do you prepare to get that?. Does a company have any plan?. Why strategic planning is important to all manager?

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human resource management business strategy

Human Resource Management(Business Strategy)

Prepared by

Grace Amin, M.Psi, Psikolog

  • Do you have any plans for 3 – 5 years later?
  • What do you prepare to get that?
does a company have any plan
Does a company have any plan?
  • Why strategic planning is important to all manager?
    • Organizations exist to achieve some purpose, and if they fail to achieve their ends, to that extent they have failed
    • Those aim or goals – and the hard work you put into accomplishing them – all depend on your company’s plan

In well run companies, the goals from the very top of the organization down to where you’re working should form a more or less unbroken chain (or “hierarchy”)


the planning process
The Planning Process
  • Set an objective
  • Make forecasts
  • Determine what courses of action
  • Evaluate alternatives
  • Implement and evaluate the plan

ex : planning our budget, study, career, business

business plan long term strategic plan
Business Plan (long term, strategic plan)
  • A comprehensive view of the firm’s situation today and of its company – wide and departmental goals and plans for the next 3 to 5 years

Description of the business

The marketing plan

The financial plan

The management &/ personnel plan

putting together the business plan
Putting together the business plan
  • The MARKETING plan

“the four Ps” = product, price, promotion, place

  • The PERSONNEL / HR plan

implementing the marketing plan

  • The FINANCIAL plan

the vehicle for doing so = the bottom line of planning

how managers set objectives
How Managers Set Objectives ??
  • S
  • M
  • A
  • R
  • T






how to set motivational goals
How to set motivational goals??
  • Assign specific goals
  • Assign measurable goals
  • Assign challenging but doable goals
  • Encourage participation

Goals are only useful if employees are motivated to achieve them


Management by Objectives




Peter Drucker

  • Set organizational goals
  • Set department goals
  • Discuss department goals
  • Set individual goals
  • Give feedback

Supervisor and subordinate jointly set goals for the latter and periodically assess progress toward those goals

Goals at each level will relate to those above and belowEmployee participation

The downside is time consuming

management objectives grid
Management objectives grid
  • Every manager needs a system for organizing how their subordinates’ goals dovetail with those of the company
  • The goals of MOG
    • List department managers’ supporting goals
    • Clarify department manager own goals should be
    • Summarize subordinates goals
    • Track subordinates’ progress
the strategic management process
The strategic management process
  • Strategic plan = “where are we now as a business, where do we want to be and how should we get there?”




the strategic management process1
The strategic management process

Strategic execution

Strategic evaluation

Strategic Planning

types of strategies
Types of strategies
  • Corporate wide strategic planning
  • Competitive (or business unit) strategic planning
  • Functional (or departmental) strategic planning
corporate wide strategic planning how many and what kind of business should we be in
Corporate wide strategic planning“how many and what kind of business should we be in?”
  • Several standard corporate strategy possibilities:
    • Concentration (single business) strategy
    • Diversification
    • Vertical integration
    • Consolidation
    • Geographic expansion

The portfolio of business that comprise the company and the way in which these businesses relate to each other

competitive strategy
Competitive strategy
  • Standard competitive strategy
    • Cost leadership
    • Differentiation
    • Focusers


Identifies how to build and strengthen the business’s long term competitive position in the marketplace

functional strategy
Functional strategy
  • The broad activities that each department will pursue in order to help the business accomplish its competitive goals
top manager s role is devising a strategic plan
Top Manager’s Role is devising a strategic plan
  • Departmental Managers roles are :
    • Help devise the strategic plan
    • Formulate supporting, functional/ departmental strategies
    • Execute the plans
strategic hrm
Strategic HRM

Formulating and executing HR policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims

strategic hrm tools
Strategic HRM tools
  • Strategy Map
    • “Big pictures” – how each department’s contributes to achieving company’s strategic goals
  • The HR scorecard
    • Take the strategy map and to quantify it
  • Digital Dashboards
    • Desktop graphs and charts
translating strategy into hr policies and practices
Translating strategy into HR policies and practices
  • New strategy
    • Produce new services
    • Capitalize on opportunities
    • Offer consistently high quality services
  • New employee competencies and behaviors
  • New HR policies and practices
    • New training programs
    • Enriching work
    • Appropriate returns
    • Improved selection, orientation and dismissal procedures

HIGH Performance work systems