MHR 849 Lecture Notes - Lecture 1: Career Development, Vision Statement, Value Proposition
5 Jun 2018
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Chapter 1: Strategic Management
Strategic Human Resources Management- strategic management of people through HR
programs and policies helps to ensure positive organizational outcomes, such as: profitability,
customer satisfaction, employee performance, organizational survival
Strategy- the formulation of organizational objectives, competitive scopes, and action plans for
gaining advantage
-the plan for how an organization intends to achieve its goals
-its like chess: how you want to do business, where you want to move, and how many steps
your thinking ahead
-ex. The movie Hustler : a player of billiards minnesota would always win pool cause he was
thinking 6 steps ahead of where the white ball needs to be
Descriptions of Strategy
Strategy- a declaration of intent
Strategic intent- a tangible corpore goal; a point of view about the competitive positions a
company hopes to build over a decade
Strategic planning-the systematic determination of goals and the plans to achieve them
-in relation to strategic planning: your senior executives will get together on an annual basis and
have a meeting to discuss 2 questions: 1) what business are we in? 2) how do we compete in
that business?
Strategy formulation- the entire process of conceptualizing the mission of an organization,
identifying the strategy, and developing long-range performance goals
-after we answer what business we’re in strategy formulation comes into place
Ex: coco cola is in the refreshment business
Strategy implementation- those activities that employees and managers of an organization
undertake to enact the strategic plan, to achieve the performance goals
-ex. Coco cola how are we going to think about leveraging in the refreshment industry? Do we
get into coffee, into tea?
Objectives- the end, the goals
Plans- the product of strategy, the means to the end
Strategic plan- a written statement that outlines the future goals of an organization, including
long-term performance goals
Policies- broad guidelines to action, which establish the parameters or rules
The Reality of the Strategic Process
1. Intended strategy- the agreed upon strategy arrived at through the formal planning
process
2. Emergent strategy- created from new ideas and conditions
3. Discarded strategy- deemed inappropriate due to changing circumstances
4. Realized strategy- the implemented plan, what actually happened
-someones we end up taking a different path and then we think what was out actual realized
strategy what did we really end up doing
2 Key Strategic Planning Questions:
1. What business are we in?
2. How do we compete in that business?
-How do we as HR make sure we can accomplish this
Strategic Types
find more resources at oneclass.com
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1. Corporate strategies- organizational level decisions that focus on long term growth and
survival
Restructuring: turnaround, and divestiture, liquidation, and bankruptcy
-example Sears and Target - it cost Target 5.2 billion dollars in terms of severance, lease,
inventory write down, etc to leave Canada
2. Growth- incremental, international, and mergers and acquisitions
-sometimes people say we’re going to grow on our own through big marketing on social media,
open of offices overseas, etc this = many HR implications
3. Stability- maintains status quos
-this means keep pace with the people you already compete against
-so if your competitors are doing certain things to move up in the same market you got to keep
up with them
Restructuring Strategies
Turnaround strategy- an attempt to increase viability of an organization
Divestiture-the sale of a division or part of an organization
Liquidation- the termination of a business and the sale of its assets
Bankruptcy- a formal procedure in which an appointed trustee in bankruptcy takes possession
of a business’s assets and disposes of them in an orderly fashion
-ex. The US Toys r US has filed for bankruptcy but there has been offers for the Canadian
division to be bought
Growth Strategies
Incremental Growth- can be attained by expanding the client base, increasing
products/services, changing the distribution networks, or using technology
International growth-can be attained by seeking new customers or markets by expanding
internationally
Acquisition- the purchase of one company by another
Merger- 2 organizations combine resources and become one
Stability Strategies
-how do we make sure we don't lose it all?
• Maintenance strategies where companies don't wish to see their companies grow and so
their strategic HRM practices remain constant, it can be called:
• Do nothing strategies
• Status quo
• Pause and proceed with caution
• Harvest strategy
Business vs Corporate Strategies
Business Strategy:
• Many large organizations operate several business under the same or different names
• Each may have its own strategy
• Business strategy is the action plan for a single line of business to gain competitive
advantage
-companies often have both strategies
-the hard part is communicating these strategies to all your employees
-what are you going to do in your job that's directed to the attainment of this goal?
-make sure your goals align with the business and corporate strategy
Corporate strategy:
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Strategic human resources management- strategic management of people through hr programs and policies helps to ensure positive organizational outcomes, such as: profitability, customer satisfaction, employee performance, organizational survival. Strategy- the formulation of organizational objectives, competitive scopes, and action plans for gaining advantage. The plan for how an organization intends to achieve its goals. Its like chess: how you want to do business, where you want to move, and how many steps your thinking ahead. The movie hustler : a player of billiards minnesota would always win pool cause he was thinking 6 steps ahead of where the white ball needs to be. Strategic intent- a tangible corpore goal; a point of view about the competitive positions a company hopes to build over a decade. Strategic planning-the systematic determination of goals and the plans to achieve them. Strategy formulation- the entire process of conceptualizing the mission of an organization, identifying the strategy, and developing long-range performance goals.
