-Strategic HRM is a set of distinct but interrelated practices, policies, and philosophies
enable organizations strategy.
-By involving HR in the discussion of strategic policies, an organization has a better chance of
being effective in the implementation of these policies.
-Various approaches to linking HRM strategies to organizational strategies.
-We can start with the corporate strategy that leads to the HR strategy, or start with the HR
competencies that lead to business strategy, or use a blend of the interrelationship of the HR
strategy and the corporate strategy.
-Aligning HR strategy with the corporate strategy and with other functional strategies is
What is strategic HRM?
-Human Resources Management (HRM) is an umbrella term that encompasses:
• Specific HR practices (recruitment, selection, appraisal)
• Formal HR policies
• Overarching HR philosophies (values that inform the organization’s policies and
-Strategic HRM: interrelated practices, policies, and philosophies that facilitate the attainment
of organizational strategy
The importance of strategic HR planning:
2 main reasons strategic planning is so important:
1) employees help an organization achieve success because they are its strategic resources
2) the planning process itself results in improved goal attainment
Employees as strategic resources:
-HR can deteriorate if skills and knowledge become obsolete
-Investment in employees’ skills increases the value of the organization’s human capital
-The “value” of this human capital must be captured within the strategic HR plan
-Human assets competitive advantage:
• Managing HR strategically = more likely to survive/profit
• Human assets must be managed and matched to the organizational strategy
Improved goal attainment:
-Strategy formulation is important to attaining organizational goals
-Aligns all HR functional strategies with overall strategy
-Focuses employees on important missions and goals of the organization
-Developing HR practices that support the stra