HRM 3430 Study Guide - Winter 2018, Comprehensive Midterm Notes - Canada, Visible Minority, Time
12 Oct 2018
School
Department
Course
Professor
HRM 3430
MIDTERM EXAM
STUDY GUIDE
Fall 2018
CHAPTER ONE: STRATEGIC MANAGEMENT
• Buy In → ensure that all members agree with and feel a part of the strategic plan (by getting
input, explaining, communicating)
Strategic Management at the Bay
• HBC merged with its main rival North West Company when demand for fur began declining
• Had a diversification strategy and sold liquor, salmon, coffee, tobacco and real estate at one point
• Economic turndown of 1980s forced it to return to its core retail business
• In 2005, HBC adopted a corporate growth strategy and a business level strategy of differentiation
coupled with low cost by opening stores such as Home Outfitters
• In 2011, HBC sold its weakest chain Zellers to Target
• Now focusing on he luxury market with the acquisition of Lord and Taylor and Saks 5th Ave, etc
A NEED FOR STRATEGIC HRM
Strategy
• Strategy → the formulation of organizational objectives, competitive scopes, and action plans for
gaining advantage
How an organization intends to achieve its goals
A planned process whereby organizations map out a set of objectives and methods of
meeting those objectives
• Due to the unpredictability of triggering
events, strategic planners focus on a
shorter time horizon such as three to five
years and constantly evolve with changing
conditions
• It is determined through environmental
analysis
• Logical Incrementalism/Emergent
Strategy → plan that changes
incrementally due to environmental
changes (REACTIVE)
• Intended Strategy → the formulated plan
at the beginning of the period
• Realized Strategy → the implemented
plan
• Does not require changing the focus of the desired result
• Events that trigger a change in strategy include: new CEO, performance gap, etc.
WHY HRM NEEDS TO BE A PART OF THE ORGANIZATION’S STRATEGY
• Strategic Management of people through HR Planning provides positive organizational outcomes
such as:
Profitability
Customer satisfaction
Employee performance
Organizational Survival
find more resources at oneclass.com
find more resources at oneclass.com
*What impact does corporate strategy have on HR planning? How do these strategies affect people
working in these organizations?*
STRATEGIC TYPES
Corporate/Company Wide Strategies
• Corporate/Company Wide Strategy → organizational level decisions that focus on long term
survival
Restructuring Strategies
• Turnaround/Retrenchment Strategy → an attempt to increase the viability of an
organization; managers try to restore money losing businesses to healthy profitability or
government agencies to viability
EX: getting rid of unprofitable products, imposing layoffs, repositioning organization
with new products
• Divestiture → sale of a division or part of an organization
• Liquidation → termination of a business and the sale of its assets
• Bankruptcy → an appointed trustee in bankruptcy takes possession of a business’s assets and
disposes of them in an orderly fashion
Growth Strategies
• Incremental Growth → attained by expanding the client base, increasing the products or
services, changing the distribution networks, or using technology
• International Growth → seeking new customers or markets by expanding internationally
• Mergers → two organizations merging resources to achieve economies of scale
• Acquisitions → one company buys another
Stability Strategies
• Called the status quo, neutral, or do nothing strategies
• They do not wish to see their companies grow and are content to keep market share and do
what it has always been doing
• Strategic HRM practices remain constant
EX: Cara Operations, employs multiple strategies including acquisition, divestiture, and
new concept development
Business Strategies
• Business Strategy → plans to build a competitive focus in one line of business
• Concerned with how to build a strong competitive position as opposed to long term survival
THE STRATEGIC PLANNING PROCESS
• A strategic plan describes the organization’s future direction, performance targets, and
approaches to achieve the targets in a formal, written statement
1. Establish the mission, vision, and values
• Mission Statement → purpose of the organization and the value it creates for customers
• Vision Statement → defines the organization’s long term goals that serve to unite an
organization’s efforts
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Chapter one: strategic management: buy in ensure that all members agree with and feel a part of the strategic plan (by getting input, explaining, communicating) In 2005, hbc adopted a corporate growth strategy and a business level strategy of differentiation coupled with low cost by opening stores such as home outfitters. In 2011, hbc sold its weakest chain zellers to target: now focusing on he luxury market with the acquisition of lord and taylor and saks 5th ave, etc. Strategy: strategy the formulation of organizational objectives, competitive scopes, and action plans for gaining advantage. How an organization intends to achieve its goals. It is determined through environmental analysis: logical incrementalism/emergent. Strategy plan that changes incrementally due to environmental changes (reactive) Why hrm needs to be a part of the organization"s strategy such as: strategic management of people through hr planning provides positive organizational outcomes. Corporate/company wide strategies: corporate/company wide strategy organizational level decisions that focus on long term survival.
