Class 1

Class: 01, MBA for BBA
Strategic HRM
Introduction
Required Skills of Manager
 Technical Skills: Specially important for Ist line manager

 Interpersonal Skills: The ability to communicate with, understand and
motivate both individual and groups.
 Conceptual Skills: The manager’s ability to think in the abstract
 Diagnostic Skills: A manager’s ability to visualize the most appropriate
response to a situation.
 Time management skills: The managers ability to prioritize work, to work
efficiently and to delegate appropriately.
To becoming a manager, a person requires:
 Education
 Experience
Functions of HR Managers
HR managers have four basic functions with respect to employees:

 To recruit: They outline minimum qualifications, set an entry salary range,
advertise the position, refer application to hiring managers and review
selection decision.
 To train and development: General training and specific training. General
training for adaptability and specific training for making unique capability.
development involves examining career prospects of employees. The
ethical challenge to HR managers is to devise systems of providing training
and development opportunity that are fair to all employees.
 To motivate: In designing motivation systems, HR managers seeks to align
employee’s goals with those of the organization. Systems to motivate
employees are developed both by HR managers and by direct supervisors.
Here the tools are: compensation systems, performance appraisal systems,
employee monitoring systems, organizational climate, job design, work
teams, progressive disciplinary systems and others.
 To Retain: It includes benefits for employees , work-family balancing,
compensation system, Employee complaints mechanism, organizational
justice.
 Termination, layoffs, disciplinary actions are mentioned as a functions of
an HR managers.
Strategy:
The formulation of organizational objectives, scopes and action plans for gaining
advantage.
The top management team determines strategy through a process of
environmental analysis and discussion. The organization then develops plans,
which include HRM programs, to achieve those goals.
The reality of the strategic process:
Strategic Types:
1. Corporate Strategies:
 Restructuring Strategies : options are turnaround, divestiture, liquidation,
bankruptcy .
 Growth: Growth can be achieved in several ways: incrementally,
internationally, mergers and acquisition
 Stability: Where organizations wish to maintain the status quo. Accordingly
they perform their activities and take the decisions.
2. Business Strategies: Plans to build a competitive focus in one line of

business.
Corporate strategies and business strategies arev differentiated to the following
ways. Corporate strategies are concerned with questions such as these: Should
we be in business? What business should we be in? Business strategies are
concerned with questions such as these: How should we compete? Should we
compete by offering products at prices lower than those of the companies or by
offering the best service? Business strategy, on the other hand, is concerned with
how to build a competitive position and with the best way to compete in that line
of business.
Strategic Management
Strategic management is the process by which organizations attempt to

determine what needs to be done to achieve corporate objectives and more
important, how these objectives are to be met.
The process of Strategic Management: (Mello 116)
Models of Strategy:
Two types strategic models are:
a. Industrial Organizational model : This model suggests that an organization’s
strategy is driven by external considerations. The I/O model argues that
organizations should choose to locate themselves in industries that present
the greatest opportunities and learn to utilize their resources to suit the
needs of the environment. The model argues that strategy will drive
resource acquisition.
b. Resource-based model: The resource-based model argues that the
organization’s resources and capabilities, rather than environmental
conditions, should be the basis for organizational decisions. This model
suggest that strategy should be driven by internal considerations.
The Concept of Strategy:

The concept of strategy is based on a number of associated concepts:
 Competitive advantage : It emphasized differentiation through innovation,
quality, cost leadership that organization can use to gain competitive
advantage.
 Distinctive capabilities: Distinctive capabilities are those characteristics that
can not be replicated by competitors or can only be imitated with great
difficulty.
 Strategic intent: Strategic intent refers to the expression of the leadership
position the organization wants to attain and establishes a clear criterion on
how progress towards its achievement will be measured. The strategic
intent sequences given by Miller and Dess are as follows:
1. a broad vision of what the organization should be
2. the organization’s mission
3. specific goals, which are operationalized
4. strategic objectives
 Strategic capability: Strategic capability is a concept that refers to the ability
of an organization to develop and implement strategies that will achieve
sustained competitive advantage.
 The resource-based view: The resourced-based view of strategy is that the
strategic capability of a firm depends on its resource capability.
 Strategic Management: Strategic management is the set of decision and
actions resulting in the formulation and implementation of strategies
designed to achieve the objectives of an organization.
 Strategic goals: Strategic goals define where the organization wants to be.
 Strategic Plans: Strategic plans are formal expressions of how an
organization intends to attain its strategic goals.
Strategic Management Model (Arm 27)
Strategic Management concerned with: according to Burns:
1. the full scope of an organization’s activities, including corporate objectives

and organizational boundaries
2. matching the activities of an organization to the environment in which it
operates
3. ensuring that the internal structures, practiced and procedures enable the
organization to achieve its objectives
4. matching the objectives of an organization to its resource capability,
assessing the extent to which sufficient resources can be provided to take
advantage of opportunities or to avoid threats in the organization’s
environment
5. acquiring divesting and reallocating resources
6. translating the complex and dynamic set of external and internal variables
that an organization faces into a structured set of clear future objectives
that can then be implemented on a day to day basis

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Class: 01, MBA for BBA

 Technical Skills: Specially important for Ist line manager

HR managers have four basic functions with respect to employees:

The reality of the strategic process:

2. Business Strategies: Plans to build a competitive focus in one line of

Strategic management is the process by which organizations attempt to

The process of Strategic Management: (Mello 116)

The Concept of Strategy:

Strategic Management Model (Arm 27)

Strategic Management concerned with: according to Burns:

1. the full scope of an organization’s activities, including corporate objectives

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