Robert L. Mathis  John H.

Jackson
Linking corporate strategies and HR
 Learning Objectives

– human resources can be a core competency

for organizations.
– Significance of strategic human resource
management
– To know about external environment
– To know about the internal environment
– Workforce diversity

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chart

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 Achieving Strategic Fit
 Michael Porter
– Emphasizes the “fit” point of view that all of
the firm’s activities must be tailored to or fit
its strategy, by ensuring that the firm’s
functional strategies support its corporate
and competitive strategies.

 Gary Hamel and C. K. Prahalad

– Argue for “stretch” in leveraging resources—
supplementing what you have and doing
more with what you have—can be more
important than just fitting the strategic plan
to current resources.

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 Model

Translating
Strategy into
HR Policy and
Practice

Basic Model of
How to Align
HR Strategy
and Actions
with Business
Strategy

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Formulating HR Policies, Activities, and Strategies

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Possible HR Areas for Core Competencies

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Strategy and the Basic HR Process

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Linkage of Organizational and HR Strategies

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 Scanning the External Environment

 Environmental Scanning
– The process of studying the environment of
the organization to pinpoint opportunities
and threats.
 Environment Changes Impacting HR
– Political - legal (Governmental regulations)
– Economic conditions
– Impact of globalization (competitive
concerns)
– Workforce composition

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 External forces

 Political- legal
The legislature
The executive
The judiciary
 Economic

The economic growth of the country

Suppliers
Competitors
Customers
Industrial labour

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 Impact of globalization

 Internal forces

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External Factors Influencing the Personnel function

 Technological changes
New skills required
Downsizing
Collaborative work
Telecons
Internet and intranet revolution

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External Factors Influencing the Personnel function

 ECONOMIC CHALLENGES
 POLITICAL FACTORS
 SOCIAL FACTORS
 LOCAL GOVERNMENT POLICIES
 UNIONS
 EMPLOYERS DEMANDS
 WORKFORCE DIVERTY

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 Internal factors

 Mission
 Policies
 Organization culture
 Organization structure
 HR systems

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 Work force diversity
 Composition
Inexperienced
Impulsive
Selfish/manipulative
Difficult to change
Go by book rule
Workaholic
inflexible

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 Other diversity characteristics in India

 Castes
 Sons of the soil
 Physically disabled
 Priority for ex-service men
 Gender issues
 Contract labor
 Child labor
 Other minority groups

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 HR mangers role in addressing these
issues

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 Designing appropriate HR systems

 Nature of employment
 Recruitment
 Selection
 Training and development
 Job security
 Employee welfare

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 Designing appropriate HR systems

 Nature of employment
 Recruitment
 Selection
 Training and development
 Job security
 Employee welfare

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 The new competitive global
environment

HR is a key lever in addressing these challenges!

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