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Strategic Human Resource Management (SHRM)
A pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.
The process of deciding on a strategic direction by defining a company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.
The process of devising structures and allocating resources to enact the strategy a company has chosen.
Role of HRM in Strategy Formulation
1- Administrative Linkage - lowest level of integration: Focus only on day-to-day activities.
2- One-Way Linkage: Firm's strategic planning function develops the strategy plan and then informs the HRM function of plan then HRM design systems and/or programs that implement strategic plan.
3- Two-Way Linkage: allows consideration of HR issues during the strategy formulation process. integration in 3 sequential steps: strategic planning inform HRM function of the strategies → HR executives analyze the HR implication of strategies & present them to strategic group → after strategic group decision, strategy plan will be passed to HR to implement.
4- Integrative Linkage: based on continuing rather than sequential interaction - HR executive is an integral member of the senior management team - HR function built right into both strategy formulation and implementation.
What an organization hopes to achieve in the medium - to long-term future.
Examining the organization's operating environment to identify strategic opportunities and threats.
The process of examining an organization's strengths and weaknesses.
The organization's strategy, the ways an organization will attempt to fulfill its mission and achieve its long-term goals.
Five important variables of successful strategy implementation
- 1- Organizational structure
- 2- Task design
- 3- The selection, training and development of people
- 4- Reward systems
- 5- Type of information and information systems
- HRM responsibilities:Task, people, rewars
- HRM directly affect: structure and information and decision process.
Strategy → tasks → designed and grouped efficient and effective jobs → HRM insure to staffed with peop