Summary
Summary Chapter 1 - Strategy
- Course
- Institution
This is the first chapter study guide for the CKE 1/2
[Show more]
Seller
Follow
nadssslaville
Content preview
STRATEGYStrategy: a cluster of competencies related to the ability to think and act strategically with regard to
organizations, business, and the HR function.
Module 1: Human Resources Role in Strategy
Every company has different strategies based on their goals and objectives.
Strategy is an organization's declaration of intent. it includes the formulation of organizational
missions, goals, objectives, and action plans for achievement that explicitly recognizes the
competition and the impact of internal and external environmental forces. For example, one
company may grow through low prices and
may do an environmental scanning that takes into consideration factors such as: strength of its
competitors, trade barriers, availability of technology, domestic and global economic,
environmental, societal and cultural factors that influence the demand for their products and
services.
They may have taken consideration internal factors such as: current structure, financial
sustainability and the capability of their people. the impact of the scan will determine how the
organization will move forward.
Stakeholders Of Strategy
owners and shareholders - their investment has led the company to exist
board of directors - responsible for high level oversee of organization
Leaders and managers - workforce implications of different strategies, such as mergers,
acquisitions, restructuring. Concerned with senior leader succession plan. executing strategy
and overall organizational effectiveness.
supervisors - ensuring right people recruited, selected, trained and compensated
employees and candidates - organizations strategy will be a deciding factor for candidates if
they want to join the company
union - can impact org strategy
suppliers and customers - strategy will impact the nature of its strategy with the company
community
Descriptions of strategy
Strategy Formulation - the process of conceptualizing the org's mission, identifying its strategy,
and developing long-range organizational performance goals. can be termed 'the doing'. you are
enacting the plans during the strategy formulation process and launching the projects, creating
the work teams and taking the steps to the org goals
Strategy Implementation - the act and acts of putting long (8 years), mid- (5 years) and short-
range (1-2 years) plans into place. these are activities that employees and managers undertake
to enact the strategic plan and achieve performance goals.
Benefits of Strategy Formulation
clarity or purpose- will help what the org wants to achieve, where it is going and how it will get
there. can create the org employment brand. will help what kind of people you need
1
, STRATEGY
coordination
efficiency - what this means at your org. what would be an efficient recruitment process? Is it
the number of interviews each candidates must pass before give an offer?
incentives - the achievement of strategies can be tied to incentives. employees being rewarded.
this will impact the content and nature of the companies total rewards systems
change - strategy formulation can help identify the need to change.
career development - when everyone knows the org strategy it is easier for employees to
contribute to its achievement and in the process develop their own careers
Three types of Resources/Inputs
Three types of resource/inputs used in the production of goods and services are:
land
capital - machinery might replace labour to maximize productivity and profitability.
labour
this will shape where and how the org will operate.
Aligning HR Strategy
Aligning HR strategy with business strategy can be done in one of these ways:
o create an HR strategy based on the existing business strategy - the HR strategy is
formulated after the org strategy with input from all areas of the organization.
o Create the business strategy based on the required HR strategy - the dynamics of the
labour force that shape the organizations strategy. for example, not enough engineers
for org to achieve its plan, the org shifted its strategy by partnering with universities and
lobbied the gov't to increase skilled immigration with the hope to increase the supply of
engineers.
o use an iterative approach to develop the HR and business strategies simultaneously,
recognizing a "reciprocal interdependency" between the two. - this is true for industries
where human capital has a high value.
What is HR's role ?
Strategic partner or administration support?
HR Leadership:
Aligns HR & business strategies to be seen as strategic partners
engages in concurrent strategy formulation - the ability to anticipate and analyze situations and
develop strategy at the same time issues are occurring
flawlessly executes the basics including HR admin
speaks the language of the business
develops HR metrics to show they are a value to the org
Measures HR's value
Manage risks
raised employee expectations, ensure legal compliance. employees are dissatisfied if their needs
are not met
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller nadssslaville. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $30.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72349 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now