This slide contains basics of Human Resource Management Strategy.

1. Human Resource Management Strategy
(HRMS)
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2. Human Resource Management Strategy
“Strategy” means -
 A critical factor that affects company’s performance,
 A factor that contributes to Competitive Advantage in
markets,
 Plans that involve the top executives and/or board of
directors of the firm,
 A general framework that provides a perspective for
selecting specific policies and procedures keeping long
term focus.
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3. Human Resource Management Strategy
Why is HR critical to firm performance?
 85% of all firms are service firms.
 Low quality HR leads to low quality customer service.
 Effective knowledge management translates into
competitive advantage and profits.
 Knowledge comes from a firm’s people,
 Buying an ATS (Applicant Tracking System) is also a
strategic question.
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4. Human Resource Management Strategy
What is unique about Human Resource Management?
 HR is multidisciplinary: It applies the disciplines of
Economics (wages, markets, resources), Psychology
(motivation, satisfaction), Sociology (organization
structure, culture) and Law (min. wage, labor contracts,
EEOC)
 HR is embedded within the work of all managers, and
most individual contributors due to the need of managing
people (subordinates, peers and superiors) as well as
teams to get things done.
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5. HR Strategy: Strategic Fit
Training Rewards
Corporate Strategy
Business Strategy
HR Strategy
HR System
(Performance Mgmt.)

6. HR Strategy: Strategic Roles
Critical Thinking Questions:
1. Which roles are Strategic?
2. What are the advantages of focusing on foot
soldiers with the company HR policies?
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7. HR Strategy: Consistency
Consistency is an important quality related to the
execution of HR policies. Employees should
receive a undiluted message of what behaviors
are important and desirable. When there is a fit
between HR systems, employees are likely to
receive consistent feedback.
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