SHURMAN Chapter 3Strategic Management process where organizations attempts to determine what needs to be done to achieve corporate objectives and how this objective are to be met. STRATEGIC HUMAN RESOURCE MANAGEMENT The idea is that all initiatives involving how people are manage needs to be aligned with and in support with the organizations over all strategy.

Models of Strategic Management1. Industrial organization (I/O) model (external environment)2. Resource based view (RBV) (resouces and capabilities)

The Process Strategic Management Mission Statement In very simple terms - Explains the purpose and reason for existence Very broad - Limited to no more than a couple of sentence Very difficult to construct

Analysis of Environment Competition and industry structure Government regulation Technology Market trends Economic trends

Organization Self-Assessment Establishing Goals & Objectives Setting Strategy

Organization Self Assessment Resources Financial internal funds, borrowed Physical equipment, machinery Human technical knowledge, personal traits Technological production, patent Capital - intangible Management system Culture value Structure - organizational chart Power dynamics and politics Decision making process involved, process Past strategy and performance past initiative, past achievement Work system job design, assignments

Establishing Goals specific measurable flexible

Strategy Is how the organization intends to achieve its goal The courses it will take Generally operate and compete

Corporate Strategies Growth Merger and acquisition Turnaround or retrenchment

Business Unit Strategies Cost leadership Differentiation Focus strategy

Component StrategyINNOVATION AND CREATIVITY Driver of growth or can be a critical component of retrenchment strategy The strategy itself it is a means of carrying out the other strategies