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Strategy and people

Human resource management (HRM)

1.1 HRM and strategy

HRM plays a role in all elements of the strategic planning process:

 In strategic analysis, HRM can generate strengths and opportunities for a
business (or poor HRM might create weaknesses and threats).

 In making strategic choices, HRM can help a business to develop and sustain
competitive advantage.

 In putting strategy into action, we have seen in previous chapters that HRM can
play a vital role in creating good project managers, redesigning processes,
achieving a flexible organisational structure etc.

1.2 The goals of HRM

HRM plays a role in all elements of the strategic planning process:

 commitment (requires good motivation and leadership)

 competence (requires good recruitment, assessment, training and staff
development)

 congruence (requires good job design)

 cost-effectiveness (this normally comes from the achievement of the others).

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