Module 1: definition and evolution
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Strategic HRM
an approach that defines how the organization’s goals will be achieved in the context,
through people, by means of integrated HR strategies, policies and practices.
Strategic fit
Expresses the degree to which an organization is matching the resources and
capabilities with the opportunities in the external environment.
 Resources: what is owned by the company
 Capabilities: things u can increase e.g. Knowledge
A crm could be a good strategic fit but if u don’t have the capability of how to
use the crm, it’s a waste of time/money.
 Importance of strategic fit
o Achieving competitive advantage: Strategic fit is important because it
can help a company achieve a competitive advantage. By aligning its
resources and capabilities with its strategies, objectives, and the
external environment, a company can gain a sustainable edge in the
market.
o Improving decision-making: Strategic fit can also help improve
decision-making in a company. By understanding the company’s goals
and objectives, the decision-makers can make better decisions about
how to allocate resources and develop strategies.
o Improving operational efficiency: Strategic fit can also help improve
operational efficiency by ensuring that the company’s processes and
procedures are aligned with its overall strategy. This can help the
company minimize waste and maximize efficiency.
o Creating a unified culture: Finally, strategic fit can help create a unified
culture in a company. By ensuring that all employees understand the
company’s goals and objectives, they can work together to achieve
them. This can lead to improved morale and greater productivity.
 With a strategic fit we want to find the capabilities and resources and match them
together which can lead to a competitive advantage which the company can profit from
 The concept of strategic fit can be applied to different areas of company
management:
- In the area of human resources, a company can use strategic fit to align its
recruitment and selection process with its business strategy. By understanding
the company’s goals and objectives, the HR department can ensure that it is
recruiting and selecting the right people with the right skills and abilities to
support the company’s strategies.
 Horizontal fit: HR practices you align e.g. aligning recruiting with training
 the alignment of HR practices across different functions or departments within
an organization. This means that HR practices should be consistent and integrated
across the organization, regardless of the function or department. Horizontal
strategic fit ensures that HR policies and practices are applied consistently across the
organization, which can improve collaboration and teamwork and help to avoid
conflicts or inconsistencies.
 Vertical fit: HR policies that are aligned with organization.
 alignment of HR policies with the overall business strategy of the organization.
This means that HR practices should be designed and implemented in a way that
supports the organization's strategic goals and objectives. Vertical strategic fit
ensures that the HR function is aligned with the broader goals of the organization
and that HR policies and practices are consistent with the overall strategy.
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Strategic flexibility
(how does a company respond to global changes)
Ability of the firm to respond and adapt to changes in its competitive environment.
e.g the war between Ukraine and Russia had an impact on organizations.
 VUCA
HR process
Process developed by HR.
refer to the methods and procedures that an organization follows to manage its
human resources. These processes can include recruitment, onboarding,
performance management, training and development, and offboarding.
 the steps taken to manage employees in accordance with these policies.
e.g. a test during the selection process
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HR policy
The formal document where HR process is written down.
The guidelines and rules that an organization sets for managing its employees. These
policies can include compensation and benefits, code of conduct, disciplinary
procedures, equal employment opportunity, and workplace safety.
 HR policies set the rules and regulations that employees must follow.
E.g. recruitment policy: what is the recruitment process, who’s responsible…
HR practice
The actions an organization takes to implement its HR policies
 HR policies set the standards and procedures for HR practices to follow.
Difference between HR practice and HR process
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HR process refers to a series of systematic steps or procedures that an
organization follows to manage its human resources. HR processes include various
stages of the employee lifecycle, such as recruitment and selection, onboarding,
performance management, employee development, compensation and benefits
administration, and separation or offboarding.
HR practice, on the other hand, refers to the actual implementation of HR policies
and procedures within an organization. HR practices are the practical, day-to-day
actions and behaviors that an organization's HR team, managers, and employees
undertake to manage their human resources effectively. Examples of HR practices
include conducting interviews, setting performance goals, providing training and
development opportunities, and administering employee benefits.
In summary, HR process is a structured series of steps or procedures that an
organization follows to manage its human resources, while HR practice refers to
the actual implementation of HR policies and procedures within an organization.
HR processes provide a framework for HR practices to follow and ensure that all
HR-related activities are conducted in a consistent, systematic manner.
Stakeholders
Stakeholders in a company refer to individuals or groups who have an interest or
concern in the operations, performance, and outcomes of the business.
 Organization/ management
 Individua/ employees: developing hR policies for different generations
 Investors: ROI
 HR
 Shareholders
 Teams/ Leader
 Customers: HR has a customer next to them, immediate impact and recruiting
the right ppl  including a sh in recruiting policy
 Unions
 Suppliers
 Government
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Society: how can a company impact society from an HR point of view e.g.
electrical bikes for employees
Summary
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Strategic HRM?
3 elements: organizational success, outside perspective (VUCA), connected
mindset with internal and external stakeholders
Evolution strategic hrm
Different elements shrm
How is shrm implemented in organization: are they sitting at the table or is it
solely for payroll
All terms mentioned
Module 2: Are We There Yet? What’s Next
for HR (Dave Ulrich)