Linking HRM with strategic goals & objectives in order to improve business eprformance and develop organizational cultures that foster innovation and flexibility.

Formulating and executing HR Systems/policies/activities-that produce the employee comptencies & behaviors the company needs to achieve its strategic aims

Steps in linking Strategic Planning and HR Planning

1- Mission/ Vision/ Values

2- Enviromental Analysis

3- Internal Analysis

4- Forumlating Strategy

5- Strategy Implementation

6- Evaluation & Assesment

(Figure 2.1 in text)

Statement indicating who the company is/ what it does/ where it is headed

(Basic Purpose/ reason for existance)

Statement of the organization's intended direction that evokes emotional feelings in members

(Where the company is going & what it can become)

1- Economic Factors & Developmental Information (general/regional/global conditions)

2- Industry & Competitive Trends

(new processes/services/innovations)

3- Technological Change

(IT/innovations/automation)

4- Government & Legislative issues

(laws & administrative rulings)

5- Social Concerns

(Child & elder care/environment & educational priorities)

6- Demographic & Labor Market Trends

(age/composition/literacy of labor market/immgration)

Customers

(in competitive environment)

Firm's strategy must focus on identifying needs of customers and creating customer value.

-work with top management to formulate a strategic plan

-very helpful with internal/ external audits

-keeps HR in focus

create HR policies/ procedures based on company strategies.

guides execution of major firm restructuring

Internal Analysis

(text)