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Bauer, Human Resource Management
SAGE Publishing, 2020
Lecture Notes
Chapter 2: Strategic HRM, Data-Driven Decision Making, and HR
Analytics
Learning Objectives
2.1. Identify the steps for formulating and implementing a strategy.
2.2. Define strategic HRM.
2.4. Demonstrate the use of data-driven decisions in realizing organizational strategy,
contrasting different HR analytics competencies and levels of HR analytics.
Chapter Summary
This chapter aims to provide readers with an understanding of the role HR plays in managing people to
achieve organizational success. The chapter begins with an overview on strategy and strategic human
resource management, including strategy formulation and implementation. Then, strategic HRM is
discussed. The origins of strategic HRM are laid out, emphasizing best practices and the consideration of
Annotated Chapter Outline
I. Introduction
A. Strategic human resource management: process of aligning HR policies and practices
with the objectives of the organization, including employee, operational, stakeholder,
and financial outcomes
II. What Is Strategy?: organization coordination to achieve planned objectives in the short and
long term
i. Strategy: well-devised and thoughtful plan for achieving an objective
a. Data analytics used to inform and support business strategies
a. Tesla and clean energy
B. Strategy Formulation: Developing and Refining a Strategy
i. Strategy formulation: planning what to do to achieve organizational objectives
a. Top-down versus bottom-up approaches
Bauer, Human Resource Management
SAGE Publishing, 2020
a. Mission: core need that an organization strives to fulfill and
represents the organization’s overarching purpose
c. Analyze internal and external environments
a. SWOT analysis: analysis of internal strengths and weaknesses
d. Pick a strategy type
a. Strategy type: general approach for how an organization will
bring its mission, vision, and values to life, while at the same
time leveraging its strengths and improving its weaknesses
e. Define specific objectives to satisfy stakeholders
a. Stakeholders: different groups that an organization must appeal
to, such as customers, investors and shareholders, employees,
and communities
f. Finalize strategy
C. Strategy Implementation: Bringing a Strategy to Life
i. Strategy implementation: organization follows through on its plan
III. Strategic HRM: Linking Strategy with HRM
i. Definition of strategic HRM
IV. From Then to Now: The Origins of Strategic HRM
i. Shift from personnel management to human resource management
B. Identifying Best Practices
i. Strategic HRM has roots in multiple disciplines
Bauer, Human Resource Management
SAGE Publishing, 2020
ii. Universal best practices and high-performance work practices
C. Considering the System and Context
i. Systems perspective: consideration of how all of the pieces of the HR puzzle fit
together, and how any misalignment can be addressed to optimize the overall
system of HR practices
ii. Synergy from a system of HR practices
a. Develop HR practices with strategic mindset
V. Strategic HRM, Data-Driven Decision Making, and HR Analytics
i. Increasing amounts of data and need for analysis of that data for decision making
ii. Integration of data analytics into HR function
B. Defining HR Analytics
i. Value of HR analytics
ii. Definition: process of collecting, analyzing, and reporting people-related data for
C. Identifying HR Analytics Competencies
i. HR analytics team: diverse backgrounds and perspectives
a. Seven competencies
ii. Importance of competency in statistics and data analysis
a. Communication issues
b. Light and heavy quants and analytical translators
D. Understanding the Levels of HR Analytics
i. Descriptive analytics: focus on understanding what has happened, which implies
a focus on the past
a. Typically include summary statistics
Bauer, Human Resource Management
SAGE Publishing, 2020
VI. HR Analytics and the Scientific Process
A. Step One: Identifying the Problem
B. Step Two: Doing Background Research
i. Look to prior theory and research to help understand the phenomenon under
investigation
C. Step Three: Forming a Hypothesis
i. Definition of hypothesis
D. Step Four: Testing the Hypothesis via Experimentation
i. The practicality of conducting a true experiment
ii. Qualitative versus quantitative data
a. Qualitative data: nonnumeric and include text or narrative data
iii. Big data versus little data
a. Big data: large amounts of unstructured, messy, and sometimes quickly
streaming data
usually for a previously planned purpose
iv. Data collection and measurement
a. Concept: theoretical phenomenon or construct
E. Step Five: Analyzing the Data
i. Qualitative data analysis
F. Step Six: Communicating the Results
i. Depends on the field of work and the company culture
VII. Ensuring HR Analytics Success
A. Considerations for a sustainable HR analytics function
i. Integration and embedding of HR analytics into HR and organizational strategies
Bauer, Human Resource Management
SAGE Publishing, 2020
