Strategic management is the process whereby managers establish an organisation's long-term direction, setspecific performance objectives, develop strategies to achieve these objectives in the light of all the relevantinternal and external circumstances and undertake to execute the chosen action plans. The aims of strategicmanagement are to help the organisation to achieve a competitive advantage and to ensure long-term successfor the organisation
The HRM challenge
If HR managers are to be involved in strategic planning and decision making, they need to be strategiccontributors. Recognition of the important role that HRM plays in all aspects of a business requires HR professionals to improve their performance.
Summary
The present business climate requires HR managers to adopt a strategic approach, to be part of the topmanagement team, to be involved in corporate planning, to develop business know-how, to become bottom-line oriented and to develop a vision for HRM. HRM activities such as job analysis, recruitment andselection, and training and development must be part of a coordinated effort to improve the productivecontribution of people in meeting the organisation's strategic business objectives. Inability to do so means thatthe organisation will ultimately stagnate and fail. The shift from an industrial society to an information society presents Australia with the major challenge of improving its performance. Organisations must manage their employees quite differently if they are to compete successfully in a world where human resources are thecompetitive advantage. A revolution in management and HRM thinking is needed if the challenge is to be met.