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  Strategic HRM: Pulak Das1 Resource Driven Strategy:  An introduction Lecture slides for Chapter 3  Strategic HRM: Pulak Das2 Objectives ã To understand how higher profitability of a firm vis-à-vis its competitors could be explained as an outcome from better deployment of its productive resources and what long term business policies it can adopt to maintain its competitive positions.  Strategic HRM: Pulak Das3 Two approach to business strategy ã Market Driven Strategy: ã Resource Driven Strategy: ã Fundamental Difference between the two  – What explains the high difference in profitability between two companies ? ã Example: In 2006-7, the profitability of BHEL was 22% while that of BEML was  just 12%  Strategic HRM: Pulak Das4  Annual Report of BHEL ã 2005-6 2006-7 2007-8ã Value of (RsCr)13675 17324 20090ã Productionã Profit before tax 2564 3636 4430ã Profit/ VOP 19% 21% 22%

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