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THE STRATEGIC CONTEXT The Shanghai Portman Hotel In Chapter 1, we said that strategic human resource management means formulat ing and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. At the Shanghai Portman, the strategic human resource management process involved taking these steps: Strategically, they set the goal of making the Shanghai Portman outstanding by offering superior customer service. To achieve this, Shanghai Portman employees would have to exhibit new skills and behaviors, for instance, in terms of how they treated and responded to guests. To produce these employee skills and behaviors, management formulated new human resource management plans and policies. For example, they intro duced the Ritz-Carlton Company's human resource system to the Portman. Thus, the hotel's new head and his managers personally interviewed each job candidate. They probed each candidate's values, selecting only employees who cared for and respected others: "Our selection focuses on talent and personal values because these are things that can't be taught... it's about caring for and respecting others." Management's efforts paid off . Their new human resource plans and practices produced the employee behaviors required to improve the Portman's level of service, thus attracting new guests. Travel publications were soon calling it the "best employer in Asia," "overall best business hotel in Asia," and "best business hotel in China." Profits soared, in no small part due to effective strategic human resource management Step Description Example Step 1 What business are we in now? Step 2 Evaluate the firm's internal and external strengths, weaknesses, opportunities, and threats Step 3 Formulate a new business direction Step 4 Decide on strategic goals Step 5 Choose specific strategies or courses of action Step 6 Implement strategic plan Step 7 Evaluate strategic plan