2-review - HR Strategic Management Process/Types of...

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HR Strategic Management Process/Types of Strategies/ Strategic Planning The Management Planning Process starts with assessing an organization's goals and creating a realistic and detailed plan of action for meeting those goals. The first step is to identify specific company strategic objectives. The Hierarchy of Goals In companies, it is traditional to view the goals from the top of the firm down to front-line employees as a chain or hierarchy of goals . Figure 3-1 illustrates this. At the top, the president sets long-term or “strategic” goals (such as “double sales revenue to $16 million in fiscal year 2015”). His or her vice presidents then set goals for their units that flow from, and make sense in terms of accomplishing, the president’s goal. Then their own subordinates set goals, and so on down the chain. Policies: provide day-to-day guidance employees need to do their jobs in a manner that is consistent with the company’s plans and goals. Policies set broad guidelines delineating how employees should proceed. For example, “It is the policy of this company to comply with all laws, regulations, and principles of ethical conduct.” Procedures spell out what to do if a specific situation arises. Types of Corporate Strategies: When developing corporate strategy and organization needs to determine if there focus is on growth, stability, or renewal. Based on that assessment they will decide to pursue the following: Corporate Strategy : Identifies the portfolio of businesses that comprise the company and the ways in which these businesses are related to each other. It is to combine the activities of the various functional areas of a business in a way which will achieve its whole organizational objectives. Competitive Strategy : Managers endeavor to achieve competitive advantages for each of their businesses. Competitive advantages enable a company to differentiate its product or service from those of its competitors. Such differentiation allows a company to increase its market share. The method by which you achieve a competitive advantage in the market. There are typically three types of competitive strategies that can be implemented. They are cost leadership , differentiation and a focus strategy Functional Strategy: Functional strategies identify the basic course of action that each department will pursue in order to help the business attain its competitive goals. Human capital is one of the best competitive advantages because it is hard to duplicate a company’s personnel Organizational plan for human resources, marketing, research and development and other functional areas. The functional strategy of a company is customized to a specific industry and is used to back up other corporate and business strategies
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Why strategic planning is important to all managers?
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