Strategic business planning function develops

Strategic business planning function develops

Strategic Formulation

 

·          The process of deciding on a strategic direction by defining a company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.

 

Strategy Implementation

 

·          The process of devising structures and allocating resources to enact the strategy a company has chosen.

 

Strategic Human Resource Management (SHRM)

 

·          A pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

 

Four levels of intergation between the HRM function and the strategic management function:

 

·          Administrative Linkage
2) One-Way Linkage
3) Two-Way Linkage
4) Integrative Linkage

 

Administrative Linkage

 

·          The HRM function's attention is focused on day-to-day activities (lowest level of integration).

 

One-Way Linkage

 

·          The firm's strategic business planning function develops the strategic plan and then informs the HRM function of the plan.

 

Two-Way Linkage

 

·          Allows for consideration of human resource issues during the strategy formulation process. Occurs in three separate steps:
1) The strategic planning team informs the HRM function of the various strategies the company is considering,
2) the HRM executives analyze the human resource implications of various strategies, and
3) the strategic decision is made.

 

Integrative Linkage

 

·          HRM functions built right into the strategy formulation and implementation process.

 

Five major components of the strategic management process are relevant to strategy formulation

 

·          Mission
2) Goals
3) External Analysis
4) Internal Analysis
5) Strategic Choice

 

Mission

 

·          A statement of the organization's reason for being.

 

Goals

·          What an organization hopes to achieve in the medium- to long-term future.

 

External Analysis

 

·          Examining the organization's operating environment to identify strategic opportunities and threats.

 

Internal Analysis

 

·          The process of examining an organization's strengths and weaknesses.

 

Strategic Choice

 

·          The organization's strategy; the ways an organization will attempt to fulfill its mission and achieve its long-term goals.

 

SWOT

 

·          Combination of external and internal analyses that provides the strategic planning team all the information it needs to generate a number of strategic alternatives (S-trengths, W-eaknesses, O-pportunities, T-hreats)

 

Strengths

 

·          Any activities the organization does well or any unique resources that it has.

 

Weaknesses

 

·          Activities the organization doesn't do well or resources it needs but doesn't possess.

 

Opportunities

 

·          Positive trends in the external environment.

 

Threats

 

·          Negative trends in external environmental factors.

 

Five important variables that determine success in strategy implementation

 

·          Operational Structure
2) Task Design
3) Selection, Training and Development of People
4) Reward Systems
5) Types of Information and Information Systems

 

Job Analysis

 

·          The process of getting detailed information about jobs.

 

Job Design

·          The process of defining the way work will be performed and the tasks that will be required in a given job.

 

Recruitment

 

·          The process of seeking applicants for potential employment.

 

Selection

 

·          The process by which an organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help it achieve its goals.

 

Training

 

·          A planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

 

Development

 

·          The acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in client and customer demands.

 

Performance Management

 

·          The means through which managers ensure that employees' activities and outputs are congruent with the organization's goals.

 

Role Behaviors

 

·          Behaviors that are required of an individual in his or her role as a jobholder in a social work environment.

 

Consolidation

 

·          Reduction in the numbers of firms within the industry.

 

Four Categories of Directional Strategies

 

·          Concentration Strategies
2) Internal Growth Strategies
3) External Growth Strategies
4) Downsizing

 

Concentration Strategy

 

·          A strategy focusing on increasing market share, reducing cost, or creating and maintaining a market niche for products and service.

 

Internal Growth Strategy

 

·          A focus on new market and product development, innovation, and joint ventures.

 

External Growth Strategy

 

·          An emphasis on acquiring vendors and suppliers or buying businesses that allow a company to expand into new markets.

 

Downsizing

 

·          The planned elimination of large numbers of personnel, designed to enhance organizational effectiveness.