Strategic planning: The process of developing and maintaining a strategic fit between the organization’s goal and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies. Strategic planning sets the stage for the rest of the planning in the firm. Companies usually prepare annual plans, long range plans, and strategic plans. The strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing environment.
What are the fundamental concepts of planning and why is planning important? Planning basically refers on what has to be done keeping in mind other important points like when it has to be done and how. It is highly beneficial that an organization spends time on planning its activities and resources using sound business concepts. The fundamental concepts of planning include- • Situation Analysis- This process involves a thorough review of the internal and external factors that facilitates businesses to determine their goals and objectives. Also, such data can be used as an input for SWOT analysis which includes the assessment of strengths, weaknesses, opportunities and threats that the organization sustains with.
This writer would employ development planning which is directly integrated with the business needs and competency requirements (Silzer & Dowell, 2010). Specific techniques would include but not be limited to, collected data analysis from current business and other similar businesses, looking at future requirements needed to stay competitive with service. This writer would look at the roles of individuals in the organization, from top to bottom, that are needed to fulfill the business objective of the organization. Defining role requirements, to include responsibilities and accountabilities, performance metrics, core and technical competencies and critical experience skill sets (Silzer & Dowell, 2010). Human capital with diverse skills and abilities is strategically essential for organization to compete in the future.
Necessary Conditions for determining business strategy As stated above, supported by Mathis R.L and Jackson, J.H (2012), the strategic plan of an organization emanates from its vision and mission. Such plans are reached after due consideration of the factors which affect the success or otherwise of the processes and outcomes of such plans. These factors are both internal (the strengths and weaknesses available in the resources; both human and material within the organization) and external (the threats and opportunities available outside the organization; dynamism of the business world, globalization trend, the impact of information and communication technologies on world business). As mentioned by Whittington (2001) cited by Pilbeam & Corbridge (2010), senior managers who come up with strategies for their organization should do so considering two dimension; the processes of such strategies and the outcomes. According to him, the processes are either deliberate or emergent while the outcomes are either profit maximization or pluralist in nature (including other goals and interests of the organization).
An organization can define its strategic human resource roadmap by availing framework in which to plot a course to its future. For the achievement of this, an organization has to avail findings for utilization as benchmark for comparison with its assumptions, strategies and directions. The proper analysis of these factors may enable an organization to gain competitive advantage via its human resources in the marketplace. In the business context, the marketplace not only includes goods and services but also a good employer with both potential and existing employees (Thomas Cummings, 1994). On the other hand for an organization to effectively stimulate dialogue with its employee... ... middle of paper ... ...ivity-measurement-increases-competitive-advantage/ Gireesh Sharma, (2010).
It encourages the organisation matches its resources and capabilities to the external environment to achieve competitive advantage. Luck can make a business successful but a business strategy can provide a guide line to follow to achieve competitive advantage. One can safely say that strategy rather than luck is important to the future running of the business
Different organisations have different action plan depending on the sector of delivery, business condition, organisational structure and resources available. Kavale (2012) notes that creating an organisational strategy entails comparing the current situations of the company and its targeted state and determining the difference and how to fill the gap. He further states that filling the gap may involve integrating new approaches or changing the existing ones (2012). Based on the case study, Carlson’s strategy – short-term and long-term – involves executing best leadership practice especially in terms of decision making process, engaging employees and suppliers in their operations, strengthening the relationship with customers and applying the latest technology framework to improve business
Therefore, there are two kinds of planning Business SWOT Analysis and Communication planning that leads to the success of any company. Business SWOT Analysis is a way to uncover opportunities and a great way to prioritize the company’s expectations to achieve their goals. What is Business SWOT Analysis? “S” stands for strengths, “W” stands for weaknesses, “O” stands for opportunities and “T” stands for threats.
Section One Strategic human resource management (SHRM) is a tactical method for the management of an organisation’s human resource function in line with organisational goals and objectives. SHRM enhances these functions by linking the traditional human resource practices to business strategy and the realization of organisational goals in order to enable the organisation to achieve a competitive advantage. Importance of SHRM in Organisations According to Wei (2006), properly designed and executed SHRM can facilitate the achievement of organisational goals. Clearly set goals of an organisation require the dedication of all the organisation’s employees. It is the duty of the human resource department of the organisation to identify the business sectors that require human resource expertise.
Using the discussion from the text, how would your team describe the difference between a goal in the strategy? Identify both the goal and the strategy for company that you are famil-iar with. In order to have a successful organization in today’s society, top managers must set goals and have strategies in place to compete in a competitive environment. Establishing goals and strategies makes a company unique within the market place in different industries. Goals and strategies give a sense of structure to organizations.