To achieve the desired output, an organization should include human resources in the formulation of the organizational strategy. HR strategy relates to selection, development and motivation of the right candidates for the job. To implement strategies effectively, plans and policies should be framed efficiently. According to Michael Porter, "Corporate Strategy is the overall plan for diversified businesses." There are three different types of corporate strategies. They are:
• Stability and
Growth: This strategy helps organizations to grow in the industry in which it operates. Growth strategy also helps employees to develop their skills and contribute to the overall performance of the organization. Growth can also be achieved by developing new products and services. An organization can keep pace with the changing market scenario by training and developing its employees to improve their performance. For the growth strategy to be successful, there is a need for effective planning.
Mergers usually provide a growth strategy. By merging dissimilar HR systems from different organizations a hybrid system may evolve. It is probable that two different systems existed for staffing, compensation, performance management and employee relations. The appropriate system may or may not be one of the best practices of both companies.
Stability: Stability is another corporate strategy where an organization adopts a status quo and sees very few opportunities for growth, Such organizations lack upward mobility and as a result, employees have very limited opportunities for growth and may leave the organization. For such organizations, it is important to develop effective retention strategies.
An organization attempts this strategy when it realizes that it is unable to compete in the global market. Often, a large organization will grow to a point where it becomes inefficient, particularly relative to smaller competitors and finds itself unable to respond to the changes in the market place. The organization under such circumstances tries to capitalize itself on the existing strengths to remain solvent. In this strategy, an organization goes in for cost-cutting and downsizing takes place in most organizations. When an organization attempts this strategy, it has to be careful in retrenching its employees. It must abide by the laws and identify the right individuals to be terminated. If the selection of the individuals to be retrenched is not done properly, then the organization may incur more losses as experienced employees leave the workplace. This strategy is mainly adopted to streamline operations and strengthen the organization's competency.
The organization should also make sure that the retrenchments do not affect the morale of the existing employees, as they can be disturbing to employees regarding job security. Employees may also be given additional responsibilities which can stress them out. Hence, it becomes all the more important for the organization to boost the employee morale to increase their productivity
To sum up BDS Recruitment among the top 10 International Recruitment Agencies is innovating newer techniques in combating a stable equilibrium in HR and corporate strategy as necessitated by major HR consultants in UK [https://bdsrecruitment.com/permanent-staffing/]. International Recruitment Agencies London are projecting incumbent endeavours in streamlining HR vis-à-vis Corporate Strategy.
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HR and Corporate Strategy by HR Consultants in UKHumor
To achieve the desired output, an organization should include human resources in the formulation of the organizational strategy.