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Advantages of Strategic Management

Advantages of Strategic Management
Advantages of Strategic Management A couple of definitions on STRATEGIC MANAGEMENT Strategic management involves formulation and implementation of the major goals and plans taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. The methodical analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices is another well known definition.  The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities. Advantages: 1. Discharges Responsibility The process of strategy formulation satisfies the expectation from shareholders, stakeholders and the general public at large, that a strategically managed organization will discharge its duties successfully. 2. Allows an Objective Assessment Strategic management provides a CONTROL that allows the senior management team to take a step back from the day-to-day business and CONTEMPLATE  about the future of the organization. 3. Faciliatates to Make Wise Business Decisions Strategy provides the framework within which EXECUTIVES at lower and middle levels can make day-to-day operational decisions that are aligned with the accomplishment of the organization’s goals. 4. Enables Understanding and Improves co-ordination between different departments Allowing participation in the strategic management process enables better understanding of the direction, why that direction was chosen, and the associated benefits. Good strategy formulation and communication process are vital steps in enabling effective and efficient strategy deployment. 5. Simplifies Measurement of Progress Strategy sets the direction and empowers an organization to bring into line its objectives and performance measures. These objectives and performance measures allow meaningful information to be provided to decision-makers regarding the organization’s progress through such tools as scorecards and dashboards. 6. Enhances Strategic Agility (Innovation) When a firm can successfully capitalize upon opportunities resulting from unanticipated and significant change, it is said to be innovative as it has a competitive edge over other firms. 7. Ensures Allocation of Resources: The limited resource is properly allocated to different functional levels so as to create value for all stakeholders. A targeted approach to markets and opportunities obviously strengthens your bottom line. A simple representation will make your understanding better: Enhanced Communication DIALOGUE PARTICIPATION | | Deeper/Improved Understanding OF OTHER’S VIEW OF WHAT THE FIRM IS DOING  | | Greater Commitment TO ACHIEVE OBJECTIVES TO IMPLEMENT STRATEGIES TO WORK HARD | | The Result ALL MANAGERS AND EMPLOYEES ON A SINGLE MISSION TO HELP FIRM SUCCEED...
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Basic Trends in HRD

Basic Trends in HRD
Basic Trends in HRD – #Human Resource Development The basic motive of HRD would be to develop an enduring and healthy #work culture. It should also take into its fold the #training and developmental aspects of the workforce that forms the significant segment of the organization. It is a means to improve the overall organizational effectiveness but not an end in itself. HRD Philosophy: The philosophy of an organization is understood through #policies and operations and not merely through its programmes. HRD policies, #plans and action must commence from business #strategy. The key to the success of HRD is undoubtedly good industrial relations enhanced by effective #employee participation and existence of good #collective bargaining machinery. A Source of Motivation: Though #man power planning, training and #appraisal seem to be the core activities of HRD, it must also be used as an instrument for changing the work culture and motivating the workforce. This considerably improves the network of communication resulting in a sea change or turn around in terms of employee participation and #commitment. Concept of HRD: The #business environment is dynamic and so are the demands of the market. It is but important to review the organization structure to meet these demands of the changed environment. To establish and endure a #productive work culture to bring about improvements in organizational as well as technological disciplines. To train and develop employees in new skills for new #technology advanced operations and effective #performance. To bring about progress in the motivational #climate of the organization To bring the systems and procedures in line to deliver the expected results To reinforce participative culture and safety systems To maintain peaceful industrial relations in the production environment To revamp man power planning in order to match the individuals with jobs to #optimize utilization of available skills. Changing Environment: The process of HRD is directly linked to OD to facilitate the development of an organization in totality. To restructure organization in terms of #physical resource, #monetary resource and technology, one has to first understand the changes happening and challenges existing in the immediate external environment. Some of them would be #Competitor Pressure #Globalization of markets Rising aspirations of people at large Governmental policies etc., How has HR used #social media? A relatively late-adaptor, HR has largely used social media in recruitment…and indeed how!!! – In 2010 in US, only 6% of companies were using social media for recruitment, now that has exploded to 89% – 82 of the Fortune 100 companies uses the corporate hiring solutions of #LinkedIn – About 21% of working professionals are looking for a job – social media helps companies tap into the other 79% as well. Bullhorn’s 2012 Social Recruiting Activity Report says:“A #Twitter follower is almost 3 times more likely to apply to a job posting than a LinkedIn connection and 8 times more likely to apply than a #Facebook friend.” Human Resources professionals understand that social media ishere to stay…That’s the easy answer!!!The challenge is integrating use of a cohesive, relevant andeffective social media strategy aligned to the overall HR & business strategy of the organization. Information Courtesy – by National HRD...
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Industrial Relations

Industrial Relations
INDUSTRIAL RELATIONS STRATEGY THE INDUSTRIAL DISPUTES ACT, 1947: An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes. It is a universally accepted fact that maintaining industrial peace is of significant importance as it yields higher productivity and arrests industrial unrest. Conflicts manifest themselves in the form of strikes, poor productivity, absenteeism and attrition. These are symptoms of growing conflicts which the management has to weed out right at the start and remove the discontent amongst their employees. Relationships can always be complex or they can always be simple depending on your attitude, how you look at it. In a larger scale, definitely it is a complex phenomenon that has to be dealt with utmost care, as feelings and emotions take lead during problem situations and logic and discipline are conveniently forgotten. Employee Participation: Employee participation is the only way to promote industrial democracy and peace. In course of time it becomes a business strategy and takes the shape of self-management when the pressure of management is eased out to a larger extent. Always remember that the confidence on your workers proves to be the key that opens the door of trust and reciprocation. Workers also understand the storm and turbulence that the management experiences in terms of finance and selling. Proper Training: Proper training given to the heads of various departments in terms of attitude, language, behavior, presence of mind and employee motivation helps the management to avoid unnecessary conflicts. Training given to the union leaders of various capacities on the other hand boosts up their confidence and make them feel as “one” with the management. Social relations are always not to be taken for granted as it determines your integrity and success in the business society. Some golden rules or strategies to make your working smooth and avoid conflicts and strikes. (Works out for both sides) Put yourself in other man’s shoe to know or understand why the other side has taken that particular “stand” or position and many a time we come to know it is only due to misguided apprehensions, mistaken beliefs or just fear of change that is an inherent quality in humans. They resist change as it is simply their habit. The negotiator who represents your side should be agreeable, affable and he should be able to project your ideas and claims in a proper manner and also he should protect your interest. See to it that he doesn’t fall bait to some attractive offers from the other side. Approach the problems with an “open mind”; don’t give space for rumors and gossips. Let the conversation between you and your opponents (not enemies) be fair and square and straight forward. Also don’t try to beat around the bush as it is a colossal waste of useful time and energy and of course your hard earned money. Consider union as a partner and not a “necessary evil”. You have to “work-with” and “live-with” them. In fact smooth relations make work easier and concern for the welfare and security of your employees make them come closer to you and contribute more in terms of productivity. Identify the anchor persons who can be dealt “in person” to make things easy for both sides and find out what their very idea of negotiation is, to finish the deal with minimum effort. The management must create a sense of belongingness in the minds of employees. Survival and success of an organization depends solely on the very survival and success of their workers who believe that work is...
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Critical Factors of HR

Critical Factors of HR
Managing Critical Factors of HR The prerequisite for an organization to excel in all aspects of its business activities is absolute strategic management of its HR functions.Human resource management is an extensive term that covers various aspects of personnel function. This discussion is focused on three main aspects that constitute human resource management. Personnel administration Human resource development Industrial relations Personnel administration: It can be also called as the HR module where policies and programmes are laid down by the HR department for the benefit of the human resource personnel. Employment and compensation are chiefly dealt with in personnel administration. While business firms in the corporate environment are in constant demand of man power, finding the right person for the right job is always a testing task for them. Right from job analysis to HR planning, recruitment, selection, placement, induction and orientation, HR department is held accountable to define and develop these operative functions. Mere acquisition and incorporation of human resource is not adequate, the organizations have to engage themselves in empowering their employees through competent training, motivation and refining their social relations. Job Assessment: Job assessment has to be done for fixing compensation that includes wages and salary administration, incentives, bonus, fringe benefits and social security measures. The shifting business environment and consumer requirements compel the organizations to restructure and re-engineer their organizational functions. These moves can be viewed as strategic responses reflecting from all domains of an organization, namely product, marketing, manufacturing etc., where people are the centre of focus. Human resource development: This is easier said than done. Firms are trying to evolve and employ various methodologies of training to enhance the performance levels to the desired standards. Performance cannot be achieved by coercion or bureaucracy, as the work force is protected by numerous enactment of labor laws enforced by various governments. Training and development is a separate entity by itself and is a continuous process that aims at the development of the organization as a whole and also facilitates employee career planning and development. Industrial relations: The following factors have to be scrutinized by the management to maintain good personal relations with the employees. Motivation Morale Job satisfaction Communication Grievance handling Discipline procedure Quality of work life Employee participation All said and done, the organizational health can be measured by checking the effectiveness of HR management through aspects like HR audit and research that aid the firms to analyze and understand the extent to which they are efficient in utilizing human resource for the benefit of their organization. The experience of a human resource manager comes in handy at situations like these, where he has to don different roles to suit the occasion. Personnel role-advisor for top management, policy maker, counselor to employees, spokesman of the company, change analyst, liaison Welfare role-researcher, catering man, motivator Clerical role-time keeping, wages and salary administration, record maintenance, human engineering Fire fighting legal role-negotiator, trouble shooter, peace maker, problem solver, grievance handling. The management employs scientific, analytical, psychological and social techniques to build the business around human resource, who are the real value additions to the...
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Grading Your Employees’ Performance

Grading Your Employees’ Performance
How to Grade Your Employees on Their Performance Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. Organizational Development: Organizational Development denotes an overall and comprehensive development of an organization supported by the entire team of employees working for that organization. A useful technique in the management process that serves as a measure of performance and productivity is “performance evaluation” or performance appraisal. Performance refers to the degree of accomplishment of the task that makes up an individual’s job. Performance appraisal serves the following purpose: To assess the present levels of employee performance. To understand the future needs in training and development based on the strengths and weaknesses of the employees. To provide feedback on their performance. Serves as a basis for reward allocation, such as, increase in pay scale, promotions and many other decisions like, confirmations, transfer, demotion etc. , Establishes performance standards and offers scope for improvement. Acts as a motivational tool for workers to perform better. Checks and facilitates employees who exhibit poor performance. Also assesses behavioral pattern of the employees. People who work for big corporate companies identify themselves with the objectives of the company and expect feedback, either in the form of a compliment or criticism. Compliments act as morale boosters to perform better and criticism though initially might puncture the ego, induces the potential to perform, to prove oneself. Managers should never be reluctant on their part to appraise subordinates on the job expectations and demands. In an activity as important as managing, there must be no pitfalls to measure performance as accurately as possible. The Appraisal Process: The next important aspect in the appraisal process would be deciding the content to be appraised. Individual task outcomes where performance is evaluated on the outcomes delivered by the individuals, evaluation of personal characteristics and traits or behavior are done to rate the employees as to where they stand in terms of performance. Appraisal Techniques: The widely used managerial technique in the appraisal process is evaluating performance against verifiable objectives, which truly makes sense, because the employees would be blind folded if they don’t have the right direction to proceed. Evaluation can be done in a comprehensive, periodic or continuous fashion. It all depends on the nature of work done, company practice and other situational factors. Say, for instance, performance review can be done after the completion of a major project, that makes sense, doesn’t it? Periodical reviews: Formal reviews can be supplemented and supported with frequent and short informal reviews, for the superior- subordinate relationship to prosper and to keep communication channels open. All said and done, performance review based on verifiable objectives, although gives better vision and clarity, doesn’t allow the manager or subordinate to grow individually. It does not help in personality development, the emphasis ever being focused on accomplishing the operating objectives. The 360 Degree Apparaisal: The latest approach of performance evaluation is the 360 degree appraisal that well suits the managerial cadre. It provides for performance feedback from the full circle of daily contact, that a manager might have, ranging from customers, peers, subordinates, boss etc. , This also fits into organizations that have introduced teams, employee participation and total quality management...
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