The six principles of any strategic planning


Strategy is a word of military origin, it refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is concerned with how different engagements are linked. Building on the work of many thinkers on the subject, one can define strategy as "a comprehensive way to try to pursue political ends, including the threat or actual use of force, in a dialectic of wills - there have to be at least two sides to a conflict. These sides interact, and thus a Strategy will thus rarely be successful if it shows no adaptability.

Six Principles of strategy:

The six principles of any strategic planning are

Knowing the organisations Target Group - An Effective Marketing Campaign will be directly focused on selling your specific products. When you present your product to a specific niche, you increase the buyer interest exponentially, creating an opportunity for greater marketing success.

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Share your Genuine Passion - When you feel strongly about your product or service, the passion and enthusiasm you generate creates momentum that will ultimately sell your product or service. Your buyer will assume the same passion and begin to promote your product expanding your potential market with word of mouth marketing.

Dare to be Different and Unique - In a black and white world, wear RED and stand out in the crowd. Being different exemplifies quality, value, and independence within your market. When you present your business as Unique and Differentiate between yourself and others you Brand your business with Integrity and Independence.

Understand the Law of Success - Know that Success is the natural response to Marketing. Once you understand that Success is the Natural Response to marketing it's easy to accept a "No" with sincere grace and move on to the next customer. When you realize that making a sale is a direct result of having a product or service to sell, you can smile and walk away graciously when someone doesn't buy with confidence that they just don't need what you have to offer.

Know your Business Purpose - When you understand that your purpose in business is to make sales and market your product or services, then you begin to present your product and services in everything you do. Your website promotes your business, because it sells your products and services. Your business card, your letterhead, your copy, your mannerisms sell your business because that's the purpose and goal of your Business.

Find Results Oriented Solutions - Once your efforts are focused on solutions your business expands to encompass the process, developing new ways and concepts to offer solutions to your specific market. Your customers begin turning to you for all their solutions in your field and your company produces more and more solutions. The result of high quality business solutions is success.

Evaluate the processes of building a Human Resources Management strategy and assess the impact of HRM on the corporate strategy of a business.

Strategic human resource management is a complex process which is constantly evolving and being studied and discussed by academics and commentators. Its definition and relationships with other aspects of business planning and strategy is not absolute and opinion varies between writers. The definitions below are from the CIPD book Strategic HRM: the key to improved business performance1 within which there is comprehensive coverage of the various definitions and approaches to HRM, strategy and strategic HRM. 

Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organisation on the future direction it wants to take. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need. It has been defined as:

All those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of business.2

The pattern of planned human resource deployments and activities intended to enable the forms to achieve its goals.3

Strategic HRM can encompass a number of HR strategies. There may be strategies to deliver fair and equitable reward, to improve performance or to streamline structure. However, in themselves these strategies are not strategic HRM. Strategic HRM is the overall framework which determines the shape and delivery of the individual strategies. 

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Boxall and Purcell argue that strategic HRM is concerned with explaining how HRM influences organisational performance. They also point out that strategy is not the same as strategic plans. Strategic planning is the formal process that takes place, usually in larger organisations, defining how things will be done. However strategy exists in all organisations even though it may not be written down and articulated. It defines the organisation's behaviour and how it tries to cope with its environment. 

Strategic HRM is based on HRM principles incorporating the concept of strategy. So if HRM is a coherent approach to the management of people, strategic HRM now implies that that is done on a planned way that integrates organisational goals with policies and action sequences.

Impact of business strategy on business:

A good business strategy, one which is likely to succeed, is informed by people factors. One of the driving factors behind the evaluation and reporting of human capital data is the need for better information to feed into the business strategy formulation process. 

In the majority of organisations people are now the biggest asset. The knowledge, skills and abilities have to be deployed and used to the maximum effect if the organisation is to create value. The intangible value of an organisation which lies in the people it employs is gaining recognition by accountants and investors, and it is generally now accepted that this has implications for long term sustained performance. 

It is therefore too simplistic to say that strategic human resource management stems from the business strategy. The two must be mutually informative. The way in which people are managed, motivated and deployed, and the availability of skills and knowledge will all shape the business strategy. It is now more common to find business strategies which are inextricably linked with and incorporated into strategic HRM, defining the management of all resources within the organisation. 

Individual HR strategies may then be shaped by the business strategy. So if the business strategy is about improving customer service this may be translated into training plans or performance improvement plans.

Discuss strategic alliances/joint ventures, mergers and acquisitions, their level of success or failure, and what Human Resources strategies can be taken to deal with them.

Strategic alliance is a primary form of cooperative strategies. A strategic alliance is a partnership between firms whereby resources, capabilities, and core competences are combined to pursue mutual interests."2

Alliances can be structured in various ways, depending on their purpose. Non equity strategic alliances, equity strategic alliances, and joint ventures are the three basic types of strategic alliances.

Many fast-growth technology companies use strategic alliances to benefit from more-established channels of distribution, marketing, or brand reputation of bigger, better-known players. However, more-traditional businesses tend to enter alliances for reasons such as geographic expansion, cost reduction, manufacturing, and other supply-chain synergies.

As global markets open up and competition grows, midsize companies need to be increasingly creative about how and with whom they align themselves to go to the market. 

Before entering into a strategic alliance, enough thought is to be placed behind the structure of the relationship and the details of how it will be managed.

Explain and evaluate approaches to the search for and selection of employees, including the range of methods used.

An analysis of the job to be done written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage;

In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process).

Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection.

Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the 'cost' of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants.

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The main sources of recruitment are:

Internal promotion and internal introductions (at times desirable for morale purposes)

Careers officers (and careers masters at schools)

University appointment boards

Agencies for the unemployed

Advertising (often via agents for specialist posts) or the use of other local media (e.g. commercial radio)

Where the organization does its own printed advertising it is useful if it has some identifying logo as its trade mark for rapid attraction and it must take care not to offend the sex, race, etc. antidiscrimination legislation either directly or indirectly. The form on which the applicant is to apply (personal appearance, letter of application, completion of a form) will vary according to the posts vacant and numbers to be recruited.

It is very desirable in many jobs that claim about experience and statements about qualifications are thoroughly checked and that applicants unfailingly complete a health questionnaire (the latter is not necessarily injurious to the applicants chance of being appointed as firms are required to employ a percentage of disabled people)..

Interviewing can be carried out by individuals (e.g. supervisor or departmental manager), by panels of interviewers or in the form of sequential interviews by different experts and can vary from a five minute 'chat' to a process of several days. Ultimately personal skills in judgment are probably the most important, but techniques to aid judgment include selection testing for:

Aptitudes (particularly useful for school leavers)


General intelligence

Leaderless groups

Command exercises

Group problem solving

Training in interviewing and in appraising candidates is clearly essential to good recruitment. Largely the former consists of teaching interviewers how to draw out the interviewee and the latter how to xratex the candidates. For consistency rating often consists of scoring candidates for experience, knowledge, physical/mental capabilities, intellectual levels, motivation, prospective potential, leadership abilities etc. Application of the normal curve of distribution to scoring eliminates freak judgments.

Give an appraisal of the role of performance review and strategies, and the problems they pose.

Yearly performance reviews are critical. Organization's are hard pressed to find good reasons why they can't dedicate an hour-long meeting once a year to ensure the mutual needs of the employee and organization are being met. Performance reviews help supervisors feel more honest in their relationships with their subordinates and feel better about themselves in their supervisorial roles. Subordinates are assured clear understanding of what's expected from them, their own personal strengths and areas for development and a solid sense of their relationship with their supervisor. Avoiding performance issues ultimately decreases morale, decreases credibility of management, decreases the organization's overall effectiveness and wastes more of management's time to do what isn't being done properly. Conduct the following activities.

Explain the different types of pay used to reward workers, and the circumstances under which each ones used.

There are various methods for paying employees, including cash, cheque or by electronic transfer directly into the employee's bank account. 

Cash can be labour-intensive to organise and is a security threat.

Cheque payments are more secure, though employees have to wait several days for the cheque to clear.

Electronic transfer is a quick and secure option. Talk to your bank for advice on setting this up.

Payroll system options:

Some employers prefer to outsource their payroll system using payroll service companies.

Payroll software:

There are many good payroll software programs available, which can take some of the stress out of the process. Payroll software can:

Save you time.

Produce payslips automatically.

Avoid complicated calculations involving tax and NI tables.

Automatically generate the information required for your end-of-year returns.

Payroll service companies:

These companies provide fully-qualified payroll managers to administer to the needs of your business. The main advantages are:

You don't need to be a payroll expert, as much of the burden is taken away from you.

Such companies usually have all of the automatic links required with the banks and HM Revenue & Customs (for the submission of end-of-year returns).

All statutory obligations will be taken care of as and when they change.

Security-sealed payslips and comprehensive management reports are supplied.


Explain the distinction between financial and non-financial rewards/benefits and evaluate the effectiveness of each.

Financial and non financial rewards or benefits are the motivation concepts of the organisations to keep the employee very energetic and work alcoholic. For the work done by the employee he expects some kind of reward.

For this reason companies provide rewards to their employees in the form of money in incentives or by giving them the gifts. This kind of rewards makes the employee happier and the work can be done very sincerely.