The Strategies At Different Level Of Business Business Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Strategies are the most important tools of an organization which guide them the direction they should move on. Every strategy has an objective .For a successful strategic implementation an organization must be a aware of the resource which is available and its proper utilization of achieving the objectives, here HRM plays its role human capital is one of the most important resource of an organization. Without this resource an organization would not be able to achieve its strategic objectives . Ed van Sluijs (1994) and Frits Kluytmans (1994) argues that "The relation between business strategy and HRM Is referring to the relationship between the factors and actor involved " ( Ed van Sluijs , 1994 ; Frits Kluytmans, 1994 , P.2 ). A proper connection between business strategies and HRM leads a business firm to success.

Business strategy

Gerry Johnson (2010), Kevan Scholes (2010) and Richard Whittington (2010) argues that "Strategy is the direction and scope of an organization over the long term which achieves advantage for the organization through its configuration of resource within a challenging environment to meet the needs of markets and to fulfil stakeholder expectations". Business strategy is not just a views, mission , goals and plans it is the results of executives on their choice where to play and how to win , how to maximize the long term value .The aim of a business strategy is to strengthen a specific business so that its functioning and profit can increase. Strategy is a guide for every organization in its success

Strategies at different level of business




Strategies are formulated depends on the environment of an organization which means depends on its size and situation strategies can vary from companies to companies for a small organization strategy will be simple , less challenging and less complicated as organization size becomes increase strategy will be more complicated, more diversified and challenging strategic development happen at three different levels

Corporate Strategy

Benita Steyn(2003) argues that "Corporate strategy is the responsibility of the board and top management for the organization's financial performance" (Benita Steyn, 2003, p.7). In details it is the high level strategy in an organization. A corporation is a common word used for a business organization and which is commissioned by a state. A corporate business is characterized by limited liability of its owner. Corporate strategy mark out the market and the business field in which the organization chosen to play and depends on this environment the competitive and business strategy will be taken in the organization corporate strategy is very concerned with the use of the available resources to achieve the organization's mission more over the success of a corporate strategy depends on organization strength , capabilities and weakness

Business Unit Strategy

Benita Steyn (2003) argues that "Business Unit strategy pertains to an organisation's approach in competing in its chosen market, product and industry segment" (Benita Steyn, 2003, p. 7). Which means a Business unit is a separately managed division of a large organization with strategic objectives Given by the top management and business unit will make another strategy for achieving the top management views. In simple words it is a second layer of strategy taken in an organization and the business unit will be responsible for their own division profit and loss and answerable to the upper management. Business unit strategy is synonymous with corporate level strategy

Functional Strategy

Benita Steyn (2003) argues that "Functional strategy contains the details of how the functional areas such as marketing, operation, finance etc. should work together to achieve higher-level strategies it is most closely associated with strategic implementation" (Benita Steyn, 2003, p. 7). In details functional strategy means the functional department of an organization such as operation department , marketing department production department etc pursues to business unit for shaping their strategy In other words it is the bottom level strategy in an organization this strategic level is aware of how each of other their function contributing to business unit strategy the main function or aim of functional strategy is the proper use of resource for achieving the business unit goals

Strategic Management

Benita Steyn (2003) argues that "Strategic management is a process refers to the method by which strategies are derived, referring to the different or phase through which strategies are formulated and implemented" (Benita Steyn, 2003, p. 8) . Strategic management is the bundle of decision and act undertaken taken by managers for the best performance and competitive advantage for their organization the manager must have a good knowledge about competitive organization environment so that he can take right strategic decisions at right time strategic management is a continuous process of evaluating the present business environment and taking right strategic decision so that the organization can control business. The main role of strategic management is to keep a continuous eye in the goals and objectives of the organization and making its success

3.2.1 Strategic Management Process



Strategic Analysis

Strategic analysis is observing what's happening outside the organization at present and in the future it will help the organization to lead better quality decision and more secure future

Strategic Analysis Tools

A Technique used for understanding the environment which organization operates

Pest Analysis

A Technique that build various believable views of possible future for a business

Scenario Planning

Technique used to identify difference and similarities between a group of customers

Market Segmentation

Technique which brief the competitive strength of a business in a specific market

Directional Policy Matrix

Technique used to evaluate weakness, strength , opportunities and threats in a business

Swot Analysis

Technique used for finding the forces which effect the level of competition in an industry

Five force Analysis

Strategic Choice

It is a process of realizing the nature of stakeholder expectation and depends on that identifying a proper strategic option and evaluating the identified strategies once the evaluation done select suitable strategies Strategic Implementation

It is the translation of the selected strategy into an organizational action through various development programs so as to achieve the organization views , objectives and goals

Human Resource Management

Boxall and Purcell (2008) argue that "HRM is all activities associated with the management of people in firms" (Boxall and Purcell, 2008, p. 1) And Guest (2001) and Wood. (1999) argues that "HRM is a unitary system of management that attempts to elicit employees commitment and involvement in the purposes and goals of the organization"(Guest,2001.Wood,1999). HRM is a process of managing workforce or human resource in an organization which is carried out by HR Managers, Whom is responsible for Selection , Attraction , Assessment , Training and rewarding of employees in accordance with the organizational culture and employment and labour law. HRM is also a comprehensive and strategic approach for managing employees at workplace an effective HRM will enable the employee for giving their effective and productive performance in the workplace and will also prepare them for achieving company objectives and goals

HRM4.1 Functions of HR

Job Analysis


Human Resource Planning

Orientation and Induction

Industrial Relation

Training and Development

Performance Appraisal


Compensation and remunaration

4.1.1 Human Resource Planning

It is a process of collecting the details of the workforce in the organization and identifying the shortage of staff and excess of staff and raking necessary action

4.1.2 Job Analysis

Job analysis is one of the important areas of HRM It is an analytical process of each and every job in the organization so that it will give a detailed explanation to HR and they will use this in the advertisement

4.1.3 Recruitment and Selection

Based on the job analysis HR Department will prepare advertisement and publish it in the newspaper this is recruitment. After receiving the application as the result of advertisement the HR department will conduct an interview and the right employee is selected this is selected

4.1.4 Orientation and Induction

After selecting the right person the HR team will give induction and orientation to the candidate by this process employee will get an idea about the background of the company and also explain about the organization value, culture and ethic and candidate will introduced to the other employees

4.1.5 Training and Development

The HR Department identifies the employee who needs training and employee goes under training program which helps him to make up a better performance on the job

4.1.6 Performance Appraisal

Once the employee has put in around 1 year or 6 months the HR department will conduct a performance analysis to every employee about the work he done and based on these appraisal evaluation decisions will be taken on the promotion , increment, salary , incentives , training and firing

4.1.7 Compensation Planning and Remuneration

In every organization they will have rules regarding compensation and other benefits which are decided by the HR manager and top Management . It is the job of the HR department to look after it

4.1.8 Motivation , Welfare , Health and safety

It is an HR department job to motivate every employee using different methods so that employee can give a better performance at the workplace . Employee health and safety in the workplace are also the duty of HR department

4.1.9 Industrial Relation

One of the important job of HR Department is keeping a good relationship with trade unions this will help the organization in its smooth running

Strategic Human Resource Management (SHRM)

Dan-Shang Wang and Chi-Lih Shyu . (2007) argue that " According to Wright and McMahan (1992) Strategic Human Resource Management is the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals" (Dan-Shang Wang and Chi-Lih Shyu (2007), p. 3). SHRM is the most powerful and influential idea emerged in the field of management and business it is a branch of HRM it have a connection between Human Resources objectives and strategic goals in an organization By the concept of SHRM in an organization HR functions will work as a strategic partner in the analyses and implementation of the organization strategies through HR activities such as training, selecting , recruiting , rewarding SHRM is the total framework which decides the shape and delivery of the individual strategies

Strategic Human Resource Management and Firm Performance

According to Armstrong and Baron (2004) employees and their collective skills and abilities and experience making a significant contribution to the organization's success and this contribution is one of the major source of competitive advantage of the organization. An effective SHRM usually coordinates every employees measure and implement as a result it will directly influence employee attitude and behaviours which will help the business to achieve its operational goals (Huang 2001). A good understanding of the role of SHRM will create a long term organization performance and competitive advantage

HRM Strategy and Business Strategy

HRM and strategy have a close connection to the successful running of an organization HRM practice should be matched with the strategy of the whole company the success of a business strategy is depends on the resources available with them and the most important resource of an organization is manpower . It is the basic need of every operational function in an organization so treating them have to be the most important agenda of the firm. The companies that aligned their business strategy and HRM activities have a more success rate in their performance than the organization that don't . In recent year HRM merged as a process of strategic management which known as Strategic Human Resource Management due to this merging the organization came to realize that human resource should also consider as a strategic factor not only for managing strategy also for the potentiality human resource is a source of sustainable competitive advantage for the organization. "A variety of authors had said that density between business strategy and HRM was an important aspect in the success of a business (Buffa, 1984; Fine and Hax, 1985; Kotha and Orne , 1989; Miller and Roth, 1994; Wheelwright, 1984). It believes that the close link between HRM method and business strategy is based on Contingency theory. Andrew P. Thomas(1991) argues that "According to Bureel and Morgan Contingency theory postulates that the effectiveness of the organisation in coping with the demands of its environment is contingent upon the elements of its various subsystems being designed in accordance with the demand of the environment with which they interact" (Andrew P. Thomas, 1992, p.3). Contingency theory says that it was important to have an appropriate fit between HRM strategy and external environment where the organization operates in the absence of external fit it will lead the organization to a poor performance so in order to deal the human resource properly the firm must know their employee behaviour type. It is very essential for the success of competitive strategy (Dowling and Schuler, 1990; Grundy 1998; Schuler, 1987; Schuler and Jackson, 1987). By knowing the employee behaviour type HRM can give training and make a workforce which meets the requirement of business strategy. As a result the organizational goal and views would be achieved In addition "Behavioural Perspective" also support contingency theory for connecting HRM and competitive strategy . Behavioural Perspective says that the behaviour of employee role is the significance to the sufficient implementation of competitive strategy. Organizational Strategy must be matched with the specific HR practices and policies which means if an organization want to be better than their competitor in the market place then their employee must be willing to try new ideas also for taking to risk

Performance appraisal and organizational growth

Business Strategic Plan

Requirement and Goals

Interim meeting and Year end evaluation

Managers feedback and trainnning

Employee performance

Managers Observes and documents

Company Growth and Sucess

Source Delpo (2007, p. 10)

Performance Appraisal is a personal evaluation method seeking the measurement of employee work effectiveness using objective criteria. Performance Appraisal systems hope to achieve higher productivity outcome delineating how employee meets job specifications. A Major Challenge for the performance appraisal system is to define performance standard while maintaining the objectives. The use of the PA system in an organization was to evaluate their employee performance and contribution towards the organization over a period of time . The main objective of PA system is to provide measurable data of their employee it can be positive or negative with the help of PA system a firm will have more efficient control over its operation level By measuring the performance the organization will have a clear about their employee weakness, strength , views , interest and knowledge According to Wiese and Buckley some of the advantage of a PA system are it will help organization to take a decision in promotion/demotion, reward, recall and transfers It will also help managers in developing their employee by trainning and PA system also increase the employee satisfaction and commitment because of the improvemet in organizational communication it believes that managing of employee perfrformance will have a direct impact on the performance of whole organization

High Performance Work Practices and Organizational Growth (HPWP)

HPWP got a good attention in the study of SHRM because it believes that the relationship that when it implemented it will result in a high level of performance of an organization (Conolly and McGing, 2007)The aim of HPWP in an organization is to strengthen specific relationship within the HRM . Such relationship is very helpful for making an organization's success . Human resource is the most effective source of competitive advantage for an organization by creating good relationships inside the organization it will become a competitive advantage to firms in the environment which it operates . The objective of HPWP is to establish a narrow relationship between performance and HRM practices the advantage of this is first , a good relationship will enhance the performance of an individual in an organization and it will result in better organizational productivity ; secondly that human capital is difficult to imitate for other competitors which is a competitive advantage for the organization

Case Study

The Toyota Motor Corporation leaders believe that the key to success of a business is investing in its people (Liker, 2004). Toyota gradually implemented this concept on their culture since the company started functioning .It was one of the major reason of its todays success Toyota is very aware of the way their employees think and behave and it is deeply rooted in its philosophy and principle (Liker, 2004) .Toyota is very planned in giving respect to the workers and their continuous improvement training program. Later many companies adopted this method from Toyota and it has been turned into programs like Lean manufacturing , lean enterprise and lean six sigma. They believe that this method will improve individual capabilities for solving a specific problem and will give better performance in a relatively short period of time . The HR department helping them to make a well trained work force by giving proper training and facilities at the right time in accordance with the organization strategies. The upper management of Toyota is very concerned with their HR department because they believe workforce as the most important resource.


The aim of this assignment has been to investigate how an organization can achieve a connection between its strategies and human resource management. My findings in this study are selection process in an organisation plays a critical role in implementing business strategy and it is designed to employ people with desired behaviour and skills which matches to the business requirement . Giving training to workers is the primary tool for increasing organizational performance . The aim of training and development is to give information and support to the workforce as a result employee can overcome the job related difficulties and and achieve high level job performance simultaneously the whole firm performance also increase. In modern era HRM have a new face as SHRM each and every function oh HRM is designed and implemented in accordance with the Organization strategy . HR is most important department in every organization . The connection between HRM and strategies is the most important factor making an organizational success in a business market hence it will give them a competitive advantage in a market .