The Role Of Management Aiding Development Commerce Essay

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Johnson and Scholes (2002) define strategy as "the direction and scope of an organization over the long-term to get advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".

So, strategy is a collection of -

Direction : business aim in the long-term

Scope: kind of activities, markets and industry

Competitive advantages: performance of business organization compare to industry

Environment : environmental factors which have influence over the result of business

Stakeholders: values and expectations of both internal and external customer.


Corporate Strategy - it is "mission statement" to fulfill expectations of stakeholders

Business Unit Strategy- Strategy related to a particular market. It concerns strategic planning to get advantage over competitors.

Operational Strategy- It focuses on issues of resources, processes, people etc.


In general sense, strategic management is all about "strategic decisions". Main components of strategic management are-

Strategic analysis

Strategic choice

Strategy implementation


Strategic analysis works with factors that may influence activities and position of companies. The process of Strategic Analysis can be assisted by a number of tools, including:

PEST Analysis - a technique for analysis environmental factors specially external factors

Five Forces Analysis - this technique is used to identify competitors and level of competition

SWOT Analysis - this is technique to identify strength , weakness, opportunities and threats

Competitor Analysis - this is a technique to point out overall competitive position



This process involves understanding the nature of stakeholder and their expectations, identifying strategic options, and then evaluating and selecting strategic options.


Usually this is the hardest phase to execute a plan. After selecting proper plan, an action plan is prepared to implement option.


HR mainly focuses organization resource development and application of the policies.

Human resources planning, recruitment & selection

The preparation ob descriptions and any other recruitment aids

Training for new employee

Planning for management training and development

Setting standards of remuneration

Formal and informal communication methods

The implementation of health and safety regulations and any other security procedures to avoid accident

keeping personnel records and statistics



The Human Resource Recruitment Process is an orga­nizational activity that is designed to affect the number of people who apply for vacancies, the type of people who apply for them, and/or the likelihood that those applying for vacancies will accept positions if offered. The goal of recruitment is to ensure that when a vacancy occurs, the organization has a number of qualified appli­cants to choose from.

Personnel policies:

These policies affect the nature of the vacancies for which people are required and impact the ability of the organization to recruit and its level of requiring success.

A decision must be made on whether to recruit from within or outside the organization. Employees can apply and typically receive first consideration before the organization searches externally. Such policies make it clear that there are opportunities to advance and increase the level of skills within the organization.

There is also pressure on human resources to deliver the best employees, so higher productivity, quality, and so on, are achieved.

Recruitment Sources:

Since recruitment sources are unlimited, an organization must decide how to reach the best sources of potential employees.

Internal versus External Sources-relying on internal sources is useful since employees are well known and are knowledgeable about the organization and jobs. However, there may not be enough internal recruits (especially for entry-level jobs); internal recruiting does not encourage creativity or change; and, if the current force is not diverse, internal recruiting will lead to a homogeneous work force, which can pose legal threats.

Direct applicants are people who apply for a vacancy without prompting from an organization, while referrals are people who are prompted to apply for a vacancy by someone within the organiza­tion. Direct applicants may have already investigated the organiza­tion and are sold, which creates a self‑selection that is easier for the organization. Direct applicants tend to be one of the best sources, since they are also low cost.

Advertisements in newspapers and periodicals typically are less effective than direct applicants or referrals and are more expen­sive. Jobs should be described very specifically in advertisement. Local newspapers, although commonly used do not target skill levels very well. Journals, periodicals, and/or cable television may be useful in reaching the appropriate audience.

Public Employment Agencies-If individuals are receiving unemployment compensation, they must be registered at the local state employment office, which will gather information on individuals' skills and abilities to help them get a job .

Private employment agencies serve primarily the white-collar market. Organizations are charged for referrals, and these firms refer individuals who are both employed and unemployed.


Employee retention is a business management term referring to efforts by employers to retain current employees in their workforce. The purpose is to avoid employee turnover and associated costs.

The importance of staff retention

Qualified employees are real asset of business organization in this competitive edge.

It makes company's external reputation

There may be positive reasons such as an attractive new job or a chance to reshape their lifestyle by working on projects outside of mainstream work.

Main reasons people leave a job:

According to research, common reasons are:

Poor salary and benefits

A lack of training and development opportunities

Dissatisfaction with management

Unfriendly colleagues.

Ways to improve staff retention:

Improved staff retention should be the result of adopting a mix of the following:

Recruiting proper person who have idea and knowledge about job

Environment for career development

Strong diversity policies.

Effective system to resolve problem among employees

Leadership training for managers.


Staff training is an effort initiated by an organization to foster learning among its members. On the hand, development is an effort that is oriented more toward broadening an individual's skills for the future responsibilities.

Person analysis:

It helps the manager identify whether training is appropriate and which employees need training. When a problem, such as a performance deficiency, is identified, it is often unclear whether training is the solution. From the manager's perspective, training should be considered if any of the following is true:

The performance deficiency has the potential to cost the company a lot of money.

Employees do not know how to perform effectively.

Employees cannot demonstrate the correct knowledge or behavior.

Employees receive appropriate feedback

Other options are too expensive or unrealistic.

Task analysis

It results in a description of work activities, including tasks performed by the employee and the knowledge, skill, and behaviors required to successfully complete the tasks. A task analysis involves:

Selecting the job to be analyzed.

Developing a preliminary list of tasks by interviewing and observing employees and their managers.

Verifying the importance of the tasks through task invento­ries or expert committees. A task analysis questionnaire can be used.

Identifying the knowledge, skills, or abilities necessary to perform each task using interview and questionnaires.

Types of training:

Induction training for new employees

Induction training must be carried out so that employees will know what it is they are doing and how to do it. It is the process of introducing new employees into the organisation. An induction programme for the claim group will involve:

A tour of the building that they are working in, showing all the important areas.

A speech on the organisations history and culture

A briefing on their duties and their importance to the organisation.

An introduction to their team members and area manager.

The induction process is a way for everyone to get to know each other.

Initial training for new employees:

After induction is carried out employees have to be trained on their job to insure the job is done properly. The initial training programme for a financial advisor involves:

Their manager who assists in training shows them the proper way to the activities that needed to be carried out.

Employees are given a booklet on sales training and their manager goes through it with them. The booklet discusses the correct way to approach someone , the correct things to say, body language and the way to sell yourself.

This training programme gives the employees a feel for their job and they are able to find the best way for them of doing it.

It also gives the employers an idea of how much training will be needed.

In-house training courses:

The benefits of in-house training are-

It is fairly cheap to run

Course content is tailor made for the organisation

Everybody gets to know each other

The subjects that are covered in the training courses add to the performance of the business.

Developing employees:

ABC uses the following programmes to help with the development of their employees:

Mentoring: New employees are given a mentor, which is usually either their direct manager or a team member. They are there to help them prosper in the business and guide them to success.

Understudying: An employee is attached to a manager as an assistant so they get an idea of the manager's job. This would usually be an employee who has the potential to become a manager

Internal and external courses: Any employee who has the potential to be a manager but does not have the skills would be sent on a course.

All these development programmes help the businesses performance by increasing the skills that employees have so their job is done better.



Now-a- days modern organization establishes grievance management policy to build up relationship between employees.

Grievance related matters:

transfers and promotion policy

discrimination and harassment

safety environment to work

performance management


Grievance procedure:

A grievance procedure is a process which sets out a series of steps to be followed when dealing with a range of problems in the workplace.

Establish a constructive way of dealing grievances and the prevention

of disputes.

Enable employers to deal with matters in a fair and impartial matter

Provides a guideline to fix the problem

Essential Components of grievance management:

Flexible procedure

All grievances procedure should be quick.

Confidentiality is another vital issue for resolve complaint.

All parties should be treated equally in grievance management

Common Pitfalls in Grievance Management:

Lack of clear procedure

Lack of assessment

Problem not clearly identified

lack of skills/experience by grievance manager

Too many people involved in 'fixing' the problem


Performance management is central to gaining competitive advantage. The performance management system has three parts: defining performance, measuring performance, and feeding back performance information.

Purposes of Performance Management :

A performance-management system should link employee activities with the organization's goals.

Performance-management information is used for such administrative decisions as pay raises, promotions, retention/termination, layoffs, and recognition of individual performance.

Performance management can be used to develop employees who are ineffective at their jobs.

Ideally, the performance-management system identifies not only the aspects of the employee's performance that are deficient but also the causes of these deficiencies.


Bratton & Gold (2003) define a reward system as "the mix of extrinsic and intrinsic rewards provided by the employer. It also consists of the integrated policies, processes, practices and administrative procedures for implementing the system within the framework of the human resources (HR) strategy and the total organizational system."

Objectives of the reward system:

The key objectives of any reward system can be summed up as follows:

Recruiting and retaining quality labour in line with human resource plan.

Motivating individual and team performance, to maximise return on investment from the human resource.

Supporting organisational culture, by conveying messages about the values, behaviours and outcomes that the organisation prizes and is willing to pay for.

Supplementing flexibility, by responding to changing organisational skill and performance requirements.

Components of the reward management:


Base pay

Contingent pay

Cash bonuses

Long term incentives


Profit sharing




Health care


Work environment


Employee voice


Reward policies:

Reward policies address the following broad issues:

the level of rewards, taking into account 'market stance', i.e. how internal rates of pay should compare with market rates, for example aligned to the median or the upper quartile rate

achieving equal pay

the relative importance attached to external competitiveness and internal equity; the approach to total reward

Transparency- the publication of information on reward structures and processes to employees.



From the above discussion, it is clear that ABC has effective human resource department which deals with planning and implementing of human resource strategy so that company can achieve corporate strategy. It has recruiting, selection, training, motivation and rewarding units which ensure qualified employee are recruited. ABC can recruit both semi-skilled and skilled employees as it has dedicated training facilities and this also enable company to save extra cost. New employees are trained in-house training system, where more than one leaning style is adopted. Base on all kinds of feedbacks, Human resource department can make suitable working environment to retain talent employees and reduce the employee turnover rate.

Human resource management conduct research to get information from homologues company related to wages rate so that they can create competitive and attractive environment to work. To do this, management always evaluate performance of company, analyze other alternatives and recommends improvements where necessary. Performance appraisal and reward system have been established to motivate employees toward common interest of corporate strategy.

The HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives. The human resources objectives are established to support the attainment of the overall strategic business plan and objectives.


With the light of present study, following recommendations have been prepared for further improvement.

To be rewarded any employee, performance measurement criteria should be set free from bias and injustice.

To get proper feedback from employees, communication system should be easy and two- way channel.

Job rotation should be introduced so that all employees get idea about work of other departments

System and procedure should be up-dated to achieve sustainable competitive advantage.

Management should set-up effective dispute handling system so that they can make suitable working environment under diverse condition.