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8 views16 pages

OM14

Uploaded by

trinjulia2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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STRATEGIC PLANNING

And best human resource practices


DEF

■ A strategic plan is a tool to define your organization’s goals and what


actions you will take to achieve them. Typically, a strategic plan will
include your company’s vision and mission statements, your long-
term goals (as well as short-term, yearly objectives), and an action
plan of the steps you’re going to take to move in the right direction
Your strategic plan document should
include:

■ Your company’s vision


■ Your company’s mission statement
■ Your company’s goals
■ A plan of action to achieve those goals
■ Your approach to achieving your goals
■ The tactics you’ll use to meet your goals
Do I need a strategic plan?

■ A strategic plan is one of many tools you can use to plan and hit your
goals. It helps map out strategic objectives and growth metrics. Here’s
how a strategic plan compares to other project management and
business tools.
Strategic plan vs. business plan

■ You should create a business plan when you’re:

■ Just starting your business


■ Significantly restructuring your business

■ If your business is already established, consider creating a strategic plan instead of a


business plan. Even if you’re working at a relatively young company, your strategic plan can
build on your business plan to help you move in the right direction. During the strategic
planning process, you’ll draw from a lot of the fundamental business elements you built early
on to establish your strategy for the next three to five years.

■ Key takeaway: A business plan works for new businesses or large organizational overhauls.
Strategic plans are better for established businesses.
Strategic plan vs. mission and
vision statements
■ A mission statement summarizes your company’s purpose

■ A vision statement broadly explains how you’ll reach your company’s


purpose

■ A strategic plan should include your mission and vision statements,


but it should also be more specific than that. Your mission and vision
statements could, theoretically, remain the same throughout your
company’s entire lifespan. A strategic plan pulls in inspiration from
your mission and vision statements and outlines what actions you’re
going to take to move in the right direction.
Strategic plan vs. company
objectives
■ Company objectives are broad goals. You should set these on a yearly or
quarterly basis (if your organization moves quickly). These objectives give your
team a clear sense of what you intend to accomplish for a set period of time.

■ Your strategic plan is more forward-thinking than your company goals, and it
should cover more than one year of work. Think of it this way: your company
objectives will move the needle towards your overall strategy—but your
strategic plan should be bigger than company objectives because it spans
multiple years.

■ Key takeaway: Company objectives are broad, evergreen goals, while a


strategic plan is a specific plan of action.
When should I create a strategic
plan?
■ You should aim to create a strategic plan every three to five years,
depending on your organization’s growth speed. That being said, if
your organization moves quickly, consider creating one every two to
three years instead. Small businesses may need to create strategic
plans more often, as their needs change.

■ Since the point of a strategic plan is to map out your long-term goals
and how you’ll get there, you should create a strategic plan when
you’ve met most or all of them. You should also create a strategic plan
any time you’re going to make a large pivot in your organization’s
mission or enter new markets.
What are the 5 steps in strategic
planning?
The benefits of strategic
planning
■ Align everyone around a shared purpose
■ Proactively set objectives to help you get where you want to go
■ Define long-term goals, and then set shorter-term goals to support
them
■ Assess your current situation and any opportunities—or threats
■ Help your business be more durable because you’re thinking long-
term
■ Increase motivation and engagement
■ Sticking to the strat
HUMAN RESOURCES
MANAGEMENT (HRM)
What are the functions of human
resource management
■ Job analysis
■ Determining the skills and experience necessary to perform a job well may make it
easier to hire the right people, determine appropriate compensation and create
training programs.
■ Workforce operations
■ Creating health and safety policies, responding to employee grievances, working with
labor unions, etc., can help support regulatory compliance.
■ Performance measurement
■ Evaluating performance is important because it not only fosters employee growth
through constructive feedback, but also serves as a guide for raises, promotions and
dismissals.
■ Incentive programs
■ Recognizing achievements and rewarding high performers with bonuses and other
perks is a proven way of motivating employees to take ownership of business
objectives.
■ Professional development
■ From orientation to advanced educational programs, employee training serves to
improve productivity, reduce turnover and minimize supervisory needs.
Human resources practices

■ Providing security to employees


■ Selective hiring: Hiring the right people
■ Self-managed and effective teams
■ Fair and performance-based compensation
■ Training in relevant skills
■ Creating a flat and egalitarian organization
■ Making information easily accessible to those who need it

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