Also known as corporate strategy, enterprise strategy or organizational development strategy, it mainly answers the question "where to compete", that is, making decisions about what kind of business the organization should choose to operate and what industry or field it should enter. It addresses the question of how an organization can grow and develop while, at the same time, contracting and consolidating under adverse circumstances. It points out the direction an organization can choose in the process of development. Organizational strategy not only defines the different business areas in which an organization operates, but also determines how these business areas relate to each other. In general, organizational strategies are divided into three types: growth strategy, stability strategy and contraction strategy.

Sometimes called business strategy, it answers the question "how to compete." That is, how to effectively compete with competitors in the selected industry or field, so as to establish one's long-term competitive advantage in the market. The main purpose of this strategic decision-making is to solve the problem of means of competition, that is, according to what standards or differentiated characteristics (such as cost, quality, reliability, products, services, etc.) an organization will compete. The main concerns of competitive strategy are which products or services should be developed, into which markets they should be offered, and how the products or services should be offered. Professor Michael Porter, a well-known strategy expert, divides competitive strategies into three types: cost leadership strategy, differentiation strategy and market concentration strategy.

Functional strategy mainly answers the question of "what to compete with", that is, which resources will help defeat one's competitors, and how to obtain, develop and use these resources to compete. What the functional strategy reflects is the basic course of action determined by each department in the organization to help the organization achieve its strategy and corresponding competitive goals, including marketing strategy, human resources strategy, financial management strategy, etc.

Strategy is actually a long-term plan formulated by an organization in order to balance internal strengths and weaknesses and maintain competitive advantage in the face of external opportunities and threats.

Strategic management is a complete process of formulating strategies, implementing strategies, and evaluating strategies. Its ultimate goal is to help organizations gain competitive advantage by coordinating and adapting the organization's internal strengths and weaknesses with external opportunities and threats.

Strategic management mainly includes two core stages

In the strategic management process of an organization, the strategy execution stage does not always have to be passive after the strategic planning stage, without any choice to implement and execute the predetermined strategy. In fact, there is a continuous cycle between information and decision-making throughout the strategic management process.

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main content

The attention of human resource management mainly focuses on daily administrative management activities. The organization's top human resources managers do not have the time, opportunity or ability to consider human resource management issues from a strategic perspective. The strategic planning of the organization is done without any involvement of the human resource management department. Therefore, at this level of integration, the organization's human resource management department is completely separate from the organization's strategic management process.

The organization formulates its own strategic plan, and then informs the human resources management department of this strategic plan, so that the human resources management department can cooperate with the implementation or implementation of the strategic plan.

Allows organizations to take human resource issues into account throughout the strategic planning process. This integration occurs in a three-step sequence.

It is based on the continuous interaction between strategic planning and human resource management, rather than a unidirectional advancement process with a certain sequence.

(1) Various human resource management activities (such as the number of selection, testing and training, etc.).

(2) Employee behaviors resulting from human resource management activities (such as customer service performance, etc.).

(3) The organizational strategic consequences and performance of employees’ actions (such as customer satisfaction and profit margins, etc.).

What are the strategic objectives of the organization.

In order to ensure the realization of the organization's strategic goals, the human resources management department should ensure that employees acquire the competencies and behaviors.

Which human resources policies and practices can achieve the employee competencies and behaviors that the organization needs.

Human resources management measures the effectiveness of its work in strategy execution by investigating whether those employee competencies and behaviors required by the organization are being achieved.

Questions organizations need to answer: "What are our strategic goals? How are we prepared to gain competitive advantage in order to achieve our strategic goals?"

An organization can view any business activity that needs to be completed as a series of necessary activities. An organization's value chain is a tool that can be used to identify, decompose, display and analyze the most important activities and strategic costs that an organization needs to complete. It helps managers better understand what activities drive organizational performance.

The question the organization needs to answer: "What are the most critical activities that we need to complete when we create value? What other important activities need to be completed to support the key activities?"

Relevant information in the value chain helps the organization build its own strategic map. The strategic map is a chain of related activities that contribute to the organization's success. It describes the organizational strategy more concisely and clearly. The elements or activities that lead to success, and the driving relationships between those elements or activities.

Questions that organizations need to answer: "What is the driving relationship between the various important activities that need to be completed in order to achieve the organization's overall strategic goals? What is the source that drives the implementation of the organization's strategy?"

In order for any organization to achieve its strategic goals, it must complete some results related to the organizational strategy. These outcomes are actually descriptions of the goals to be accomplished or the performance measures that need to be met for each important activity that drives the organization's strategy.

The question the organization needs to answer: "How can we measure that the elements or activities that drive the organization's strategic goals have achieved the stated requirements or goals?"

The question the organization needs to answer: “What competencies and behaviors do our employees need to possess if our organization is to achieve strategically relevant organizational outcomes that ultimately achieve the organization’s overall strategic goals?”

Human resource managers must answer: "In order to obtain the employee competencies and behaviors required by the organization's strategy, what human resource management systems do we need to establish? What human resource policies are formulated? What human resource management activities are carried out? What human resource projects are implemented ?”

The question that organizations need to answer is: "What indicators and specific indicator values ​​can we use to measure the organization's human resource management activities? Do the results it generates really contribute to the achievement of the organization's strategic goals?"

The question that the organization needs to answer is: "Is our human resource management work contributing to the realization of the organization's strategic goals? Is this contribution meeting the organization's expectations? Does our human resource management system, policy or activity need to make Adjustment or correction?”

Growth strategy is a strategy that focuses on market development, product development, innovation, mergers, etc. It can be divided into two types: internal growth strategy and external growth strategy.

Features

Corresponding human resources strategy

Features

Corresponding human resources strategy

A stabilization strategy is a strategy that emphasizes market share or operating costs. This strategy requires the organization to choose a part of the market that it has already occupied and that it can do best, and then make it better.

Organizations that adopt a stable strategy tend to be in a more stable environment with lower growth rates. The key to maintaining competitiveness lies in whether they can maintain the skills they already possess.

(1) Maintain the stability of human resources within the organization and the standardization, consistency and internal fairness of management methods.

(2) The demand for personnel recruitment is not large, and internal employees can be promoted relatively slowly.

(3) The organization's training mainly focuses on the needs of employees' current jobs.

(4) The focus of performance management is employees’ behavioral norms and employees’ work abilities and attitudes.

(5) Pay more attention to the internal consistency of compensation. The decision-making concentration on compensation is relatively high. The basis for decision-making on compensation is mainly the work itself performed by employees.

(6) Employee welfare levels in such organizations tend to be relatively high.

The shrinkage strategy is usually adopted by organizations that want to downsize part of their operations because they are facing severe economic difficulties. This strategy is sometimes called a downsizing strategy, and it is often associated with layoffs, divestitures, and liquidations.

(1) The key human resources issue that the organization needs to solve is how to divest redundant human resources from the organization in a peaceful, stable and minimally costly way, and how to improve the morale of employees who remain in the organization after organizational downsizing and layoffs. .

(2) The knowledge and skills of many people in the organization may need to be updated, so the training pressure will be relatively high.

(3) Due to the unfavorable operating situation, such organizations are extremely concerned about achieving performance as quickly as possible, and their performance management focus will be on the assessment of results.

(4) This type of organization has a very strong desire to link employees’ income with the organization’s operating performance. In addition to reducing the proportion of fixed salary and increasing the proportion of variable salary in salary, they often also strive to implement employee stock ownership programs, etc., to encourage employees to share risks with the organization.

Differentiation strategy, sometimes also called innovation strategy, is a competitive strategy oriented towards product innovation and shortening of product life cycles.

Organizations that adopt this strategy often emphasize risk-taking and the continuous introduction of new products, and regard shortening the time from product design to market launch as an important goal.

An important business goal of this kind of organization is to become a leader in the product market, and customer satisfaction and personalized needs are often emphasized in the management process, while the position hierarchy and relatively stable job evaluation within the organization are Don't pay much attention to it.

(1) From the perspective of personnel recruitment and selection, this type of organization is more willing to get people who are innovative and willing to take risks, rather than people who have been working hard for a long time to do a highly repetitive and programmed job.

(2) Emphasis on risk sharing and achievement sharing between the organization and employees in terms of compensation, and at the same time, ensuring that successful innovators in products, production methods, technologies, etc. can indeed receive high returns.

(3) Maintain considerable flexibility in job descriptions, requiring employees to be able to adapt to work needs in different environments. Therefore, an employee’s basic salary often does not depend on the very clear job scope and responsibilities, but more on the individual employee. innovation capabilities and technological levels.

(4) From the perspective of performance management, this type of organization pays more attention to the results of innovation rather than specific behavioral norms in the work process. Therefore, the performance management system is very goal-oriented.

Cost leadership strategy, sometimes also called cost leadership strategy, total cost leadership strategy or operational excellence strategy, is actually a low-cost strategy, that is, when the quality of the product itself is roughly the same, the organization provides products to customers at a lower price than competitors a competitive strategy.

Organizations that pursue a cost leadership strategy attach great importance to efficiency, especially the high level of operational requirements. Their goal is to do more things at a lower cost.

(1) In order to improve productivity and reduce costs, this kind of organization usually describes the work content, responsibilities, and tasks of employees in a more detailed and specific manner, emphasizing the stability of employees in their jobs.

(2) The training content focuses on the needs of employees’ current jobs.

(3) The focus of performance management lies in employees’ behavioral norms and compliance with basic work procedures.

(4) Special emphasis is placed on work discipline, attendance, and work and rest time requirements.

(5) In terms of salary levels, this type of organization will pay close attention to the salary status of competitors to ensure that the organization's salary level is neither lower than that of competitors, nor preferably higher than competitors.

(6) In terms of salary structure, such organizations usually take certain measures to increase the proportion of variable pay or bonuses in the salary structure, and at the same time reward employees for any achievements in cost savings, on the one hand, to control cost expenditures, and on the other hand, On the one hand, it is to encourage employees to reduce costs and improve production efficiency.

Market concentration strategy is to focus one's products or services on a certain region or certain customers.

When an enterprise focuses on providing specific products or services to customers, it is also called a customer-centric strategy. This strategy is a strategy to gain competitive advantage by improving customer service quality, service efficiency, service speed, etc. Organizations that adopt this strategy focus on how to please customers and hope that their employees can not only meet the needs of customers well, but also help customers discover some potential needs that they have not yet identified and try to meet these potential needs.

Customer satisfaction is a performance indicator of greatest concern to such organizations.

(1) The recruitment process often attaches great importance to the customer service ability, motivation and experience of the job seeker or candidate.

(2) The training system will devote a lot of energy to customer knowledge, customer service skills and customer-oriented values.

(3) Pay remuneration based on the quantity and quality of services provided by employees to customers, or pay bonuses based on the overall evaluation results of customers on the services provided by employees or employee groups.

Few tasks – many tasks

Simple tasks - complex tasks

Requires few skills – Requires many skills

Specific job description – broad job description

external sources – internal sources

Limited socialization - comprehensive socialization

Assess specific skills – assess general skills

Narrow career development channel - broad career development channel

Focus on current job skills – focus on future job skills

Individual Orientation – Group Orientation

Train a Few Employees – Train All Employees

Random, unplanned - systematic, planned

Standards of conduct – standards of results

Development orientation - management orientation

short term standard - long term standard

Individual performance – collective performance

Focus on salary and benefits – focus on bonuses

Short-term rewards – long-term rewards

Emphasis on internal fairness - Emphasis on external fairness

Reward individuals – reward groups

Collective Bargaining – Individual Bargaining

Top-down decision-making – employee participation in decision-making

There is a formal established procedure - there is no formal established procedure

Treat employees as expenses - treat employees as wealth

A learning organization is an organization that values ​​and supports a lifelong learning culture by enabling all employees to continuously acquire and share knowledge.

(1) Commitment to continuous learning.

(2) Knowledge sharing.

(3) Critical and systematic thinking is generally adopted.

(4) Have a learning culture.

(5) Pay attention to employees.

(1) Talent is not abstract, nor is it absolute. The concept of talent can be defined from both macro and micro levels. From a macro level, talents refer to people who have certain professional knowledge or skills, perform creative work and contribute to society. They are workers with higher abilities and qualities in human resources. Talent is the first resource for my country's economic and social development. From a micro level, organizations require different types of talents in different periods, different development stages and different strategic orientations. A more common view is that the objects of talent management should be those employees with high current value or potential value, especially those who fill key positions that will have an important impact on the success of the organization. In other words, the evaluation of talents focuses on two aspects: performance and potential. Performance focuses on the past and present, while potential focuses on the future.

(2) Talents not only refer to the best few employees in the organization who have shown excellent performance (type A talents), but also include those employees who constitute the majority of the workforce, are capable and have stable performance (type B talents).

First, use both manufacturing and purchasing strategies to deal with risks in talent supply and demand, and maintain an appropriate balance. The wise approach is to cultivate most of the talents yourself, leave some talent gaps, and solve them through market purchases when necessary.

Second, adapt to the uncertainty of talent demand and cultivate talents on a small scale and in multiple batches.

Third, reduce talent development risks and increase the return on investment in talent development. A common practice is to ask employees to share the cost of training.

Fourth, protect the organization’s investment in training and development by balancing the interests between the organization and its employees. Organizations should avoid unilaterally arranging jobs and career development for employees, and instead use internal job vacancy bulletin boards or internal talent markets to allow employees to apply for promotions or transfer opportunities within the organization and select their most ideal projects or jobs. Task arrangement.

First, in the face of the current new market environment and the new characteristics of workforce diversity, organizations must provide compelling work purposes for different types of employees.

Second, organizations must transform the role of leadership from traditional command leadership to influence leadership.

Third, organizations also need to establish a unified, equal and compassionate organizational culture.

First, integrate relatively independent human resources functions to strengthen the joint role of various human resources functions in talent recruitment and retention.

Second, integrate employee management processes into standard organizational processes so that managers at all levels truly assume the responsibility of attracting and retaining employees.

Third, transform the organization's business strategy into a detailed talent strategy, improve the human resource management process, and at the same time improve the business awareness of human resource management professionals.