"Strategy creation can be started with unstructured ideas, but the result must be disciplined action." - Michael Ward

01/15/2020

In the last article we dealt with the issues of personnel management. We divided the issue into 5 topics: communication, strategy, motivation, outsourcing and knowledge. We would like to take a closer look at the concept of strategy as a "organic" topic without which no action can take place in a schematic, effective way, and so simply has no raison d'être in the concept of effective management.

PERSONAL STRATEGY - A SUCCESS FACTOR OR COMPLICATION?

Many managers today ask themselves the question: was it possible to predict the impending crisis, how could I, or still can, protect my own company from it? This is not the place or time to argue about the possible interpretation of signals of impending economic difficulties 2 or 3 years ago. It's still too early. However, you can start a discussion about the role and importance of strategic management of various areas of the organization for its duration and development despite or even against the threats of the business environment.

IS IT WORTH IT?

Strategic management is to be the response of modern organizations to the challenges of globalization, increasing competition and changing environments. The quality of the business strategy and the ability to implement it determines the survival and development of the company. Each economic organization (enterprise) is a subject of activity separated from the environment; the company's growth and survival depend on existing external conditions and future conditions. The environment not only creates the company with survival opportunities and opportunities for development, but also contains the main threats. Management practitioners and theoreticians unanimously emphasize that the contemporary environment in which they operate is characterized by increasing uncertainty, instability and a high degree of risk, and the changes that occur in it have an impact on all areas and processes in the enterprise. To be able to operate and develop in such an environment, an enterprise must carry out its constant exploration, search for new opportunities for action and respond quickly and adequately. A correctly formulated strategy allows you to take conscious actions to counteract adverse trends in the environment and at the same time gives you the chance to take advantage of the circumstances favorable to the functioning and development of the company.

HOW IT IS DONE?

Personnel strategy is a long-term concept regarding employee resources, aiming at their proper formation and commitment. The overarching goal of formulating a personnel strategy is to support the organization in achieving success. It is a functional strategy - a component of the company's strategy, related to other functional strategies, e.g. production, marketing and financial. The personnel strategy can be defined as a specific pattern according to which personnel decisions are made. It should be an expression of the intentions of the owners or management of the company regarding the way in which employees should be managed.

WHY ISN`T IT WORKING?

"Fortune Magazine" indicates on the basis of research in the group of companies "Fortune 500" that the following barriers stand in the way of full implementation of personnel strategies:

  • vision barrier - only 5% of staff understand the importance of a company's
  • vision people barrier - only 25% of managers are motivated by a motivation system closely related to the strategy
  • management barrier - 85% of company bosses spend less than one hour a month discussing
  • strategies resource barrier - only in 60% of companies the budgeting process is linked to the strategy

Common mistakes in the process of implementing the strategy:

  • Strategy formulation error. The strategy is not clear enough for the needs of its strategy Insufficient communication, resulting in a lack of understanding of the company's strategy and directions
  • Errors in translating the strategy into goals. Value chains and interdependencies between organization processes not included
  • Unused possibilities for managing the management of the whole and units. Goals, even those ambitious and formulated, are degenerated and forgotten
  • No enforcement services from employees Insufficient work management process of two people in relation to employees achieving goals (reinforced positive) and those using non-realization (strong negative).

To sum up, it can be seen that the effective use of the potential inherent in employees is possible when the company develops a coherent and consistent policy that will promote commitment to work for the organization and release creativity and energy hidden in employees. Therefore, the essence of the personnel strategy will be to determine what types of skills and competences of employees and through what kind of personnel management the company will gain a competitive advantage.