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

In our last article we dealt with the issue of personnel management. We divided the issue into 5 topics: communication, strategy, motivation, outsourcing and knowledge. We would like to take the concept of strategy under the microscope as an "organic" topic, without which no activity can proceed in a schematic and effective manner, so it simply does not have a raison d'être in the concept of effective management.

HR STRATEGY - SUCCESS FACTOR OR COMPLICATION?

Many managers today are asking themselves: could I have foreseen the impending crisis, how could I, and perhaps still can I, protect my own company from it? This is not yet the place or time to argue about the possible 2-3 years ago interpretation of the signals of impending economic difficulties. It is still too early for that. However, it is possible to discuss the role and importance of strategic management of various areas of an organization for its continuance and development despite or even against the threats of the business environment.

WHY IT'S WORTH IT

Strategic management is supposed to be the answer of modern organizations to the challenges of globalization, intensifying competition and volatility of the environment. The quality of business strategy and the ability to implement it determines the survival and development of the company. Every business organization (enterprise) is an entity of action separated from its environment; the company's growth and survival depend on existing external conditions and those that will occur in the future. The environment not only provides the company with opportunities for survival and opportunities for growth, but also contains the main threats. Management practitioners and theoreticians unanimously emphasize that the modern environment in which they operate is characterized by increasing uncertainty, instability and a high degree of risk, while the changes that occur in it have an impact on all areas and processes occurring in the company. The organization to be able to operate and develop in such an environment, must constantly explore it, look for new opportunities for action and respond to them quickly and adequately. Correctly formulated strategy makes it possible to take conscious actions to counteract unfavorable trends in the environment, and at the same time provides an opportunity to take advantage of circumstances favorable to the functioning and development of the enterprise.

HOW IS IT DONE?

Personnel strategy is a long-term concept concerning employee resources, aiming at their proper formation and involvement. The primary goal of formulating a personnel strategy is to help the organization succeed. It is a functional strategy - a component of the company's strategy, linked to other functional strategies, such as production, marketing and finance. Personnel strategy can be described as a kind of template by which personnel decisions are made. It should be an expression of the intentions of the owners or management of the company regarding how the people employed should be managed.

WHY WHY DOESN'T IT WORK?

"Fortune Magazine" points out, based on a study in a group of "Fortune 500" that the following barriers stand in the way of fully implementing HR strategies are faced with the following barriers:

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

Typical mistakes in the strategy implementation process:

• Error strategy formulation. The strategy is not clear enough for the purposes of reflecting it in the objectives
• Insufficient communication, resulting in a lack of understanding of the strategy and directions of the of the company
• Errors translating strategy into objectives. Failure to consider the value chain and interdependencies between the organization's processes
• Failure to use goals to actively manage the performance of teams and individuals. Goals, even those that are ambitious and properly formulated, are subject to degenerate and are forgotten
• Lack of consistency in enforcing employees to take responsibility for achieving established goals
• Insufficient performance management process both with regard to employees who meet goals (positive reinforcements), as well as those who do not meet goals (negative reinforcements).

In summary, it can be noted that effective use of the potential inherent in employees is possible when a company develops a consistent and coherent policy that promotes commitment to the organization and unleashes the creativity and energy inherent in employees. The essence of a personnel strategy will therefore be to determine through what types of skills and competencies of the workforce and through what type of personnel management the company will gain a competitive advantage.