19 Sep 2022

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How HR Can Support Strategic Planning in Organizations

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Academic level: College

Paper type: Essay (Any Type)

Words: 941

Pages: 3

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Introduction 

In an organizational setting, the major challenge that HR managers encounter revolves around making sure that they offer services that rhyme with the strategic planning requirements of a company. While embarking on strategic planning, it is crucial to focus on issues related to organizational resources, goals, and capacity to facilitate in understanding how the HR managers make their decisions. An organization emerges successful once it ensures to align its mission with adequate HR decisions while at the same time ensuring to establish and utilize the HR capabilities in an effective manner. The strategy that the HR adopts should back the different organizational operations while offering continuous and consistent support, which would facilitate in the execution of a strategic plan within an entire organization (Bredmar, 2016) . Thus, the paper discusses HR within an organization by discussing how strategic planning might differ in large and small organization, factors impacting the management and strategic planning process, and how organizational structure influences strategic planning.

Strategic Planning Large v Small Organization 

When it comes to large organizations, they devise a more structured strategic planning approach due to their size, operation scope, requirements, and the need for incorporating the views of stakeholders. These organizations have the duty of aligning sophisticated and distinct process while putting into consideration the legal systems, employees, demographics, and stakeholders. Owing to their broad variance and increased business volume, the senior management requires strict control systems in their managerial approaches to foster predictability as well as conformity to the values, vision, and mission of an organization. For instance, McDonalds is capable devising strategic systems and models that control vital operational components without affecting localization (Azmi, 2019) . Since McDonalds manages to realize scale economies, it manages to adopt low-cost approaches, which guides its strategic planning efforts.

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When it comes to small firms, they deploy entrepreneurial approaches to strategic planning because of their small operational scope and size as well as the limitations it faces when it comes to accessing resources. A small company should ensure that it remains adaptable, agile, and flexible in such a manner that it has the capacity for creating new strengths while at the same time realizing additional openings in an industry featuring competitive and bigger participants. In this case, a company needs fluidity in strategy while at the same time sustaining predetermined mission and vision statement. Attaining this requires that a company have the ability of balancing its efforts. It requires the creation of a strategy that would ensure that numerous paths head toward realizing similar objectives (Bredmar, 2016) . The strategic plans for small firms usually adopt flexibility to allow them to acquire new opportunities once they emerge rather than focusing on the already existing competitive advantage.

Factors Influencing Management and Strategic Planning 

Certain forces influence management and strategic planning. For instance, organizational structure transformations, including expanding to global markets and mergers and acquisition create a need for strategic realignment. These forms of transformations affect capital, management, market structures, and ownership of organization thereby influencing strategic planning efforts. The rivalry that other enterprises pose also serves as a force influencing management and strategic planning. The growing competition in key markets leads to instant reviews of approaches in an aim to boost competitive rivalry (Civelek, Çemberci, Artar, & Uca, 2015) . Enterprises utilize strategic tools, including the SWOT analysis to assess threats, opportunities, weaknesses, and threats to allow them to boost their strategic planning endeavors.

Furthermore, the social and cultural forces also influence management as well as strategic planning. The cultural and social profiles of the key markets might require and organization to reconsider its strategic planning approach to ensure that the business is able to account for the cultural and demographic sensitivities, particularly when accessing a new market. It is also essential to take note of the prevailing laws and regulations. Law changes, including environment, tax, and healthcare laws affect strategic planning. Here, it becomes essential to adjust the prevailing strategies of an enterprise to make sure that they incorporate the needs of the newly introduced laws (Civelek, Çemberci, Artar, & Uca, 2015) . These efforts guide the strategic planning endeavors effectively.

Organizational Structure and Strategic Planning 

Organizational structure influences strategic planning mostly based on how it determines the actions that should be regarded as most optimal and feasible. Organizational structure is crucial in strategic planning since it makes it possible to put into consideration the internal and external state of the market (Bredmar, 2016) . Organizational structures are especially important when it comes to realizing consensus for a certain strategy. In the event that the different organizational segments fail to follow a given strategy, the company would have minimal chances of succeeding (Hill & Jones, 2009) . An organizational structure facilitates in the realization of a consensus since it determines the parties that need appeasing in management and means of aligning power hence contributing to strategic planning.

Managers face certain challenges during the process of strategic planning. For instance, ineffective training means that it would not be possible to grow a certain project when the employees have low training. Lack of communication also leads to challenges while it is crucial to have an effective plan for communication starting from below to top. Absence of sufficient resources also presents problems. Key costs attributed to new strategy execution relate to those affiliated with board members or consultants, which are prohibitive for an organization of any size.

To overcome the constraints, it would be essential to acknowledge the challenges facing the process of implementing the strategy. These should be communicated to the parties responsible for disseminating and executing the new strategy. It is also vital to understand how other firms overcome such issues to avoid facing similar mistakes and know the appropriate action to take.

Conclusion 

In conclusion, strategic planning is a vital undertaking in the area of human resources. Applying the concept differs in the context of large or small organizations. Furthermore, various forces have major influence of the process of managing strategic planning. In addition, organizational structure has major influence on strategic planning although managers face certain challenges when it comes to applying the concept. Here, it is crucial to lay significant emphasis on the strategic planning concept owing to its critical role in an organizational setting.

References

Azmi, F. T. (2019). Strategic human resource management: text and cases. New York: Cambridge University Press.

Bredmar, K. (2016). Understanding management control and organisational sense-making. Oxford: Chartridge Books Oxford.

Civelek, M. E., Çemberci, M., Artar, O. K., & Uca, N. (2015). Key factors of sustainable firm performance. New York: Lulu.com.

Hill, C., & Jones, G. (2009). Strategic management theory: an integrated approach. Boston: Cengage Learning.

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StudyBounty. (2023, September 16). How HR Can Support Strategic Planning in Organizations.
https://studybounty.com/how-hr-can-support-strategic-planning-in-organizations-essay

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