Distinguish among corporate, business, and functional strategies. How does each general level of strategy relate to human resource?
Corporate strategy and functional strategy live at different levels inside an organizational hierarchy. Corporate strategy refers to the business attitude, direction and techniques used to direct your entire organization to its mission and objectives. Functional strategy has a alike purpose but at the functional level of an group.
Three Levels of Strategy
Corporate, business unit and functional are the 3 levels of strategy in the directorial hierarchy. A strategy is a map or road map that helps you accomplish your objectives. The corporate level involves the complete organization. Business units embrace divisions, manufactured goods lines or other centers of business bustle within your organization. The functional level refers to directorial departments such as human resources, marketing, operations and IT.
One primary dissimilarity between corporate and functional strategies is the leadership concerned. Corporate strategy involves executive or advisory boards and top management. In a small business, it involves owners and top managers. These best collaborate periodically to appraisal strategy and make necessary change. Like business unit strategy, functional strategy should line up with corporate strategy. It involves managers in every functional area who can also work with other functional leaders or with peak organization.
Because strategies are used to achieve objectives, another dissimilarity amid corporate and functional strategies is the kinds of objectives they aim. Common corporate objectives focus on underside line results such as revenue, profits and customer pleasure. Strategies include ways to make money, save money or improve the customer experience. Functional strategies normally align with more slender functional objectives. Human resources, for example, aims to hire and preserve top employees and optimize employee spirits. Strategies relate to hiring, compensation and motivational strategies. Marketing strategies consist of approaches to communication used to achieve objectives like higher brand alertness or sales increase.
In a correctly functioning organization, corporate strategy is recognized and serves as a direct for functional unit strategy. Corporate strategy is an superseding approach to business that functional units must understand when creating functional objectives and strategies. Eg, if corporate leadership has a aim of increasing market share by 15 percent in one year, it might use a strategy of repetition the marketing budget for the next year. The marketing division would align with this purpose and figure out strategies to optimize the competence of the amplified budget to realize this market share.
All the levels of strategies are related with Human Resource Department.
Leadership level helps to design & frame the HR policy .Leaders communicates all the requirements to HR department through Leadership level.
Objectives are applicable to all resources .Now Man Machine Material are three resources. Man is one of them. So the objectives assigned to Man resources are the part of Human Resource Department.
To establish the sequence e among the all activities is major concern in organizations. For doing this HRD plays a prominent role.