Nature of Strategic Management

Strategic management is an art and science of cross functional decisions that enable an organization to achieve its objectives by formulating, implementing and evaluating. Strategic decisions are required in uncertain situation. Purpose of strategic management is to exploit and create new and different opportunities for tomorrow; long-range planning. 

Basic stages of Strategic Management process:

1. Strategic formulation
2. Strategic implementation
3. Strategic evaluation

Strategic Formulation Includes:

•  Developing- Vision and mission

•  Discovering-External opportunities and threats

•  Determining- Internal strengths and weaknesses

•  Establishing- Long term objectives

•  Generating-Alternative strategies

•  Choosing-Particular strategy selection

Strategic Implementation Includes:

•    Establish Annual Objectives

•    Devise policies

•   Motivate Employee

•   Allocate Resource

Strategic Evaluation Requires:

• Internal and External Review

• Performance Measurement

• Corrective Action

Key terms in Strategic Management:

• Competitive Advantage

• Strategists

• Vision and mission statement

• External opportunities and threats

• Internal strengths and weaknesses

• Long term objectives

• Strategies

• Annual Objectives

• Policies

Competitive Advantage: 

In strategic management attaining and retaining competitive advantage is one of the basic factors. Anything that an organization does especially well compare to their rivals regarded as the competitive advantage of that organization. During global recession ample balance, less fixed assets than rivals, internet provides major competitive advantages. Normally competitive advantages only for certain period due to rival firms imitating and undermining that advantages, so must strive to achieve sustained competitive advantages by (a) continually adapting change with external events and internal capabilities, competencies, and resources (b)effectively practice SMP.

Strategists: 

Strategists are individual who are responsible for success and failure. Strategist first help to gather analyze and organize information. Then track industry and competitors trend .After tracking trend strategist develop forecasting model and scenario analysis .At last strategist evaluate performance, spot opportunities identify threats and develop corrective plans. Strategist differs because of personal philosophies, social responsibilities, concern profitability, attitude, values, ethics, willingness to take risk etc.

Vision and mission statement:

Vision Statement: Vision Statement is the source of inspiration. It only focuses on future. Vision set direction for business planning and give foundation for developing comprehensive mission statement.

Example: What do we want to become?

Mission Statement: Mission statement is more descriptive than vision Statement. It focuses on present. It informs about the desired level of performance. Mission statement is most visible and part of strategic management process. This statement reflects every aspect of a business.

Example: What is our business? Identifies the scope of firms operations. 

Strategies: 

By using different strategies long term objectives can be achieved. Examples: Geographic expansion, Acquisition, Product development, Market penetration, Joint venture, Retrenchment etc.

Long term objectives: 

Specific results that an organization seeks to achieve in pursuing its basic mission. Objectives should be measurable, consistent and clear. Objectives are essential for ensuring any firm’s success.

Annual Objectives: 

Short–term mile stones that firms must achieve to reach long term objectives. Annual Objectives should be computable, quantitative, realistic, challenging.

Policies:  

By following policies annual objectives can be achieved. To support objectives policies can be considered as the guidelines to achieve annual objectives.

Benefits Employees Get From HR Certifications

In general, to be valued as hr professional and to be considered for upper level positions people should have the knowledge of human resources. This important document differentiates hr professional and experts from others. According to Value of Certification Survey for more details about human resources certification, there are numerous causes detailed from the Human Resources Certification Institute including:

• Executives evaluate candidates by certification when they formulate any hiring decisions.

• Certified HR professional get trust and confidence from their peers than non-certified HR colleagues.

• An institute/organization when hire any hr-certified proficient’s think that this employee will bring a competitive advantage for their organization.

• Leaders of a business will be more encouraged in HR field if he/she will be certified in hr.

• HR professionals generate an optimistic impact on their institutions’ economic performance.

By achieving certification an hr professional gets some benefits. Hr certifications make them successful in their role playing as an HR professional. Superior gives importance and values to the employees who are certified hr professionals. Human resources certifications also increase earnings of the employees.

By hr certifications an employee get the chances to find better job which will match with his qualifications. For an organizations business success an hr experts can play a vital role. Now-a-days professional in human resources certification are so needed for an organizations success. 

For HR professional’s many HR Certification institutions present a broad collection of advanced diplomas.Through the combination of formal learning and knowledge qualified HR professionals are getting chance to develop their own integrity.

Diploma in Human Resource Management offers a wide range of HRM concept and also this diploma allowing people to achieve deeply understanding of the quick developing field.Person who want to develop their career in HR and Personnel management have a great opportunity to achieve this diploma to become a part of the international HR community. Diploma in Human Resource Management focal point is the procedures, perceptions and theories which is related to practical HR issues in modern organizations. 

Professional in human resources certification gets some workplace Benefits. They get the chance to identify core competencies required for their organizations benefits. On the other hand, professional in human resources certification learn how they should communicate policies to their employees. Professional in human resources certification gets the ability to create an environment that attracts and retains talented employees.