Strategic and Human Resources Management

Subject: Management
Pages: 3
Words: 820
Reading time:
3 min
Study level: Master

Strategic management is a potent tool that is vital for modern companies because of the complexity of their functioning and the multiple challenges they face in the course of their evolution. Application of the basic concepts of this theoretical framework can contribute to the improvement of the current situation and resolution of problems a firm experiences at the moment. For this reason, the employment of strategic management elements to the offered scenario will help to demonstrate how certain barriers can be eliminated.

A multinational company offering a range of products to the U.S. marketplace is characterized by severe economic challenges and has to fire about 10,000 employees. However, because of the desire to continue its global expansion, there is a need for a practical action plan and solutions to restore product lines and enter new areas. The following steps can be recommended regarding the situation. First of all, the strategic management process presupposes seven vital steps:

  1. Define the current business.
  2. Perform audits.
  3. Formulae a new direction.
  4. Establish strategic goals.
  5. Formulate strategies to achieve them.
  6. Implement strategies.
  7. Evaluate performance.

It means that the discussed company should, first of all, assess its available resources, determine its state, and conclude whether they suffice to continue its evolution. The next step is the establishment of clear goals presupposing the choice of the direction to expand, country, and region. It will help to formulate strategies that will help to achieve these goals and implement them. Finally, during the final stage, the effectiveness of these methods should be evaluated to ensure that there are positive changes, and the company moves in the right direction.

At the same time, the given strategic management and plan should be supported by useful human resource management strategies. They serve as the basis for the formation of the background needed for the achievement and establishment of an organizational culture that promotes better performance. For the given scenario, socio-cultural and economic problems should be relevant as the company lost a significant number of employees because of financial difficulties. Thus, human resources should be adapted to goals that are established at the moment. It means that by hiring new employees to save the product line, the company should solve problems with staffing.

Becoming an international organization working in different areas, it is reasonable to use local workers as the costs of expatriates are much higher, and the company experiences economic difficulties. Moreover, the foreign workers might have decreased motivation to work in the area, when locals have the desire and improved understanding of the market, clients’ culture, and their needs. For the given case, the HR strategy should presuppose the use of employees from regions selected for the expansion as it will contribute to costs reduction and better outcomes.

Moreover, much attention should be devoted to selecting expatriate managers possessing improved knowledge of how to align the work of a new department in a chosen area and what values should be cultivated. The given specialists are vital for the successful expansion as his/her responsibilities will include the alignment of the work of the firm during its first stages, staffing, decision-making, and establishment of short-term goals. In this regard, he/she should be trained enough to possess a clear vision of the strategy and be informed about the existing legal and political issues that should be taken into account to avoid penalties or fines. Candidates should be tested to determine if they are ready to function abroad and support the further evolution of the company.

Finally, as for the economic issues, their effective resolution can be achieved by the combination of effective HR management and strategic planning. The existence of clear goals will help to redistribute costs effectively and avoid unnecessary spending by focusing on aspects that are critically important at the moment. Moreover, a practical approach to stuffing will help to hire new employees motivated to work in the new environment and possessing an improved understanding of the local culture and clients’ peculiarities, which is critical for the success of a new entry and the company’s becoming a successful international organization working in different regions.

Altogether, the given scenario demonstrates how the essential elements of strategic and HR management can be applied to various cases with the primary goal to improve the functioning of the company and solve problems it faces at the moment. These tools can affect all spheres of firms’ development and offer effective measures to avoid undesired outcomes. Regarding the information provided above, the plan for action for the organization might presuppose:

  1. Evaluation of its current state to reveal problems and determine available resources.
  2. Establishment of clear strategic goals.
  3. Staffing of foreign departments.
  4. Selection of expatriate manager.
  5. Evaluation of short-term results.

The observation of the central aspects of this plan will help the company to achieve the desired goals that include successful expansion, entrance the new markets, and preservation of product lines that were endangered because of the reduction of employees.