Strategic Management: Formulation and Implementation

Production / Operations Strategies

Production/operations management (POM) is the core function in the business firm. Somehow, someplace, the goods and services that a company sells must be obtained. Basically, this involves a process of converting labor, materials, etc., into the particular combination of qualities that a selected group of customers wants.

The major decisions in the production/operations strategy are concern the technical core, quality, facilities, technology, and production planning and control. POM operating strategies must be coordinated with marketing strategy if the firm is to succeed. Careful integration with financial strategy components and the personnel function are also necessary.

Human Resource / Personnel Strategies

Every activity a company undertakes requires human resources - people who are qualified and motivated to perform specific tasks. Human resource strategies concern human resource planning, recruitment and selection, training and development, compensation and rewards, employment security, and labor relations. Figure 2-5 poses several questions that must be addressed in developing a human resource strategy.

The type of human resource activities that are undertaken in any organization are influenced by the environments, strategy, and organizational design.

Arranging the supply of human resources is a never-ending and sensitive task for several reasons:

  1. Company needs for human resources change.
  2. The supply of human resources changes.
  3. In spite of these demand and supply changes, people seek stability and dependability in their jobs.
  4. Expectations overlap. The way an employee is treated create hopes or fears in many other people.