TASK 6

Strategic and business planning practices of fast-growing firms

In an organization strategies and business planning are two important pillars on which
success depends. Business plans are made by people professional aligning the performance
of the workforce, the company's objective, aim, ambition and goals. Strategies play a key
role in achieving business plans and paving direction. Effective planning can only be done by
involving employees' opinions and thoughts. HR professionals of the maximum company are
applying employee involvement to achieve success through regular discussion on the
company's actual performance and results planned. Through interaction, employees
understand the need of enhancing their performance. Strategies and business plans are
essential for the growth of both organization and employees. In the current market
condition people professionals are into high-quality strategy planning despite low cost or
time based. This helps them to earn the loyalty of consumers focusing on quality which is
the prime necessity of human beings (Upton et.al. 2023).

Linking Competitive Strategies with Human Resource Management Practices

In the current market condition, it has become necessary for HR professionals to coordinate
strategies with business plans to get optimised results. To get an appropriate result for
business plans it is essential to check employee skill, ability, values and perspective match
with a particular plan. A study report by "HAY GROUP INCORPORATED with the University
of Michigan" suggest that when any business strategies and planning are co-ordinated with
employee's skill and values it results into declination in success and loose effectiveness. This
problem force organisation to incur extra cost in urgent hiring from the outside. Therefore
study analysis guide HR professional on the necessity of evaluating employee skills and
learning before implementing strategies. Learning and development programs should be
initiated for reskilling employee's capabilities to get maximum efficiency in performance.
Business plans and strategies can gain competitive benefits and chances of receiving first-
mover advantages in grabbing new opportunities.

Business planning and strategies help in achieving competitive advantages according to

“Porter’s theory". Porter suggests three strategies could be beneficial innovation strategy,
quality enhancement and cost reduction. Innovation strategies would help people
professionals to develop products that are better and different from competitors. Chances
of attracting a larger group of people from different areas. Quality is a supreme factor which
is a necessity for everyone and get ready to pay extra. Hence HR business plans which focus
on quality have a greater chance of achieving success. Lastly, the third strategies of Porter
suggest that HR can also focus on the development of a product that is cheaper. These
strategies would help in earning loyalty and good response from the middle class and below
a group of people whose percentage is comparatively higher than a richer section of society
(Schuler et.al. 2023).

Strategic Human Resource Planning

Business planning and strategic planning is a process applied by people professionals in

arranging desired manpower in the company for better growth and optimum utilization of
resources. The aim of achieving the right number of desired manpower consists of the
required skills and learning can be achieved. Business planning helps HR to allocate
resources, manpower, technology and strategies in the right direction. A successful business
can only be designed through deep analysis, research, journal readings, and evaluation of
market trends and labour market conditions regularly. This practice helps to overcome
obstacles and design a backup plan for security. One of the benefits of strategy planning is it
helps organisation effectiveness by integrating with objectives. Proper strategic planning can
be done by HR through assessing existing labour power, forecasting future requirements,
analysis of gaps (Ulferts et.al. 2023)
References:
Upton, N., Teal, E.J. and Felan, J.T., 2001. Strategic and business planning practices of fast-growth
family firms. Journal of small business management, 39(1), pp.60-72.

Schuler, R.S. and Jackson, S.E., 1987. Linking competitive strategies with human resource
management practices. Academy of Management Perspectives, 1(3), pp.207-219.

Ulferts, G., Wirtz, P. and Peterson, E., 2009. Strategic human resource planning in
academia. American Journal of Business Education (AJBE), 2(7), pp.1-10.