The Importance Of Corporate Strategy In Relation To Human Resource Management

882 Words 4 Pages
Corporate strategy is a strategy that a company implements in order to identify its overall image by identifying its products or services in which they want to offer to customers, but also it helps the company determine long term goals for the company (Guth, 1976). An organization’s corporate strategy is instrumental in framing and guiding the employees to achieve the goals of the company and help the company be productive and profitable. Without a company have a corporate strategy, there would be no direction for company success and no goals to strive for. Therefore, a corporate strategy should be implemented in any organization, but there are three types of a corporate strategy that can pose some challenges in relation to human resources …show more content…
Companies cannot operate by being unstable and not knowing if the company will survive another month. The company needs to have structure and be financially sound in order to remain stable and secure. A company may choose to remain at the same level for a little bit in order to avoid change that may affect their profit margin. When a company remains at the same level for a distinct period of time, then it will affect employee promotions, raises, and limit the opportunities for employees within the company (Mello, 2015). Therefore, if a company choses to remain stable for a period of time, they should have a good retention plan in order to accommodate their employees and make sure they are satisfied while the company is remaining “stable.” If a company is not rewarding employees by promoting or implanting raises, then the retention strategy should include ways in which the management is acknowledge the employees hard work in another way. Employees want to feel valued and they want their contributions to be noticed, so the retention strategy should consider effective ways to reward employees for performing well, which will ultimately generate employee satisfaction (Gering & Conner, 2002). The company could reward employees by giving them an extra day off or give them a little item to thank them for their service, but not actually rewarding them with a monetary reward. These are just a few items that could be implemented into a retention strategy, but the main objective is to promote employee satisfaction during the stability period in over to avoid a reduction in workforce by employees not feeling valued by their

Related Documents