Human Resource & Strategic Corporate Management

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Strategic Corporate Management

The labor market is more competitive than ever. Companies need the most qualified and motivated employees right now. How you can select them efficiently and promote them, these are the challenging aspects to focus for stabilizing the economical and managerial parts of the company.

Strategies in human resources & personnel management

Personnel managers and executives who are entrusted with personnel management are faced with a wide range of tasks. After all, the department is constantly changing. Therefore, only new skills and abilities are in demand.

Coping with strategic leadership in companies

Successful companies are characterized by clear and consistent strategic planning, implementation, and control. You learn faster and are able to implement innovations in all areas of the organization in the shortest possible time and become a remarkable human resource professional. In his article, we present in a practice-oriented manner which design fields, concepts, and methods enable strategic leadership in companies that are oriented towards the challenges of competition.

Strategic leadership opens up potential for value growth

“Corporate management is not about dealing with problems of the present, but about shaping the future.” This quote shows how important the strategic orientation of companies is for securing their livelihood in the long term. But what does strategic alignment mean? Which design areas have to be taken into account in strategic planning? In this context, the answer to the location question, the determination of the economically efficient depth of service, the choice of outsourcing partner and the management of the dynamic core competencies are of decisive importance.

Products are becoming more and more similar in saturated markets and. The addition of services enables individualization of the service programs and provides them with a unique selling point. Such a bundle of products and services not only opens up growth opportunities, but also enables stronger customer loyalty. The successful implementation of customized service programs requires problem-oriented management concepts and a high degree of flexibility in the company. In his publication, we demonstrate the concepts and empirical findings that lead to instructions for action for customer-oriented design of service and product management.

Comparison of strategic and operational management

In order for projects to be successfully implemented in the company, there must be a factual and temporal coordination of strategies and operational programs. The corporate strategy (basic strategy) is broken down and adapted across the corporate divisions. The following illustration should help you to understand this process/process better.

As you can see from the illustration, the corporate strategy “towers” above all. From this, business area strategies are in turn developed for each business area in the company. The latter are then used in the functional areas as the basis for the development of functional strategies. Here, too, one separates according to business areas and develops functional strategies for procurement, production, sales, marketing, personnel, research and development, and so on. Once the large number of individual functional strategies have been worked out, operational programs (including all measures) are formulated from them.

The strategic and operational management have the common goal of making their contribution to the company’s success, but this takes place in a different scope and dimension. The following illustration should show you exactly how this is expressed.

Controlling – an important part of corporate management

The last of the three core contents of corporate management is control. How do you make sure that you can achieve your goals? By taking on the bare numbers and checking them. This is the only way you can find out how efficiently your company works. If the strategic management has set the market launch of a new product as a medium-term goal, then it is up to the operational management to initiate all the necessary processes – but the controlling is responsible for the cost structure, keep an eye on and assess the feasibility of the project. After all, someone has to keep the place together. Controlling thus supports the strategic and operational management in completing their tasks.

In the ideal case, controlling even goes so far that every employee makes sure that they meet the goals set in the interests of the company – by not negligently handling the available resources and not wasting money.

Requirements for a functioning controlling:

  • Clearly measurable and verifiable goals
  • Structured operating procedures
  • Complete and transparent processing of all data
  • Analytical thinking to identify risks and opportunities at an early stage
  • Correct interpretation of the existing data

The art of controlling consists in drawing the right conclusions from the collected Key Performance Indicators (KPIs) in order to be able to derive consistent recommendations for action. In plain English: If you notice that your sales expenses are higher than budgeted, it is important to consider why this is the case. Is it possible that a partner company is simply too expensive or is the department not efficient enough?

As the founder of your own company, you will initially have to do the controlling job yourself, until you finally entrust it to proven experts from a certain company size.