Strategy Formation and Implementation Stages with HRM Focus

This essay explores the fundamental stages of strategy formation and implementation in modern business organizations, emphasizing the critical role of Human Resources Managers (HRM). It discusses the rational strategy model, highlighting strategic analysis, choice, implementation, evaluation, and control. The paper examines how HRM incorporates ethics and accountability into employee operations through employment law guides, codes of conduct, and ethical leadership. It also analyzes the role of HRM in change management, including communication, urgency creation, and performance evaluation. Furthermore, the essay discusses key performance indicators like employee turnover, utilization rate, and mean time between failures, alongside the utilization of data sources such as absenteeism rates, market trends, cost of living allowances, and employee turnover for effective business planning. Desklib provides access to similar essays and study tools for students.

Running head: STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
Stages of Strategy Formation and Implementation
Name of the Student
Name of the University
Author Note

1STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
Introduction:
The modern business organizations are significantly subjected to the increasing
competition of the industry. The increment in the number of the new entries into the industry
is creating a state where the organizations are facing an intense competition. The intensity of
the market competition is forcing the organizations to form effective strategies in order to get
rid of the situation and in that case, the planning has great significance. The organizations of
the modern generation are observed to be significantly inclined to the scientific management
of the business operation in order to reduce the impact of the competition that has the
potential to make the survival difficult for the modern day organization (Bratton and Gold
2017). The paper is focused in identifying the fundamental stages of the strategy formulation
and the implementation. Along with that, the paper describes the role of the Human
Resources Managers in the formulation of the strategy and the implementation of them. The
paper is focused in the evaluation of the contribution of the HRM in incorporating ethics and
accountability to the employees of the organization. In addition to this, the paper provides an
in depth discussion on the role of the HRM in business planning during the change inside the
organization and analyses the usage of the four different business and contextual data that can
be utilised for the planning purposes.
Rational Strategy Model:
The rational strategy model is one of the widely used models for the planning
purposes inside the modern day business organizations. The model is considered to be
decorated with 5 steps dedicated for the purpose of the planning. One of the most renowned
researcher of the business planning, Nigel Taylor in the year 1998, through the creation of
“Urban Planning theory since 1945”, was able to comment on the stages of the model where
the researcher portrayed the definition of the problems and goals, Identification of the
alternative plans or policies, evaluation of the alternative plans or policies, implementation of

2STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
the plans or policies and the monitoring of the effect of the plans to be the five steps of the
model. However in the modern business context, the concept of the model is observed to be
significantly changed.
The modern day business organizations are seen to consider the model as the process,
having various stages like strategic choices or options strategic analysis, strategic
implementation and the strategy evaluation and control. The strategic analysis section of the
model is concerned with the evaluation of the organization’s condition. The human resource
managers of the organizations are responsible of conducting the external and the internal
analysis of the organization for the strategic analysis (Armstrong and Taylor 2014). In order
to evaluate the internal condition of the organization, the managers of the organization are
responsible to conduct the Strength-Weakness-Opportunity-Threats (SWOT) analysis of the
organization. For the evaluation of the external condition of the organization, the managers
are liable to conduct the Porter’s five forces analysis and the PESTEL analysis.
For the strategic evaluation and the choice of the strategic option, the human resource
managers are responsible for the conduction of the Net Present Value (NPV), Internal Rate of
Return (IRR) and Payback evaluation. It is significantly important for the managers to
evaluate which strategic options to take in a situation. In the strategic implementation section,
the managers are in need to assess the suitable policies and strategies for the organization and
implement that in all the areas of the business (Ghezzi, Cortimiglia and Frank 2015). In the
strategy evaluation and control section, the managers are responsible for evaluating whether
the strategies formed by them are increasing the effectiveness of the workforce and are able
to achieve the actual goal or not. During this time, the managers are subjected to face
significant amount of challenges which they to overcome with effective strategy formation on
rewarding the employees for their work and at the same time penalising them for their
misconduct.

3STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
The incorporation of the ethics and accountability into the operations of the
employees of the modern organizations are observed to be significant. The role of the HR in
triggering the incorporation is expected to cover the aspects like the formation of the
employment law guide and implementation of it, the formation of the code of professional
conduct and the implementation of it, the formation of the code of ethics and professional
responsibility (Rosemann and vom Brocke 2015). Apart from this, the managers are
responsible for producing ethical leadership and at the same time, they are expected to
portray justice and fairness through their decision making, may that be for a promotion,
penalisation or recruitment. The managers are in need to ignore the favouritism, nepotism and
cronyism to effectively and ethically manage the conflicts of the interests. The reduction in
the biasness in the decision making will be significant step from the part of the managers in
incorporating the ethics inside the organization.
Three Indicators for the Business Performance Evaluation:
The indicators for the business performance evaluations are observed to of two types,
quantitative and the qualitative. The evaluation of the business performances and the
identification of the key performance indicators are observed to be include the steps like the
establishment of a pre defined business process, the identification of the requirements for the
business process, precise qualitative and quantitative measurement of the results and
comparison with the desired goals and the investigation of the variations along with the strive
forward towards the achievement of the short term goals. Many of the business researchers
commented that the effectiveness of the business conduction increases with the identification
of such key performance indicators which re specific, measurable, achievable, relevant and
time phased (Parmenter 2015). The key indicators of the business performance depends on
various aspects of the business which are accounts, marketing and sales, manufacturing,
professional services, system operations, project execution, supply chain management, stock

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out situation, human resource management. Considering the above mentioned section of the
business, the chosen performance evaluation indicators are employee turnover, utilization rate
and mean time between failures.
Employee Turnover:
The growth of any organization are significantly important von the employees of the
organization. As the modern business market is notably competitive, the quality in the
services of the employees is influential in the generation of the revenue for the organization.
Hence the organizations are observed to try their level best to retain the employees who are
able to match the desired quality. The number of quality employees leaving the organization
will produce a detrimental effect to the business operations of the organization (Habib et al.
2014). Hence an organization which is able to decrease the employee turnover rate can be
considered as operating efficiently.
Utilization rate:
The utilization rate is the percentage of time that employees of a particular
organization spend in the generation of the revenue (Freitas and Serrano 2015.). Hence the
higher the value of the utilization rate is, the higher the changes of improvement in the
business performances of the organization.
Mean Time Between Failures:
The failures, in the modern day competitive business industry, has significant
disadvantage for the organizations. The reputation of the company is significantly affected by
the failures. Hence the organizations are seen to try their level best to minimize the rate of
failure and the increment in the time between the failures are significant for the improvement
of the performances of the organization.

5STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
Role of HR in change management:
The three basic responsibilities of human resource managers during the change inside
the organization is the communication regarding the need of the change to the employees of
the organization, the creation of the urgency among the members of the organization. Along
with that, the evaluation of the performances of the employees of the organization during the
change for recognising the good work of the selected employees who are able to perform as
per the desired quality during the change. The communication regarding the need of the
change is significantly essential in order to convince the employees and make them
understand the necessity of the change (Cummings, Bridgman and Brown 2016). The
creation of the urgency from the part of the HR is much needed in order to implement the
change initiative as soon as possible (Pollack and Pollack 2015). Apart from that, the change
implementation incorporates a wide range of challenges for the human resource managers of
the organization. In this case, the managers are responsible for motivating the employees with
the formation of effective rewarding policies so that the implementation of the change
becomes easier (Small et al. 2016).
Utilization of Different Sources of Data:
The planning and the strategy formation of any organization notably depend on the
data and information of various sources that may be internal or external. The chosen sources
of data which are highly important for the purpose of planning inside the organization are the
rate of absenteeism, the market trends, the cost of living allowances and the employee
turnover.
Rate of Absenteeism:
The planning or the strategy formation for the growth of the organization is
significantly influenced by the number of employees that are present inside the organization.

6STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
The business organizations which are service oriented are notably dependent on the number
of the employees available for the services. Under such situation, the management of the
organization considers the rate of absenteeism in the planning of the growth of the
organization and the generation of the revenue (Scoppa and Vuri 2014).
Employee Turnover:
As mentioned earlier, the modern business industry is highly influenced with the
quality of the services and products. The employees who are able to serve the organization in
accordance to the desired quality are considered to be the assets of the organization. Under
such situation, the employees who have the potential to produce the quality, are expected to
be retained by the organization. In addition to this, the increment in rate of such quality
producing employees leaving the organization, affects the growth of the organization
(Harrison and Gordon 2014). Hence the management of the modern organizations are
responsible to include the rate of employee turnover into the planning and strategy formation
for the growth of the organization.
Market Trends:
The statistics of the consumption of the products or the services that a particular
company offers to the customers, is significantly influential in the practical strategy
formation from the part of the management of the organization. The market trends or the
preferences of the customers, allows a particular organization to align their products to the
needs of the customers (Kim and Mauborgne 2014). It helps in the generation o the increased
revenue for the organization as it increases the consumption of those services and the
products.
Cost of Living Allowances (COLA):

7STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
The cost of living allowances notably influences the pricing of the products. The rate
of COLA affects the intention of a particular employee in staying in the organization and at
the same time, it affects the company’s strategy of implementing a competitive pricing policy
for the increment of the company’s growth (Nazir, Shah and Zaman 2014). Hence the
managers are responsible to consider the mentioned data for producing an effective balance
in the planning for the growth of the organization.
Conclusion:
On a concluding note, it can be said that the planning of the organizations for the
growth or for the implementation of the change in the business operations of the company,
largely depends on the excellence of the human resource managers. In order to effectively
plan and scientifically implement the set goals, the demand of the human resource managers
are seen to increase immensely.

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Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
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9STAGES OF STRATEGY FORMATION AND IMPLEMENTATION
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