AidenAdey

Corporate strategy is presumed to be observed as the overall strategy related to business interests, while business strategy is redesigned to serve the interests of a particular business unit. Most large organizations usually have sub-divisions based on a product. In such cases, strategies are developed to suit individual divisions. Different business unit strategies require different applications of HR strategies. Business unit strategies are of three types. They are:

• Cost Leadership
• Differentiation
• Focus

Cost Leadership:

Organizations concentrating on cost leadership are customer-oriented and try to keep the manufacturing costs low to gain a competitive edge. This strategy can involve developing operational efficiency so that products and services can be priced lower than the industry competition. In this strategy, customers are viewed to be price sensitive and not brand loyal. Price plays an important role in determining the demand for the product. Companies that follow this strategy compete across a broad range of products. The HR strategy for such organizations depends on short term performances of the employees. As the efficiency of employees is taken into account job assignments are more specialized. According to slack or downtime periods, employees can also be cross-trained. Employees are also trained to build on customer loyalty.

Differentiation:

In this type of strategy, organizations differentiate their products from that of the competitors by adding extra features or benefits. Companies follow this strategy to distinguish their products from that of competitors. Such organizations require creative and innovative people who can contribute to new product development. Employees should be empowered and allowed to prove their creativity and innovative people who contribute to new product development. Employees should be empowered and allowed to prove their creativity. Further, to motivate the employees, they should be given incentives. At the time of recruitment, the company should hire people with creative ideas and who can do things differently.

Focus:

According to that strategy, an organization concentrates on one particular market and tries to maximize its profits from that segment. In companies adopting such strategies, employees should be aware of the particular market and the reasons for it to be unique. This can help them understand the market and frame strategies accordingly. Usually, people who are familiar with that market are hired as they can associate themselves with the customers and also understand their needs.

Conclusion:

Formulating an HR Corporate Strategy is the desperate, critical issue which needs to be embedded by Recruitment Consultants London in pursuit of fulfilling the job requirements in the UK. BDS Recruitment is one of the prominent International Recruitment Agencies UK.