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Human Resource


Fundamentals of Management
Planning :

The planning process:


Set an objective.


Make forecasts.


Determine what your alternatives are for getting from where you
are now to where you want to be.


Evaluate you alternatives.


Implement and evaluate your plan.

Business Plan

Provides a comprehensive view of the firms situation today and

of its company wide and departmental goals and plans for the
next 3 to 5 years.

Managers most often use the term business plan in relation to

smaller businesses.

It is the plan that the investors want to see before offering money
to the firm.

Business plan table of content:

How managers set objectives:

Setting SMART goals:

Experienced managers have a simple and effective way to check

whether their goals are good or not, they use the term SMART.

They say good goals are specific ( make clear what to achieve) ,
measurable attainable; relevant ( in terms what you are setting
the goal for), and timely they have deadlines.

Motivational goals

Assign specific goals : Employees who have specific goals usually

perform better than those who do not. Setting specific goals with
subordinates ( rather than setting no goals or telling them to do
their best) is probably the simplest effective way to motivate

Assign measurable goals: Always try to express the goal in terms

of numbers and include target dates and deadlines.

Assign Challenging goals: Goals should be challenging, but not so

difficult that they appear impossible or unrealistic.

Encourage participation.

Management by objectives: MBO

MBO : usually refers to a formal organization wide program in which
managers at each organizational levels meet with subordinates to
hammer out goals that make sense in terms of each department
assigned goals.

MBO typically consists of 5 steps:


Set organizational goals: Top management sets strategic goals

for the company.


Set department goals: department head and their superiors

jointly set supporting goals for their departments.


Discuss department goals: department head present

department goals and ask all subordinates to develop their own
individual goals.

4. Set individual goals : Goals are set for each subordinate, and a
timetable is assigned for accomplishing those goals.
5. Give feedback : Supervisor and subordinate meet periodically to
review the subordinates performance and to monitor and analyze
progress toward his goals.

Types of strategies:
Corporate Strategy
Standard corporate strategy:

Concentration strategy: the company offers one product usually

in one market.


A diversification corporate strategy implies that the firm will

expand by adding new product lines.


A vertical integration strategy means the firm expands

producing its own raw materials or selling its product direct.

4.Consolidation: reducing the companys size.

5. Geographic expansion : taking the business abroad.

Competitive strategy

Identifies how to build and strengthen the business long term

competitive position in the marketplace.

Competitive advantage: Any factors that allow an organization to

differentiate its products or service from those of its competitors
to increase the market share.

Managers use competitive

strategy to achieve competitive
Cost leadership : means becoming the low cost leader in an


Differentiation : the firm seeks to be unique in its industry along

its dimensions that are widely valued by buyers.

Example: Volvo Stresses the safety of its cars, Mc Donalds

stresses fast delivery.

Functional Strategy

Functional Strategy identifies the broad activities that each

department will pursue in order to help the business to
accomplish its competitive goals.

Strategic Fit

Strategic planning Micheal porter calls the idea that each

departments strategy needs to fit the parent businesss
competitive aims Strategic fit.

The top managers role in

strategic planning

The strategic planning is top managements responsibility. Few

top managers would delegate the job of deciding how the
company should match its internal strength and weaknesses with
its external opportunities and threats to maintain a competitive

SWOT Analysis


Diversity means being diverse or varied, and at work means

having a workforce comprised of two or more groups of
employees of variable personal characteristics such as gender ,
race, cultural , national origin and age.

Definition of diversity

DM is a planned and systematic managerial process aimed an

creating an organizational environment where all employees
contribute to organizational effectiveness.

DM is enhancing social justice by creating an organizational

environment in which no one is privileged or disadvantaged due
to characteristics such as race or gender

Types of diversity management

A) Cultural diversity : is defined as the presence of a number of

nationalities among the employees.

B) Linguistic diversity : is perceived as numerous speakers from

diverse national languages are present in the same workgroup.

C) Age diversity : means that there is a wide representation of

different age groups in the organization.

Drawbacks of diversity

1) Increased cost of training : comes from the seminars given by

the company to promote diversity in workplace. Employees are
being taught in this training how to accept the personalities and
the ideas and thoughts of others.

2)Conflicts: are largely due to ignorance when two or more

individuals or groups dont see the situation from the same

3) Discrimination : when workers are being discriminated against

( because of their race, culture,.), this will affect their ability to
perform and will decrease the performance of the organization as
a whole.

The role of H.R in promoting

diversity management

Effective DM enables organizations to capitalize on workforce

diversity and minimize the negative effect of such diversity.

HRM plays a vital role in diversity management. It ensures

equality and values diversity through making use of it.

Generally, effective DM requires close integration with H.R

practices, focusing on employees, their individual differences and
creating a workforce that has the skills needed to turn diversity
into an advantage, leading to positive performance outcomes.

H.R diversity management


A) Recruitment and selection : Effective recruitment and selection

should focus on:

Ensuring equal employment opportunity for applicants from

diverse backgrounds.

Screening job candidates attitudes toward diversity to ensure

that the new employee fits in with the culture diversity in the

Recruiting the best people for the job regardless of their age,
race and gender.

2) Training and development: Diversity training to increase

diversity awareness, meet the needs of diverse employees,
improve employee morale, and help retain qualified employees.

Training programs to help eliminate group differences in career

outcomes and generate respect for individual differences in
attitudes, values and behaviors.

3) Performance Appraisal: Be objective not subjective, fair to all

employees and offer no special treatment.

4) Reward and compensation : ensure pay equity and rewarding

contribution of diverse employees equitably to avoid wage gaps
between demographic groups and discrimination in
employement compensation.