“People are more crucial than plans in business strategies.” Elaborate


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In any business strategy, people are becoming more crucial than plans. Effective implementation of the company’s business strategy is possible only with self-motivated people working in small self-managed teams. The winning corporation dominates the market by offering their customers one of the three competitive benefits:

 

 

1] BEST PRODUCT AND THE New People Management:

Offering the best product involves continuous innovation within the company, using knowledge and abilities of individuals. People with originality will be recruited. Working conditions with few controls will be created. Resources are provided for experimentation. Risk taking and failure must be provided for; training and development also need to be ensured.  Appraisal and rewards will be tied to long term gains ain the market rather than short-term achievements.

 

2] BEST PRICE AND New People Management:

In ensuring the lowest price for their products, companies have to tailor their process as well. No compromise of value for price is acceptable. However lowest cost can be ensured. Best man planning ensures minimum wage bill. People who suit the organisation must be recruited. Cost cutting technologies can be incorporated. A special mandate will be to link organisational cost cutting to individual cost cutting goals and reward employees accordingly.

 

3] BEST SERVICE AND New People Management:

Individuals with the right mix of creativity, initiative, values and skills will be able to provide world-class service to the customers. The employees of a service leader will have to stay at the forefront of new models and techniques that affect their clients business. A company can assist its people to solve customer’s problems. The NPM binds the level of customer satisfaction and delight achieved directly by appraisal and reward.

 


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