Page 250 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes repairs at a convenient time before the repairs are actually needed. Preventive maintenance
depends upon the past knowledge that certain wearing parts will need replacement after a
normal interval of use.

Inventory Management

This is concerned with management of inventory consisting of raw materials, work-in-process,
goods in transit, finished goods etc. Inventory management is a critical function because
substantial money can be locked up in inventory, which can be put to productive use. There are
various techniques that can be used for effective inventory management.
1. Economic Order Quantity

2. ABC analysis
3. Just-in-time (JIT) Inventory systems etc.

Quality Management

Quality is a major consideration in Production/Operations strategy. By using techniques like
Total quality management (TQM), Six Sigma etc, organisations strive to produce ‘Zero defect
products’ Operations strategy should consist of appropriate Quality improvement programmes
to achieve total Quality in products and services of the organisation.

Task Find out about the quality management practices at McDonalds.

13.4 Personnel (HR) Plans and Strategies

Personnel policies are guides to action. Brewster and Ricbell defined HR policies as “a set of
proposals and actions that act as a reference point for managers in their dealings with employees”.
Management should pay attention to the following aspects of HR policies:
1. HR policies must be related to the strategic objectives of the firm.
2. They should be stated in definite, clear and understandable language.
3. They should be sufficiently comprehensive and provide yardsticks for future action.

4. They should be stable enough to assure people that there will not be drastic overnight
changes.
5. They should be built on the basis of facts and sound judgment.

6. They should be just, fair and equitable.
7. They must be reasonable and capable of being accomplished.
8. Periodic review of HR policies is essential to keep in tune with changing circumstances.

13.4.1 HR Planning

HR planning is the first key component for developing a human resource strategy. It involves
translating corporate – wide strategic objectives into a workable plan and serves as a blue-print
for all specific HR programmes and policies. It is the process of analysing and identifying the

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