By Chit Uys Stevexo
July 21, 2011
The strategic management of an organization's human resource has been recognized as one of the keys to business success. This particular strategy generally involved the optimization of the employees' potentials mainly through training and performance assessment. This organizational strategy has been integrated in several businesses mainly to improve profitability, establish stronger customer relations as well as achieve considerable business expansion. Strategic human resource management has indeed been applied to fulfill various important business goals and plans. Both national and international companies have been developing and applying various means on how to strategically manage one of their essential assets.
Cambodia is a developing country in ASEAN. Many efforts have been tried to integrate this country into global market, such as government policies to become member of ASEANA and its Free Trade Area and to become member of World Trade Organization. Local companies have been able to expand successfully in different sectors through their dedication to quality production as well as effective management and marketing practices. In order to progress further, companies still aim to continue on producing quality brands and products, meeting the needs of its shareholders and operating towards optimum performance. Cambodian companies realize that their achievement to operate both local and global is attributable to its workforce. Thus, those companies have been employing different strategies in order to strategically improve its human resources towards continuous local and global success.
Companies are increasingly facing tough competition as most countries becoming member of economic integration, such as World Trade Organization, ASEAN Free Trade Area, American Free Trade Area, and the European Union. The economic integration enables firms to expand their operation to abroad which is a threat to local companies. To survive, local companies strive through ways based on the nature of their specific industry. One of the ways that most companies in the world used which contribute to the success is selecting appropriate strategy fitting their environment and deploying its functional strategies that support business and corporate strategy.
The most important thing that managers need to take into consideration is the scanning of environment to identify changes that may affect their businesses and choose a strategy in response to the change of the environment. To implement selected business strategy, manager of each function within a firm must carefully consider its functional strategy that support for the achievement of business strategy. By doing well on each function, they can gain and maintain business competitive position in their marketplace.
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages (Dess, Lumpkin & Taylor 2005). Thomas and David (2002) stated that Strategic management is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both internal and external), strategic formulation, strategic implementation, and evaluation and control. Strategic management involves setting of organizational directions (vision and mission), external and internal environmental scanning, setting strategic goals, selecting appropriate strategy, implementing strategy, and evaluating and controlling.
According Thomas and David (2002), company must scan the external environment to identify possible opportunities and threats and its internal environment for strengths and weaknesses before it begins to formulate strategy. Environmental scanning is the monitoring, evaluating, and disseminating...