Profits of an organization mostly rely on a good business strategic plan. In the case of Mountain Bank, the profits have been declining as a result of the poor business strategic plan. The best step forward is to develop a new strategic plan which will enable the bank to regain its popularity in the market. A number of human resource management strategies are important in the realization of a company’s competitiveness in the market.
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Strategies to be implemented by Mountain Bank to achieve competitive advantage in the market place
Considering the turn down in profits of Mountain Bank, several strategic measures should be employed for the company to realize its revenues. To guarantee a company’s efficiency, the business plan should work in hand with the human resource strategy (Phatak, 2009). Human resource management, however, relies on business-level strategies that deal with competition from other companies offering the same products. Mountain Bank, therefore, needs to observe these business-level strategies to gain an advantage in the competitive market.
The cost of leadership strategy is an HR strategy that involves the provision of quality services at the lowest possible cost. Mountain Bank can achieve this by introducing resourceful production ways to allow them to offer services at lower costs than other banks in the market. However, while reducing the cost, the bank needs to ensure the presence of essential and consistent services.
Mountain Bank also needs to implement the differentiation strategy in order to realize profits. This can be done by providing its customers with well-enhanced services varying from their competitors. Changing the way of marketing strategy in terms of advertisements and the provision of sponsorships would improve the market share of Mountain Bank in the competitive market.
Types of practices recommended for Mountain Bank with respect to its tellers
The universalistic approach of human resource management strategy is mainly focused on the identification of roles that are of great advantage to the company. On the other hand, the commitment strategy mainly involves employee empowerment and the development of a well devoted and reliable workforce in the company.
The above-mentioned approaches can be used by Mountain Bank in assigning their tellers to various roles. Each teller should be given a responsibility to take care of in order to improve performance standards. The bank should also introduce motivation techniques such as paying tellers according to service delivery. This will boost the employees’ morale hence increasing their commitment to work enabling good returns to the bank (Phatak, 2009). The implementation of these approaches has been seen to produce vast advantages to organizational profit-making since the employees are dedicated to their work hence producing substantial results. Universalistic approaches also ensure good relationships between the employees and the management.
Human Resource strategies for implementation within an organization.
Several approaches can be combined to produce essential human resource strategies for an organization. The main strategies used in human resource management include; the internal/differentiation, internal/cost, external/cost, and external/differentiation (Stewart, 2008). These strategies are mainly involved with differences associated with the management of employees and staff at work.
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The internal/cost strategy is sometimes referred to as the loyal soldier (Phatak, 2009). It comes by as a result of merging cost leadership strategy together with an internal combination of an organization. This strategy stresses the point of recruiting and holding on to employees who are loyal to the company. The employees are assigned to specific company roles adapting to the culture of the company hence providing loyalty. The organization also rewards these employees by ensuring good salaries for high-quality services delivered. This strategy enables companies to have long-term employees thus cutting the cost of recruiting other staff.
The external/cost strategy merges the cost leadership strategy with an external course. It is sometimes known as the bargain laborer strategy (Stewart, 2008). This strategy encompasses the hiring of employees and assigning them duties that are easy to learn. The employees are mostly in the short term since they are subject to low salaries and duties are simply controlled by supervision from managers without much effort from junior staff. This strategy does not give proper definitions of the employee’s role hence minimizing the possibilities for promotions. This also hinders the creation of staff unions hence benefiting the company (Phatak, 2009).
The committed expert human resource strategy is aimed at employing and holding on to specialized staff. Employees with potential in specific tasks acquire long term employment with better remuneration packages than those without professional certification. The organizations also train their staff and assign them different responsibilities to enable service delivery and performance (Stewart, 2008).
The free-agent strategy mainly involves the employment of people with important skills but on a short term basis. By doing this, the employees are assigned to various duties and are allowed to handle them on their own. The salaries are well paid to ensure performance since employees are free to leave at any time. This strategy works in the production of high quality and unique products.
Recommended human resource strategy for Mountain Bank with respect to its tellers
The most recommended HR strategy for Mountain Bank with respect to its tellers is the internal/cost strategy. It well suits the needs of a bank since it is based on long term benefits. The tellers of Mountain Bank also need to be assigned specific duties and held responsible for failure to deliver services. According to Stewart (2008), the implementation of this strategy would enable competition hence improving duty performance from the employees due to the urge of earning higher salaries. This would enable Mountain Bank to rediscover its competitive position in the market.
Human resource management plays a crucial role in the running of an organization. Proper management is achieved by the implementation of suitable strategies according to a specific organization. For Mountain Banks to regain control in the market, correct strategies should be followed in human resource management in order for the bank to re-discover its competitive niche.
Phatak, A., Bhagat, R., & Kashlak, R. (2009). Strategic human resource management: International HRM supplements. New York, NY: McGraw-Hill.
Stewart, G., & Brown, K. (2008). Human resource management: 2010 custom. Hoboken, NJ: John Wiley & Sons.