(Noe Et Al. 2015) The Strategic Management Process Has

1445 WordsMar 21, 20176 Pages
(Noe et al. 2015) The strategic management process has two distinct yet independent phases: strategy formulation and strategy implementation. The strategy formulation is the process of deciding the strategic direction of the company by setting company’s mission and goals. 3.2.1 Linkage between HRM and the strategic management process (Noe et al. 2015) stats that linkage between HRM and strategic management process must be closely linked which is known as “Integrative Linkage”. Figure 3: Linkages of Strategic Planning and HRM Source: Adapted from Noe et al. 2015 In integrative linkage, mostly the HRM executive will be part of strategic planning. This is dynamic and continuous interaction instead of sequential. The HRM executive…show more content…
Figure 4: Variables to Be Considered in Strategy Implementation Source: Adapted from Noe et al. 2015 4. Retention Management The retention management is an ongoing process to identify the nature and reason of turnover, a strategic method to determine which human capital market had retention impact and development of retention indicate (Allen, et al., 2010). The retention management is the process to encourage and retain the employee in the company for the longer period. Both employee and company are benefited from the retention management. Today, employees are sensitive and emotional. They move to the competitive company when they get dissatisfied. The company must retain the best employees to keep the performance high. If star performers move out of competition then company value and business also moved competition. The reason for turnover differs from internal and external factors. The factors are economy, industry, Job description, team size, salary, manager, location, selection process, and work environment, work pressure, working hours, growth, learning and company goals. Currivan (1999) conducted a study which examined four possible models of the causal relationship between job satisfaction and organizational commitment in models of employee turnover: (1) satisfaction precedes commitment, (2) commitment precedes satisfaction, (3) satisfaction and commitment have a reciprocal
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