Every company strives to establish, ratify, and attain its long-term investment decisions. These types of decisions need patience and first-rate business strategies. Additionally, such decisions are compelling because they allow room for consultation. In a large or well-established business corporation, there are various departments that monitor or take care of other activities in the company hence avoiding employees’ workload.
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Therefore, this means that strategists have to be present in any business corporation to help in long-term business investment decisions. Even though these kinds of decisions are not realized immediately, a wrong business move may lead to their destruction. Notably, a lot of factors have to be put into consideration. Some of them include;
- The financial status of the company
- Overall size of the company
- Current competitors
A company must first consider its current financial status in order to make operational decisions. This enable company strategist in decision making. They will be able to calculate the amount of capital needed to establish the investment plans. When a company is financially unstable, then the first step in future investment execution plan may start at stabilizing the company’s financial status.
This is a vital provision when considered critically in the financial realms. Company size matters a lot in the decision-making process because it determines the amount of investments to be made in future. Size in this case may be measured in terms of geographical area and stability.
Competitors operating in a similar industry might be a hindrance towards achieving long-term investment goals and objectives. Contextually, the concerned organization should enhance its competitive advantages so as to outdo its competitors. This may turn out to be a major threat to the company.
In this case, a strategist or the management committee must first analyze its opponent’s weaknesses in order to compete favorably and be able to achieve its investment goals. The identification of opponent weaknesses can help the company to base its plans on the opponent’s weaknesses (Baker & Powell, 2005).
Why government regulation is or is not needed
Viable government policies are needed in running any cooperation. Additionally, profitable businesses tend to have many organs. The organs/departments are assigned various duties and responsibilities that have to be done to perfection.
This means that every business organ has got its regulation. For instance, HR manager controls all business activities and makes long-term investment decisions for the company. This needs viable government regulations.
Government policies addressing matters relating to the public are critical. The aspects of hiring employees, performance management, organizational development, environmental safety, wellness, employee motivation, communication, and administration provisions are critical in this context. It is vital to heed to the government stipulations so as to avert legal challenges within the organization.
Therefore, government policies overriding the human resource management are very imperative in all organizations, which need to operate and offer valid services to the clients. However, the owners of small organizations might violate the established government regulations. This might interfere with their business operations in the legal realms.
Rationale for the intervention of government in the market process in the US
The government intervention in the market processes is critical in ensuring that businesses gain equitable market provisions. The government intends to create an even business environment for the industry players. This will create a healthy competition in the market. Contextually, the human resource management (HRM) functions. With the help of government, include different activities.
The major function of HR is to decide on the kind of staff the organization needs to hire, whether to use an independent contractor to execute the hiring process, or to outsource employees to fill the vacant posts.
Through the government, HRM also ensures that the recruited employees undergo a thorough training to fully discharge their duties. The market processes in the U.S. have been credible and streamlined due to government’s intervention (Baker & Powell, 2005).
Considering a possible merger
Mergers are important business provisions; however, they should not be embraced when they experience considerable business risks. Contextually, self-expansion can be ratified as an alternative strategy despite the challenges. There are additional complexities that would arise under the expansion via capital projects. For instance, the human resource manager will be overwhelmed with work and new roles.
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However, they should be highly competent so as to discharge his or her duties perfectly. The situation might require leaders of high moral standards, ethical quarters, and of unquestionable integrity. Additionally, employees and managers will be faced with challenges when discharging their duties. Hence, high level of ethics will be needed (Northcott & CIMA, 1998).
These include business ethics, professional ethics, public sector and government ethics, ethical decision making, and research ethics. The organization will also require large monetary capital and resources to spearhead the expansion quests.
Good relationships with the staffs shall require enhancements so as to accommodate the diversified workforce (Elo & IMF Institute, 2007). The organization will need to establish and embrace stringent financial obligations.
Stockholders and Managers – Convergence amidst their interests
The organization’s stakeholders and managers share numerous interests so as to propel the growth of the company. Contextually, HR provisions and other fundamentals have resulted into the creation of SHRM. It is vital to develop various codes of ethics for HR managers. High standards of professionalism and personal conduct are expected from the HR managers.
For instance, the concerned organization should uphold professionalism when making decisions concerning stakeholders’ interests. For instance, rather than firing an employee for incompetency, the manager can assign that employee in an alternative job where he/she can do best. Globally, HRMs are required to commit continuously to education for personal improvement.
Mangers and stakeholders should attend various seminars and workshops to merge their interests. HRM should be very knowledgeable of all the laws and regulations pertaining to the hiring, training, compensation, and disciplinary action against employees (Northcott & CIMA, 1998). Managers should heed to all state-minded laws regarding the treatment of employees and other stakeholders.
Stakeholders’ benefits and confidential disciplinary issues should be handled with care. There are policies that must be established and embraced to ensure viable relationships between managers and other stakeholders. For example, ethical issues in managing employee behavior are also paramount within the workforce. Managers should be able to handle different problems affecting stakeholders.
This includes hygienic issues, setting good examples, and dealing with emerging issues promptly and impartially. Human resource manager should ensure that employees report to work neat and well dressed. In some cases a manager might find that he gets along better with certain staffs than other staffs, in this case he should try to be non-partisan and be fair to all staffs (Elo & IMF Institute, 2007).
Baker, H. & Powell, G. (2005). Understanding financial management: A practical guide. Malden, MA: Blackwell.
Elo, K. & IMF Institute. (2007). The effect of capital controls on foreign direct investment decisions under country risk with intangible assets. Washington, DC: International Monetary Fund.
Northcott, D. & CIMA (Chartered Institute of Management Accountants). (1998). Capital investment decision-making. London: International Thomson Business Press.