Strategic Management and Strategic Planning
Strategic management, which gives direction for an organization's present and future, heavily relies on strategic planning (Barksdale, 2006).
Allocation of Resources in Strategic Planning
Choosing the firm's path is a part of strategic management, and it is accomplished by choosing how its resources will be distributed to carry out particular tasks that will achieve the specified goals and objectives (Springfield, 2017). The best use of a company's resources, such as its human resources, to achieve the objectives and goals outlined at the start of the plan development, is the most crucial aspect of strategic planning (Aileron Corporation, 2011).
The Importance of Resources in Organizations
Any organization has resources that are used to accomplish the various tasks that will enable it to meet its mission and vision (Analoui, Cusworth, & Karami, 2007). Resources can be internal or external, and proper planning is required to carry out the daily activities of any organization adequately. The outcomes of a plan depend on the actions that were committed to meet the objectives.
Strategic Planning in the Service Industry
For instance, in the service industry, human resources are at the center of the strategic planning process, and a proper plan will enable the organization to produce sustainable outcomes that will have a long-lasting effect on the continued prosperity of the society. The infrastructure of an organization, such as transport, communication, and human resources, are the building blocks of an organization's future, and a proper strategy will ensure that these resources are well planned for, as they will determine the direction of the enterprise or organization. The stakeholders can aid in determining how the resources will be utilized to achieve the desired outcomes. Therefore, it is evident that a well-formulated strategic plan highly depends on the allocation of land, labor, and capital to perform actions that will result in sustainable outcomes that will help propel the organization to the future (Ramli, Sosiawani, Bin Mustafa, & Yusoff, 2015).
Resource Allocation in Nonprofit Organizations
Nonprofit organizations have resources that consist of donated infrastructure and individuals who volunteer in charity work. At times, they are not paid, or the salary is small. Although there can be many donors or people who would like to volunteer in a non-profit making organization, sometimes these resources may be insufficient to accomplish the set goal. Therefore, more emphasis should be given when making a strategic decision on the available resources (Debarliev & Suklev, 2012).
Resource Allocation in Public Organizations
Public organizations comprise all the publicly funded or controlled organizations and government institutions that provide services and goods to the public. Public agencies are allocated funds according to the budget of a particular year, and these funds can increase or decrease compared to the previous year. Therefore, the long-term objectives and goals can be achieved despite the shifts of the available resources if a well-designed strategy is developed to utilize the available government employees and allocated budget (Elbanna, 2010).
Importance of Resource Allocation in Institutional Success
The success of an institution is the physical representation of a well-formulated plan for resource allocation in various departments of the organization (Falshaw, Glaister, & Tatoglu, 2006).
Personal Experience as a Human Resource Manager
Personally, I have experienced a lot of benefits as a human resource manager in the distribution of minimal personnel to achieve the organization's goals and objectives. In my current capacity as the HR director, I have dealt with instances where the available workers were not enough to carry out the organization's numerous activities. Thus, I developed a strategy where the entire available workload was distributed to employees who volunteered to work on an overtime basis. In the end, I managed to meet the short-term goals of the organization.
References
Aileron Corporation. (2011, October 25). Five Steps to a Strategic Plan. Retrieved on September 04, 2017 from https://www.forbes.com/sites/aileron/2011/10/25/five-steps-to-a-strategic-plan/#5438ab9d5464
Analoui, F., Cusworth, J., & Karami, A. (2007). Strategic human resource management and resource-based approach. Management Research News, 27(6), 50-68.
Barksdale, S. (2006). 10 Steps to Successful Strategic Planning. ASTD Press.
Debarliev, S., & Suklev, B. (2012). Strategic planning effectiveness comparative analysis of the Macedonian context. Economic and Business Review, 14(1), 63-93.
Elbanna, S. (2010). Strategic planning in the United Arab Emirates. International Journal of Commerce and Management, 20(1), 26-40.
Falshaw, J. R., Glaister, K. W., & Tatoglu, E. (2006). Evidence on formal strategic planning company performance. Management Decision, 44(1), 9-30.
Ramli, A., Sosiawani, I., Bin Mustafa, M., & Yusoff, R. (2015). Strategic Planning ad Firm Performance: A Proposed Framework. International Academic Research Journal of Business and Technology, 1, 201-207.
Springfield, R. (2017, March 25). Strategic Planning process: Importance and Implications. Retrieved on September 04, 2017 from http://panmore.com/strategic-planning-process-important-business-management
