The plan must be innovative, achievable and simplistic enough that everyone on all levels of the organization can comprehend the expectations. Thus, it is imperative that HR managers know exactly the goals and expectations of the organization to which the strategic plan will be constructed. According to Martell & Stephen (1995), in order for HRM policies to be judged truly effective, they must contribute to the firm’s bottom line. This new more proactive approach links both strategy and organizational performace, shifts from more traditional views of personnel that focus merely on performance and job satisfaction (Martell & Stephen, …show more content…
During this study, both researched and concluded the problem with integrating a strategic plan is the relationship between HRM and strategic business planning (SBP). Golden and Ramanujam attributed failures when both HRM and SBP are not properly integrated. Most companies developed strategic plans based off marketing and financial data, but ignore the human resource aspect of the plan (Golden and Ramanujam, 1985). After my research, I have concluded how an organization can develop and implement a strategic plan. First, know the difference between an HR plan and a strategic plan. The strategic plan focuses on the major objectives of the company, while the HR plan focuses on the things that need to be done to accomplish the strategic plan. Secondly, understanding short falls and strengths are vital because it allows both the HRM and SBP to understand where resources need to be allocated. Third, understanding outside influences that impact the company i.e. competitors. Last, prioritize issues and actions, some things needs more attention than