A Growing Small Business

A Growing Small Business
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Introduction
Human resource has evolved over time, and integration with the strategic perspective highlights how organizations align human resource with the strategic direction. Additionally, the role of recruitment in HR ensures that organizations attract individuals who fit an organization’s culture. However, at times, the potential employees may not have attachment to the company especially when the company focuses on an external orientation. The HR personnel are then faced with the problem of how to balance the recruitment needs, which are aligned with the company’s strategies. Alignment of the HR practice with strategic objectives can either be a fit between the competitive strategy and the human resource strategy (vertical) or fitting the individual human resource practices together to offer support (horizontal) (Stewart, Brown, 2011).
Business strategies
Porter’s generic strategies have been accepted as a framework to analyze the how different organizations utilize their business-level strategies to improve the growth prospect and ward off competition. The Porter’s generic strategies framework focuses on the cost advantage and differentiation as the two elements which are the basis of a company’s strength (Sehgal, 2011). The ability of accompany to position itself determines how it competes in an industry. The cost advantage related cost of producing goods and services, the differentiation originates in the value of a product or service (Sehgal, 2011). Each firm develops an advantage by focusing on the competitors as well as the market environment, and the benefits of choosing one strategy over another. There are other theories on strategic management highlighting different aspects of competition, but Porter’s generic strategies are still relevant to understand how the small and medium sized companies use competitive strategies.
Stamps com inc (STMP), is a small company with 250 employees, and was founded in 1996 and it is in the internet & catalog retail (Robehmed et al., 2014). The company has relied on the focus strategy and has expanded over time. Since the range of services is narrow, the focus strategy ensures that the company can compete more effectively compared to the few competitors. The company is also expected to grow over time, the administrative section of the company will be necessary even as the privately held organization is unlikely to hire casual laborers. The differential focus and low-cost focus strategies are both appropriate, and using the company’s financial muscle it recoup revenue even when charging low prices.
The human resource management strategy
For an organization to get recognized as a good employer the role of strategic human resource management is important. According to Jain (2014), there is a direct link between HR plans and strategies professional, with the Hr interventions being mutually supportive. On one hand, the startup companies may not grow may seek to hold onto the best talent, but on the other they are typically looking for growth and more likely to seek better opportunities. Emphasis on employees is another important aspect when deciding on...