Employee Relationship Management...

Employee Relationship Management Employees are the major assets of an organization. They are among the organization’s most important audiences with the potential to be its most effective ambassadors. It is essential that the employees perform together as a collective unit and contribute equally towards the realization of a common goal. Employees share a certain relationship with their colleagues at the workplace. The relationship which the employees can have can be between co-employees, supervisors, managers and higher management. It is important that the employees share a healthy relationship for delivering their best performances. Employees are the focal point of an organization during its journey towards success. If the employees work together and share a good relationship with management then the organization achieves its tasks and objectives much faster. Management of the employee relationship is both important and valuable for the organization in the achievement of the competitive advantage. It is necessary to have a strong relationship between employees as well as between employees and management since it leads to better organizational productivity and performance. Employee relationship management (ERM) is a term which refers to relationship development and management between the organizational management and the employees. There are a lot of different issues in ERM which can affect employee satisfaction and which has a direct result on employees’ productivity and overall corporate culture. ERM refers to managing the relation between the different employees of the organization. The relationship can be between employee and the management as well as between employees at the same level. It is nothing but a technique which brings employees and management together on a common platform and guides them so that the organization achieves the desired targets without fighting with each other. In a layman’s language, ERM is nothing but managing interaction...

Diversification Strategy...

Diversification Strategy A diversification strategy is the strategy that an organization adopts for the development of its business. This strategy involves widening the scope of the organization across different products and market sectors. The strategy is to enter into a new market or industry which the organization is not currently in, whilst also creating a new product for the new market. Diversification strategy is a form of growth strategy which helps the organizational business to grow. It opens up new possibilities for the organization. By adopting this strategy, the organization not only diversifies its products offerings in the target markets but also expands its business horizons. The strategy helps the organization to increase sales volume and revenues while keeping costs to minimum. Diversification is part of the four main growth strategies defined by Igor Ansoff’s Product/Market matrix (Fig 1). The other three strategies in this matrix are market penetration, product development, and market development. Ansoff pointed out that a diversification strategy stands apart from the other three strategies. These other three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires an organization to acquire new skills, new techniques and new facilities. Fig 1 Igor Ansoff’s Product/Market matrix Growth strategies adopted through diversification involve a significant increase in performance objectives beyond past levels of performance. Many organizations pursue one or more types of growth strategies. One of the primary reasons is the view held by many investors that ‘bigger is better’. Growth in sales is often used as a measure of performance based on the assumption that if sales increase, profits will eventually follow. Diversion strategy is associated with higher risks as it requires the organization to take on new experience and...