Life cycle of a business enterprise During its life cycle, an enterprise grows on all three fronts volume, variety and – value. These vehicles are applicable to strategic human resource planning. Especially, the behaviour of these variables being inter-dependent, the composite impact at every stage of the life cycle could be drastically different. The other dimension of this complexity is the problem in defining the time-scale on which these stages of growth would actually materialise. Exact projection of time gap between two stages facilitates good assessment of the impact of cyclical changes. In other words, SWP depends on the stages of growth in the life cycle, but seriously and simultaneously impacted by the external factors e.g. socio-economic change, global environment etc. The impact of volume, variety and value on the SWP may be broadly viewed as follows considering the life cycle stages. Sr. Life cycle Impact on the SWP of volume, variety and value no. stage of an Volume Variety Value enterprise (i.e. quantum of (i.e. variety of (i.e. cost variations output and human products, markets along with various resources and employee value propositions competencies) presented to the customers) 1 Inception and Select human resources Entrepreneurial More of project related promotion with systemic support competency of the cost promotional team 2 Take off Reasonable product Limited variety and Managed cost, focused output, growing number limited exposure value proposition and of human resources with well defined cautionary approach to deliverables from expansion human resources 3 Consolidation Considerable size of Good variety of Volume-driven cost, – I product output, good products and markets, ambitious value influx of systemic bigger variety of propositions and employees and decision employee corresponding making executives competencies competency flexibility required by all
Life cycle of a business enterprise During its life cycle, an enterprise grows on all three fronts – volume, variety and value. These vehicles are applicable to strategic human resource planning. Especially, the behaviour of these variables being inter-dependent, the composite impact at every stage of the life cycle could be drastically different. The other dimension of this complexity is the problem in defining the time-scale on which these stages of growth would actually materialise. Exact projection of time gap between two stages facilitates good assessment of the impact of cyclical changes. In other words, SWP depends on the stages of growth in the life cycle, but seriously and simultaneously impacted by the external factors e.g. socio-economic change, global environment etc. The impact of volume, variety and value on the SWP may be broadly viewed as follows considering the life cycle stages. Sr. no. Life cycle stage of an enterprise Impact on the SWP of volume, variety and value Volume (i.e. quantum of output and human resources Variety (i.e. variety of products, markets and employee competencies) Value (i.e. cost variations along with various value propositions presented to the customers) 1 Inception and promotion Select human resources with systemic support Entrepreneurial competency of the promotional team More of project related cost 2 Take off Reasonable product output, growing number of human resources with cautionary approach to expansion Limited variety and limited exposure Managed cost, focused value proposition and well defined deliverables from human resources 3 Consolidation – I Considerable size of product output, good influx of systemic employees and decision making executives Good variety of products and markets, bigger variety of employee competencies Volume-driven cost, ambitious value propositions and corresponding competency flexibility required by all
Strategic%20Wage%20Planning%20-%20Paper%20by%20Dr%20%20Girish%20J%20Final.docx