The company's strategy determines the direction in which we are going and what kind of overarching goals we want to achieve.
Depending on that, we need to determine what kind of culture we want in the company - is our culture, for example, very "performance oriented" or is it "care oriented"?
Determining what kind of culture we want is important because it affects many aspects of the business - on the financial perspective, it is important because we need to budget differently depending on the culture we want to see in the company. Also, depending on what kind of culture we want, our leadership development and similar programs will have moduls that address the topics that you want to see in the daily life of your company.
For example - if our culture is more "people&care" oriented, in our annual budget there will be no FTE planned "on the edge" of feasibility, in our budget there will be various wellness initiatives for employees, in our budget we will have team bonding activities from time to time with which employees will build relationships with each other that are impossible to build if you are a pure "performance oriented" culture.
Depending on the strategy and culture, it is good to decide on the general people management policy because it directly affects the culture of the company and the implementation of the strategy.
For example - if our strategy is to develop new products and market them to a couple of clients in the next 2 years, and we want a culture that is "people&care oriented", then our compensation and benefits policy must be adapted to that and support the initiative and development of employees, our employee development policy must have strong elements of internal development and up-skilling of our employees, whose time dedicated to learning we will not invoice the clients for whom we develop the product, but we will return to our budget and integrate into it the cost of working hours for people development initiatives.
To summarize, if you are thinking about what kind of people management policy and HR you need - start from strategy and culture, everything else is directly related to that and pulls each other!
