THE CONCEPT OF STRATEGY
Strategy determines the direction in which the organization is going in relation to its environment. It is the process of defining intentions (strategic intent) and allocating or matching resources to opportunities and needs (resource‑based strategy), thus achieving strategic fit between them. Business strategy is concerned with achieving competitive advantage. The effective development and implementation of strategy depend on the strategic capability of the organization, which will include the ability not only to formulate strategic goals, but also to develop and implement strategic plans through the process of strategic management. Strategy is about implementation, which includes the management of change, as well as planning.
The concept of strategy is not a straightforward one. There are many different theories about what it is and how it works.
strategy can have a number of meanings, namely:
• a plan, or something equivalent ‑ a direction, a guide, a course of action;
• a pattern, that is, consistency in behaviour over time;
• a perspective, an organization's fundamental way of doing things;
• a ploy, a specific 'manoeuvre' intended to outwit an opponent or a competitor.
The formulation of corporate strategy can be defined as a process for developing and defining a sense of direction. It has often been described as a logical, step‑by‑step affair, the outcome of which is a formal written statement that provides a definitive guide to the organization's long term intentions. Strategy is a systematic process:
-first we think,
-then we act;
-we formulate
-then we implement.
Strategy has always been emergent and flexible. It is always 'about to be', it never exists at the present time.
Strategy is not only realized by formal statements but also comes about by actions and reactions.
Strategy is a description of a future oriented action which is always directed towards change.
The management process itself conditions the strategies that emerge.
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STRATEGIES ARE GUIDED BY THE OBJECTIVES / GOALS
OF THE ORGANIZATION.
-SET OBJECTIVES /GOALS
-DEVELOP STRATEGIES.
-IMPLEMENTATION ACTION PLAN
*WHAT
*WHO
*WHEN
*HOW
*AT WHAT COST
*HOW TO MONITOR
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STRATEGIC HRM DEFINED
Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship and its recruitment, training, development, performance management, reward and employee relations strategies, policies and practices. The key characteristic of strategic HRM is that it is integrated. HR strategies are generally integrated vertically with the business strategy and horizontally with one another. The HR strategies developed by a strategic HRM approach are essential components of the organization's business strategy.
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EXAMPLE.
CORPORATE OBJECTIVE
-make the organization a learning organization
CORPORATE STRATEGY
-provide to all levels of staff and management a
minimum of 4 days training in a year over the
next 3 years.
HR OBJECTIVES
-constantly enrich and improve the organization's
knowledge and capabilities.
-influence work culture, behavior and management
practices so that they support creativity and
high performance.
HR STRATEGY
-provide knowledge base / database using the intranet/
internet facilities, so that the resources are available
24x7x365 hours.
-conduct training needs analysis and offer tailored
programs for each level of staff / management.
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NOW YOU CAN DEVELOP AN IMPLEMENTATION
ACTION PLAN.
*WHAT
*WHO
*WHEN
*HOW
*AT WHAT COST
*HOW TO MONITOR
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THIS IS JUST AN EXAMPLE OF THE APPROACH.
OF COURSE, EACH ORGANIZATION WOULD HAVE
DIFFERENT NEEDS AT DIFFERENT TIME AND
WOULD BE GUIDED BY THE AVAILABLE
RESOURCES.
regards
LEO LINGHAM