Lecture 17 - PMO - Organizational Strategy - SWOT - VRIO - Resource-based view - Balance Scorecard PDF

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Summary

Organizational Strategy
- SWOT
- VRIO
- Resource-based view
- Balance Scorecard...

Description

Lecture 17 – PMO Organizational Strategy Strategy  A strategy is the set of actions through which an organisation, by accident or design, develops resources and uses them to deliver services or products in a way which its users find valuable, while meeting the financial and other objectives and constraints imposed by key stakeholders. For example: o Cost reduction strategy o Quality control strategy o Innovation strategy  Strategic management is the pattern of major objectives, purposes or goals and essential policies or plans for achieving those goals. SWOT Analysis  Internal Analysis o Strengths o Weaknesses  External Analysis o Opportunities o Threats Sustaining competitive advantages  The Resource-based view (Barney, 1991) o Organizations can rely on their resources to maintain sustainable competitive advantages against their competitors  What kinds of resources do organizations have? o Physical capital  The firm’s plant, equipment, and finances o Organizational capital  The firm’s reputation, relationship with stakeholders, structure, planning, controlling, coordinating and HR systems o Human capital  Include such things as the skills, judgement, and intelligence of the firm’s employees

Characteristics of advantageous resources? (Barney, 1991)  Valuable o Resources are values when they enable a firm to conceive of implement strategies that improve its efficiency and effectiveness  Rare o Valuable resources possessed by large numbers of competing or potentially competing firms cannot be sources of competitive advantages o Resources should be not very easy to find  Inimitable o Valuable and rare organizational resources can only be sustainable advantages if firms do not possess these resources cannot obtain them  Non-substitutability o There are no alternative resources that can be substitute the functions of the valuable, rare and inimitable resources Balance Scorecard  The balance scorecard is a framework that helps organizations to translate strategy into operational objectives that drive both behaviour and performance  The BSC clearly establishes linkage between strategic objectives, the measures for determining progress, the stretch targets established, and the focused initiatives need to move the organization forward to meet those organizational goals.

Implications of Balance Scorecard  Improves management effectiveness by having a shared and actionable view of the strategy  Optimizes and ensures strategic outcomes for a given set of resources  Enables employees to work in a coordinated, collaborative fashion towards organizational goals  Accelerates the approach, and its accuracy to the strategic destination

Comparison of different HR strategies HR Practices

Innovation

Quality control

Cost reduction

Fixed and explicit job descriptions Selectivity of Recruitment

Low

Moderate to high

High

High

Moderate

Low

Employee ownership Training and skill development

High Moderate to high

Moderate High

Low Low

Long-term and Group-based performance Emphasis of Quantity

High

Moderate to high

Low

Low to moderate

Moderate

High...