STRATEGIES FOR IMPROVING ORGANIZATIONAL EFFECTIVENESS CHAPTER

SUMMERY

This chapter Mainly focuses bellow issues

1. Understand the scope and changing role of strategic human resource management
(SHRM) in principles of management.
2. Visualize the battlefield in the war for talent.
3. Engage in effective selection and placement strategies.
4. Understand the roles of pay structure and pay for performance.
5. Design a high-performance work system.
6. Use the human resources Balanced Scorecard to gauge and proactively manage
human capital, including your own

This chapter describe this main point

 A strategy is a comprehensive plan for accomplishing the organization's goals.

Strategic management is a comprehensive and ongoing process aimed at formulating
and implementing effective strategies. Effective strategies address three
organizational issues: distinctive competence, scope, and resource deployment. Most
large companies have both business-level and corporate-level strategies. Strategy
formulation is the set of processes involved in creating or determining the strategies
of an organization. Strategy implementation is the process of executing strategies.

 SWOT analysis considers an organization's strengths, weaknesses, opportunities, and

threats. Using SWOT analysis, an organization chooses strategies that support its
mission and (1) exploit its opportunities and strengths, (2) neutralize its threats, and
(3) avoid its weaknesses. Common strengths cannot be ignored, but distinctive
competencies hold the greatest promise for superior performance.

 A business-level strategy is the plan an organization uses to conduct business in a

particular industry or market. Porter suggests that businesses may formulate a
differentiation strategy, an overall cost leadership strategy, or a focus strategy at this
level. According to Miles and
  Strategy implementation at the business level takes place in the areas of marketing,
sales, accounting and finance, and manufacturing. Culture also influences strategy
implementation. Implementation of Porter's generic strategies requires different
emphases in each of these organizational areas. Implementation of Miles and Snow's
strategies affects organization structure and practices.

 A corporate-level strategy is the plan an organization uses to manage its operations

across several businesses. A firm that does not diversify is implementing a single-
product strategy. An organization pursues a strategy of related diversification when it
operates a set of businesses that are somehow linked. Related diversification reduces
the financial risk associated with any particular product, reduces the overhead costs of
each business, and enables the organization to create and exploit synergy. An
organization pursues a strategy of unrelated diversification when it operates a set of
businesses that are not logically associated with one another.

 Strategy implementation at the corporate level addresses two issues: how the
organization will go about its diversification and the way that an organization is
managed once it has diversified. Businesses accomplish this in three ways: developing
new products internally, replacing suppliers or customers and engaging in mergers
and acquisitions. Organizations manage diversification through the organization
structure that they adopt and through portfolio management techniques.

While problems of organizational dysfunction in the public domain are a global

phenomenon, the consequences of such dysfunction are generally greater in the Third
World. Possible discipline-based (human resource management) explanations for the
chronicity of these problems and a number of strategies for overcoming them are
advanced. These strategies are described in terms of a number of imperatives and
variables of effective organization. Structural imperatives include: clearly identified and
agreed missions, goals, strategies, and main functions; accountability linked to sufficient
power and control; clearly specified roles; particular notions of individual effectiveness
and performance appraisal tied to rewards; and effective transformational leadership.
The implicit model extends contingency theory by taking account of the evidence
pointing to the cross-cultural