Strategy is highly valued and is often seen as the foundation for any organizational and business venture success. These four organizations were selected to examine the approach(es) used in strategic implementation and to evaluate the relationship between organizational success and the strategy implementation process. Individuals within these organizations subscribe to the holistic perspective of strategy formulation, in which strategy formulation and strategy are integrated.
INTRODUCTION AND STUDY IN CONTEXT 1.1 INTRODUCTION
PURPOSE STATEMENT
In all these models and theories, the goal is what strategy is and/or should be; how to design it and its importance to the success of the organization now and in the future. The main purpose of this thesis is an attempt to examine the relationship between a strategy and operations within an organization - whether each should be a sole determinant of the other or not. The strength of the linear model is an alignment between operations and processes, and the adaptive complex model views an organization as a system that is self-.
13 THE STRUCTURE OF THE STUDY
THE RESEARCH METHODOLOGY
- INTRODUCTION
- RESEARCH DESIGN AND APPROACH
- THE UNITS OF ANALYSIS
- RESEARCH METHODOLOGY
- DATA COLLECTION METHODS
- DATA ANALYSIS
- STUDY LIMITATIONS
The research design and approach to this study included a survey of the four organizations under study and interviews. First, after careful selection of the study areas, appointments were made to meet with the HR Directors in the four organizations. Also, the visit was aimed at confirming the importance of the selected organizations with the study followed.
THE THEORETICAL FRAMEWORK
- INTRODUCTION
- STRATEGIC CONVERSATION AND LEARNING ORGANISATION
- THEORIES FOR ORGANISATIONAL STRATEGY FORMULATION AND IMPLEMENTATION
- The Dominant Model on Organizational Strategy
- The Linear Model
- Michael Porter's Five Force's Model
- Scenario Planning
Strategic conversation means the extensive involvement of role players in the organization's strategic issues. Then the concept of the learning organization refers to the creation of circumstances, climates or. Therefore, a diagnosis must be made as to which aspects of the current culture are strategies.
When determining organizational strengths and weaknesses, particular attention must be paid to the nature and extent of an organization's culture. Also during the strategy formulation and implementation phases, the cultural compatibility of the organization must be considered. The antecedents of an organizational strategy are most often traced to the military's activities in war (Faulkner, 2002).
Analyzing the organization's environment and capabilities using Strengths, Weaknesses, Opportunities and Threats (SWOT) and Political, Economic, Social and Technological (PEST) techniques; In this model (Figure 3.1) of strategy formulation, strategic intent refers to the organization's vision and mission. Organizational design and culture refer to the structure and ethos of the organization - the way it operates.
The third assumption of the linear model that is argued against is the comprehensiveness of strategy.
Are the government's policies sustainable?
Flight of the Flamingoes
The Resource-based Theory
Barney (1991) defines a firm's resources as including all assets, capabilities, organizational processes, firm characteristics, information and knowledge controlled by a firm that enable the firm to devise and implement strategies that improve its effectiveness and efficiency. The firm's human resources include the training, experience, judgment, intelligence, relationships and creativity of individual employees. When transformed, they become part of the firm's assets or capabilities that contribute directly to the firm's output.
Assets refer to shares of valuable factors owned or controlled by the firm. From the discussion above, there is evidence that strategy formulation shows a significant shift from an analysis of the environment to one of the firm's internal capacity (Selznick, 1957; . Penrose, 1959). The emphasis of the RBT is more on the importance of the resources and capabilities of a firm in the formulation of a strategy.
In the RBT, resources and capabilities are the primary constants on which a firm can establish its identity and frame its strategy, and they are the primary sources of the firm's profitability. However, this theory fails to recognize the environmental forces that can have a significant influence on the future status of the firm. Therefore, any strategy developed on the basis of the RBT has a possibility of not sustaining the organizations when it thrives on the unknown.
In addition to RBT, whose strategy design shows the importance of the firm's internal capacity - resources and skills, other approaches with different focus areas emerged.
The Traditional Approach to Strategy
The challenge of uncertainty has led to the development of other theories of strategic implementation in an attempt to position the organization in a future of uncertainties.
Organisations as Complex Adaptive Systems
- Organisations as Self-Organising Systems
- Organisations as Complex Systems
The reason for this is that organizations are like parts of living organisms that are not first designed and then assembled into a unit of the organism, but rather arise as a result of interactions within the developing organism. For example, plant parts emerge as components, not by prior design, but as a result of internal interactions within the plant itself in a self-generating, self-organizing dynamic in a particular environmental context. Therefore, in view of this perspective and the complexity of the organization as discussed below, a strategy should emerge as a direct consequence of the self-organizing systems resulting from interactions within an organization.
Stacey (1996) argues that organizations are complex adaptive systems with the dissipative structure and self-organizing learning systems at the edge of chaos. Complex nonlinear interactions result in a dynamic field that is self-organizing (Warneke, 1993; Goldstein, 1994) bounded by instability and emergent order (Stacey, 1995). New patterns emerge from its own dynamics, which involve a mixture of order and chaos of the type described as "life on the edge of chaos" (Goodwin, 1994).
According to him, cha-ord refers to a combination of the first syllable of chaos and order. The above arguments clearly show that organizations are part of the complex adaptive system with an inherent self-organizing, unpredictable, non-linear order with self-adaptation. Essential strategic results are promoted by spontaneous, self-organizing groups of managers who engage in dialogue and confront the conflict.
But while a theory of this kind is useful in providing an ex-post explanation of a situation, it is less useful to the strategist in making strategic decisions.
Strategic Flexibility Approach
The central argument in the flexibility approach is that if this approach fails to prevail in an organizational strategy, the resulting tendency is the depersonalization of the strategy and thus, the mechanical/Newtonian sense where one thing moves in predetermined ways in relation to another. When strategy is viewed as a flexible process, the focus shifts to how success or failure derives from circular processes of moves a player makes that elicit responses from other players, in. In other words, a strategic choice in this case is as a result. of success or failure that has emerged from the dynamic process of interactions between players inside and outside the organization.
Essentially, this means that the focus is on the feedback process and the dynamics it generates, and this leads to a clearer picture of the nature of the strategy. For example, if there is an understanding of the dynamic patterns of interaction between suppliers, competitors and customers, managers can design successful moves. And this is possible only if a lot of attention is paid to the dynamics from inside and outside the organization.
The emphasis is on how the players elicit responses from each other and whether their movements are regular and predictable or not. Rather, it is an interpretation of what has happened or what is expected in the near future. However, contrary to this view, there is a dominant perception of strategy as a path set by managers over the next few years to achieve certain results.
However, in Strategy Safari, Mintzberg, et al., (1998) identified 10 schools of strategy to be used as a framework to categorize the field of strategic management.
MINTZBERG TEN SCHOOLS OF STRATEGY FORMATION
- The Design School
- The Planning School
- The Positioning School
- The Entrepreneurial School
- The Cognitive School
- The Learning School
- The Power School
- The Cultural School
- The Environmental School
- The Configuration School
But this school has similar limitations to the planning school in that it neglects other elements at play during strategy formulation, such as power, politics, culture, and social elements. In summary, the basis for strategy formulation in this school is that the head of the organization is the architect of the organizational strategy and must therefore foresee the strategy. The advantage of entrepreneurship school is that if the leader of the organization has a good vision, it will enable the organization to sail cohesively through turbulent times.
The approach to strategy making is to analyze how people perceive patterns and process information. It focuses on what goes on in the strategist's mind and how it affects the. However, this approach to strategy formation is not useful for guiding collective strategy processes and may not be practical beyond the conceptual phase.
The advantage of the training school is that it offers a solution for dealing with complexity and unpredictability in strategy formation. The advantage of the cultural school of strategy making is its emphasis on the crucial role that social processes, beliefs and values play in decision making and strategy making. But periodically there is a need for transformation and the way of strategy formation is that it must adapt to its own time and context.
However, there are other possible classifications in the field of strategy making, such as strategy dynamics, resource-based view, and competitive view of strategy making, which have been discussed in this chapter.
CONCLUSION
DATA ANALYSIS AND SUMMARY OF THE RESULTS
- INTRODUCTION
- ORGANISATIONAL STRATEGY AND INDD7ENDENT INDIVIDUAL PERSPECTIVE ON STRATEGY
- Individual Perspectives on Organizational Strategy
- The Strategy Review Mechanisms
- Measures used to Review Performance of Employees on Strategy Implementation
- Strategy and Leadership Role
- Strategy and Organizational Learning
- SUMMARY OF THE RESULTS
- CONCLUSION
In terms of strategy formulation and implementation, proponents of 'outside the box/. As for the process of interconnection, it refers to the interconnection of the organization with its environment. However, regarding the review period of the strategy, respondents suggest that there is no uniform review period.
None of the organizational respondents claim that the review process is built into the strategy formulation-implementation. The assumption is therefore that it is the results that determine the impeccability of the plan. This is crucial in light of the general perception of strategy as an exclusive domain of the organization's top management.
The basic principle is that every member of the organization is a leader in his own right. People development is therefore only effective if it operates at the core of the organization. Strategy design is seen as an exclusive domain of the so-called strategy 'experts'.
Also, it is difficult to quantify the overlap and impact on the success of the four organizations. This is mainly due to the dynamics of the environment within which organizations exist. Director of the Southern African Development Education Program (SADEP) at Western Chapter University Member of the Black Sash National Executive Committee Director of the South African office of the Friedrich E b Stitung (FES) in Cape Town.
STRUCTURED QUESTIONNAIRE: STRATEGY PROCESSES Introduction
Position in the Organisation/ Company
Contact details (if possible)
STRATEGY AND LEADERSHIP
ORGANISATIONAL LEARNING AND PEOPLE DEVELOPMENT
