Strategy, in simple terms refers to the plan one has to achieve his/her objective, its about how we would get "there", its futuristic and with the aim of attaining defined goals in the future. In other words, Strategy is the approach selected to achieve defined goals in the future.
Strategy, in simple terms refers to the plan one has to achieve his/her objective, its about how we would get "there", its futuristic and with the aim of attaining defined goals in the future. In other words, Strategy is the approach selected to achieve defined goals in the future. Strategy is identifying the long term goals of the business and then selecting the means, and allocating the resources for carrying out those goals. Strategy be it financial, strategic management, IT Strategy or HR Strategy it has to have three things, one the Objective that needs to be achieved, identification of resources/means that would faciliate the pursuit of objective and how one intends to attain the objectives. Strategy is the set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the objectives of an organization.’
All the various strategies that are formulated in the business has three fundamental characteristics.
Fundamental Charactreristics of Strategy
Organisation has to think ahead, plan ahead and move forward but not to forget the past experiences, reflection on the past is a great source of learning, Strategy must be forward looking, focused on taking the organisation forward. Strategy is about making a clear decison on where to go and how to get there. It is concerned with both ends and means. Strategy, in a sense is a declaration of intent: "This is what we want to do and this is how we intend to do it."
The second characteristic of strategy is that the organizational capability of a firm (its capacity to function effectively) depends on its resource capability (the quality and quantity of its resources and their potential to deliver results). Organizations that have the capability and hold of resources that are can produce efficienet and effective results are bound ot have higher chances of achieving its strategic objectives. failing to recognise the resource capability can have serious implication as it would fail the orgnaisation in taking maximum benefit out of the opportunity in the business environement and could increase potential threats for the business. Strategy is a balance between the exploitation of existing resources and the development of new ones’.
The third characteristic of strategy is strategic fit the need when developing HR strategies to achieve congruence between them and the organization’s business strategies within the context of its external and internal environment. Internally the business needs to vertically align its strategices as this would help establish a focus of direction in the whole organisation, where as horizontally the strategies must compliment eachother and aid in heading towards the right direction with the right focus. The focus is upon the organization and the world around it. To maximize competitive advantage a firm must match its capabilities and resources to the opportunities available in its environment. The concept of fit or integration is also a major feature of strategic HRM.
Armstrong, M., (2009). Handbook of Human Resource Management. 11th Edition. Kogan Page: London.