Why does knowledge of different generic approaches to strategy matter Essay

Why does knowledge of different generic approaches to strategy matter - Essay ExampleFor long term sustainable growth organizations submit to make up a well charted break through business plan which defines the strategy derived from organizations vision and mission and transforms the strategy into business activities and actions in all departments including HR. delimitate and designing strategy is a complex task. It is derived not completely from the vision and mission of the company but various internal and external factors also need to be taken into account for developing an appropriate and well designed strategy. There be many different generic approaches to strategy. HR being considered a strategic partner, these approaches to strategy also has its implications on Strategic serviceman Resource Management (SHRM). This paper aims at studying the different approaches to strategy and their implications on SHRM. For the sarcastic analysis of this issue it will make use of the recent literature as well as any empirical evidence available from the square world. Strategy and its Importance What is strategy? The above discussed definition of strategy is a very broad one. Defining the phenomenon of strategy is a difficult assignment. There are various ways in which the definition of strategy can be approached. Application of different approaches may homecoming conflicting results about how to act, yet severally will be based on a reasoned and possible approach. Strategy itself can be based on four basic conceptions that is rational, fatalistic, hardheaded and relativist. Each concept will be suitable for a given set of internal and external environment (Goldman, 2006) . Only an effective strategy ensures sustain profitability and growth. Approaches of Strategy Todays highly competitive world demands commitment to change and a clear and well defined direction charted out through strategy. There are four basic approaches to strategy namely Classical, evol utionary, processual and systematic (Whittington, 2001). These four approaches of strategy are mapped against some critical elements of strategy. These critical elements determine are leadership, decisions, planning, innovation, diversification, internationalization, organization and strategic change. Sloan influenced classical approach is driven by policy. It is authoritative and centralized in nature with major focus on political economy only. It is rooted in the elitist mentality and hence an authoritative view of the world and the concerned issues. This approach does not encourage involvement by the workers and hence Human capital management is not emphasized. This classical approach sets long term targets and goals and it is believed that managers have the capability and the willingness to adopt and practice those profit maximizing strategies devised by them through rational long term planning. In short it is top down driven strategy with very minimal role or almost no role fo r SHRM. The concept behind evolutionary approach is that managers are free to adopt any method but in the long run only the top performers will survive. It is based on the theory of survival of the fittest hence named evolutionary approach. It is believed that achieving the best fit between internal and external factors can yield organizations profits in the short run whereas investing in the long range activities can be counterproductive. This theory is strictly against long term