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Strategy: creating purpose

5 important questions on Strategy: creating purpose

Mintzberg's 5P's of strategy

- Plan: strategy is intended course of action, general or specific
- Ploy: more specific strategy undertaken to beat competitor
- Pattern: consistency in behavior in strategy
- Position: strategy is fit between organization and its environment
- Perspective: strategy is worldview, shared perspective

Porter's 3 basic competitive strategies

- Cost leadership: products at lower price than competitors
- Differentiation: products that are differentiated
- Focus: focus on narrow segment, aim to meet needs in this segment

Vertical vs horizontal fit model

Vertical fit: aligning HR practices with the organizational context and strategy
Horizontal fit: integration of different HR practices into a coherent system, 3 bundles are:
- Empowerment-enhancing bundles
- Motivation-enhancing bundles
- Skill-enhancing bundles

Hard vs soft strategic approach

Hard approach: resources utilized efficiently, acquired as cheaply as possible
Soft approach: looks at relationship between employer and employee, integrates interests of different stakeholders

SHRM through 5-P model of HRM

1. the HR philosophy: how people in the organization are valued and treated (expression of culture)
2. HR policies: guidelines for how to act in relation to people matters
3. HR programmes: coordinate efforts to introduce and manage change
4. HR practices: ensure that employees are motivated to engage in wanted behavior
5. HR processes: deal with how other activities are formulated