Organisational theory is essential in the determination of the appropriate behaviors and management approaches that would yield the success of an organisation both in the short-term and long-term basis. Organisational theory encompasses the study of organisations for the benefit of identifying common themes for the purpose of solving problems, maximizing efficiency and productivity, and meeting the needs of stakeholders. Topics such as environmental perspectives in enhancing organisational development, neoclassical perspectives, and classical perspectives of approaching organisational management are central to the study of organisational theory. From this perspective, organisational theory acts as a complement for studies in human resource coupled with organisational behaviors. Studying organisational behaviors is integral to the derivation of strategies for organisational management that would result to alignment of all organisational workers to common themes, goals, and objectives that spell out the reasons as to why an organisation is established. Without employees, an organisation cannot exist. For Continue reading
Strategic Management Basics
Key Performance Indicators (KPI) – Definition and Implementation
Meaning of Key Performance Indicators (KPI) Key Performance Indicators, abbreviated as KPI, are indicators that are used in an organization to define and measure company’s progress and how all operations are being carried out towards achievement of the already set goals by the organization. By Key performance indicators (KPI), the organization can judge its most critical aspects of organizational performance, and subsequently choose how to increase this performance. KPIs are non-financial, they are frequently measured, decided by the CEO and the higher-level management, require an understanding by the staff, provide responsibility, can significantly impact the organization, and have a positive effect on other measures. This comes in after an organization has laid down a well stated Mission and Vision. After that, goals are set whereby all the stakeholders in the organizational operations are involved. This is then followed by an analysis to see if these indicators are workable. This plays Continue reading
4 Important Perspectives on Strategy
There are four perspectives or views on strategy, the classical approach to strategy, evolutionary perspective on strategy, processual approach to strategy and systematic perspective on strategy. Their features are described below. 1. Classical Perspective on Strategy In the classical approach to strategy perspective, profit is seen as the ultimate objective of the firm and profit targets can only be attainable through rational planning by the firm’s management. This perspective was designed by a businessman and historian Alfred Chandler, a theorist Igor Ansoff and a businessman Alfred Sloan. The perspective is based on three assumptions and they include; rational analysis, distinguishing conception from execution and the commitment of firms to maximize their profits. The major question is to position a business in markets where profits are likely to be maximized. The aim of the perspective is to ensure that there are returns on capital, and in this case, a focus on the Continue reading
The ADKAR Model of Change Management
Change management can be characterized as the procedure of altering or changing one or more angles of an association utilizing a planned system. Change management includes the implementation of one or more techniques, which organizations use to increment effectiveness and acquire their objectives. Theorists have provided different concepts of change management simply to understand the framework according to which organizations manage and lead change. The Prosci ADKAR model is one of the best approaches introduced several years ago to support change in companies through the prism of its five major elements, namely awareness, desire, knowledge, ability, and reinforcement. The progress of the ADKAR model is evident today due to its evident advantages and the possibility to facilitate working processes. Prosci’s ADKAR Model of Change Management Prosci’s ADKAR Model is a goal-oriented change management model that guides individual and organizational change. Created by Prosci founder Jeff Hiatt, ADKAR is an acronym Continue reading
Transferring Core Competencies for Organization Success
Development and expansion organizations’ core competency is one of the main success factors of many organizations. However, if organizations do not apply correct measures when transferring core competencies for one business to another, the likelihood of failure is high. Transfer of core competencies is one of the most important business diversification strategies of ensuring organizations reduce costs of starting over again in new business ventures. Transferring core competencies and resource strengths from one country market to another is a good way for companies to develop broader or deeper competencies and competitive capabilities that can become a strong basis for sustainable competitive advantage. It mostly works via capitalizing on operational relatedness, primarily applying the constrained multi-product strategy. This strategy offers organizations a chance of realizing and exploiting economies of scope, a crucial pathway for gaining a competitive advantage over other businesses. In addition, it guarantees organizations opportunities for utilizing existing expertise Continue reading
Strategic Management Model: Bryson’s Strategy Change Cycle for Strategic Planning
In ensuring effective strategic change in an organization, strategic planning is inevitable for organizations to develop and implement strategies through the strategy change cycle. A strategic change cycle is a systematic procedure that is indispensable in determining whether an organization will be successful. The strategy change cycle is among the primary processes of strategic management that links the processes of planning and implementation and ensures that the process is carried out consistently and in alignment with specific organizational goals. The following section discusses ten vertical steps in the change cycle by keenly describing why they are essential for organizations in planning and implementing their strategies. Its purpose is to develop a consistent commitment to the mission and vision of an organization, both internally and externally, at the same time with maintaining a clear focus on the organizational agenda with the help of relevant activities and decision-making processes. Strategy Change Cycle Continue reading