By Michael Armstrong
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Extra info for Armstrong's Handbook of Strategic Human Resource Management
Competitive advantage is achieved if the resources are valuable, rare, inimitable and non-substitutable. Strategic management is the process of understanding the strategic position of an organization, making strategic choices for the future, and turning strategy into action. Strategic intent is an expression of the desired future state of an organization. Strategic capability refers to the ability of an organization to develop and implement strategies that will achieve sustained competitive advantage.
How are we going to make sure that those involved know what they have to, know why they are expected to do it, believe that it is worthwhile and have the skills to do it? Are people likely to react negatively to the proposed strategy and, if so, how do we deal with their concerns? How much time will be needed; how much time have we got? Will any additional resources be required and can they be made available? Are there any likely implementation problems and how will they be dealt with? The reality of strategy The classical view of the strategy process as described by Rosemary Harrison (2009: 331) rests on two assumptions: ●● ●● that decision-makers have a common purpose and are driven by a shared economic logic when making strategic decisions: all seek to maximize economic rewards and minimize costs for the business; that decision-makers systematically ‘collect and sort information about alternative potential solutions, compare each solution against premeditated criteria to assess degree of fit, arrange solutions in order of preference, and make an optimizing choice which they then equally systematically draw up plans to implement’ (Miller et al, 1999: 44).
And ‘sometimes strategies must be left as broad visions, not precisely articulated, to adapt to a changing environment’. He emphasized that strategic management is a learning process as managers of firms find out what works well in practice for them. Following up on the Mintzberg thesis, Digman (1990: 11) commented that the most effective decision-makers are usually creative, intuitive people ‘employing an adaptive, flexible process’. Moreover, since most strategic deci sions are event-driven rather than pre-programmed, they are unplanned.