Strategy & Sensemaking HR - Essay Example

Strategy and Sensemaking HR The implementation of strategies in diverse areas in an organization promotes the growthand progress of the organization. Strategies are considered the backbone of an organization’s performance. This is because; strategies create the perfect surrounding from which staff in the organization work to attain their goals and objectives. Clear, sound strategies laid out in an organization prepare the workforce to work toward getting maximum output from their input. Strategists work day and night in these organizations to implement strategies that aim at giving back to the organization through various concepts. Single strategies work well if they are divided into segments (Hambrick and Fredrickson 48). This may provide an avenue to know which strategy best suits which part of the organization. This paper will examine the application area of strategies, and if these applications are successful in modern times and organizations. The term strategy has had a different meaning depending on what a person wants it to mean. Managers and corporate leaders think in terms of strategies to aid their organizations attain the best results. It is vital for an organization to lay down its strategies. This prevents confusion and miscommunication as to the organization’s goals or targets. It is possible to see many organizations suffering because of the lack of clear strategies. Strategy consists of a set of choices that are integrated to form one coherent unit (Hambrick and Fredrickson 49). Sensemaking provides a group with the knowledge to identify and interpret data from content available in the immediate surroundings. Strategy involves finding opportunities for the growth of an organization. In order to achieve this, scanning the market for any exceptional tendencies should be the main target of a growing organization. To win, sound strategies require sharp minds, and managers willing to take risks. This puts them in a better place to handle any competition and challenges brought by the firm. GE and strategy application areas There are a number of firms that would have failed due to lack of strategy in their operations. One example is the General Electric Company (GE). It thought that advocating being top in the market was a clear strategy, but it did not turn out to be so. However, this was a drive behind the strategy they should have implemented to aid in their operations. When every meaningful thing is thrown into the strategy bucket, it becomes mixed up, producing a lost concept (Hambrick and Fredrickson 49). The growth and expansion of GE through some of the strategies implemented provided it with the power to push forward and become the global organization it is today. In its growth, the firm had to identify its immediate needs. There was the need to focus on what they needed to make them the top operators of many businesses. Through encompassing some vital elements in strategy formulation, any organization can implement strategies that protect the firm’s interests (Hambrick and Fredrickson 50). The firm expanded most of its services. It is not enough to talk of implementing new strategies that are jumbled up in the firm’s projects. Organizing the most crucial strategic threads into strategies is what management needs to do, so as to realise its targets. It is now responsible for offering a variety of other services and products to its immediate surroundings and is internationally known. This corporate umbrella that encompasses all these products and services could stand individually, but the strategy is to have more individuals invest in it through the many groups present. This increases the chances of saving more capital (Hambrick and Fredrickson 50). GE’s strategy There are five elements that bring about the creation of strategy. These are the economic logic, the vehicles, the arenas, staging, and the differentiators. At the moment, the firm’s strategy is reducing on labour costs as many other organizations are doing. The problem with reducing costs is that, it may be impossible to get the required output from the amount of input placed in the organization. The option of diversification is crucial in the firm’s strategy. This is because; management tends to look into the issue of providing different products for the different markets to fulfil their every need (Hambrick and Fredrickson 51). When a strategy talks of what the organization is doing to make them the best, they are referring to the strategic vehicles. This means addressing a group of individuals with certain products that satisfy the market’s every need. Joint ventures are also options of broadening the firm’s scope of reaching the target market. It is vital for them to realize the manner in which to involve other tactical areas or ventures in the overall organization (Hambrick and Fredrickson 52). By providing subsidiary products in some of their operations, the firm is cashing in on a lot of opportunities. In one area that involves airlines, the firm is lowering its costs when it comes to the fares required. Its time reliability is also a factor that comes into play. This is a strategy that focuses on retaining its customers, and bringing more of them on board with the assurance of exceptional service and products in the future. This is one of the elements of an exceptional strategy that falls under differentiators (Hambrick and Fredrickson 52). Is the strategy successful? Though hard to achieve total success with such a strategy, the firm is achieving most of its objectives. It is through realisable targets and objectives that the organization can make it through the financial turmoil it has been going through. Through image and product styling, the firm can identify what their customers need. They can, therefore, provide this for them (Hambrick and Fredrickson 52). All these measures are put in place according to the firm’s capabilities and resources. By adopting economic logic, the firm is capable of addressing their pressing financial needs. This logic is considered the pivot of profit creation. It is, therefore, crucial to place some of the strategies in prompting premium prices for the products of the firm (Hambrick and Fredrickson 53). As a firm that has a lot of subsidiaries, the organization gets profit for some of the purchases it makes. This falls under the economies of scale. The firm’s airline operations can, therefore, provide customers who require superior food service. Coming up with concepts that work for a firm is only for a selected few. Using the same concepts as the other party to satisfy a need in an organization does not suit everyone. Making the right moves and at the right time may assist a firm come up with strategies that aid in the development of an organization. Assessing the competition may offer an organization an upper hand over the other competing markets in the same environment. To maintain relative advantage, it is vital for strategies to be implemented according to the firm’s resources and capabilities. This may prevent the coming up of corporate strategies that limit the growth of the firm (Hambrick and Fredrickson 56). In conclusion, to better understand the coming up of strategies, it is better to understand basic concepts. These pave the way for the creation of sound strategies that aim to perfect a firm’s operations, over time. Strategic analysis tools must be used to identify the precise strategies to implement in their firms. Intentional, integrated, and well-informed choices make up what is later identified as sound strategy (Hambrick and Fredrickson 58). To counter the problem of poor strategies in a firm, organizers and management need to cover such areas. This ensures they are up to standard with what is required in and out of the organization. Fostering exceptional working relationships in the workplace that aim at results begins with sound decisions. Work Cited Hambrick, Donald C., and Fredrickson, James W. “Are You Sure You Have A Strategy?” Academy of Management Executive 15.4 (2001): 48-59. Print. Read More