This essay provides a critical review of articles on business strategy, including the link between individual performance and business strategy, the relationship between corporate governance and diversification strategies, and the role of corporate culture in strategic human resource management.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Business strategy
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Business strategy Critical review of the articles In this essay, the brief description will be made on the different articles. The overview of the articles will be given with the supporting arguments. The articles for the task are related to individual performance, corporate governance and the role of corporate culture. From the articles the key main areas will be identified and according to that the critical review of the articles will be done. Article 1:LINKING INDIVIDUAL PERFORMANCE TO BUSINESS STRATEGY It has been analyzed that one of the key challenge for the company relates to deliver the sustained competitive advantage in the short term.It can be stated that the sources of maintaining the competitive advantage not only emphasizes on finance but it also focuses on delivering the business strategy such as customer satisfaction and rapid innovation. This article also elaborates that there is a link between the performance and business strategy (Collings, Wood and Szamosi, 2018).The information has been collected from the large UK companies such as BT payphones and Lloyds bank. The article states that interview has also been done of 37 people in the seven businesses. There are three types of interviews such as semi structured interview that helped to gather the opinion of the employees in relation to business strategy. All the interviews that are taken are taped and recorded before marking it is in the top cases of the company (Gratton et al., 1999). The employee’s survey has also been conducted through the questionnaire. The questionnaire was given to 20% of the employees and the response rate that was considered is of 60% that organizational performance is related with the business strategy. The emerging map states that there is a link between the business strategy and the performance of the people that takes place by focusing on the capability of the company to create and embed the people. The process of the company has also important link between people process and business strategy (Gratton et al., 1999). The strategies of the business are enormous and important for the HR practitioner and there are many companies that are skillful at embedding the same. One of the factors relates with the 1
Business strategy different across the process and it has been seen that due to this there are many reasons that mainly takes place due to the complexity of embedding the process and also the short term view of the organizations. The next is complex interventions that relates with developing the human resource strategies that reshape the view of the company and also create the alignment. So, it can be stated that there is a link between individual performance and business strategy. There are many people process in the company that is strongly link to the strategy of the business. It is important for the companies to focus on effective strategies so that positive outcome can be attained and also it will help in focusing on set goals and objectives. If the strategies of the company are effective then it would be easy for the employees to be efficient towards the activities which will also help in meeting the set goals. So, it can be concluded that the companies should focus on aligning the business strategy by emphasizing on the performance of the employees in the workplace (Delery and Roumpi, 2017). Article 2: Corporate governance and diversification strategies The article will highlight about the relation between the corporate governance and corporate diversification strategies in relation to the global economic crisis. In the present era, there are many people that focus on the social responsibility of the company when they start investing or working with the company. On the global platform there are many companies who are involved in the financial scandals such as WorldCom, Parmalat, Enron, Alder Hey and Xerox. The major causes of the scandals that took place relates to the incompetence, the greed of the manager, inefficiency of the external auditor, defective repartition of responsibilities, lack of respect in relationtotheprocedures,ignoringtheriskmanagementandalsoneglectingthe recommendations given by the internal auditors (Cretu, 2012). 2
Business strategy Source: (Cretu, 2012). It has been examined that the World Bank are focusing on the corporate governance in the larger approach but they are not limiting themselves with the relation between the owners and managers. According to the World Bank corporate management is considered as a combination of rules and laws that helps in maintaining the human capital ad also focuses on managing the activities. ThemajortheoriesofcorporategovernanceareAgencytheory,stewardshiptheory, stakeholder’s theory and policy of the company. If the corporate governance is effective then it helps in reducing the risks and also enhances the performance and improves the managerial style. It is important to focus on corporate governance as it helps in showing transparency and also social responsibility among all the activities of the company. The corporate governance can assist in building the structure that allows the high freedom and also consist of the changes in context to the international transparency standards. There are various principles of corporate governance such as integrity, transparency and responsibility (Cretu, 2012). There is also a relation between corporate governance and corporate diversification.The company’s focuses on the different type of business that focuses on the resources and expertise that helps in maintaining the degree of diversification.It can be seen that companies consider the diversification strategies from 1960’s to 1970’s. Diversification also has an important role in minimizing the risk without impacting the incomes. The corporate diversification also focuses on the transfer of the new segment that helps in generating the changes (Cretu, 2012). 3
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Business strategy It can be stated that corporate diversification helps in creating the value of the business among the shareholders.Therefore, it can be stated that corporate diversification focuses on showing the passage of the company to a new activity segment by internal development. It can be stated that there is a link between corporate governance and corporate diversification as it helps in considering the different resources that will help in boosting the market growth of the business. It isnecessaryforthecompaniestoemphasizeoncorporategovernanceandcorporate diversification so that activities can be completed smoothly in relation to the operational activities of the business. So, it can be stated that these factors can help in controlling and maintaining the growth in the competitive market (Noe et al., 2017). Article3:Theroleofcorporatecultureintheprocessofstrategichumanresource management It has been examined that strategic human resource management has an important role in the overall success ratio of the company. The companies who are considering the HRM practices focus on the superior performers. The SHRM has a connection with the HRM practices with the strategy of the company and it also mobilizes the organizational employees towards the company’s goals. The corporate culture can be stated as the basic assumptions that are considered by the leaders to boost the success criteria of the company. The corporate culture also focuses on the patterns of management behavior that helps in maintaining the strategic decisions of the company (Bailey et al., 2018). But on the other hand it can be stated that the values and orientation are considered by the company culture that are infused by the strategy of the company.It can be stated that SHRM also focuses on considering the invisible corporate values and beliefs of the employees. It can be stated that corporate culture is known as the type of social control that helps in considering the behaviors and attitudes of the employees. If there is proper organizational identity then it can facilitate to manage the organizational functions effectively.In this the overall data has been collected by the questionnaire in relation to the executive managers in China. There are 586 questionnaires that were mailed. By overall analysis it has been stated that corporate culture and SHRM has a link with each other. It is important for the management to maintain these aspects so that it could be possible to accomplish the set goals in the highly competitive market (Wei et al., 2008). 4
Business strategy The overall results that are examined also states that if there is good culture then it could be easy to adopt the effective management practices such as SHRM and also it can help the company in availing the benefits in the highly competitive market. It can be stated that there is a he importance of building the corporate culture in the Chinese enterprises. The corporate culture positively impact the performance of the company and also it helps the employees to give their best towards the organizational activities. Corporate culture can be stated as the critical adoption of the different management practices such as SHRM. The Chinese companies should upgrade the human resource management practices so that corporate culture can be built and also it will help in maintaining the internal relations of the management. It is also necessary for the management to focus on considering the life cycle theory so that it could be easy to accomplish the set goals and also it maintains the link with corporate culture and SHRM (Wei et al., 2008). It can be concluded that the articles has provided in-depth understanding of the different aspects suchascorporatecultureand SHRMlink,individualperformanceand businessstrategy connection and also the link between diversification strategies and corporate governance. It can be stated that these aspects should be considered by the management so that it could be easy to accomplish the positive outcome in the highly competitive market. 5
Business strategy References Bailey,C.,Mankin,D.,Kelliher,C.andGaravan,T.,2018.Strategichumanresource management. Oxford University Press. Collings, D.G., Wood, G.T. and Szamosi, L.T., 2018. Human resource management: A critical approach. InHuman Resource Management(pp. 1-23). Routledge. Cretu, R.F., 2012. Corporate governance and corporate diversification strategies.Revista de Management Comparat Internațional,13(4), pp.621-633. Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and competitiveadvantage:isthefieldgoingincircles?.HumanResourceManagement Journal,27(1), pp.1-21. Gratton, L., Hope‐Hailey, V., Stiles, P. and Truss, C., 1999. Linking individual performance to business strategy: The people process model.Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management,38(1), pp.17-31. Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017.Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Wei, L.Q., Liu, J., Zhang, Y. and Chiu, R.K., 2008. The role of corporate culture in the process of strategic human resource management: Evidence from Chinese enterprises.Human Resource Management,47(4), pp.777-794. 6