Lecture 1.
Buller, P.F. & McEvoy, G.M. (2012).
Strategy has been conceptualized at these levels;
1. The corporate level; strategy is concerned with the business or range of business the
corporation wishes to compete in.
2. Business level; strategy is concerned with the question of how to compete for the hearts and
minds of the customer.
Resource based view; a firm is defined by the resources it controls. All competitors are not
homogeneous but, rather, they differ on the resources that they possess.
Competitive advantage is created through resources which are; valuable, rare, non-imitable, non-
substitutable and non-transferable.
Human capital ; knowledge, skills and abilities ( KSAs) individually and collectively contained in the
firm’s human resources.
Social capital ; the nature of the relationships among people internal and external to the firm.
“line of sight” (LOS) refers to an employee's understanding of the firm's strategic goals as well as the
actions necessary to accomplish the goals. underlying assumption; employees’ knowledge and
behaviour, aligned with strategic priorities, are keys to achieving positive organizational outcomes.
1. P-O fit perspective; person –organization fit; the alignment of employee values with
organization culture.
2. Goal congruence; employees’ goals are aligned with those of their immediate supervisor,
employees have more positive attitudes and higher retention.
3. AMO ; ability , motivation, opportunity ; employees who have the opportunity to participate
in high performance work systems, and who have the requisite skills and incentives to do so,
will perform better than those that do not have these attributes.
a. Increased trust among managers and employees
b. Increased intrinsic motivation due to more meaningful and significant work.
Organization capabilities; system-level resources those organization capabilities that exist only in
relationships, in the interactions between things. These capabilities involve both the ability to learn
and the ability to change.
Organizational Citizenship Behaviour; voluntary, extra-role behaviours that contribute to ‘the
maintenance and enhancement of the social and psychological context that supports task
performance’.
- Collective OCB: a shared set of assumptions, beliefs and values to promote discretionary,
extra-role behaviours to maintain and enhance the social and psychological contexts of work.
- Group level OCB: job-specific competencies and norms. Positions with similar responsibilities.
- Individual OCB: Individual-specific KSAs, motivation and opportunity
Action alignment; a function of an individual’s capabilities as well as the opportunity to use those
capabilities and the job-specific group competencies, all aligned with strategic priorities.
Interest alignment; the alignment of the interest of employees with the organization, its strategy and
goals.
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