Given the turbulent and unpredictable environment facing many organizations today, critically evaluate the implications of strategy-making as a rational, planned approached versus strategy-making as an adaptive, emergent process
Given the turbulent and unpredictable environment facing many organizations today, critically evaluate the implications of strategy-making as a rational, planned approached versus strategy-making as an adaptive, emergent process.
Due to constant changes and unpredictability in a turbulent environment, the traditional way of planning does not seem to work anymore. Rational approach of strategy making which take place in a systematic ways by analyzing the environment and evaluate of choices and is clearly work out in detailed and implemented. Adaptive strategy making usually take place when organization face political forces and is usually reactive rather than pro-active. New approaches to the external and internal conditions need to develop in order to cope with the environmental turbulence.
Labor turnover can caused much of an alarm to the internal environment if the situation is not handled properly. High turnover in organizations can cause losses that cannot be measured such as low morale, decrease in motivation and low employee’s commitment towards their job. In long terms, this problem can create communication barrier and gradually it will affect the productivity. As a result, the cost of man hours lost is unimaginable and the quality of service and products will drop. A rational strategy for hiring processes and orientation program is necessary in order to reduce the turnover rates. This strategy is preferred because there are ample times for the organization to plan and implement the strategy rather than adaptive process. It is important to look into the reasons causing the high turnover by looking at operational effectiveness such as management techniques. Bi-annually organization climate survey and exit interview can identify the key issues that caused the employees to behave negatively. The information gather can be use to strategically plan the long terms approach needed to tackle the issues from reoccur. A long terms systematic plan to overcome this matter needed to be consider such as giving the substantial benefits to employee so that the pull factor to stay in the company is greater than the push factor (Robbins et al 1998).
Company that is being acquired is also vulnerable to internal turbulent because of the uncertainty incurred when being acquired by other company. Employees will feel unsecured and uncertain will loom about their future when new management took over (Heijden et al 2002). New leader will implement new management and there bound to be changes to the organization structure. New processes will also be introduced to streamline with the business process in order to embark in a new challenge. This will result into underperformance and low morale if the new management does not address the issue properly. Talented employees may choose to leave the company which in turn will raise the turnover rate. In this situation, rational approach to strategic planning is more suitable than adaptive strategy. Organization should conduct the acquisition in due diligence and foresee all obstacle that they going to face when acquisition take place. Before introducing a new management, a through analysis of the acquired company is necessary. The management must derive a strategic direction via an analytical and systematic process to retain key personnel. They need to identify talented individual within the company and strategically develop them for future leaders (Graetz et al 2006). New management must also plan how to change the old culture to suite the new organization strategies in order to remain competitive in a turbulent environment.
