...Approach to Strategic Management R. Edward Freeman John McVea This paper can be downloaded without charge from the Social Science Research Network Electronic Paper Collection at: http://papers.ssrn.com/paper.taf?abstract_id=263511 A Stakeholder Approach to Strategic Management R. Edward Freeman And John McVea The Darden School University of Virginia Forthcoming in M. Hitt, E. Freeman, and J. Harrison (eds.) Handbook of Strategic Management, Oxford: Blackwell Publishing. INTRODUCTION The purpose of this chapter is to outline the development of the idea of “stakeholder management” as it has come to be applied in strategic management. We begin by developing a brief history of the concept. We then suggest that traditionally the stakeholder approach to strategic management has several related characteristics that serve as distinguishing features. We review recent work on stakeholder theory and suggest how stakeholder management has affected the practice of management. We end by suggesting further research questions. A HISTORY OF A STAKEHOLDER APPROACH TO STRATEGIC MANAGEMENT A stakeholder approach to strategy emerged in the mid-1980’s. One focal point in this movement was the publication of R. Edward Freeman’s Strategic Management- A Stakeholder Approach in 1984. Building on the process work of Ian Mitroff and Richard Mason, and James Emshoff [ For statements of these views see Mason and Mitroff,(1982) and Emshoff (1978)]. The impetus behind stakeholder management was to...
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...Assessment 1: Discuss the ways strategic human resource management (SHRM) could contribute to organisational performance in the next five years. Human resource management (HRM) is the function within an organisation that focuses on its most valued asset – its personnel. HRM is one of the most important functions in any business and is detrimental to the company’s overall success. It has taken quite a while for HRM to be adopted into the business strategy as organisations were unwilling to accept or change their ways. Their focus was on economic growth for the company. However researchers such as Hezberg, Maslow and Lewin revealed that employee performance was influenced by their social and emotional needs and their desire for interesting work. This is when the shift began for companies to not only focus on economic growth, but to satisfy the needs of their employees in order to improve performance and productivity which will bring greater success to the company. Human resource management has a number of key policy areas including recruitment and selection, job analysis and design, workforce planning, performance management, training and development and career planning. It is through these policies that we can understand the concept of strategic human resource management (SHRM). SHRM explicitly links these policies, practices and systems to enable the achievements of an organisations strategy and goals. In my understanding, SHRM represents an attempt to methodically manage...
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...Int. J. of Human Resource Management 12:2 March 2001 299–310 Strategic human resource management effectiveness and rm performance Orlando C. Richard and Nancy Brown Johnson Abstract This study tests whether strategic human resource management (SHRM) effectiveness signi cantly affects organizational level outcomes. Using the resource-based view of the rm, this study examines the effective use of human capital on organizational performance. Further, the role that a contextual factor – capital intensity – plays in modelling is explored. Results show that SHRM effectiveness signi cantly reduces employee turnover and increases overall market performance assessment. However, SHRM effectiveness affected both rm productivity and return on equity only when moderated by capital intensity. Keywords Human resources; strategy; effectiveness; outcomes. The interest of strategic management in examining the role of human resources as value-added has evolved (Baird and Meshoulam, 1988) to broaden the focus of human resource management research from a micro (i.e. individual effectiveness focus) approach to a macro (i.e. organizational effectiveness focus) or strategic approach (Butler et al., 1991). The strategic human resource management perspective (SHRM) makes evident the importance of human resource practices for organizational performance, such as employee turnover, productivity and nancial performance. The current focus on HRM as integral to rm’s strategic processes involves viewing...
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...Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. Performance Management as referenced on this page is a broad term. See Aubrey Daniels for a detailed explanation of the origin of the term Performance Management (PM) which was coined by Dr. Aubrey C. Daniels in the late 1970s to describe a technology (i.e., science imbedded in applications methods) for managing both behavior and results, the two critical elements of what is known as performance. |Contents | |[hide] | |1 Where PM is applied | |2 Benefits | |3 Organizational Development Definitions | |4 See also | |5 References | |6 Further readings | |7 External links | [pic][edit] Where PM is applied The PM approach is...
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...Performance Management Dr. Herman Aguinis PE-A1-engb 1/2011 (1033) This course text is part of the learning content for this Edinburgh Business School course. In addition to this printed course text, you should also have access to the course website in this subject, which will provide you with more learning content, the Profiler software and past examination questions and answers. The content of this course text is updated from time to time, and all changes are reflected in the version of the text that appears on the accompanying website at http://coursewebsites.ebsglobal.net/. Most updates are minor, and examination questions will avoid any new or significantly altered material for two years following publication of the relevant material on the website. You can check the version of the course text via the version release number to be found on the front page of the text, and compare this to the version number of the latest PDF version of the text on the website. If you are studying this course as part of a tutored programme, you should contact your Centre for further information on any changes. Full terms and conditions that apply to students on any of the Edinburgh Business School courses are available on the website www.ebsglobal.net, and should have been notified to you either by Edinburgh Business School or by the centre or regional partner through whom you purchased your course. If this is not the case, please contact Edinburgh Business School at the address below: Edinburgh...
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...ce PERFORMANCE MANAGEMENT SYSTEM AND ITS IMPACT ON ORGANIZATIONAL EFFICIENCY LITERATURE REVIEW Performance management comprises all activities that guarantee that organizational objectives are constantly being attained in an efficient and effective manner. Normally, performance management focuses on the organizational performance, employees, departments and to some extent the processes that are usually employed to build a service or product, as well as other key areas of an organization (Izadpanah et al., 2012). In this competitive market, every company want s upgrades their marketing strategies and prepares their business mission and vision in order to carry out their business in the long run. In the age of rapidly changing competition and technological advances, the business process is interwoven with some hard realities. These challenges are manifested in competitions from volatile and unknown entity from an unknown corner of the world, unstable customers’ preferences, stringent labour laws, international standards and swift economic and political changes. All these taken together, compel the corporate world to work in a war zone to acquire and retain more customers and stabilize their business (Pradhan et al., 2012). A performance management system is the key factor used in determining whether an organization can manage its human resources and talent effectively. Performance management provides information on who should be trained and...
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...the Performance Management book.) 1. A. Briefly explain the concept of performance management. Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. Let’s consider each of the definition’s two main components: 1. Continuous process. Performance management is ongoing. It involves a never-ending process of setting goals and objectives, observing performance, and giving and receiving ongoing coaching and feedback. 2. Alignment with strategic goals. Performance management requires that managers ensure that employees’ activities and outputs are congruent with the organization’s goals and, consequently, help the organization gain a competitive advantage. Performance management therefore creates a direct link between employee performance and organizational goals and makes the employees’ contribution to the organization explicit. B. Identify at least five components of what might be included as part of a performance management program. Prerequisites, performance planning, performance execution, performance assessment, performance review, performance renewal, re-contracting. 2. Distinguish performance management from performance appraisal. A system that involves employee evaluations once a year without an ongoing effort to provide feedback and coaching so that performance can be improved is not a true performance management...
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...------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- A Book Review on: ------------------------------------------------- ------------------------------------------------- Human Resource Management: Linking Strategy To Practice ------------------------------------------------- Greg L. Stewart and Kenneth G. Brown ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- In Partial Fulfillment of the Requirements of ------------------------------------------------- BA-HRDM-21- Introduction to Human Resource Management ------------------------------------------------- 10:30 – 12:00 PM – MW - EH106MC - 1st Semester AY 2013-2014 -------------------------------------------------...
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...Armstrong and Baron (1998) performance management is a strategic and integrated approach of delivering sustained successes to the company by improving individual and group performances and also developing the capabilities of teams and individuals. Currently at work performance management appraisal (PMA) is carried out on a quarterly basis and is a conversation carried out by a line manager and an employee, it is aimed at improving the effectiveness and capability of an employee through development. It is aimed at personnel who want to achieve excellence in their respective fields and want to acquire more skills and knowledge, which will assist in the achievement of personal and professional development goals. Performance management serves as an important tool for realizing organisational goals by implementing competitive HRM strategies. It helps in aligning and integrating the objectives of the company with the key performance indicators (KPI’s) in an organisation across all job categories and levels. This helps in driving all the employees right from the bottom level towards one single goal. Performance management is an important driver in most companies today and is regarded as the tool to use to ensure that the people working for them will deliver the agreed contract and objectives which were set mutually. This study will reveal the importance of a well managed, performance management system by conducting a critical analysis of the performance management system used and what benefits...
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...THE REWARD SYSTEM BIANCA SANDERS HR 423 COMPENSATION MANAGEMENT Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labor expects wages from the process. * An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. * It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. * Such a system should be well defined and uniform. It will be apply to all the levels of the organization as a general system. * The system should be simple and flexible so that every employee would be able to compute his own compensation receivable. * It should be easy to implement, should not result in exploitation of workers. * It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction...
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...Performance Management 1 Performance Management and Reward Systems in Context Objectives By the end of this module, you will be able to: explain the concept of performance management; distinguish performance management from performance appraisal; explain the many advantages of and make a business case for implementing a well-designed performance management system; recognise the multiple negative consequences that can arise from the poor design and implementation of a performance management system, which affect all the parties involved – employees, supervisors, and the organisation as a whole; understand the concept of a reward system and its relationship to a performance management system; distinguish between the various types of employee rewards, including compensation, benefits and relational returns; describe the multiple purposes of a performance management system, including strategic, administrative, information, developmental, organisational maintenance and documentation purposes; describe and explain the key features of an ideal performance management system; create a presentation including persuasive arguments in support of an organisation implementing a performance management system, including the purposes that performance management systems serve and the dangers of a poorly implemented system; note the relationship and links between a performance management system and other HR functions including recruitment and selection, training...
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...Performance Management Plan Donna Zellers HRM/531 December 8, 2013 Tiffany Mytty-Klein Performance Management Plan The organizational performance philosophy for Austin Limousine Service is uphold the highest integrity and commitment to their customers, which will ensure a reputation for outstanding service. This is accomplished through the employees, vehicles, and performance management plan. To accomplish an effective performance management plan, a job analysis needs to correlate with the performance plan. This will ensure ALS to understand the skills needed to perform a particular job. Atwood and Allen Consulting will need to define performance and how it will be accomplished. It will then be the responsibility of Austin Limousine Service to facilitate and encourage performance recommendations to ensure a successful outcome of the performance management plan. ALS anticipates a -$50,000 in revenue and a 10% turnover rate projected for 2014. The key purpose of the performance management plan is to give ALS the assurance that the revenue does not drop below its projected value, and turnover does not surpass its projected turnover rate. In the current business market, any business can strategically utilize; compensation, benefits and incentive plans as effective performance management tools to attract top performers, increase operational effectiveness and efficiency, and enhance performance. It is important for ALS to attract, motivate, and retain the best people who will...
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...Performance Management Framework Patricia Keith February 16, 2015 Performance Management Framework Performance management is a system of processes and structures that identify, monitor, assess and respond to organizational performance results. Performance management focuses on performance results through evidence-based decision-making, continuous learning, and employee performance accountability. Such a system requires a daily commitment by management to improve individual or team performance. The performance management framework for Clapton Commercial Construction (CCC) must align with the organization’s strategic goals and objectives. An effective performance management plan will allow Clapton Commercial Construction to maximize performance while minimizing its turnover rate. Clapton Commercial Constructions’ Performance Management Framework CCC’s strategic objective of expanding its operations into Arizona involves adding approximately 130 new employees. During the first year, the organization expects to stay at its current 3% revenue growth rate while retaining 20% employee turnover. Therefore, it is critical that the organization create and maintain an effective performance management plan. Aligning Performance Management with the Business Strategy Organizational Performance management philosophy is the process intended to improve individual and organizational performance. One of the goals of CCC’s approach to performance management is to get employees...
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...Organization choosen Baiduri Baiduri Background 1.Introduction 1.1Report aim The aims of the research were as follows: •To critically evaluate an organization reward strategy and how its linked to managing individual and organizational performance. •Describe the resistance that will be face if changes are implemented and suggest methods to overcome the resistance. 1.2Background of the organization Baiduri Bank is one of Brunei largest Local bank. It started its operations in 1994. The bank shareholder includes Baiduri Holding, Royal Brunei Airlines, Royal Brunei Technical service and BNP Paribas. The Baiduri Bank Group consists of Baiduri Bank and Baiduri Finance. It is one of the largest Providers of Financial Products and services in Brunei Darussalam. The core business of the bank are services such as Institution or corporation, retail banking, Consumer financing and wealth management. Baiduri Bank is first bank in Brunei to offer a wide choice of payment card such as American Express, Visa, Master Card and Union Pay. This is to meet customer need in different segment. The Baiduri Bank Group network consist of 12 bank branches, a finance arm of 2 branches and 28 ATM machine to ensure consumer can access to their service easily. The Bank also provides an internet banking service to provide consumer an extra convenience to meet their need such as making payment online. For the past few year the bank has won a lot of awards due to its services such as ‘Best Banking...
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...Sprint Performance Management System Douglas Tennyson Excelsior College Abstract Every company needs to have a performance management system in place to build employees into what the company desires from them, to help them retain the best employees and to assist with active communication. Sprint seems to have a performance management system today that is much better than it was previously and this paper will explore the current performance management system and compare it to the old one and also make recommendations as to what Sprint can do to improve their current system. Sprint is a telecommunications company that specializes in mobile devices and mobile service. They currently hold fourth place in the mobile provider market being overtaken by T-mobile in 2015 according to a report on RCwireless.com with Verizon and AT&T maintaining a firm grip at the top of the market share. "The report found that "no major shifts in market share among the major four carriers" between now and 2020" (Kinney, S. (2015). One of Sprint's bigger problems was their employee turnover rate; they were losing employees faster than they were getting new ones. This would be a problem for any company, but especially for a company that is in the cutthroat business of cell phones and service. Trying to grow and take more of the market when you can't keep the trained employees created a problem for Sprint and they knew they needed to address this. "In July 2002, Towers Perrin released a...
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