How would the board’s increased involvement in the selection of strategies affect a firm’s strategic competitiveness?
The board makes decisions for strategies to be followed in various sectors in the organization. They monitor challenges facing the firm and decide on how to solve them. Moreover, the performance of the Company is addressed through decision-making processes. Directors affect the competitive nature of the organization through overturning poor decisions and replacing managers who do not perform well in their departments. Poor over sighting of directors lead to inadequate decisions by the management thus hurting prospects of labor markets for managers and directors. The board members affect implementation of strategies since they act as strategic consultants of top managers. They offer advice, control, and counsel other administrative members. However if board members have little or no power to preside over decision making on behalf of their shareholders there lacks formal and social independence from management department.
Example members of Human resource department have various strategies that a firm would adopt to be effective. These include coherence and complementation of each other. Practices in human resource department should fit in its set of coherent practices and different systems in the organization. The systems should match the strategy of the business in the organization.
Evidence supporting this strategy is found in a survey of more than 200 hotels in UK having more than 25 employees. introduction of HRM making them mutually cohesive and an institutional package led to higher performance due to increased competition. However, failure to introduce HRM strategies have resulted in uncoordinated fashion and uncompetitive products.
Cooke. F. (2000). Human resource strategy to improve organizational performance: A route for British firms. Working paper no 9, 1-33.
Carpenter, M. (2001).The strategic context of external network ties: Examining the impact of director appointments on board involvement in strategic decision making. Academy of management journal, 4(4),639-660.