Third Order Strategy

Posted in Human Resource Terms, Total Reads: 481

Definition: Third Order Strategy

Third order strategy is a strategy which has all human resource management decisions pertaining to budgets and where mechanisms are formalized for achieving something. Third order strategy was given by John Purcell, who identified three levels of strategic decision making namely the first order strategy, second order strategy and third order strategy. Long term goals and steps to be taken to realize those goals are generally said to be the first order strategy. The organizational structure that a company follows to achieve its goal or the hierarchy that the company follows comes under the second order strategy.

Human resource plays an important part in an organization in taking important decisions. Thus they form the third order strategy. Some of the important areas that a HR looks into are result of the strategy. Recruitment and selection forms a very important part of this strategy. The person whom to recruit for a job whether he is suitable for the job and how he is going to achieve the company goals. The strategy to recruit depending on these goals is made by the HR. Performance appraisal is another of the third order strategy that is designed by the human resource team. The measurement criteria of appraisal, the KPI and other important factors help in employee satisfaction which helps in boosting the employee which in turn makes the workplace a better one. Another of the important strategy is training and development.

Training always equips an individual with more thoughts and knowledge. These trainings helps to make an employee understand organizational goal from time to time which makes the employee focus on the changes and adapt accordingly. The next important strategy is rewarding. Rewarding an employee from time to time is very important. It always gets the best out of a person and also boosts others to give their best.

So there are many more strategies that an HR formalizes which helps in achieving the goals of an organization. So the third order strategies are very important and it leads to the success or first and second order strategies.

Hence, this concludes the definition of Third Order Strategy along with its overview.


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