Strategic management and organizational effectiveness : a case study of energy group of public company in Thailand
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2009
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2552
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eng
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xxi, 635 leaves : ill. ; 30 cm.
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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National Institute of Development Administration. Library and Information Center
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Vudhi Leelakusolvong (2009). Strategic management and organizational effectiveness : a case study of energy group of public company in Thailand. Retrieved from: http://repository.nida.ac.th/handle/662723737/852.
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Strategic management and organizational effectiveness : a case study of energy group of public company in Thailand
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Abstract
This study probed into the insights of possible contributions to overall organizational effectiveness. The strategic management component is very useful in predicting top management team’s (TMT) perception towards environments which directly influence overall work behavior. It is therefore a powerful process for improving organizational effectiveness, especially that in the energy industry which has recently been receiving more attention. How to gain and hold advantage over competitors is the primary purpose of strategy and that which distinguishes it from the other organizational sciences. It is preoccupied with explaining and attempting to predict an organization’s effectiveness. Since the first appearance of the open systems perspective, popular approaches to explaining variations in effectiveness have involved the use of structural contingency theory. Indeed, there exists the quest to understand why an organization in the same environment has different organization effectiveness. Previous research studies to identify the nature of the relationship among the strategic actions of external environment, internal environment (strategic leadership, organization structure), strategic stance variables and organizational effectiveness. They mainly emphasized the various independent and dependent variables with a few studies having focused on all variables simultaneously. The measurements are normally focused on financial or a few non-financial metrics. This study has sought to fill the gap, and by doing so, it adopted an integrative framework of studying both external and internal environments-strategic leadership-structure, strategic stance, and organizational effectiveness framework. This qualitative research explores the application of strategic management, and contingency variables in various forms. The multiple-case study was divided into three groups 1) Petroleum group: PTT Plc.(PTT), The Bangchak Petroleum Plc. (BCP), and Thai Oil Plc. (TOP); 2) Power generating group: Electricity Generating Plc.(EGCO), Banpu Plc. (BANPU), Ratchburi Electricity Holding Plc. (RATCH); and 3) Service energy group: Bangkok Aviation Fuel Services Plc. (BAFS). All of these public companies are registered on the Stock Exchange of Thailand. The research methodology used multi-methodology, purposive sampling, triangular techniques of qualitative, in-depth interview, archived data from secondary sources, with a descriptive statistics survey being used to augment the analysis of the findings. The findings of the research study can be summarized as follows: 1) For the petroleum group: To be an effective organization under the ‘dynamic’ environment condition with a selected structure configuration prone to the ‘organic’ type and a moderate span of control with solid strategic leadership, the appropriate strategic fit is that of an innovative prospector (e.g. the case study of BCP). 2) For the power generating group: To be an effective organization under the quite ‘stable’ environment condition with solid strategic leadership and a ‘mechanistic’ structure configuration, the appropriate strategic stance is that of a defender (e.g. the case study of BANPU). 3) For the service energy group: To be an effective organization under the ‘dynamic environment’ condition as an ‘organic’ type with a wide span of control and solid strategic leadership, the appropriate strategic stance is that of an analyzer or prospector (e.g. the case study of BAFS). Its growth is achieved through commitment to customer satisfaction, employee engagement, and core profitability. 4) The ‘general environment’ condition is useful for long-term trends, but in this study the ‘task environment’ condition was useful for specific analysis as it reflected the difference among contextual environments and nature of the firms such as suppliers, customers, competitors, technology and so forth. 5) From the stakeholder view, the ecological community was the most crucial for firms in the energy industry as confirmed by all cases. 6) A combination of both financial and non-financial measures should be more powerful and appropriate to explain the effectiveness of the organization. 7) The uncertainty condition is a threat to the effectiveness of the organization, while the static environment creates significantly less uncertainty for the firm than does the dynamic one. Managerial perceptions in reducing environment uncertainty can be accomplished through the manipulation of the organizational structure, its strategic stance, clear vision/mission articulation, effective internal process, size and technology. 8) Economic, ecological, customers contextual condition highly affect strategic stance. Political-legal force had a critically impact in the petroleum and service energy groups. 9) Visionary strategic leadership is clearly a crucial and powerful determinant of organizational effectiveness due to strong background profile in education, working experience, and risk-averter type. A succession plan is recommended. 10) The study recommended a solid effort by strategic leaders, top executives, policy makers in improving ‘Internal Process’ and ‘Learning & Growth’ in terms of risk management practices, the strategic leadership values, HRM practices, and work efficiency. All of these indicated a direct positive impact on the organizational effectiveness. 11) Organizational effectiveness was determined by contingency variables at different degrees. Therefore, the top executives must consider each of the contingency variables carefully and how they separately affect each dimension of its organizational effectiveness. The relationship is circular.
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Thesis (Ph.D. (Development Administration))--National Institute of Development Administration, 2009