Strategic Management
Strategic management entails the formulation and implementation of significant initiatives and goals that are assumed by the top administration of the organization. The strategic management offers an overall direction to the enterprise as well as includes specific objectives, plans, and policies of the organization. The strategic management theory involves understanding the organization’s strategic position, a strategic choice to manage the strategy into action (Hill, Jones, and Schilling, 2014). The strategic management theory tries to explain the beginning evolution as well as the application of strategic management. The strategic management stems from a contingency approach, system perspectives and information technology approach in corporate management.
The contingency approach
The contingency approach is considered as a management approach that aims at ensuring the management’s effectiveness is dependent or contingent upon the interplay between the application of specific situations and management behaviors. This means that management depends on current circumstances. According to the contingency approach, the idea is that there lacks a better way to achieve and to be effective, organizing, planning, controlling and leading have to be linked to a specific circumstance that is being encountered by the organization (Hamel, 2008). Thus with regards to the contingency approach, there is no universal way of management since it assumes that situations, people and organizations change over time. Thus the important thing is to consider the complexity and critical need for the environment at that time. Ideally, environmental uncertainty and change are considered as factors that impact the effectiveness of the varying organizational forms. For instance, stable environments require mechanic structures that put emphasis on formalization, centralization, specialization, and standardization to achieve consistency and efficiency. On the other hand, the unstable environment puts emphasis on decentralization to acquire adaptability and flexibility. Thus, the greater differences in the environment are linked to varying management forms.
Technology approach
The practice of technology approach includes a combination of innovation and invention. The invention entails the development of novel ideas that are effective applications while innovation entails how innovation has been brought into effective usage. Technology in strategic management entails focusing on the intersection between business and technology not only the creation of technology but also its dissemination, application as well as impact (Leibold, Probst and Gibbert, 2007). Technology approach in management entails incremental innovations that improve the existing functional capabilities, generational technology which leads to the creation of a radically varying system. Relatively, radical innovations bring about new concepts that depart extremely from the previous practices and often create a process that is grounded on a varying set of principles.
Behavioral approach
The behavioral approach is based on the fact that managers can best manage their understanding of different human aspects and engage with varying employee behaviors to achieve goals. The behavioral approach accounts for the need to look into employee motivation and behavior (Leibold, Probst and Gibbert, 2007). This kind of management approach works on ensuring good working conditions and work-linked satisfaction. This approach also focuses on employee well-being and human relations. Rather than allocating tasks and ensuring that they have been completed in the right manner, the behavioral style ensures that the managers create a suitable condition that ensures that workers are motivated and satisfied.
Strategic operations management
A plan will indicate how the organization will allocate the resources to support production and infrastructure (Hamel, 2008). Every organization aims at offering innovative services and products as well as business models. Thus there is a need to develop innovative techniques to deliver such services and products. Concerning this, there is a need to integrate innovation management within the strategy of operation. An operation strategy is increasingly driven by the general business strategy that has been designed to maximize the effectiveness as well as maximize efficient use of resources lowering costs.
Strategic Business growth
Apart from effective and faster decisions, directing work, pursuing chances, strategic management enables cutting costs, employee gratification and motivation, counteracting threats and converting problems into opportunities as well as improvement of the overall operations to achieve an essential purpose (Morden, 2016). Strategic management ensures that the objectives are set the primary problems are outlined resources and time is pivoted and that functioning is consolidated.
Strategic Leadership
Strategic leadership entails the ability of a manager to offer a strategic vision for the business and persuade as well as motivate others in acquiring the vision (Armstrong, 2016). This entails utilizing the strategy in employees’ management which significantly promotes organizational change. Considerably, it facilitates strategic productivity and aims at developing an environment in which employees will forecast the needs of the organization in the context of their work. For instance, strategic leadership may include incentive and reward systems that will encourage quality and productive employees.
Strategic management Theory in international, industry and organizational context.
The basic concepts of strategic management in the International context include strategic planning, goal setting, stakeholder management, social sustainability, and responsibility. For instance, in the case of commercial transaction among different countries, international strategic management prepare managers for internationally (Rothaermel, 2013). Strategic management in the industry illustrates the business strategy for a particular industry. This is essential in planning or external threats and emerging uncertainties. For instance, strategic planning may take into consideration the constraint impacts on the market from political and regulatory factors. Strategic management in the organizational context, on the other hand, enables the leaders in the company to assess their organization’s present situation and present strategies that will be deployed to enhance the effectiveness of the organization. The strategic management in the organizational context is used to plan and strategize the future. Organizations are able to support and strengthen their core competencies, identify necessary procedures and appropriate allocation of resources to achieve their goals.
Conclusion
Strategic management theory improves the overall performance since they direct the operations of the organizations in the business context. There are different approaches to strategic management which vary according to the organization. Strategic management theory has shifted over time to suit the external and internal needs of organizations. Therefore, strategic management involves the theory and practice of strategy for effectiveness. Generally, this entails planning, continuous monitoring, and evaluation of all that is essential in meeting the objectives and goals of the organization.
References
Armstrong, M. (2016). Armstrong’s handbook of management and leadership for HR: Developing effective people skills for better leadership and management. Kogan Page Publishers.
Hamel, G. (2008). The future of management. Human Resource Management International Digest, 16(6).
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Leibold, M., Probst, G. J., & Gibbert, M. (2007). Strategic management in the knowledge economy: new approaches and business applications. John Wiley & Sons.
Morden, T. (2016). Principles of strategic management. Routledge.
Rothaermel, F. T. (2013). Strategic management: concepts. New York, NY: McGraw-Hill Irwin.