Mngs Perspectives:
- Traditional/Classical Mng
- Behavioral Mng
- Quantitative Mng
Traditional Mng:
- Scientific Mng (Fredrick Taylor)
- Administrative Mng (Henry Fayol)
Principle of Administrative Mngs by HF:
- Divisionf work
- Disipline
- Authority
- UOC (unity of command)
- UOD(direction)
- Remmuniration of personal (Pay for work)
- Equity
- Stability of tenure
- Subordination of individual interest to general interest
- Scalar chain (top down)
- Initiative
- Centralization
- Order
- Espirit of corps
Rules of Scientific Mnds by Fredrik Taylor
- Rule of Thumb
- select employee/workers scientifiically acc to their apptitude
- Coordinate with workers
- Workload Distribution
quantitative mng perspective
Behavioral mng perspective
Barriors in planning:
- Inapropriate goals
- improper award system
- resistence to change
- dynamic and complex enviorement
- constraints
- reluctance(unwillingness) to establish goal
Types of Decisions
Recognize and define problem situation:
Ayesha must find someway to remind her husband to take his medicines on time.
Identify alternatives: Set up smartphone reminders: Ayesha could schedule daily reminders on her husband's smartphone to alert him when it's time to take his medicine. Use a pill organizer: Ayesha could organize her husband's medications in a pill organizer with compartments for each day of the week, making it easier for him to see if he's taken his medication. Post-it notes: Ayesha could place brightly colored Post-it notes in prominent places around the house, such as on the bathroom mirror or the fridge, as visual reminders for her husband to take his medicine. Alarm clock: Ayesha could set up an alarm clock in the house to ring at specific times when her husband needs to take his medication. Enlist family support: Ayesha could involve other family members, such as children or siblings, to remind her husband to take his medicine when she's not around.
Evaluate alternatives: Smartphone reminders: Pros include convenience and reliability. Cons may include reliance on technology and potential for the husband to ignore or forget the notifications. Pill organizer: Pros include organization and visual cues. Cons may include the possibility of the husband forgetting to check the organizer. Post-it notes: Pros include simplicity and visibility. Cons may include the husband becoming accustomed to the notes and ignoring them over time. Alarm clock: Pros include auditory cues and flexibility in placement. Cons may include the husband becoming desensitized to the alarm or finding it disruptive. Enlist family support: Pros include shared responsibility and varied reminders. Cons may include inconsistency in reminders if family members are not always present.
Select alternative: Considering the pros and cons of each option, Ayesha might decide to combine several methods for a comprehensive approach. For example, she could use a combination of smartphone reminders, a pill organizer, and Post-it notes to ensure her husband receives timely reminders from different sources.
Implement alternative: Ayesha can start by setting up the smartphone reminders, filling the pill organizer for the week, and placing Post-it notes in strategic locations around the house. She can also communicate with her family members to involve them in the reminder system.
Follow up and evaluate results: Ayesha should monitor her husband's adherence to the medication schedule and adjust the reminder system as needed based on his feedback and any observed challenges. Regular check-ins and open communication will help ensure the effectiveness of the chosen method.
administrative model(behavioral decision making:)
Factors that binds rationality :
- Intuition
- risk propensity
- escalation of commitment
Advantages of Group/Team Decision Making:
- more info and knowledge available
- more alternative generated
- more acceptance
- enhance communication
- better discussion
DisAdvantages:
- Time taking
- compromising decision results bcz of indecisiveness
- one may dominate the group
- group think may occure
Group think: Groupthink is a phenomenon where a group of people prioritize harmony and consensus over critical thinking and decision-making, often leading to flawed or irrational outcomes.
Process of group formation:
- prestage
- forming
- storming
- norming
- performing
- adjourning independent dependent independent again
Explaination
Independent: Prestage: Individual members gather information and assess their potential involvement in a group.
Dependent: Forming: Group members get acquainted, establish roles, and begin to understand the group's purpose and objectives. Storming: Conflict arises as members express differing opinions and vie for influence within the group. Norming: Cohesion develops as conflicts are resolved, norms are established, and members start to collaborate effectively. Performing: The group functions at its peak, achieving its goals with high levels of cooperation and productivity.
Independent again: Adjourning: The group disbands or transitions to a new phase, reflecting on its accomplishments and preparing for future endeavors.
FUNCTIONS OF MANAGEMNT:
I- PLANNING: Setting an organizational goals and deciding how best to acheive them. II- ORGANIZING: Deciding how best to group organizational activities and resources/ Determining how activities and resources are to be group. III- LEADING: The set of processes to get members of the org to work togther to further the intersets of organization. IV- CONTROLLING: Monitoring organizational processes toward goal attainment.
ORGANIZATION STRUCTURE: The set of element that can be used to configure an organization are called organization structure.
WHY DE WE HAVE TO ORGANIZE AN ORG: Because all the structural element of the company and how those element work together are used to manage the total organization.
ORGANNIZING LEADS TO DECISION MAKING WHen the manager is organized the activities are coordinated.
STEPS OF ORGANIZING:
JOB DESIGNING: Job designing organizes tasks and responsibilities to improve job satisfaction and productivity. Key elements include:
Task Variety: Diverse tasks to prevent monotony. Autonomy: Control over work methods. Task Identity & Significance: Seeing the whole process and understanding the impact. Feedback: Insights on performance. Job Specialization vs. Generalization
Job Specialization:
Pros: Increased efficiency and specialized skills. Cons: Monotony, lack of flexibility.
Job Generalization:
Pros: Reduced monotony, diverse skills, greater flexibility. Cons: Requires training, potentially less efficient.
Balancing Strategies
Job Rotation: Gradually shift employees between tasks to broaden skills.(Challenges cover bellow) Job Enlargement: Add more tasks to a role. Job Enrichment: Increase responsibilities to boost motivation.
Work Teams: Work teams involve groups of employees collaborating to achieve common goals, leveraging collective skills and knowledge.
Types of Work Teams: Functional Teams: Members from the same department with similar skills. Cross-Functional Teams: Members from different departments working together. Self-Managed Teams: Teams with autonomy to manage themselves without a supervisor. Virtual Teams: Teams working remotely, connected via technology.
Benefits: Enhanced creativity and innovation. Improved problem-solving through diverse perspectives. Increased motivation and job satisfaction. Greater flexibility and adaptability.
Effective Job Rotation
Challenges:
Lack of expertise in new tasks.
Strategies:
Training: Provide necessary training. Partial Rotation: Rotate tasks gradually. Cross-Functional Teams: Promote collaboration. Mentorship: Support with mentors.
Benefits:
Broadens skills, enhances career development. Increases organizational flexibility and innovation. Job rotation, with proper planning and support, can enhance both employee development and organizational resilience even in specialized fields.
GROUPING JOB / DEPARTMENTALIZATION: Process of grouping jobs based on some logical arrangements.
Functional Grouping:
Organizes employees based on specific functions or activities.
Example Departments:
Development: Front-End, Back-End teams. QA: Manual Testing, Automated Testing teams. Marketing: Digital Marketing, Content Marketing teams. Sales: B2B, B2C Sales teams. HR: Recruitment, Employee Relations teams.
Advantages:
Specialization: Deep expertise in each function. Efficiency: Streamlined processes within departments.
Disadvantages:
Silofication: Communication barriers between departments. Limited Perspective: Narrow focus on individual functions. Coordination Challenges: Integrating activities across functions.
Product Grouping:
Organizes employees around specific products or product lines.
Example Divisions:
Product A Division: Dedicated development, QA, marketing, sales teams. Product B Division: Separate teams for each aspect of Product B. Product C Division: Focused teams for Product C's lifecycle.
Advantages:
Focus: Dedicated attention and accountability for each product. Flexibility: Adapts easily to product-specific demands. Innovation: Enhances product development and customer focus.
Disadvantages:
Duplication: Potential redundancy in functions across products. Resource Allocation: Efficiency challenges without careful management. Coordination Needs: Requires effective cross-divisional communication.
Hybrid Approach:
Combines functional depth with product focus:
Core functions like HR and Finance are centralized. Product-specific divisions ensure tailored development and marketing. This hybrid model balances specialization and flexibility, enhancing both efficiency and innovation in a tech-driven environment.
ESTABLISHING REPORTING RELATIONSHIP:
Chain of Command:
Define the hierarchy of authority from top management to the lowest levels. Clarify who reports to whom and the flow of decision-making.
Span of Management:
Narrow Span: Few subordinates per manager, typically in taller organizational structures. Wider Span: Many subordinates per manager, common in flatter organizations.
Type of Structure:
Identify whether the organization is tall (with multiple layers of management) or flat (fewer layers, broader spans of control). Discuss how this impacts communication, decision-making, and flexibility.
Tall versus Flat Organizations:
Tall Organization: More hierarchical levels, narrower spans of control. Flat Organization: Fewer hierarchical levels, wider spans of control. Consider the implications for communication effectiveness, employee autonomy, and responsiveness to change.
These aspects help in understanding how authority and communication flow within the organization, influencing decision-making and operational efficiency.
Distributing Authority: Authority and Delegation
Authority:
Authority refers to the right to make decisions, give orders, and allocate resources to achieve organizational objectives. It is vested in positions within the organizational hierarchy.
Delegation:
Delegation is the process of assigning authority and responsibility to subordinates to complete tasks. Key aspects include specifying the tasks, granting the necessary authority, and holding subordinates accountable.
Steps in the Delegation Process:
Assignment: Selecting tasks for delegation based on importance and complexity. Delegation: Granting authority and responsibility to the chosen subordinate. Support: Providing necessary resources, guidance, and training. Monitoring: Overseeing progress and providing feedback. Accountability: Holding subordinates responsible for outcomes.
Decentralization and Centralization
Decentralization:
Decentralization involves dispersing decision-making authority to lower levels of the organization. Benefits include quicker responses to local conditions and enhanced employee involvement.
Centralization:
Centralization concentrates decision-making authority at higher levels of the organization. Benefits include consistency in decision-making and clearer accountability.
Choosing Between Centralization and Decentralization:
Factors: Consider organizational size, complexity, and strategic goals. Balance: Hybrid structures can combine aspects of both to optimize performance and responsiveness. Understanding these concepts helps in effectively distributing authority, delegating tasks, and optimizing decision-making processes within an organization.
COORDINATING ACTIVITIES: Coordination ensures tasks align to achieve organizational goals efficiently. It harmonizes efforts, minimizes duplication, and resolves conflicts.
Three Major Forms of Interdependence: Pooled: Tasks operate independently, sharing resources (e.g., central IT department). Sequential: Tasks depend on each other sequentially (e.g., assembly line production). Reciprocal: Tasks depend bidirectionally (e.g., software development teams).
Structural Coordination Techniques: Managerial Hierarchy: Clear reporting structures and authority levels.
Rules and Procedures: Standardized guidelines for consistent operations.
Liaison Roles: Designated individuals to facilitate communication between departments or teams.
Task Force: Temporary unit formed to address specific tasks or projects.
Unit or Formation: Dedicated to single, defined activities or tasks, enhancing focused collaboration.
DIFFERENTIATING AMONG POSITIONS: Line Positions (Line POS):
Definition: Directly involved in the core activities or primary functions of an organization. These positions are responsible for executing tasks that contribute directly to the organization's objectives. Examples: Production workers in a manufacturing plant, sales representatives in a retail store, customer service agents in a call center.
Staff Positions (STAF POS):
Definition: Indirectly support the organization by providing specialized expertise, advice, or assistance to line positions. They do not directly engage in production but play crucial roles in supporting and facilitating operational efficiency. Examples: Human resources specialists, IT support technicians, legal advisors in a corporate setting.
Key Differences: Role: Line positions are directly involved in core activities, while staff positions provide support and expertise. Function: Line positions execute primary functions, while staff positions provide specialized services. Impact: Line positions directly affect operational outputs, whereas staff positions influence efficiency and compliance.
Understanding these distinctions helps organizations allocate resources effectively and ensure both operational execution and support functions are optimized.
ORGANIZATIONAL DESIGN Organizational design involves structuring an organization's roles, responsibilities, and systems to achieve its goals efficiently. It defines how activities are coordinated, managed, and executed within the organization.
Models of Organizational Design:
1. Bureaucratic Model (Presented by Max Weber)
Philosophy: "One best way to manage the organization"
Characteristics:
Hierarchy of Authority: Clear chain of command and reporting structure. Division of Labor: Specific roles and tasks assigned to individuals based on expertise. Formal Rules and Regulations: Standardized procedures and policies governing activities. Impersonal Relationships: Decisions and interactions based on rules rather than personal connections. Career Orientation: Employment based on technical qualifications and promotion based on merit.
Advantages:
Efficiency: Clear roles and procedures streamline operations. Consistency: Standardized rules ensure uniformity in processes. Predictability: Defined hierarchy and regulations provide stability.
Disadvantages:
Rigidity: Inflexible structure may hinder adaptation to change. Decreased Innovation: Strict rules can stifle creativity. Employee Morale: Impersonal relationships may reduce job satisfaction.
2. Behavioral Model (Based on the Human Relations Movement)
Philosophy: "There is NO one best way to manage the organization"
Characteristics:
Human-Centric: Emphasizes the importance of individual and group behavior. Organizational Uniqueness: Recognizes that each organization is unique and requires tailored management approaches. Flexibility: Encourages adaptability to changing environments and needs. Employee Participation: Involves employees in decision-making processes. Work Satisfaction: Focuses on employee satisfaction and motivation to enhance productivity.
Advantages:
Adaptability: Flexible structure allows for quick response to change. Innovation: Encourages creativity and new ideas. Employee Engagement: Participation in decision-making enhances motivation and job satisfaction.
Disadvantages:
Complexity: Tailored approaches can complicate management. Inconsistency: Lack of standardized rules may lead to variability in processes. Coordination Challenges: High level of employee involvement can complicate decision-making.
Extreme Organizational Designs within the Behavioral Model:
Mechanistic Structures: Highly formalized and centralized, suitable for stable environments. Organic Structures: Flexible and decentralized, suitable for dynamic and uncertain environments. Understanding these models helps organizations choose the appropriate design based on their specific needs, goals, and external environment.
Which One is Better? It depends on the organization's context:
Bureaucratic Model is better suited for:
Stable Environments: Where tasks are routine and predictable. Large Organizations: Where standardization and efficiency are critical. Regulated Industries: Where compliance with rules and procedures is essential.
Behavioral Model is better suited for:
Dynamic Environments: Where flexibility and quick adaptation are necessary. Innovative Industries: Where creativity and employee input are valued. Organizations Focusing on Employee Engagement: Where high morale and job satisfaction are prioritized. Choosing between these models requires considering the specific needs, goals, and environment of the organization.
Situational Influences of Organizational Design:
Core technology (IF INCREASED LEADS TO INCREASE IN NO OF LEVEL OF MGT (TALL ORG) ALSO SPAN OF MGT INCREASES (WIDE SPAN))
Environment
Organization Size (IF INCREASED LEADS TO INCREASE IN NO OF LEVEL OF MGT (TALL ORG) ALSO SPAN OF MGT INCREASES (WIDE SPAN))
Organization Life cycle
Basic Forms of Organizational Design
1. Functional (U-Form) Structure: By functional areas (e.g., marketing, finance). Pros: Specialization, resource efficiency. Cons: Silo mentality, slow cross-functional decisions.
2. Conglomerate (H-Form) Structure: Independent, unrelated businesses. Pros: Risk diversification, flexibility. Cons: Management complexity, lack of synergy.
3. Divisional (M-Form) Structure: By products, services, or regions. Pros: Responsiveness, focus, accountability. Cons: Functional duplication, inefficiencies.
4. Matrix Structure: Combines functional and divisional. Pros: Resource efficiency, collaboration. Cons: Dual reporting confusion, complex management.
THE NATURE OF LEADERSHIP LEADERSHIP: The ability to guide, influence, and inspire others toward achieving common goals.
Who Are Leaders?
Leaders:
Influence Behaviors: Shape others' actions and attitudes.
Non-Forceful Influence: Lead without coercion.
Accepted as Leaders: Recognized by others.
Leadership differs from management in several key aspects:
Focus: Leadership emphasizes vision, while management focuses on execution.
Approach: Leaders innovate; managers prioritize stability.
Orientation: Leaders prioritize people; managers focus on tasks.
Power Source: Leadership draws from personal influence, whereas management relies on formal authority.
Outcome: Leadership aims for long-term goals, while management focuses on short-term objectives.
POWER and LEADERSHIP
POWER The ability to affect the behavior of others.
Types of Power:
Legitimate: Authority from position.
Reward: Ability to provide incentives.
Coercive: Ability to enforce compliance.
Referent: Influence from personal traits.
Expert: Influence from skills and knowledge.
THEORIES OF LEADERSHIP:
Universalist Theories:
Propose that certain traits or behaviors make a leader effective in all situations.
Include:
Great Man/Woman Theory: Leaders are born, not made.
Trait Theory: Identifies specific traits associated with effective leadership.
Behavioral Leadership Theories:
Focus on observable behaviors of leaders.
Include:
Ohio State Leadership Studies: Identifies two dimensions of leadership behavior (initiating structure and consideration).
University of Michigan Leadership Studies: Identifies two leadership styles (employee-oriented and production-oriented).
Contingency Theories of Leadership:
Assert that effective leadership depends on the situation.
Include:
Fiedler’s Contingency Model: Matches leadership style with the situation based on leader-member relations, task structure, and position power.
Path-Goal Theory: Focuses on how leaders can motivate followers by clarifying paths to goal achievement.
Decision-Making Model: Analyzes leaders' decision-making processes.
Leader-Member Exchange Model: Focuses on the quality of relationships between leaders and followers.
These theories offer different perspectives on what makes a leader effective and provide frameworks for understanding leadership behavior in various contexts.
Managerial Grid Styles:
1,1 (Impoverished Style): Low concern for both people and production, minimal effort to get work done. Leaders may delegate tasks and avoid making decisions.
9,1 (Task Management Style): High concern for production, low concern for people. Focus is on achieving results with little regard for team morale or relationships.
1,9 (Country Club Style): High concern for people, low concern for production. Leaders prioritize creating a friendly and comfortable work environment, often at the expense of goal achievement.
5,5 (Middle-of-the-Road Style): Balances concern for both people and production at moderate levels. A compromise approach where leaders seek to maintain satisfactory performance and relationships.
9,9 (Team Style): High concern for both people and production. Leaders strive for high performance while also fostering a supportive and collaborative work environment.
The Managerial Grid helps leaders understand their own leadership style and its impact on team dynamics and performance. It encourages them to find a balance between task accomplishment and maintaining positive relationships with team members.
TYPES OF LEADERSHIP STYLES:
Authoritarian Leadership (Autocratic):
Description: Leaders make decisions independently with little or no input from others. Example: Military commanders giving direct orders during combat.
Participative Leadership (Democratic):
Description: Leaders involve team members in decision-making processes, seeking their input and feedback. Example: Team leaders conducting brainstorming sessions to gather ideas from team members before making a decision.
Delegative Leadership (Laissez-Faire):
Description: Leaders delegate decision-making authority to team members, providing minimal guidance or supervision. Example: Project managers assigning tasks and allowing team members to determine how to accomplish them.
Transformational Leadership:
Description: Leaders inspire and motivate their teams by creating a compelling vision and fostering a culture of innovation and change. Example: Steve Jobs at Apple, known for his vision and ability to inspire teams to create groundbreaking products.
Transactional Leadership:
Description: Leaders focus on exchange and transactions with their team, rewarding good performance and correcting poor performance. Example: Sales managers offering bonuses for meeting sales targets and providing feedback on performance.
Paternalistic Leadership:
Description: Leaders act as a parental figure, making decisions for the well-being of their team while considering their best interests. Example: A CEO who consults with employees on major decisions but ultimately makes the final call based on what they believe is best for the organization.
Servant Leadership:
Description: Leaders prioritize the needs of their team members, supporting their development and success. Example: Mahatma Gandhi, who led through humility and service to others, focusing on the well-being of the community.
Charismatic Leadership:
Description: Leaders use their charm and personality to inspire enthusiasm and devotion among their followers. Example: Martin Luther King Jr., whose charisma and passion mobilized people during the Civil Rights Movement in the United States.
Political Behavior in Organizations
Activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes.
Impression Management:
Description: Employees and leaders actively manage how others perceive them in the workplace to influence opinions or outcomes. Example: A manager carefully presenting their accomplishments during a performance review to enhance their image and secure a promotion. Understanding these leadership styles and political behaviors helps leaders navigate different organizational contexts and effectively manage teams to achieve desired outcomes
Control (Function of Management)
How does control help the manager?
Control helps managers monitor performance, identify deviations from goals, and take corrective actions to ensure objectives are achieved efficiently.
What Is the Purpose of Control?
The purpose of control is to ensure that organizational goals are met effectively and efficiently by monitoring performance, comparing it with goals, and taking corrective action when necessary.
Who Is Responsible for Control?
Managers at various levels are responsible for control within their areas of responsibility, ensuring that operations align with organizational objectives.
Steps in the Control Process:
Establishing Standards: Setting performance standards and benchmarks.
Measuring Performance: Monitoring and measuring actual performance.
Comparing Performance Against Standards: Evaluating deviations and variances.
Taking Corrective Action: Addressing any deviations to ensure goals are achieved.
Levels of Control:
Operational Control: Focuses on processes and operations.
Financial Control: Manages financial resources.
Structural Control: Ensures organizational structure supports goals.
Strategic Control: Evaluates effectiveness of strategies in achieving goals.
Operational Control
Forms of Operational Control:
Preliminary Control: Monitoring before activities are completed.
Screening Control: Assessing ongoing processes.
Postaction Control: Reviewing after activities are finished.
What Does Preliminary Control Monitor?
Preliminary control monitors activities before they occur to ensure they align with plans and standards. It helps prevent potential issues and deviations from occurring.
Purpose of Screening Controls:
Screening controls focus on ongoing processes to detect any deviations from standards or expected outcomes early, allowing for timely adjustments and corrective actions.
Focus of Postaction Controls:
Postaction controls concentrate on reviewing completed activities to evaluate their outcomes against set standards. They aim to learn from past actions and improve future performance.
Control is essential in management to maintain efficiency, effectiveness, and alignment with organizational goals across various levels and functions.
Financial Controls
Reasons for Financial Controls:
Ensure financial resources are used efficiently.
Monitor and manage financial performance.
Prevent fraud and ensure compliance with financial regulations.
Facilitate decision-making based on financial data.
What Is a Budget?
A budget is a financial plan that outlines expected income and expenditures over a specific period, typically one fiscal year.
Types of Budget:
Financial Budget: Focuses on cash flows, capital expenditures, and financing activities.
Operating Budget: Covers day-to-day expenses and revenues.
Non-monetary Budget: Includes non-financial resources like manpower and time.
Developing Budgets:
Involves forecasting income and expenses, allocating resources, and ensuring alignment with organizational goals.
Developing Budgets in Organizations:
Involves collaboration among departments, setting realistic goals, and monitoring variances to adjust plans as needed.
Other Tools for Financial Control:
Include financial statements, cost accounting systems, variance analysis, and financial audits.
Bureaucratic Control
Bureaucratic Control:
Relies on formal rules, procedures, and hierarchical authority to guide and regulate behavior within an organization.
Decentralized Control
Decentralized Control:
Involves delegating decision-making authority to lower levels of the organization to respond quickly to local conditions and improve responsiveness.
Strategic Control
Strategic Control: Monitors how well an organization's strategies are aligned with its goals and adjusts strategic initiatives as needed.
Characteristics of Effective Control
Integration with Planning: Control should be aligned with organizational goals and plans.
Flexibility: Allows for adjustments in response to changes in the environment.
Accuracy: Provides reliable and timely information for decision-making.
Timeliness: Ensures information is available when needed.
Objectivity: Based on unbiased and factual data.
Influences on Resistance to Control
Over-control: Excessive monitoring and restrictions can demotivate employees.
Inappropriate Focus: Control measures that emphasize the wrong priorities.
Rewards for Inefficiency: When control systems inadvertently reward inefficient behaviors.
Too Much Accountability: Excessive accountability can create resistance and reduce initiative.
Overcoming Resistance to Control
Communication: Clearly communicate the purpose and benefits of control measures.
Involvement: Involve employees in the development of control systems to increase buy-in.
Training: Provide training to ensure employees understand how controls benefit them and the organization.
Rewards: Link rewards to performance that aligns with organizational goals.
Adaptability: Ensure control measures are flexible and can adapt to changing circumstances.
Managing Strategy and Strategic Planning
The Nature of Strategic Management
Strategic Management: The process of formulating, implementing, and evaluating decisions that enable an organization to achieve its long-term objectives.
The Components of Strategy
Distinctive Competence: Unique capabilities or strengths that differentiate an organization from its competitors.
Scope: The range of markets, industries, or businesses in which the organization competes.
Resource Deployment: Allocating resources effectively to achieve strategic goals.
Types of Strategic Alternatives
Business-Level Strategy: Focuses on how a business unit competes within a specific industry or market segment.
Corporate-Level Strategy: Concerns the overall scope of the organization and how it manages its portfolio of businesses.
Formulation and Implementation
Deliberate (Purposeful) Strategy: Planned actions intended to achieve specific goals.
Emergent (Growing) Strategy: Unplanned actions that emerge from day-to-day operations and adapt to changing circumstances.
The Strategic Management Process
Review Vision/Goals: Define the organization's mission, vision, and long-term objectives.
Assess Environment (Threats and Opportunities): Analyze external factors such as market trends, competition, and regulatory changes.
Assess Resources (Strengths and Weaknesses): Evaluate internal capabilities, resources, and core competencies.
Review Mission, Vision, and Strategy (M+V+S): Align current strategies with the organization's mission and vision.
Result: Develop strategic initiatives and action plans to achieve objectives.
Strategic management involves continuous assessment, adaptation, and alignment of organizational strategies with internal and external environments to sustain competitive advantage and achieve long-term success.