The Impact of Strategic Management on Organisational Performance
Abstract of The Impact of Strategic Management on Organisational Performance
The strategic management function is perhaps the most fundamental and most important aspect of management and managing. It takes superior entrepreneurship and competent strategic implementation and execution to produce superior organizational performance over the long-run. A great strategic plan that is flawlessly executed seldom produces gold star results either.
In the light of the above, this chapter is to carry out a literature review on strategic management and its impact on organizational effectiveness and performance. It attempts to consider the nature and concept of strategic management strategies used by organizations, the primary determinants of strategy and the components of strategic management among others.
Chapter One of The Impact of Strategic Management on Organisational Performance
INTRODUCTION
BACKGROUND OF THE STUDY
The performance of organization is the focus of intensive research efforts; how well an organization performs its mission and accomplishes is its goals of programs delivery is to paramount concern.
The success of failure of a strategy is significantly determined by the quality of leadership displayed by the strategy leader normally the CEO, during the strategy implementation process.
In today’s increasingly chaotic world and an ever changing environment, it is not enough to just keep the organization afloat it is far more essential to make steady progress toward some well- defined objectives.
Modem knowledge based organization are ideal setting for the application of strategic management practices strategy, in effect it’s management’s game plans for strengthening the organization’s position, pleasing customers and achieving performance targets. Managers devise strategies to guide how the organizations business win be conducted and to help the make reasoned and make cohesive choices among alternative causes of action. The strategic managers decides and indicates e path and action the y could choose, they decide to tallow particular rate d conduct their business in that particular manner without a strategy, a manage has no roadmap to follow, to manage and no unified action programme to produce the intended results.
Strategic management is defined by thompson and Strickland (2001) as “the process whereby managers establish an organization’s ng-term direction, set specific performance objectives, develop strategies to achieve these objectives in the light of all the relevant internal and external circumstances and undertake to execute the choose action plan”.
Strategic management has five critical and interrelated managerial tasks explained thus.
· Deciding (what business organization will engage in) and forming a strategic vision of an organization wants to go) and human resources development of those who are to get it there). It in effect enhances productivity, providing long-term direction and establishing a clear mission to be accomplished.
· Crafting a strategy to achieve e desired results.
· Implementing and executing the chosen strategy efficiently and effectively.
· Evaluating performance, reviewing developments and initiating corrective adjustments in10 g-term directions, objectives, strategy or implementation in light of actual experience, changing condition new ideas and opportunities.
· It involves a rational analysis and planning which provides the “road map” for fulfilling that future.
Furthermore, the task of evaluation organization performance would entails a greater degree use of strategic management practice and to initiate any corrective adjustment lies both the end and the beginning of strategy management cycle.
In addition, strategic management practices are hypothesized, and have an impact in the organizational process and enhances coordination of work for a well-designed productivity, therefore strategy managers must stay close enough to the situation to detect when changing conditions requires a strategic response and when they don’t. It is their job to sense the winds of change, recognize significant changes and initiate adjustments.