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Advantages of Strategic Management

Advantages of Strategic Management
Advantages of Strategic Management A couple of definitions on STRATEGIC MANAGEMENT Strategic management involves formulation and implementation of the major goals and plans taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. The methodical analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices is another well known definition.  The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities. Advantages: 1. Discharges Responsibility The process of strategy formulation satisfies the expectation from shareholders, stakeholders and the general public at large, that a strategically managed organization will discharge its duties successfully. 2. Allows an Objective Assessment Strategic management provides a CONTROL that allows the senior management team to take a step back from the day-to-day business and CONTEMPLATE  about the future of the organization. 3. Faciliatates to Make Wise Business Decisions Strategy provides the framework within which EXECUTIVES at lower and middle levels can make day-to-day operational decisions that are aligned with the accomplishment of the organization’s goals. 4. Enables Understanding and Improves co-ordination between different departments Allowing participation in the strategic management process enables better understanding of the direction, why that direction was chosen, and the associated benefits. Good strategy formulation and communication process are vital steps in enabling effective and efficient strategy deployment. 5. Simplifies Measurement of Progress Strategy sets the direction and empowers an organization to bring into line its objectives and performance measures. These objectives and performance measures allow meaningful information to be provided to decision-makers regarding the organization’s progress through such tools as scorecards and dashboards. 6. Enhances Strategic Agility (Innovation) When a firm can successfully capitalize upon opportunities resulting from unanticipated and significant change, it is said to be innovative as it has a competitive edge over other firms. 7. Ensures Allocation of Resources: The limited resource is properly allocated to different functional levels so as to create value for all stakeholders. A targeted approach to markets and opportunities obviously strengthens your bottom line. A simple representation will make your understanding better: Enhanced Communication DIALOGUE PARTICIPATION | | Deeper/Improved Understanding OF OTHER’S VIEW OF WHAT THE FIRM IS DOING  | | Greater Commitment TO ACHIEVE OBJECTIVES TO IMPLEMENT STRATEGIES TO WORK HARD | | The Result ALL MANAGERS AND EMPLOYEES ON A SINGLE MISSION TO HELP FIRM SUCCEED...
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Redesigning Your Workplace

Redesigning Your Workplace
REDESIGNING YOUR WORKPLACE IN RESPONSE TO EXOGENOUS FACTORS Big corporate firms generally face #challenges in the form of Lack of co-operation between subunits Increasing complaints from the customers Rising #Operating costs Dip in the morale Major changes in #technology All these signs are indications of a not so enterprising #organizational climate and it calls for quick #decision making regarding introducing some changes that bring some positive development in terms of improved #efficiency and increase in #productivity. Effective people are preferred to rather than efficient people as the former does the right thing and the latter does things right. Growth of  Organizations: The challenges mentioned above may make an organization’s existing #structure, #management practice or its culture obsolete for the new situation. Growth of an organization should be a result of collaborative effort of all the units of an organization and it is objective and not subjective. An organization is comprised of different elements which interact in deciding the organizational effectiveness. The #task or goal, technology, structure, people and the internal and #external environment of the firm; all these coexist and hold the firm together. Be it a school, a hospital, a union, a club or a #business enterprise the interactive nature of these elements make the process of managing very difficult. Medical tourism and business travel are becoming more popular in Asian countries as it increases the scope of collaboration of industries that can coexist to enjoy a win-win situation. Who is an #Effective Manager? An effective manager anticipates these challenges and proactively initializes a planned change. He strategically prepares the organization to be subject to planned change by manipulating the structure, technology and #behavior. Understanding the dimensions of change helps him to manage change better as people are always resistant to change. Modern enterprises right from the start have to install and implement “systems” that are technologically most modern and hire suitable people who are techno-savvy; because technology rules the world and the development of new software programmes and hardware components feed on themselves every day. Developing an Organization as a Whole: Behavior of people is unpredictable but controllable. Individually oriented #training and development programmes does not prove much to the benefit of the organization as it creates apprehensions in the minds of the individual that are related to the culture and #attitude of his superior and subordinates. The idea of developing the organization as a whole through team building is a better perspective as it renews the enthusiasm of people working for you and as a team they feel more cohesive and adhered. Synergy plays its role in improving the interpersonal relationship amongst the team members. Firms are becoming more modern in their outlook. For instance, a showroom whose purpose is to showcase your products also provides entertainment by its aesthetic value. Only if the customer is impressed by the artistic way of your exhibit, will he enter your showroom. Change is inevitable and it improves the health of an organization. The focus should be on “total system change” and the orientation is towards achieving desired results as a consequence of planned activities. Flat Organizational Structure: You would have come across the latest buzz word “flat organizational structure”. This is designed in order to bridge the gap between front line #employees and the executive level. If there is only few levels of management, the process of #communication is more effective, the art of delegation becomes mandatory and need for participation in the decision making process involves all the employees which in turn reduces bureaucracy. There is no set pattern or set of techniques that suits all the organizations when they go for a change. But the #change...
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What is Strategic Planning

What is Strategic Planning
STRATEGIC PLANNING Strategic planning is the primary step in the process of strategic management [Strategic management is a comprehensive topic that covers almost all the functional aspects of the organization] which can be outlined from at least two perspectives: First, strategy is the “broad programme for defining and achieving the objectives of an organization and implementing its mission”. Secondly, “It is the pattern of the organization’s response to the external environment over a period of time”. A strategy that takes a broad and typically long range focus is called strategic planning. MBA Application Strategies for Top Business Schools Strategic planning is the process that classifies the long range goals of the organization and opts for the precise means (strategies and polices) for achieving these goals, allocates resources, and develops long range plans to reach the destination.  Watch this Video to Understand the Overview of Strategic Planning Process Time-Horizon: Strategic planning takes into account the extended time horizon. There may not be any immediate impact out of strategic planning, but the consequences in the long-run prove to be gradual and significant as well. It provides with the necessary action plans to make a difference in vital areas concerning development. You can always associate innovativeness with strategy since it explores new paradigms and tries to enhance the impact. When the size of organizations expands, they are broken down into strategic business units (SBU’S) for the purpose of functional excellence. These units are expected to operate as if they were relatively independent businesses. WHY STRATEGIC LEADERSHIP IS IMPORTANT A Tailor Made Approach:  A tailor made approach is essential when it comes to strategy development the systematic analysis of the factors associated with customers and competitors (the external environment) helps the organization to meet the challenges of modern society. More and more organizations are focusing on formal approaches and concepts for planning their long range process. Specifically these challenges are a result of increasing rate of change, the complexity of manager’s jobs, the increasing importance of fitting the organization into external environment, and the increasing lag between the preparation of plans and their implementation in future. Resource Allocation: Strategic planning is an organization’s process of defining its strategy or course, and making decisions on resource allocations to pursue this strategy. Managers must be adequately geared up for strategic planning. The goals of the organization must be made plain and not unclear. Each business unit should be categorized based on its performance level to decide on the resource share to be allocated. You need to infuse cash flow into ineffectual units and divest funds from dying units into other profitable ones. The ultimate aim is to build up star performers that will be the perennial source of income or revenue generation. There should be a strong linkage between planning and control. The assessment of strategic plans of the business units must be made periodically and effectively. TOP FIVE REASONS WHY STRATEGIC PLANS FAIL SWOT Analysis: SWOT analysis is a strategic planning technique used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats. Planning is the primary step for control as it provides several standards and benchmarks of control. Planning extracts commitment. Some times planning highlights the objectives only and the planning premises may not be fully reliable. Threats are to be considered as challenges and must be converted into opportunities. Two heads are better than one is the philosophy of brain storming where a group of people with knowledge and expertise assemble to lay out clear plans that will steer the organization smoothly even in times of rough...
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Sustainable Model for Training and Development

Sustainable Model for Training and Development
How to create an effective and Sustainable Model for Training and Development? The term “change” is synonymous with competitiveness in modern world and thus corporate firms are in a position to evolve unique, sustainable and strategic training model for employees that will facilitate the following: On one hand the training process motivates the suitable employees to perform well and makes them perceive their role properly in order to accomplish the enterprise objectives. On the other hand the organisation keeps itself abreast by constantly updating and understanding the training needs through Assessment of the external environment and Expectations of the employees in terms of rewards whether intrinsic or extrinsic. Porter and Lawler Model: The Expectancy Motivation Model of Porter and Lawler serves as an inspiration for effective training. The stress is on The value placed on performance outcome by the individual. The degree to which the individual believes that his efforts will lead to attainment of these rewards. Psychological aspect of this model: Almost all individuals are motivated by money ( by the way, Who doesn’t want money!). But money alone does not serve the purpose of motivation. Job satisfaction is a relative term in that different people find different things or elements motivating them in their work environment leading to job satisfaction. It might be Challenge Good inter personal relationship Pay Perks Culture Excellent leader Pressure Stress and the like… Assessment of training need: The training needs must be assessed by the respective organisations considering the following aspects: To transform the individual from the capacity of learner to executor Instil in him confidence to do the job well Relate his job to rewards so that he will try to excel Give your employees scope for career advancement Incorporate technical and technological innovations as part of your training process Physical, emotional and social elements in the internal as well as the external environment must be taken into consideration while training the workforce. Physical– relates to the physical fitness needed to perform the technical skills Psychological– relates to keeping the morale of the employees high at all points and maintaining an amiable work atmosphere Social– relates to the friendly relationship that should exist between the trainer and the trainees and among the trainees. Usefulness of the model: This model lends its support to the training and development process through three steps or stages. Diagnosis stage- Need analysis Formulation stage- Programme planning Evaluation Diagnosis stage: The interplay of ability and role perception Training brings out EFFICIENT as well as DEFICIENT performers. That is one good thing and also making the employee understand the role he is about to play as part of the organisation. Training through learning is one aspect which imparts knowledge and training is considered to be effective if one’s behaviour is modified as per the expectations and demands of the job. Role perception can be misunderstood by some individuals when they might try to exercise undue authority or overlook their duties and responsibilities. Confinement of authority Superior-Subordinate appraisal procedures Clear HR policy formulations are needed to avoid confusion and chaos in role playing. Formulation stage: The effected change through learning is expected to be retained by the employees throughout the career span in the organisation followed by constant grooming. The stress is on the value of the activity to be learnt Giving feedback  on the progress of employees towards final training objectives Relate the learning activity to increasing, meaningful materials already studied outside the training programme. Evaluation stage: Training evaluation is particularly necessary when the organisation wants to encourage the competitive spirit amongst the trainers and evaluation is considered as a challenge by itself. If the training provided eliminates obstacles...
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