Meaning of Strategy and Strategic Management
The word strategy derives from military administration. The term strategy refers to the tactics and tactics adopted during the war to mobilize the army. Whether they are soldiers or administrators or businessmen, the purpose of all these is to achieve the objectives of the organization. Strategy is the crucial method to prepare the organization to face the growing uncertain future. Strategy is a perfect way to achieve the goals and objectives of the organization. When the New Public Management (NPM) is introduced in the administration, strategy became associated with long-term. The main objective of New Public Management (NPM) is to achieve result. So, if there is no strategy, the organization is without direction. According to Nutt and Back Off, the strategy focuses on where the emphasis should be given. Similarly, strategic activities also focuses on the objectives by formulating plan, structure, situations, movement and the perspectives.
Initially, it was developed as strategic planning and later on strategic planning was replaced by strategic management in the 1980s.
Strategic Management refers to managing strategically. That is, the act of strategically identifying a situation and using knowledge strategically is called strategic management. Due to globalization and economic liberalization and open market environment, the use of strategic management has become more widespread to meet the challenges faced by the management of any sector.
Strategic thinking is assimilated in the method adopted for the effective management of any organization. The tactical approach adopted as a tactic to mobilize the army during the war is widely used in modern times in the management of the private and public sectors.
According to Michael Armstrong, “Strategic management is the visionary management that is concerned with creating ideas and maintaining concepts about where the organization should go. But it is also an experience-based management that will decide how to get the organization to that point in practice. ”
Similarly, in the words of V. P. Michael, "Strategic management is the systematic and justified management process that is adopted to achieve certain long-term objectives in a way that suits the existing and expected forces and elements."
In strategic management, there is a plan but even if there is a plan, attention should be paid to the implementation because there is a human factor. Human is a factor that influences the culture and management of an organization.
Strategic Management deals with the following topics like bringing results, new marketing, new products, new technology, etc. In this sense, strategic management is very broad. It integrates the plan with every component of the organization. It expands the future strategic format through each unit of the organization. It is not mechanical, it recognizes the central role of the individuals and groups present in the organization, it influences the culture of the organization.
Features of Strategic Management
- Dealing with basic queries related to the organization
- Situation based
- To root out the main problem
- Predicting the impact
- Utilization of different opportunities
- Determining priorities
- Realistic plans
- Us of the best experience
- Ensuring the availability of resources
- Arrangement of practical management structure
- Flexibility
- Top management activeness
- Collective guidance, etc.
Significance of Strategic Management
- Long-term vision
- Oriented towards strategic success
- Motivated managers and employees
- Assist towards environmental needs
- Assist in the formulation of objective plan and its implementation
- More effective decision making process
- Arrangements for procedural monitoring and adjustment
- Strategy in Public Sector
This trend is started in the early 1980s in the public sector. It was introduced in later period in the private sector. The public sector should have the following:
- There should be a statement of overall mission and objectives.
- There should be environmental analysis or scanning.
- There should be an audit of the internal profile and resources of the organization.
- Strategies should be formulated, evaluated and selected.
- Strategic plan should be implemented and controlled.
According to the scholars Osborne and Gaebler, strategic planning is the current and future projection of an organization or community, setting and measuring goals. It should include the following:
- Analysis of external and internal situation
- Identification of important issues faced by the organization
- Basic mission of the organization
- Presentation and adjustment of basic goals of the organization
- Creation of the future form of the organization
- Imagine the success of the organization
- Development of strategies for realizing vision, mission and goals
- Development of time table for measuring strategy and evaluating results
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