May 01, · Participative Theory Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. Participative leaders encourage participation and contributions from group members and help group members to feel relevant and committed to the decision-making process His paper (with Gary Pisano and Amy Shuen) "Dynamic Capabilities and Strategic Management" was the most cited paper in economics and business for the period from to [89] In , Gary Hamel discussed strategic decay, the notion that the value of every strategy, no matter how brilliant, decays over time Oct 26, · "Management is the organizational process that includes strategic planning, setting objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results. Management also includes recording and storing facts and information for later use or for others within the organization
In the field of managementstrategic management involves the formulation and implementation of the major goals and initiatives taken by an organization 's managers on behalf of stakeholders, based on consideration of resources and an assessment of the internal and external environments in which the organization operates.
Michael Porter identifies three principles underlying strategy: [10]. Corporate strategy involves answering a key question from a portfolio perspective: "What business should we be in?
Management theory and practice often make a distinction between strategic management and operational managementwith operational management concerned primarily with improving efficiency and controlling costs within the boundaries set by the organization's strategy.
Strategy is defined as "the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. Strategic management involves the related concepts of strategic planning and strategic thinking.
Strategic planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy. Strategic planning may also refer to control mechanisms used to implement the strategy once it is determined. In other words, strategic planning happens around the strategic thinking or strategy making activity.
Strategic management is often described as involving two major processes: formulation and implementation of strategy. While described sequentially below, in practice the two processes are iterative and each provides input for the other. Formulation of strategy involves analyzing the environment in which the organization operates, then making a series of strategic decisions about how the organization will compete. Formulation ends with a series of goals or objectives and measures for the organization to pursue.
Environmental analysis includes the:. Strategic decisions are based on insight from the environmental assessment and are responses to strategic questions about how the organization will compete, such as:. The answers to these and many other strategic questions result in the organization's strategy and a series of specific short-term and long-term goals or objectives and related measures.
The second major process of strategic management is implementationwhich involves decisions regarding how the organization's resources i. Implementation results in how the organization's resources are structured such as by product or service or geographyleadership arrangements, communication, incentives, and monitoring mechanisms to track progress towards objectives, among others.
Running the day-to-day operations of the business is often referred to as "operations term paper on participative management or specific terms for key departments or functions, such as "logistics management" or "marketing management," which take over once strategic management decisions are implemented.
Bruce Henderson [17]. InHenry Mintzberg described the many different definitions and perspectives on strategy reflected in both academic research and in practice. Because of this, he could not point to one process that could be called strategic planning. Instead Mintzberg concludes that there are five types of term paper on participative management. The first group is normative.
It consists of the schools of informal design and conception, term paper on participative management, the formal planning, and analytical positioning. The second group, consisting of six schools, is more concerned with how strategic management is actually done, rather than prescribing optimal plans or positions.
Michael Porter defined strategy in as the " broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals" and the " combination of the ends goals for which the firm is striving and the means policies by which it is seeking to get there. Some complexity theorists define strategy as the unfolding of the internal and external aspects of the organization that results in actions in a socio-economic context.
The strategic management discipline originated in the s and s. Among the numerous early contributors, the most influential were Peter DruckerPhilip SelznickAlfred Chandler, Igor Ansoff[25] and Bruce Henderson. Prior tothe term "strategy" was primarily used regarding war and politics, not business.
Peter Drucker was a prolific management theorist and author of dozens of management books, with a career spanning five decades. He addressed fundamental strategic questions in a book The Practice of Management writing: " the first responsibility of top management is to ask the question 'what is our business?
He recommended eight areas where objectives should be set, such as market standing, innovation, productivity, physical and financial resources, worker performance and attitude, profitability, manager performance and development, and public responsibility. InPhilip Selznick initially used the term "distinctive competence" in referring to how the Navy was attempting to differentiate itself from the other services.
Andrews in into what we now call SWOT analysisin which the strengths and weaknesses of the firm are assessed in light of the opportunities and threats in the business environment. Alfred Chandler recognized the importance of coordinating management activity under an all-encompassing strategy.
Interactions between functions were typically handled by managers who relayed information back and forth between departments. Chandler stressed the importance of taking a long-term perspective when looking to the future. In his ground breaking work Strategy and Structure term paper on participative management, Chandler showed that a long-term coordinated strategy was necessary to give a company structure, direction and focus.
He says it concisely, " structure follows strategy. Igor Ansoff built on Chandler's work by adding concepts and inventing a vocabulary. He developed a grid that compared strategies for market penetration, product development, market development and horizontal and vertical integration and diversification.
He felt term paper on participative management management could use the grid to systematically prepare for the future, term paper on participative management.
In his classic Corporate Strategyhe developed gap analysis to clarify the gap between the current reality and the goals and to develop what he called "gap reducing actions". Bruce Hendersonfounder of the Boston Consulting Groupwrote about the concept of the experience curve infollowing initial work begun in This supported the argument for achieving higher market share and economies of scale.
Porter wrote in that companies have to make choices about their scope and the type of competitive advantage they seek to achieve, whether lower cost term paper on participative management differentiation, term paper on participative management. The idea of strategy targeting particular industries and customers i. The direction of strategic research also paralleled a major paradigm shift in how companies competed, specifically a shift from the production focus to market focus.
The prevailing concept in strategy up to term paper on participative management s was to create a product of high technical quality, term paper on participative management. If you created a product that worked well and was durable, it was assumed you would have no difficulty profiting.
This was called the production orientation. Henry Ford famously said of the Model T car: "Any customer can have a car painted any color that he wants, so long as it is black. Management theorist Peter F Drucker wrote in that it was the customer who defined what business the organization was in. The fallacy of the production orientation was also referred to as marketing myopia in an article of the same name by Levitt. Over time, the customer became the driving force behind all strategic business decisions.
This marketing concept, in the decades since its introduction, has been reformulated and repackaged under names including market orientation, customer orientation, customer intimacy, customer focus, customer-driven and market focus. InProfessor Ellen Earle-Chaffee summarized what she thought were the main elements of strategic management theory where consensus generally existed as of the s, writing that strategic management: [11].
Chaffee further wrote that research up to that point covered three models of strategy, which were not mutually exclusive:. The progress of strategy since can be charted by a variety of frameworks and concepts introduced by management consultants and academics.
These reflect an increased focus on cost, competition and customers. These "3 Cs" were illuminated by much more robust empirical analysis at ever-more granular levels of detail, as industries and organizations were disaggregated into business units, activities, processes, and individuals in a search for sources of competitive advantage. By the s, the capstone business policy course at the Harvard Business School included the concept of matching the distinctive competence of a company its internal strengths and weaknesses with its environment external opportunities and threats in the context of its objectives.
This framework came to be known by the acronym SWOT and was "a major step forward in bringing explicitly competitive thinking to bear on questions of strategy", term paper on participative management.
Kenneth R. Andrews helped popularize the framework via a conference and it remains commonly used in practice. The experience curve was developed by the Boston Consulting Group in It has been empirically confirmed by some term paper on participative management at various points in their history.
Author Walter Kiechel wrote that it reflected several insights, including:. Kiechel wrote in "The experience curve term paper on participative management, simply, the most important concept in launching the strategy revolution with the experience curve, the strategy revolution began to insinuate an acute awareness of competition into the corporate consciousness.
companies then faced considerably less competition and did not focus on performance relative to peers. Further, the experience curve provided a basis for the retail sale of business ideas, helping drive the management consulting industry.
The concept of the corporation as a portfolio of business units, with each plotted graphically based on its market share a measure of its competitive position relative to term paper on participative management peers and industry growth rate a measure of industry attractivenesswas summarized in the growth—share matrix developed by the Boston Consulting Group around This framework helped companies decide where to invest their resources i.
multi factoral modeldeveloped by General Electric. Companies continued to diversify as conglomerates until the s, when deregulation and a less restrictive antitrust environment led to the view that a portfolio of operating divisions in different industries was worth more as many independent companies, leading to the breakup of many conglomerates.
In response to the evident problems of "over diversification", C, term paper on participative management. Prahalad and Gary Hamel suggested that companies should build portfolios of businesses around shared technical or operating competencies, and should develop structures and processes to enhance their core competencies. Michael Porter also addressed the issue of the appropriate level of diversification.
Inhe argued that corporate strategy involves two questions: 1 What business should the corporation be in? and 2 How should the corporate office manage its business units? He mentioned four concepts term paper on participative management corporate strategy each of which suggest a certain type of portfolio and a certain role for the corporate office; the latter three can be used together: [38].
Building on Porter's ideas, Michael Goold, Andrew Campbell and Marcus Alexander developed the concept of "parenting advantage" to be applied at the corporate level, as a parallel to the concept of "competitive advantage" applied at the business level. Parent companies, they argued, should aim to "add more value" to their portfolio of businesses than rivals. If they succeed, they have a parenting advantage, term paper on participative management.
The right level of diversification depends, therefore, on the ability of the parent company to add value in comparison to others, term paper on participative management. Different parent companies with different skills should expect to have different portfolios. See Corporate Level Strategy and Strategy for the Corporate Level InPorter defined the two types of competitive advantage an organization can achieve relative to its rivals: lower cost or differentiation. This advantage derives from attribute s that allow an organization to outperform its competition, such as superior market position, skills, or resources.
In Porter's view, strategic management should be concerned with building and sustaining competitive advantage. Porter developed a framework for analyzing the profitability of industries and how those profits are divided among the participants in In five forces analysis he identified the forces that shape the industry structure or environment.
The framework involves the bargaining power of buyers and suppliers, the threat of new entrants, the availability of substitute products, and the competitive rivalry of firms in the industry, term paper on participative management.
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His paper (with Gary Pisano and Amy Shuen) "Dynamic Capabilities and Strategic Management" was the most cited paper in economics and business for the period from to [89] In , Gary Hamel discussed strategic decay, the notion that the value of every strategy, no matter how brilliant, decays over time May 01, · Participative Theory Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. Participative leaders encourage participation and contributions from group members and help group members to feel relevant and committed to the decision-making process purpose of this paper is to critically evaluate and compare these three schools of management Steve Jobs was more participative comparatively In an order to understand the term
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