• Home
• Module overview
• 1. The challenge of management
  • Introduction
  • 1.1 Defining management
    • 1.1.1 The art of getting things done through people
    • 1.1.2 Defining management by its functions
    • 1.1.3 Is management a profession?
  • 1.2 Management knowledge , skills and performance
    • 1.2.1 Types of managers
    • 1.2.2 Effectiveness and efficiency
    • 1.2.3 Managing the customer within
  • 1.3 The evolution of management thought
  • Conclusion

• 2. Understanding external environments

  • Introduction
  • 2.1 Putting the e xternal environment into focus
    • 2.1.1 Classifying external elements
    • 2.1.2 The changing environment
    • 2.1.3 The international dimension
  • 2.2 Relating the o rganisation to its environment
    • 2.2.1 So many issues: Which should you focus on?
    • 2.2.2 How do you acquire the relevant information?
    • 2.2.3 Clarifying the relationship between the internal and external environments
  • Conclusion

• 3. Social responsibility and ethics in management

  • Introduction
  • 3.1 Business is not value neutral: Social responsibility, obligation and responsiveness
  • 3.2 Focussing on ethics
    • 3.2.1 Why business ethics now?
    • 3.2.2 Ethical quandaries
    • 3.2.3 Approaches to ethical dilemmas
    • 3.2.4 Defining your ethics
  • Conclusion

• 4. Managerial decision making

  • Introduction
  • 4.1 Decision making and problem solving
  • 4.2 The nature of decision making as part of management
    • 4.2.1 Programmed and non-programmed decisions
    • 4.2.2 Certainty, risk and uncertainty
    • 4.2.3 Urgent vs important decisions
  • 4.3 Problem solving: making the most of opportunities
    • 4.3.1 Looking further at problem solving
    • 4.3.2 The effective decision making process
    • 4.3.3 Improving managerial problem solving: overcoming barriers
    • 4.3.4 Thinking 'outside the box' and creativity
  • 4.4 Interrelated problems
  • Conclusion

• 5. Managing strategically

  • Introduction
  • 5.1 Planning ahead
  • 5.2 Strategic management
    • 5.2.1 Some definitions
    • 5.2.2 The process of strategic management
  • Conclusion

• 6. Organisational design and structure

  • Introduction
  • 6.1 The terminology of organisational design
  • 6.2 Strategic organisational design and structure
    • 6.2.1 Types of organisational structure
    • 6.2.2 Strategic organisational design
  • 6.3 Teamwork
    • 6.3.1 The success of teamwork
  • Conclusion

• 7. Organisational culture and workforce diversity

  • Introduction
  • 7.1 Defining organisational or corporate culture
    • 7.1.1 Culture defined through its response to change
    • 7.1.2 Culture defined through the influence of the external environment
  • 7.2 Strong and weak cultures
  • 7.3 The functions of culture
  • 7.4 Creating and sustaining culture
  • 7.5 Types of culture
    • 7.5.1 Dominant culture
    • 7.5.2 Subculture
    • 7.5.3 Core values
  • 7.6 Changing culture
  • 7.7 Cultural diversity in the maritime industry
  • Conclusion

• 8. Change management

  • Introduction
  • 8.1 Dealing with change and the changing nature of change
    • 8.1.1 In what areas of the organisation can managers expect change?
    • 8.1.2 Reacting to change
  • 8.2 Key issues accelerating change
    • 8.2.1 External forces
    • 8.2.2 Internal forces
  • 8.3 Managing change
    • 8.3.1 Reactions to change
    • 8.3.2 Why employees resist change
    • 8.3.3 Emotions accompanying change
    • 8.3.4 Overcoming resistance
    • 8.3.5 Leadership and successful change
  • Conclusion

• 9. Motivating for performance

  • Introduction
  • 9.1 The nature of motivation
  • 9.2 Theories of motivation
    • 9.2.1 Do rewards really work? needs theories
    • 9.2.2 Are substantive rewards the only motivator? process theories
    • 9.2.3 Learning behaviour reinforcement theory
    • 9.2.4 Social learning theory
    • 9.2.5 Putting it all together systems theory
  • 9.3 The power of positive thinking
  • 9.4 Motivation: The implications for managers
  • Conclusion

• 10. Leadership

  • Introduction
  • 10.1 The nature of leadership
    • 10.1.1 Thinking about 'leaders' and 'leadership'
    • 10.1.2 Theories of leadership
    • 10.1.3 Refining our definition of leadership
  • 10.2 Perspectives on leadership
    • 10.2.1 Manager, leader, or both?
  • Conclusion

• 11. Teamwork

  • Introduction
  • 11.1 Work groups and group dynamics
    • 11.1.1 Work groups, work teams, taskforces, self-managing teams and team building
    • 11.1.2 High-performance teams
  • 11.2 Managing meetings and committees
  • 11.3 Group decision making
    • 11.3.1 Some advantages and disadvantages
    • 11.3.2 So, do groups make better decisions than individuals?
  • Conclusion

• 12. Managerial evaluation and control

  • Introduction
  • 12.1 Evaluation and control as a management process
    • 12.1.1 Why evaluate and control performance?
    • 12.1.2 Getting and using necessary information
  • 12.2 Levels of control
  • 12.3 Steps in the control process
  • 12.4 Assessing control systems
  • 12.5 Back to ethics
  • 12.6 Quality control systems
  • Conclusion

5.2.1 Some definitions

There are many definitions of strategic management and strategic planning . Many authors use these terms interchangeably. For our purposes we will not spend time debating the merits of different definitions. Do not be confused or frustrated by these definitions, as debate over minor details tends to be academic in nature.

You should attempt to glean from your reading the general concepts and ideas that are important for management and in your role as a manager and employee. The following are some general definitions that are suitable for our purposes.

Strategic planning is the analysis of environmental conditions and organisational capabilities, and the formulation of plans to match those capabilities.

This gives us some indication that it is necessary to match the organisation's capabilities (strengths and weaknesses) with the external environment (opportunities and threats) in order to develop a plan that ensures long-term survival. The following definition is more complete:

Strategic management is the choice of the analyses, plans, decisions and actions that determine the strategic direction of the organisation and lead to accomplishment of its strategic goals and objectives in a dynamic environment. Strategic management includes not only the elements of strategic planning, environmental analysis and strategy formulation but also strategy implementation and control. Strategic management is a process for managing organisations.

Montanari, J R; Morgan, C P and Bracker, J (1990). Page 4 'The choice perspective of strategic management'. In Strategic Management: A Choice Approach. Chicago : The Dryden Press.

This definition makes the important point that strategic management is a process and that it is necessary to control the process in order to determine if the organisation is on track.

Therefore strategic management is the process of formulating, and implementing the most effective and efficient means of ensuring the long-term survival and success of an organisation and of continuously evaluating its performance.

Top managers discuss strategic management in their firms

Columbia Gas System Service Corporation

Headquartered in Wilmington , Delaware , Columbia Gas System's Strategic Plan forms the basis of all other planning activities - marketing plans, capital programs, financial plans, and so forth. Strategic management goes far beyond operational planning that has been traditional throughout Columbia . We are not just looking at projections of how much gas we'll need and where it will come from. The first part of our Strategic Plan is the Mission Statement, which sets the direction for the company. All operating units have their own mission statements, defining their business and their corporate reason for existing.

Ogden Corporation

The best long-run results come from good strategic decisions, which ensure doing the right things (effectiveness), and the combination of design, technology, and automation, which ensure doing things right (efficiency). To predict.without the ability to adapt is simply to foresee one's own end! The strategic objectives Ogden has achieved have enabled the adaptation necessary to cope with the changing economic environment for the balance of this century. We are describing a classic example of evolution; in this case, corporate evolution. To survive, corporations must adapt to new circumstances.

Taken from David (1999). Chapter 1. In Strategic Management Concepts , USA .

Strategic management is ongoing and dynamic rather than static. By nature it is future orientated and requires the ability to make difficult decisions 'today'. Strategic thinkers are able to view the organisation and the environment in which it operates from a 'holistic' perspective, seeing the wider picture, having vision, being prepared to consider change and being able to see the situation as it might some day be.

Ideally, strategic management takes place in an organisation because it:

• Provides increased competition.
  A competitive national and international business environment requires strategic management.
• Can assist with motivation of employees.
  Employees have an understanding of where they 'fit' in the organisation and the role they play.
• Coordinates employees.
  It unifies employee's efforts so that they work towards a central purpose.
• Assists the organisation to be more effective and efficient.
  The business works smarter not harder.
• Assists in avoiding duplication of effort.
• Provides continuity.
  The strategy 'lives on' even if a key player leaves the organisation.
• Provides ongoing direction.
  The nature of strategy is that it is future oriented.
• Provides stability for the organisation.
  Strategy can assist with decision making and assists in reducing irrational responses to the environmental changes.

Consider this

Can you suggest any further benefits from the strategic management process? Consider the question in the context of your own organisation and the benefits to the different stakeholders of strategic planning.

An aside: Dare to try something different

I am sitting in a quiet room looking out toward the ocean on a warm afternoon. I am listening to the desperate sounds of the life and death struggle going on a few metres away. There is a fly burning out the last of its energies in a futile attempt to fly through the glass of the window. The sounds tell the story of the fly's only strategy: try harder. Of course it is not working. The effort offers no hope for survival. Nevertheless, the fly had staked its life on reaching its goal through pure effort and determination.

Across the opposite side of the room the door is open - it is just seconds of flying time - and the goal would be achieved (freedom from the self imposed trap). It would be so very easy.

Trying harder is not necessarily the solution to achieving more. Sometimes it is part of the problem and kills the chance of success.

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