Approaches to the strategy making process

Approaches to the strategy making process

1. Approaches to the strategy-making process Ram Krishna Tiwari MFC 24 SOMTU Group: A

2. Strategy A plan or action designed to achieve a long-term or overall aim, The art of planning and directing overall forces and movements to achieve a mission.

3. Approaches : identified by Whittington (1993, 2001) as a model of analysis the classical or rational planning approach, the evolutionary approach, the processual approach and the systemic approach.

4. Generic Perspective on Strategy, Whittington (2000)

5. The classical or rational-planning approach strategy is formed through a formal and rational decision-making process a comprehensive analysis of the external and internal environment, allows for plans to be made to implement the strategy. profitability is assumed to be the only goal of business

6. Contd… clear goals, understanding the competitive environment, resource appraisal and effective implementation form ‘corporate’ level ‘business’ level ‘operational’ level ‘readiness and capacity of managers to adopt profit-maximizing strategies through rational long-term planning’

7. The evolutionary approach Strategy is made through an informal evolutionary process in which managers depend less upon top managers to plan and act rationally and more upon the markets to secure profit maximization. Compared with ‘natural law of the jungle’ markets are rarely static and indeed likened competition to a process of natural selection, where only the fittest survive.

8. Contd… markets, not managers, choose the prevailing strategies. The classical approach become irrelevant markets are too competitive for ‘expensive strategizing and too unpredictable to outguess’ sophisticated strategies can deliver only a temporary advantage

9. The processual approach need to take account of the psychological, political and behavioral relationships which influence and contribute to strategy organizations and markets’ as ‘sticky, messy’ phenomena, from which strategies emerge with much confusion and in small steps cognitive limitations of human action, and influenced by ‘bounded rationality’

10. Contd… skill, dedication, perfection, mastery of detail, sense of involvement and intimacy through experience and commitment strategy is discovered in action conflicting goals present within organizations.

11. Emergent strategy: The systemic approach strategy is shaped by the: social system within which it operates cultural and institutional interests of a broader society. organizations differ according to the social and economic systems in which they are embedded understanding of strategic human resource management.

12. Reference http://www.wisdomjobs.com/e-university/hr-management-tutorial-69/strategic-human-resource-management-1438/approaches-to-the-strategy-making-process-8731.html