Benefits of Strategic Management Essays

2974 Words Aug 17th, 2005 12 Pages
"Research has revealed that organisations that engage in strategic management generally out-perform those that do not"

The connotation of the ancient Greek word "strategos", in its various grammatical forms, implies meaning of skilful manoeuvouring leading to achieving a highly crucial position or attaining a desired end. Commonly associated with the military operations, strategies aim at methodical out-performance of adversaries. Analogically, application of deliberate strategies in the business management context suggests combination of activities directed at becoming superior to business opponents. Hence, it can be assumed that engaging in these activities will produce better business results than not doing so.
This essay attempts
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The search for the optimal performance has begun.
At the end of the nineteenths century, Bethlehem Steel's productivity was significantly increased "from 16.3 tonnes shovelled per worker per day to 60.2" (Davidson & Griffin, 2003, p. 41) through the realisation of the plan developed by the factory employee F. W. Taylor who, by posteriority, has been named the father of scientific management. Primarily, Taylor emphasised a need for the study of methods to improve worker efficiency. His fundamental contribution to the search for managerial excellence, however, was imposing the responsibility for the performance outcome on the managerial methods, which introduced the concept of performance improvement. The environmental forces continued to impact industrial arena. Developments in psychology provided opportunity to seek efficiency by focusing on human behaviour. Industrial psychologist, Hugo Munsterberg, and political scientist Mary Parker Follet proposed that individuals work better under specific psychological conditions (Bartol et al., 1998, p.68). Hawthorn studies, conducted by Elton Mayo, empirically proved that there is a relationship between productivity and working conditions. Human Relations movement, represented by Maslow and McGregor (Robbins, Millett, Cacioppe & Waters-Marsh, 2001, p. 198) advocated improving efficiency through motivation techniques. Quantitative management philosophy stemming from the military theory saw better…

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