EFFECTS OF STRATEGIC MANAGEMENT ON WORKERS PERFORMANCE IN AN ORGANIZATION
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
EFFECTS OF STRATEGIC MANAGEMENT ON WORKERS PERFORMANCE IN AN ORGANIZATION
Chapter one
INTRODUCTION
Background for the study
Strategic management is a disciplined approach to identifying a company’s corporate aim or mission using management principles and processes. It establishes a reasonable aim to meet the purpose, recognises existing possibilities and limits in the environment, and devises a rational, practical method for achieving the objective.
Strategic management is a technique used by organisations to build a better future and help them grow. The key to strategic management is to recognise that people speaking and cooperating will shape the future (Harfield, 1998).
In other words, strategic management is the process and philosophy of determining and regulating an organization’s relationships in a dynamic environment. As a process, it aims to establish approaches and procedures that will help management adapt to today’s dynamics through the use of objectives and strategies.
Strategic management strives to create effective and efficient programmes that achieve the organization’s objective. As a philosophy, it alters how the management perceives competitors, customers, markets, and even the organisation itself.
Its primary goal is to increase management’s understanding of the strategic implications of environmental occurrences and internal decisions.
Strategic management, according to contemporary organisations, is largely concerned with measures taken to achieve a competitive advantage and produce value for the organisation and its stakeholders (Porter, 1981).
Lawrence and William (1988) define strategic management as a series of decisions and actions that result in the development of a successful plan or strategies to help achieve business goals.
The strategic management process is how strategists set objectives and make strategic decisions. Strategic management’s primary focus is on achieving organisational goals while taking into account internal and external environmental elements.
Porter (1985) contends that the essence of developing a comprehensive strategy is connecting a corporation to its surroundings. Strategic management enables the methodical management of change. It allows organisations to actively mobilise resources for a desired future.
According to Chandler (1962), any effective successful strategy is dependent on structure; hence, in order to attain effective economic performance, the organization’s structure must be altered.
Strategic management aligns with the quality movement’s emphasis on continuous improvement. Indeed, anticipating the demands of stakeholders is an important aspect of external analysis.
Shrivastava (1986) elaborates on the notion of strategic field by applying five operational criteria developed from Giddens (1979). These characteristics demonstrate its ideological nature:
factual underdetermination of action norms, universalization of sectional interests, denial of conflict and contradiction, normative idealisation of sectional goals, and naturalisation of the status quo.
Shrivastava concluded that strategic management was undoubtedly ideological, and that strategic rhetoric served to legitimise existing power systems and resource inequities.
Drawing on the preceding, Shrivastava (1986) sought emancipation through the ‘development of communicative skill by all subjects that allows them to participate in discourse aiming at liberation from limitations on interaction’.
He also encouraged researchers to develop “less ideologically value-laden and more universal knowledge about strategic management of organisations.”
Stoney (1998) establishes that in the strategic management model, responsibility for corporate level decision-making resides within a core of strategic functions that are free of the day-to-day duties of operational operations, which are delegated to the lowest possible level of control.
Without being distracted by operational problems and line responsibility, the elite (important functionaries), generally referred to as the ‘executive board’, is free to focus on strategic thinking and decision-making. Each banking organization’s strategic management experience is unique, reflecting the organization’s culture, environment, resources, structure, management style, and other organisational characteristics.
However, experience with leaders and managers in numerous organisations has shown that similar questions and concerns arise as organisations apply strategic management.
Meyer (1991) goes on to say that strategic management differs from other organisational sciences in that it focuses on finding, understanding, and predicting the factors that influence organisational performance.
The field’s central research issue is, “Why do some firms outperform others?” In contrast to other disciplines’ efforts to explain organisational outcomes, strategic management research has long recognised that phenomena originating at multiple levels of analysis play a role in determining organisation performance.
To maximise the possibilities of good performance, a company must belong to a prosperous strategic group inside a profitable industry, such as Nigeria’s commercial banks. In these contexts, this study aims to evaluate the effects of strategic management as a strategy for improving organisational performance in Nigerian commercial banks.
Statement of the Problem
The severe phase of the global financial crisis has passed, and economic recovery is starting; nonetheless, recovery remains fragile and unexpectedly alarming, as the growth impact of financial and monetary policies fades.
Debt levels are high, older economies are experiencing limited growth, and efforts to strengthen financial relationships remain politically and socially challenging.
Organisations desire growth, but most of the fine-tuning has already been achieved as a result of the technological revolution and the CBN’s recent emphasis on cost reduction in their policies.
Nonetheless, leaders and managers face constant pressure to perform since the competition is fierce. Organisations seek to generate revenue, enhance productivity, achieve their objectives, operate more efficiently and effectively, be good corporate citizens, have happy, motivated workers, keep satisfied and profitable customers, and, most importantly, uncover that elusive sustainable competitive advantage.
A strategic management strategy is essential for any organisation pursuing its goals. The issue is that many organisations rely on a five-year strategic plan divided into annual budgets, quarterly predictions, and monthly reports that are frequently detached from real-world occurrences.
To capitalise on new opportunities and avoid risks in a competitive market, bank executives must constantly assess the strategic management plan and remain prepared to tackle difficulties.
Despite the fact that a dangerous environment is growing here and there in Nigerian financial institutions, management has failed to invest more energy in environmental analysis to determine what is wrong, as well as decisions and actions to be done to mitigate the problem.
For strategic management to produce superior results, all steps in the process must be successfully handled. A creative strategy can elevate a company’s competitive position and performance. Unfortunately, most firms struggle with implementation and hence fail at performance enhancement.
Despite the fact that strategic planning has resulted in a far-reaching revolution that has dramatically reshaped the majority of the corporate environment, the Nigerian banking industry continues to face some restraints.
Some of these constraints include the incorrect application of strategic planning by Nigerian deposit money banks, the unethical attitude and conduct of bank managers and board of directors, a poor organisational structure, and workers’ noncompliance with rules and standards in order to achieve strategic goals.
This precarious scenario emphasises the importance of implementing strategic management in our commercial banking business to maximise performance. Strategic management is critical to organisational performance.
The objectives of the study
The broad goal of this study is to look into Strategic Management as a technique for improving Organisational Performance at Zenith Bank. The specific aims aimed to:
Determine the extent to which the value chain influences the profitability of Zenith Bank.
Determine how strategic changes effect Zenith Bank’s market share in Nigeria.
Examine how strategic leadership affects customer satisfaction at Zenith Bank Nigeria.
Determine the key challenges of implementing strategic management by Zenith bank’.
Need help with a related project topic or New topic? Send Us Your Topic