Management in a dynamic environment

Competency-based Management Slocum, Jackson, Hellriegel.

Management: A Competency based Approach Slocum, Jackson,

Hellriegel
Dynamic environment: The market is dynamic as there is a constant
change in market expectations, technology and trends. This could be due
to globalisation. Firms thus need to be able to change with the market and
the new challenges presented. Some examples of a dynamic environment:

Video rentals: People are now downloading movies online and most
video rentals are now out of business.

Existence of cameras and GPS devices are being challenged

because of the technology in phones.

Automobile industry: Has not changed much. Tesla is a company

that sells electric cars How has this company marketed with
success?

Apple: It manufactures its products in China because of cheap

labour and globalisation. The iPhone makes the most profit in the
world. The Walkman was replaced by the iPod, thus, they were
dynamic.

Nokia: Used to own 60% of market share. It was later bought by

Microsoft as it didnt notice new trends. This shows the importance
of adjusting to the market and to be a learning organisation even if
you are a global expert.

Kodak went bankrupt because they didnt change along with the
technology and current trends.

Floppy disk was surpassed by the USB which is being killed off by
the cloud which makes it more practical to access the same files on
a number of devices.

Defining Management, Managers and organisation:

What is management?
The word Management is used freely today, such as, time management
and weight management. Management has been given both simple and
complex definitions.

1. Management: Knowing what you want (people) to do, and then

seeing that they do it in the cheapest way.

This might include laying off employees to maximise the value from a
limited amount of resources (by getting more done with less people).
Perhaps in the cheapest way possible given a particular level of quality.
Or:
2. Management:

being
organisation or part of it.

concerned

with

the

running

of

an

In such dynamic environments, organisations need to risk because of the

uncertainty involved as numbers are not always helpful enough. They
need to take control of their future and be prepared by acknowledging the
extent of risk and move on. Even consumers may refrain from buying to
see what the trend is going to be.

Being prepared and reacting fast has a number of advantages, called

the first mover advantage/disadvantage: Zara reacts fast to the
environment by conducting experiments to anticipate fashions and decide
whats selling and whats not. It is important to respond to changes in the
market before your competitors: the element of Comparative advantage.
Ex: missionary: nearly cooked alive. Cheetah: fine as long I outrun you :P
As an organisation grows, it is important to never lose sight of the
customer and of the raison detre by being at tune with what is going
on out there. Large organisations may also take a long time to take
decisions because there are many different opinions.

What is an organisation?
An organisation is any structured group of people working together to
achieve certain goals that individuals could not reach alone.
An organisation is not the building, office or the procedures. People and
relationships, interaction and communication are critical to any
organisation. The organisation does not exist in a vacuum (closed system)
and it must interact with its environment (open system).
An organisation is not always a business operating for profit to maximise
wealth, it can also be a non-profit organisation and they can offer either
products and/or services. A business enterprise can be either a global
giant of a small start-up.

The goal is:

An outcome to be achieved or destination to be reached over time
through the exercise of management functions and expenditure of
resources.
It is crucial to never lose sight of the goal. All organisations have goals
that they need to achieve efficiently and effectively.
Personnel management deals with the human factor, however, since this
can be a quite mechanistic, we moved to human resources. The people
who work in the organisation are an investment (human capital) and its
future depends on the talents of its best employees. People bring with
them different cultures and complexity.
Ex: Pizzaiolo: Needs a certain level of skill.
Ex: Athletics: Why cant we all run the same speed? Training. This can be
applied to the organisation: not all employees have the same skills.
In the short run, an unexpected rise in the demand for a product will cost
the organisation more because of overtime. If it is a trend, in the long run
it has to produce more efficiently (make a strategy). It is important to see
the big picture as management by crises is very pricy and might
jeopardise the survival of the organisation.
Sales persons are the face of the company and the bridge between the
organisation, the market and the clients. If the clients opinions are
ignored they might switch to a competitor. In the world of business,
relationships are crucial as 80% of business is controlled by 20% of your
customers (Pareto Principle): Identify these clients through IT systems.
If a client had a bad experience, take the opportunity to convert him
for life, instead of letting him walk away and spreading his experience by
word of mouth or social media. They might tell others how u fixed the
situation and the bond with the organisation becomes stronger.
Ex: Device stops working and they exchange it and give him a cheque;
time is money. Thus, a bad experience can be a golden opportunity to
keep a client for life.
Organisations can react passively, proactively and reactively to its
environment. Some even strike joint ventures and alliances with their
competitors. A joint venture is when organisations join forces for a
particular project. An alliance is when two organisations join to achieve a
common goal.
Why would you want to share the market share with your competitor?

Sometimes, if you cannot beat them join them. This can be done for
growth and to achieve economies of scale or to protect themselves from a
greater competition
Ex: Gasan Mamo Insurance: If the number of clients doubles, we dont
need double the employees working in administration
Ex: Maltas police, armed forces and administration. It does not
necessarily mean that they need to be increased if there are more people.

Services:
Even if the company sells products there is a service element, such as the
after sales service after buying a car. This can help keep current
customers and give a competitive edge over competitors. When the
competing products are more or less homogenous, the price will become a
more important factor.
Services have a number of characteristics:

Intangibility: Services cannot be touched and this can be

challenging as you may not be able to try it. Ex: You would
realise it is a bad hairdresser or consultant too late.

Inseparability: It is hard to separate the service from its

provider. ICT and digitalisation has made it more possible for
this to be done. Ex: Lectures could be recorded and uploaded
on VLE. However, this would mean that there is no possibility
to ask questions and the lecture cannot change. Ex: For an
operation you need to be there.

Variability: It is difficult to maintain standardisation in

services, however, it is important to try, even though people
are unique. Ex: lectures.

Perishability: Services have a best by date as they cannot be

used for different situations. Ex: News: Last weeks news is not
relevant today. Ex: flights: If airplane left, it is too late. Ex:
Legal advice: laws change and depend on the situation.

To feel more reassured when buying a services, get references from

people who used it. (Word of mouth)
Who needs management?

Griffin: Any group of 2 or more people working together to achieve a

goal- having human, material, financial or informational resources at their
disposal require the practice of management ------Sounds like the
definition of an organisation, thus, they require organisation.
1. Profit seeking organisations:

Large businesses: Organisations with a large number of

employees, revenue, profit (economic wealth), machinery, market
share and/or investments. The most value is generated by services
and intangibles. Ex: intellectual property. Therefore, you could have a
large company with few employees and less physical presence. 5
employees can turn around more money than a large company.

Now you dont have to be a global giant to produce phones, like the
Chinese brands, and people decide what to buy on the basis of price.
China, the factory of the world, is producing its own phone
components as it is the largest consumer of iPhones. Foxcon produces
Apple products and is trying to buy out a Japanese company to move
up the value chain.
As large organisations become more complex, they need management
to be able to use its resources in the most efficient and effective way
possible,

Small businesses and start-ups: Even though they do not need as

many managers as large businesses, they need effective
management:
o

To use their few resources efficiently.

Small start-ups are vulnerable in the market and one mistake

may bring it to an end.

They must be aware of competition to avoid being run out of

business by larger organisations through predatory pricing. A
small business relies on a small number of goods and
services, unlike large businesses.

Having a harvest and exit strategy may be beneficial as they

allow a company to get out of the market with as much value
as possible and with less challenges or selling and liquidation.
This might include making the company more attractive for
global giants to buy it.

Even a sole trader needs management; he tries to deal with everything

himself. Effective management is important in small organisations and
larger multinationals.

International management:
international, thus, bringing in

Large

organisations

can

be

Different languages and cultures. Some products have to be

adapted to the country it is in. Ex: Mc Donalds: Different
burgers in India for vegetarians.

Foreign exchange risk,

Regulatory aspects and the cost of operating in different

countries.

Not-for-profit organisations:

1.

Government organisations: Its financing comes from the people

and therefore, transparency is important. It needs to maximise
value from limited resources

Educational organisations: Some private universities and schools

are for profit and some are not. Private and public universities need
management to make sure that courses are recognised
internationally and to maintain a high quality educational
experience.

Healthcare: In public hospitals quality and effective management

is extremely important as bad management can cost lives. Ex:
Instead of being operated for appendix they amputate your leg. Ex:
forgotten scissors in abdomen

Non-traditional settings: Ex: Religious organisations, mafia etc.

All organisation need management.

What/ who is a manager?

A Person who allocates human, material and informational resources in
pursuit of an organisations goals.
Management involves activities directed at an organisations resources
aiming to achieve organisational goals efficiently and effectively.

Activities: planning, organisation, leading and control.

Resources: human, material, financial and informational.

Efficiently and effectively: Sometime they are used interchangeable

but it is important to make a distinction.

Efficient: Here there is a relationship between inputs and

outputs. Ex: If a car costs $30,000 and it takes you 1 hour to
get to work, it is not efficient. However, if a donkey takes you
to work in 3 hours, it is efficient. Efficiency involves utilising
resources wisely and without waste by getting more output
with less input.

Effective: Being effective involves achieving the set or

planned objectives and successfully realising desired results/
goals.

There are many different types of managers. Ex: account, division, plant,
and department. What do they have in common?
A manager need not be called a manager: Chief Executive Officer,
Supervisor, Vice President, and Coach. Accountants, lawyers, stock
brokers, architects are managers as they manage their own selves. To the
organisation they are specialists in providing their service and contribute
in their individual capacity. They are not essentially managers to the
company.
Managers are responsible for the efforts of a group of people who share
common goals and resources. The managers performance is based on the
performance of the people he directs. A manager needs to have the
capabilities of all the other team members.

Input

Human
Material
Financial
Information
al

Planning
Organising
Controlling
Leading

Resourc
es

Output

Goal
realisation
efficiently
and
effectively

What do managers do?

Fayols primary functions of management:
1.

Planning and decision making:

Planning is a 2 stage process: What is the objective? How shall this be

achieved (course of action)? The objective is the end and the how, the
means to an end.
Planning provides us with a direction and might involve:
o

identifying and committing

organisations goals.

resources

to

achieve

deciding which tasks must be done to reach those goals.

looking into the future: acknowledging risks.

Ex: WHAT? a businessman in a highly dynamic environment is reaching

retiring age and his children are not interested in the business. HOW? His
only option is to sell it, thus, it is good to have an exit option.
Ex: WHAT? Too much competition. HOW? Either diversify or stay in the
industry and compete. Invest in technology, establish a subsidiary (china)
to make use of cheap labour and lower prices. By outsourcing the
manufacturing process, you can focus on the design of the next product.

2.

Organisation:

There needs to be structure and coordination of relationships to enable

employees to carry out plans and meet goals. (organigram). An
organisations success depends on the efficient and effective coordination
of human, material, financial and informational resources. Know how,
what and who: make it hard for others to compete and maintain networks
and relationships.
3.

Controlling:

This involves the monitoring of feedback and performance and taking

correction action. Measure how close the organisation is to achieve the
objective. Measurement needs to be done accurately and should consider
qualitative factors too. Ex: If there are switching costs, people may not
take advantage of the better and/or cheaper product. Ex: Bank/network
provider.
See that it is still on track and if not, adjust to the dynamic environment

Ex: Objective: survive in the market. Measure: sales and profits. Take
action: increase the rate of profit growth by selling more at a higher profit
margin or go international.
By decreasing the cost of production and increasing the perceived value
built into the product/service, the organisation would be able to charge a
premium or to sell larger volumes Ex: Ryanair: low prices, high sales.
There are several control procedures:
i.

Set standards of performance: Benchmark against other players.

Ex: Cheap air travel: be as efficient as possible to make more
flights by fuelling, cleaning up and bringing in passengers fast.
Thus, it earns more money. They benchmarked refuelling
processes from Formula 1.

ii.

Measure current performance and compare with the set

standards: do not lose sight of the target. Compare with
competitors and others in the market to see performance in its
context.

iii.

Take action: correct deviations

iv.

Adjusts the standards if necessary: Goals may be adjusted if too

difficult to attain as they may demotivate employees. If too easy
to obtain they also might need to be changed.

Make sure to set SMART goals:

4.

Specific:

Measurable: Not everything that can be measured counts,

not everything that counts can be measured,

Attainable

Results-oriented:

Time-based: The opportunity might not be there forever. We

might be at a disadvantage if competitor gets there first.

Leading:

This involves motivating staff to work in the best interests of the

organisation to reach its goals. Human capital will bring forward a
profitable product.
Encourage communication as it is better for
colleagues to challenge ideas than the market. Brainstorm and be your
own devils advocate.

The leader has a vision and a mission that is in common with the groups.
This can be seen from the large multi-national perspective where leaders
manage to turn their companies from the brink of failure to a very
profitable one.
All managers perform these functions to different extents and magnitudes
(which is more important)
Managerial jobs differ from each other in:
1.

Level within the organisation hierarchy. The bigger the organisation

the more levels of management there are. There are 3 basic levels of
management:
a. Top managers: are responsible for overall direction, strategy

and operations of an organisation. They establish long-term

companywide goals. Ex: President, CEO, Managing Director
i. Smallest management group
ii. Develop goals, policies and strategies for the entire

organisation. Strategic decisions involve long term

companywide decisions such as acquisitions, mergers,
what markets to operate in and joint ventures)
iii. Set the goals which cascade down the hierarchy and

reach all workers. Those in top management need to

have the big picture in mind and set goals which will
make it a reality. Ex: What do you image in 5 yrs time?
iv. Spend over 75% of their time planning and leading

(mostly with key people and others from outside the

business).
v. Pressures can be intense (tight schedules, travelling,

meetings, e training- day and night)

vi. Represent

the

organisation

in

community/

social

occasions.
vii. PR duties (maintaining the companys image): CSR,

transparency, stake holder interest, ethical behaviour.

b. Middle managers: receive broad strategies/policies from

top managers and translate them into specific goals/ plans

for first-line managers to implement them.
i. Possibly

largest
organisations.

management

group

in

most

ii. In large organisations, some focus on co-ordinating

employees, determining what products or services to

provide and deciding on marketing (Ex: Department
Head/ Plant Manager/ Director of Finance)
iii. Direct and coordinate first-line managers as well as non-

managerial staff such as clerks.

iv. Major

difference to first-line managers is the

management of group performance and resource
allocation.

v. Most time spent planning, organising and leading.

Delegate much work to subordinates.

vi. Most of the time on phone, in meetings, preparing

reports. There is less emphasis on technical issues.

vii. Responsible for staff development: training.
c. First-line

managers: Are directly responsible for the

production of goods or services. Ex: sales managers, section
heads, production supervisors.
i. The link between the operations of each department

and the rest of the organisation.

ii. Employees

reporting to these managers

production work

do basic

iii. Spend little time with higher management and people

from outside the company. Most time spent with the

people they supervise and other first-line managers.
Hectic and lots of pressure.
iv. Little time planning and organising, most time is spent

directing (leading) and inspecting (controlling). Much of

what needed to be planned had already been planned
by the higher types of managers
v. Strong

technical expertise to teach and supervise

subordinates. By knowing the work inside out, he is able
to control and keep up the quality of work.

The manager needs to know when to motivate his team as they affect
his performance. Ex: Snow dogs, coach of football team. This is a
difficult position to be in as they are in between the rock and the hard
place.

The first-line manager might be given a budget, might need to plan

shifts between workers, resupply, that is, day to day planning. The
higher in the hierarchy, the longer the planning period and the further
into the future.
d.

Non-managers: Ex: Accountants, lawyers, doctors.

Managers in small businesses:

In larger organisations, managers at each level are responsible for
different tasks however, in small companies, one person may have to be
the Jack of all trades. Only after the business starts to grow will there be
the need for more levels of management, thus, letting the owner to
concentrate on certain tasks and on the companys goals. However, some
people find it hard to give up control as they are afraid things are not as
they want them to be. Also, some people dont like being told what to do
when it is their businesses as they think they know best. Delegation is
nevertheless, vital for growth as new people bring in more expertise. Not
all entrepreneurs want to grow beyond a certain level to be able to enjoy
their accomplishments and their children.
The advantages of growing your business might be to obtain economies of
scale. Ex: increasing the number of tables in a restaurant.
The principle agent problem: When an agent takes decisions on behalf of
the principle mismanagement can result in the owner losing everything
and the employed manager losing just his job.
2.

Functional area of specialisation: level of expertise. The main

departmental divisions in the organisation include marketing, human
resources etc. The CEO and Store manager are both managers,
however they have different goals, tasks, and responsibilities.
Regardless of what level they operate in, managers may work in
various specialised functional areas within an organisation. Typically,
functional areas include:
a. Marketing
b. Finance
c. Operations
d. Human resources
e. IT

a. Marketing manager:

The marketing manager is responsible for advertising and sales. In

modern management, the client is at the centre of the organisation and
must not be forgotten. Marketing managers identify current and potential
customers needs and preferences and develop the goods and services
that will satisfy them.
Ex: see how it feels like to access your own product. Smaller businesses
tend to be more intimate with their clients.
They focus on the 4 Ps:
i) Product development: Develop your product to match what

the consumers want.

ii) Pricing: Price is determined by market forces (Demand and

supply). The price elasticity of demand shows how many

substitutes exist for the product (elastic). When introducing a
product into a competitive market, you might want to use a price
penetrating strategy. What image does the price give? Some
people prefer buying something that is not cheap.
iii) Promotion: create advertisements to increase the market share

and sales.
iv) Place and distribution: Decide where the product is sold and

how it is distributed.

b) Finance manager:
This manager is concerned with managing the flow of funds effectively,
into and out of the organisation. Responsibilities include:
i.

Granting and using organisations credit: Control debtors

and creditors as you need liquidity to operate.

ii.

Investing

iii.

Safeguarding the organisations assets

iv.

Keeping track of financial health

v.

Preparing budgets or financial plans: Thinking ahead.

c) Operations Manager:
The operations manager manages systems that create the organisations
products and services. This manager also performs operations needed to

manufacture an item and/or provide a service. Especially found in

manufacturing, their responsibilities include:
i.

Control of inventory levels and deliveries: Stock of raw materials,

finished goods is not earning interest but rather costing money
to hold. There are various models of inventory control such as
JIT; a system where the right amount of material arrives at the
right moment, thus, reducing holding costs. Ex: When Dell
laptops are bought they can see this in real time.

ii.

Determining factory layout

iii.

Schedule production

iv.

Maintaining equipment

v.

Meeting quality requirement

b) Human Resources Manager:

The HR manager is responsible for building and maintaining a competent
and stable workforce. His performance is gauged on the performance of
the workforce.
i.

Human resources planning: See what talents, skills that are

required in advance.

ii.

Recruitment and selection: This is an important job as the

chosen people may not be the right people and may create
problems in the future. How are people selected? Compare CVs,
degrees and grades and experience. Good candidates might not
fit in the organisation because of their character etc.

iii.

Training and development: Provide training.

iv.

Performance appraisal: Document and evaluate employees job

performance. If you pressure employees too much they might
start sabotaging the organisation. Keep promises. Ex: You are
good at your job but decide to try something different (calculate
the risks) which goes wrong.

v.

Reward/motivation systems: Do all employees deserve to get the

same bonus? If everyone gets the same reward, efficient people
may be discouraged from making an effort. Be careful of the
messages you submit unintentionally.

vi.

Overseeing relations with unions within legal regulations.

c) Information Technology Manager:

The IT manager is responsible for developing IT systems as a strategic

tool for the organisation. From data employees can derive precious
information
The introduction of real-time communication networks means basic
managerial functions are:
1. Dramatically changing
2. Rapidly improving
3. Quickly becoming more closely linked: networks allow managers

from different divisions to communicate more effectively.

Key important and interrelated IT:

Internet

Decision support systems

Intranet/extranet

Expert systems.

Cross-functional interaction and communication are essential.

Although functional managers are specialised and focused in a particular
area, they cannot be oblivious of the organisations goals and strategies;
all departments must work together; communication.
Communication and feedback should flow across all functions. (The left
hand needs to know what the right hand is doing). By involving people
from different functions, more is possible.
What makes you a good manager?
Fairness and communication. The willingness
(spontaneous decisions can turn out to be good).

to

take

decisions

To become a successful manager one must acquire necessary

management skills through a combination of education and experience:
Education: A good base of education and life-long educational
experiences. It is important to learn from other businesses mistakes.
Experience: Job experiences, continued experiences through a variety of
job assignments and trial and error learning from doing the actual job.
Experience alone might not be enough to make one a successful manager.
Therefore, running an organisation requires 2 main components:
1. Organisational skill:

Communicat
ion
Planning
and
administra
tion

Global
Awarenes
s
Dimensio
ns of
managem
ent
Selfmanagem
ent

Teamwor
k
Strategic
action

Principles and techniques of management

The ability to delegate work

This is taught at colleges and business schools.

1. Entrepreneurial skills:

Recognising and taking advantage of opportunities; predicting market

trends.

Achieving goals by sustained drive and skilful negotiation.

These gut feelings are not as easily taught.

1.

Dimensions of communication competencies:

This is the most fundamental competency as other competencies need

communication to develop. Communication enables the effective transfer
of information and understanding between managers and others.

2.

Informational communication: This is a flexible type of

communication and varies in approach according to the situation.
Two-way communication and feedback is promoted and thus,
building relationships.

Formal communication: To be able to write clearly, concisely

and effectively, using traditional as well as electronic media. To
have a strong presence and be persuasive.

Negotiation: To be skilled at developing relationships, exercising

influence and negotiating on behalf of the team for limited
resources.

Dimensions of planning and administration competency:

This involves the deciding of what tasks need to be done and how. The
manager allocates resources to those tasks and monitors their progress
and ensures they are done.

Information gathering, analysis, and problem solving: He

gather the necessary information to make informed decisions,
takes calculated risks and anticipates consequences.

Planning and organising projects: Plans, schedules, priorities,

delegates. By preparing in advance, the risks are reduced. Ex: Many
years before Steve Jobs presented the iPad, Microsoft and Intel had
already created the concept of the tablet computer, however, battery
and touch interface had to be improved.

Time management: Time management is crucial to handle many

issues at once, deadlines, and to know when to permit interruptions. (at
the right time)

2.

Budgeting and financial management: to be capable to

understand and use information from budgets, cash flows,
financial reports, and annual reports. Ex: To know how much
funds are available.

Dimensions of teamwork competencies:

Teamwork involves accomplishing goals through small groups who are

collectively responsible and whose work is interdependent. For this to be
done, teams must be supported by management and empowered to act
and decide on their best judgement.

2.

Designing teams: A good manager formulates clear objectives

that inspire team members and motivate commitment, measures
progress and performance. Groups must be designed in a way to
avoid groupthink and encourage diverse ideas. This can be done
by not putting people who think in the same way in the same
team. (Employee from Google)

Creating a supportive environment: Acts as a coach,

counsellor, and mentor.
A manager is patient with team
members as they learn and rewards teamwork not individuals.

Managing team dynamics: Facilitate open communication to

uncover conflict and different opinions and use them to enhance
the quality of decisions. He must understand the strengths and
weaknesses of individuals.

Dimensions of strategic action competency:

Understanding the overall missions and values of the organisation to

ensure that actions are aligned with them.

Understanding the industry: By knowing the industry and its

evolution, a manager is informed of competitors actions,
strategic partners, trends and their implications.

Understanding the organisation: SWOT analysis: Strengths,

Weaknesses, Opportunities, Threats. Ex: Be able to balance
shareholders concerns, understand strengths and weakness of
various strategies and to reinforce culture.

Taking strategic actions: Strategic action is taken by

considering long-term implications, to sustain the organisation

and develop it towards its mission. Plans must be made using

cross-functional knowledge.

Dimensions of self-management competency:

2.

This involves taking responsibility for life at work and beyond and not
blaming others.

Integrity and ethical conduct: Maintain integrity and ethical

conduct in all situations. ACCEPTS responsibility of own actions.

Personal drive and resilience: A good manager shows

perseverance and resilience in the face of obstacles (bounces
back from failure). He is ambitious and motivated to reach
objectives.

Balancing work and life issues: To strike a reasonable balance

between work and other life activities. This involves reducing
stress and tension.

Self-awareness and development: Has clear personal and

career goals, know own values, feelings and areas of strengths
and weaknesses. He can analyse and learn from experiences and
is willing to acquire new skills.

Dimensions of global awareness competency:

2.

Work may involve resources and markets from a number of countries.

Cultural knowledge and understanding:

o

Be informed of political, social and economic trends and

events around the world.

To recognise the impact of global events on the organisation.

To understand, read and speak more than one language.

Cultural openness and sensitivity:

o

To recognise differences in cultures and to avoid stereotypes.

Understand how his own cultural background affects his

attitudes and behaviours.

To be able to empathise (see from different perspectives)

while still being self-confident and determined.

It is important that managers communicate the organizations goals

effectively to everyone; using simple language. A goal which is clearly
expressed and understood provides clear guidelines for managerial
action. The strategic aim or stance must be known, reinforced and
owned by management and employees alike; or else, initiatives will be
disruptive and destructive to the organizations goals.
Communication and effective feedback are imperative to reinforce
strategic aim.
What is Strategy?

Strategy is derived from the Greek word stratos (stratos = army); its
origins lie in planning and conducting military campaigns:
Displacing enemy powers
Gaining advantage and supremacy
Defending ones position.

In an organization, managers must plan ahead and must see the bigger
picture.
In Asia, references to the concept of strategy are much more
consensual, dynamic, and synergetic as they focus on growing together.
On the other hand, in Western cultures, managers think that if one is
gaining, another one is losing; a more individualistic perspective.
To have a successful strategy, all employees must know:
Where they are going: The GOAL
How they can get there: The STRATEGY; HOW.

For an organisation to survive in the long term, it needs to communicate

its strategy. Without defined goals and a viable plan of action, an
organisation will gradually come apart.
Strategy provides organisations with:

Focus and rationale for ordering and deploying resources.

Helps determine what actions / processes promote or obstruct

progress
Helps measure progress: If something cannot be measured, it will
not get done.
Possibly promotes creativity and innovation toward a central
purpose.

The Changing Context of Managerial Work

The realm of management is constantly changing; management is
dynamic:

The environment changes

People change
Conditions and rules change
Technology changes

As management evolves, new theories and practices are developed to

be able to face new challenges. The dynamic, fast-changing environment
has given rise to:

The restructuring of organisations

A changing work force: The workforce needs to be able to adapt
to the different skills required
Changing technology: The organisation need to incorporate new
technology into the business and train people how to use it.
Globalisation: New countries, more challenges and opportunities.

It is important to adapt to the changing environment even if you are a

global giant. Ex: Kodak and Nokia; they were not dynamic and went
bankrupt. Therefore, it is not the size of the company that matters but
how ready it is to change; this might involve restructuring, downsizing
and investing in appropriate technology.
Ex: Some big corporations, such as Siemens, are acting like a business
incubator; they focus on new ideas and concepts.