How Can You Relate Functions Of Management With Strategic Management Process?

Strategic Management

Strategic Management can be defined as "the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective."


Planning & Strategy formulation

Planning consists of all those managerial activities related to preparing for the future. Specific tasks include forecasting, establishing objectives, devising strategies, developing policies, and setting goals. Planning is considered as strategy formulation process. Targets are set at this stage and strategies are designed in order to accomplish organizational goals.

Organizing, Motivating, Staffing & Strategy implementation

Organizing includes all those managerial activities that result in a structure of task and authority relationships. Specific areas include organizational design, job specialization, job descriptions, job specifications, span of the control, and unity of command, coordination, job design, and job analysis. Organizing is the part of strategy implementation process as it helps in implementing all activities or policies designed in formulation process.

Motivating and staffing functions of management are also considered as part of strategy implementation process. Motivating involves efforts directed toward shaping human behaviour. And staffing activities are centered on personnel or human resource management.


Controlling & Strategy evaluation

Controlling refers to all those managerial activities directed toward ensuring that actual results are consistent with planned results. Key areas of concern include quality control, financial control, sales control, inventory control, and expense control, analysis of variances, rewards, and sanctions. From the definition of controlling it is clear that controlling function of management is similar to strategy evaluation stage of strategic management.

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