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Need an account? Click here to sign up. Download Free PDF. Henry Mintzberg on Strategic Management. Geetha Alagirisamy. A short summary of this paper. SYNOPSIS This paper discusses via critical analysis the ideas of Henry Mintzberg, the Canadian theorist and Cleghorn Professor of McGill University, on the topic of strategic management, alongside an in-depth evaluation of his writings and contributions to the study and use of strategy in the domain of business and management.
The overview highlights the contextual definitions of strategy and strategic management, the theoretical developments, and in particular, the debates between management theorists against the backdrop of a changing business landscape. OVERVIEW The topic of strategy originated in the military context in the form of plans and tactics for nations to win battles and wars using soldiers and weapons as key resources.
It was consequently inevitable that the subject of strategy and its management were to be born of several fathers. Strategy Within the context of this paper, it is necessary to adopt a basic premise of strategy and its scope: Strategy is what an organization does, or plans to do, with its G.
Strategic Management How organizations go about designing and choosing a strategy towards a set of actions to be implemented and sustained for its relevance and competitive advantage to enable continuous gain has always been the crux of the strategic management debates between theorists, industrial economists and practitioners. His collation, shown in Figure 2, attributes each school of thought with regards to the approach to strategy, the guiding principles, the influences and the analytical tools devised and advocated by key management thinkers.
In effect was born, the foundations for strategy in management as laid by these Classical thinkers. He then turned his attention to organizations and their structure Mintzberg, , which was compounded with his design methodology; Structure in Fives Mintzberg, Strategic theories of the s have not expired, but only exist in close proximity to the latter models. As an analytical tool that relies on deliberate calculations, it corroborates their profit-making rationale for setting strategic objectives based on current and desired market positioning, growth and share, as they perceived profit- maximisation as the only cause and consequence of strategy for success.
The Dutch business culturalists, G. The short-sighted Evolutionary theorists, however, view strategy as a distraction to managers who can otherwise be focusing on immediate, reactionary tasks to ensure business fit for the current market conditions. His viewpoint stresses strategy to be either product related or knowledge related in order for a company to attain competitive advantage. But the Systemic theorists are suspicious of the visionary leader whose self-interests can be dictated by his professional bias in a functional area such as finance, marketing or operations, etc.
The case of a German leader comes to mind in this context. Miles and Snow stress that the top management, dominated by a leading functional group within the organization, can lead to a biased strategy leaning towards the perspective and norms of the functional group as opposed to being neutral from the business perspective.
Yet, he questions the relevance of the military G. He identifies the following roles as pertinent to strategy leaders being successful in strategic management: planner, communicator, identifier, analyst and catalyst. In effect, for Mintzberg , just planning a strategy alone makes not a strategist.
Decision-making should be a process fed by information shared across all levels of the organization. Mintzberg highlights the outdated nature of applying the detached top-down model of minds versus hands, where strategy is designed, or dictated as the case maybe, at the top-levels of management and then subsequently disseminated to the lower levels for implementation.
Referring to this as the Fallacy of Detachment , he cautions against ignoring the impact and influence of middle management in the decision-making process. The bottom up, top down approach to interactive and iterative decision making was effectively in play.
Strategy Formulation: Choices for Strategic Design and Decisions As articulated in Figure 1, the core of strategy design and formulation lies in the review and analysis of external and internal factors. It determines and directs the strategy route to be undertaken based on the choices that become available as a result of this activity and the decisions made consequently. Much of the debate centres on the merits of outside-in or inside-out approach to strategy design that is carried out by the business.
In so doing, it is inevitable to acknowledge the various tools and techniques proliferated within the planning school of strategy. While the Five Forces model provides a significant snapshot at a point in time, it is misleading to apply it as a predictive tool and assume that the industry landscape will remain unchanged.
Mintzberg Mintzberg et al, also challenged the single-minded focus of the planning approach to consider only the quantitative and financial elements in the context of economics.
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