Human resources in strategic management

Strategies are not applied only by top managers but by every person employed in the organization. That means that every person within an organization plays a certain role in strategic management. In fact, all employees deal with issues and challenges of strategic management in a different way. Employees from any sector or any level or position formulate administer, and evaluate strategies for which they hope will help the organization achieve its desired performance whether it is a contribution to adjusting the organizational units, business divisions, departments or the organization’s business activities.

Undoubtedly, an organization’s top management plays a significant role in the strategic management process. They are key strategists, architects of the organization’s structure, key decision-makers, visionary leaders within an organization, information systems creators, observers and interpreters of environment changes, and creators of strategies. However, it should be noted that employees of lower levels within an organization also have a significant part in the strategic management process. Their duties include administering previously formulated strategies, monitoring, and leading, and executing certain parts of work.

Employees within an organization should monitor administering a strategy as well as its performance. If its performance doesn’t fulfill the expectations or strategic goals, the strategy or the process of administering one should be modified or entirely altered.

The basic principle of strategic management influences the final business performances of an organization. Top managers of an organization play an important role in the strategic management process. It is them who take full responsibility for every decision made and every employee within the organization. Executive or senior managers (chief executive, financial director, manufacturing direct etc) are key strategy creators interpreters of changes and decision-makers. Their high education and experience give them the ability to predict changes in the environment, create a vision for the future, maintain flexibility, think strategically, and cooperate with others within the organization to bring new changes that will secure the existence and prosperity of the organization in the future.

Top managers are responsible for providing effective strategic management. They have the ability to predict changes in the environment, create a vision for the future, maintain flexibility, think strategically, and cooperate with others within the organization.

When it comes to strategic decision-making top management’s task is to focus on comprehending and analyzing of what makes an activity attractive, setting new directions and rules for evaluating performance in order to modify or alter a strategy. Employees and managers on medium and lower levels within the organization will probably be responsible for evaluating a strategy but they will also take the necessary steps a new situation requires.

Ethical decision-making and practice of an organization imply the existence of a principle which is used to define correct and incorrect decisions and behavior. Ethical factors and standards should play a role in strategic management. Ethics should concern both the employees and the organization. Ethics should be part of the strategic management process. For strategic management, that would mean introducing the ethical implications of final results of strategic decisions and actions.

Work ethics ought to be expressed in different manners especially when it comes to the relationship between employees, but when it comes to the relationships of employees and the assignments within an organization as well. That is why ethics should be part of the strategic management process.

Besides, it is well-known that leaders who made strategic decisions that were morally right, for example, by taking care of people’s health or leading employees’ health campaigns, besides acting in a moral way, they also contributed to the organization’s increase of profit. Strategic decision-makers who opted for development and administering of sales strategy which dealt with an issue that was relevant for consumers, not only did they act in a moral way but they expanded the business range and contributed to the sales growth with the organization. Ethical implications in strategic management are quite clear.

It should be added that one study shows the fact that decision-makers with all or enough information who used analytical techniques made more effective strategic decisions. An organized systematic approach to the strategic management process definitely has a positive impact on performance which further helps an organization survive on the global market.

Regardless of is form and activity, every organization should have its purpose and vision. A vision represents the purpose of an organization or why the organization exists in the first place. If managers manage to express a clear vision, the organization’s members will be more motivated to make an effort to realize that vision.

Every organization has its beliefs and values regarding what it is supposed to represent because they have to do with essential things in an organization. Furthermore, a vision should point out all the key matters and values of an organization. It is relevant because an organization’s employees can conclude what kind of a behavior is expected of them or what is the priority when it comes to determining their behavior, and what is it the organization holds to be valuable. For instance, that could be ethically correct behavior in business or approaching the business in a responsible way, placing the emphasis on quality or to be a leader in an activity etc. That is why it is important that a vision’s definition includes key values of an organization’s business.

A vision should contain a brief overview of the business which would define the general goals. General goals are broken down into specific goals, and all the employees within an organization should strive towards achieving these goals. In other words, the purpose of general goals is to have all the employees within an organization to unite their efforts for achieving a common goal. That is why orgaizational vision is the guiding light in every managing decision-making.

A vision is a statement of all the businesses certain organizational units do. A mission statement of every unit is adjusted to the organization’s vision at the same time. That is why an organization can have several potential missions that contribute to realizing the organization’s vision. A mission statement provides an insight into the purpose of business of each organization or the job every organization does as well as its goals. When making and administering strategic decisions, a mission statement is at the center of employees’ attention. An effective organization’s mission and vision should primarily reflect an organization’s dedication towards social responsibility and ethical decision-making.