Importance of an Organizations Paradigm for Strategic Management - Essay Example

? Strategic Management Strategic Management The success of any organization regardless of its affiliation depends on how it conducts its strategic management. This allows an organization to analyze all the key initiatives that the top management of the company undertakes on behalf of its key stakeholders. These initiatives normally revolve around resource allocation, utilization, and performance in the external environment of the business. Additionally, strategic management provides the opportunity for an organization to specify its mental picture, policies, objectives, mission and plans. It allocates the required resources for the execution of its programs, projects and plans (Sachs & Ru?hli 2011 p. 1). Furthermore, strategic management ensures the organization develops a balanced scorecard for the evaluation of its general performance. The scorecard also enables it to determine if it is progressing towards its set objectives and make the necessary changes or adjustments. However, for an organization to perform its strategic management process successfully, it must have the right paradigm. Importance of an organization’s "paradigm" for strategic management Several contemporary organizations today are operating in complex environments where there are frequent and sudden changes of structures. They need to decamp from their traditional management structures to adapt new approaches to management. Incidentally, the operating environment for most organizations faces stiff competition and massive explosion in the field of information technology. This requires that the company update its management paradigm to fit in the new era adequately (Kachru 2009, p. 48). The enhanced utilization of information technology has led to the emergence of knowledge or information based economy. This is partially responsible for the increase in complexities of organizations. Consequently, many organizations have resorted to changing their paradigms to adopt new organizational structures. This includes the changes in leadership and management practices. Additionally, technologies such as the internet, e-mail, voice mail and telecommuting have also contributed in the rebranding of the structures of organizations to encompass virtual offices, companies and teams (Kachru 2009, p. 92). The shift to the new organizational paradigms has several uses to the organization. The adoption of new technologies in the field of information science is making both intra-organizational, as well as inter-organizational communications simpler (Kachru, 2009, p. 93). Consequently, this eliminates the previous communication boundaries leading to a global market place that is borderless. The elimination of the market place boundaries can significantly reduce the command chains within organizational structures and paradigm. As a result, the organization will have free control spans by replacing its departments with stronger teams that have been empowered. This paradigm assumes an organizational structure whereby a flatten hierarchy replaces vertical boundaries as cross-functional teams replace functional departments. This is important to the organization because it consolidates the activities of the organization around centralized processes (Kachru 2009, p. 84). The creation of the organizational paradigms without boundaries eliminates geographical barriers to the organization. This places an organization in a suitable position to interact freely with its clients and other business partners in the entire globe. For good strategic management, an organization needs to shift its paradigm to benefit from the following processes a. Reduced dependence on the leadership of command and control b. Hierarchy breakdown that leads to a lean change in the systems of management c. Enhanced commitment to the application and utilization of virtual technologies d. Increased teamwork reliance e. Attain flexibility f. Interactive system of knowledge transfer through electronic and mutual interest instead of authority systems New forms of management that become visible in the form of flexible team works, dynamic networks that and imaginary corporations become evident. This leads to the creation of new organizational paradigms whose impacts include the propagation of temporary and freelance workers based on increased levels of telecommuting and outsourcing (Smit 1999 p. 5). Besides, such organizational paradigms also create autonomous business units and ad hoc teams in large business organizations. One important aspect of this trend is that it would lead to the devolution of permanent and large corporations into temporary and flexible individual networks. These would be under the connection of electronic networks and personal computers whose combination would lead to the production of goods and services by independent business agents (Kachru 2009 p. 45). An organization that seeks to enhance its strategic management would need to adapt appropriate strategic management paradigm that can revamp its system. This system has some specific features that are important for the success of the organization. It must recognize the important role that key managers play in the organization. It must also put focus on training organization’s employees at high levels. Additionally, it should increase the salaries and the budget of the organization besides combating any barriers to change for the betterment of the organization. The organizational paradigm benefits the organization in four key areas. These include the external environment, institutional actions, concepts and approaches, perspectives and accountability (Kachru 2009, p. 732). In the external environment, the paradigm reminds the organization to commit itself to the resolution of the economic, social and environment challenges that area associated with the activities of the organization. The organization must ensure that it monitors the external environment continuously to identify and intervene on any change. In taking institutional actions, the organization emphasizes on the values and principles of high quality management style. This would also involve the management styles brought about by strategic planning. The paradigm of approaches and concepts enables an organization to design market-oriented strategies to make the organization progress from the research agenda to partners and clients based agendas. The organization would be more sensitive to the demands of its clients. The paradigm of perspectives enables an organization to adapt interdisciplinary, holistic and eco-regional values to counter the complex realities of the operating environment for the business organization (Kachru 2009 p. 56). Finally, the paradigm of accountability ensures that an organization considers sustainability and transparency as key concerns in its development agenda. It is clear that the organization would remain flexible and open to incorporate fresh ideas and issues that are valuable to the partners and the organization. This organizational paradigm plays a fundamental role in the strategic management of the organization. Reference List Kachru, U 2009, Strategic Management: Concepts and Cases, New Delhi, Excel Books India. Sachs, S., & Ru?hli, E 2011, Stakeholders matter: a new paradigm for strategy in society. Cambridge, Cambridge University Press. Smit, P 1999, Strategic planning: readings. Kenwyn, South Africa, Juta. Read More