The Evolution and Concepts of Strategic Management - Essay Example

Introduction

The practice and the thinking behind management have clearly evolved over the years. There is a growing understanding concerning human behavior and organizational structure and function, economic forces and historical perspective of management. Organizational change has occurred hand in hand with ever changing leadership roles (Bosman, 2009). The evolution of management, in general, has led to the development of what is now referred to as strategic management (Guerras-Martin, Madhok, & Montoro-Sanchez, 2014). Different researchers have utilized diverse methodologies to explain the evolution and concepts of strategic management (Barnat, 2014).

Literature Review

Evolution of management has given rise to the emergence of strategic management. Strategic management developed in the 1960s (Bosman, 2009). Management theories have evolved dramatically as it tends to shift more towards better management of the human resource. Ability to acquire and retain a good set of employees in a given organization is one of the factors of success (Kwok, 2014). The evolution of management has effected and shaped leadership roles of managers in organizations over the last century (Bosman, 2009). According to Bosman (2009), the importance and relevance played by organizational leaders have increased steadily over the years. The shift has made it necessary for the leadership roles to change to meet organizational and market competitive and functional needs. Current leaders are more of servants than bosses who direct everything due to their growing level of participation in almost all activities in a firm (Bosman, 2009).

New leadership approaches have been developed that do not or less often rely on authority and forceful tactics to control employees and attain set goals and objectives. Servant leaders tend to act as role models and personal examples to practice and satisfy their leadership roles and responsibilities (Bosman, 2009). Poor management practices and strategies may lead to inter-group conflicts, inflexibility, mistrusts, and poor relationships within the labor force or between the labor and the management of a given organization. The above factors may lead to failure. Thus, an appropriate management is necessary but should constantly reform with time and the changing organizational needs (Kwok, 2014).

In the 19th century, most business owners were investing in organizations of which they had direct supervisory and managerial influence. However, industrial revolution contributed to the development of organizations in which people from different countries could invest in a certain organization as shareholders without direct managerial influence. In consequence, there was a demand for effective managerial approaches to protect the interest of shareholders within a particular organization (Bosman, 2009). Early founders of the scientific concept of management such as Frederich W. Taylor believed that managers need to formulate the jobs properly in such a way that it uses incentives to motivate employees and assure increased or maintained a high level of work output. Taylor believed that effective management involved measurement of different aspects of work input while comparing it with the potential output (Bosman, 2009).

Strategic management has steadily developed over the years as it expanded the array of topics under its analysis. Topics such as corporate social responsibility, decentralization and internationalization, a collaboration between organizations, strategic leadership, marketing and competitive strategies and a public picture of an organization have been researched and analyzed under strategic management. Research methodologies employed in strategic management have also changed with time (Guerras-Martin, et al., 2014). According to Barnat (2014), the changes in the array of environmental challenges in the past have influence structural and managerial systems in organizations. Approaches such as in-depth case studies have been overtaken by new methodologies that are quantitative in nature due to expansion and development of multifaceted econometric systems, hybrid techniques and tools for multilevel analysis (Guerras-Martin, et al., 2014).

Advancement of technology has enabled the combination of quantitative and qualitative tools under a single study. However, the set of qualitative and quantitative techniques to be used depends on the kind of the problem being investigated (Guerras-Martin, et al., 2014). There has been the development of different methodologies and theories that help to elucidate the concepts regarding competitive advantage and success of a given organization. Both internal and external organizational factors are thought to contribute to management evolution or transforming in a given firm (Guerras-Martin, et al., 2014).

The concept of strategy continues to get global awareness and acceptance. A growing number of academics have clearly expressed their interests in the field of strategic management (Guerras-Martin, et al., 2014). The force of globalization and cultural awareness in increasing rapid may be due to the advancement of technology and increased global interaction (Kwok, 2014). Organizations should hence learn and adopt the management styles and structures to serve a multi-national and a cross-cultural labor force (Kwok, 2014). Owing to increased research and academic interests, the knowledge base on the field and interrelationships with other disciplines continue to increase. Some scholars have been interested in the study and understanding of the links between the field of psychology and strategic management (Guerras-Martin, et al., 2014). A psychological aspect may be relevant to the field of strategic management. A new line of research utilizes a combination of mathematical and scientific methods to determine and examine the intellectual aspects of strategic management and its change (Guerras-Martin, et al., 2014).

Philosophical viewpoints have also contributed a lot in the reformation of human resource management as well the evolution of management in general. In that way, various current and effective management theories have borrowed heavily from the field of philosophy. Management theories begun to evolve during the pre-industrial period, reshaped and improved through the industrial and World Wars I and II and were of vital importance during the economic growth era that span from the 1960s to 1980s. Over the recent past, management theories have transformed and became more complex whose focus have diverted from the application of concepts of behavioral science but instead relies more on the concepts of organizational structure and quality assurance (Kwok, 2014).

Strategic management has evolved and developed into the relevant field since it has a potential to explain factors of success or failures in an organization. The diversity and multifaceted nature of strategic management tend to capture the attention and interests of researchers from different fields (Guerras-Martin, et al., 2014). Researchers from the fields of sociology, psychology, economics, management and organizational theory are most often involved in the study and explanation of strategic management and as a result different approaches have been employed to explain sources of success or failure in an organization (Guerras-Martin, et al., 2014). Different factors have been put forth attributable to the contribution from different disciplines altogether. Both internal and external factors have been examined in an attempt to establish the reliable factor/ sources of weaknesses or strengths in a given firm (Guerras-Martin, et al., 2014).

In an entrepreneurship perspective, the markets are viewed as undergoing a process of constant transformation, largely due to behavior adopted by individual organizations. The external forces may force a given firm to behave in a certain way. Organizations maintain their market competitiveness by identifying mark shifts and maximizing on profitable opportunities as soon as they emerge (Guerras-Martin, et al.,2014). Strategic entrepreneurship combines both opportunity - and advantage behavior to realize success and maintain market relevance. Internal factors of success or failure of a given organization depend on the manner in which it can acquire and distribute resources, the depth, and range of its knowledge-base and its capability to accept and adapt to change (Guerras-Martin, et al., 2014).

Conclusion

The thinking and practice of management have evolved over the years. In the 19th century, individuals were investing in businesses and manage it themselves; however, the wake of industrial revolution transformed the world of business and its management. The industrial revolution created a new organizational structure in which individuals or other organizations could invest in a particular organization run and managed by the selected few. Strategic management emerged in the 1960s and had grown regarding relevance and necessity since that time. Evolution of management may be shaped by factors such as corporate social responsibility, the need for decentralization and internationalization, a collaboration between organizations, strategic leadership, marketing and competitive strategies and a public picture of an organization.

Strategic management has been studied extensively by researchers from various fields. The purpose of the studies was to identify and explain external and internal forces that influence success or failure in a given organization. Strategic management is known to change depending on both external and internal forces. The attempts to maintain market relevance and competitiveness depend on constant managerial change. Internal factors of success or failure of a given organization depend on the manner in which it can acquire and distribute resources, the depth, and range of its knowledge-base and its capability to accept and adapt to change. Whereas, external factors involve adaptation to market demands and attempts to outcompete collaborate with competitors. Management theories might have borrowed from the field of philosophy. In the past, theories were structured based on the knowledge of behavioral science. However, over the years, attention has been placed on organizational structures and quality assurance as researchers review, modify or develop new management theories. Management is an evolving role which will continue to change by both internal and external factors. For, instance globalization and international cultural awareness is on the increase. Management strategies and structures need to transform and gain an ability to manage and multi-national and a cross-cultural workforce.