In 1972 ansoff published the concept under the name of strategic management through a pioneering paper titled the concept of strategic management, which was ultimately to earn him the title of the father of strategic management. Strategic management is a concept that has evolved over time and will continue to evolve. Strategic management is a field of study, academic discipline and a business area. In this article, i examine how the concept of strategy has evolved into the field of strategic management, a definition of strategic management is developed from commonalities of past definitions and a selected overview of approaches to operationalizing strategic management is presented. Strategic planning is analytical in nature and refers to formalized procedures to produce the data and analyses used as inputs for strategic thinking, which synthesizes the data resulting in the strategy. Historical development of the strategic management concept. The major objective of this article is to see these historical developments which produced the emergence of strategic hrm and as well as different critics on the historical development. Concepts of strategic management presented by fred r. Universities contain many different fields of study, including physics, literature, chemistry, computer science, and engineering. Strategic human resource management is an approach which relates to decisions about the nature of employment relationship, recruitment, training, development, performance management, reward, and employee relations. The paper asserted the importance of strategic planning as a major pillar of strategic management but added a second.
Us 26 global journal of c omp uter s cience and t echnology volume xv issue i version i y ear h 201 from person to person or from task to task. This chapter provides an overview of the theories and concepts of sustainability and sustainable development and their anticipated links to global environmental, economic, and social crises. Porters subsequent book, competitive advantage 1985, which resonates more with the resource based view of the firm wernerfelt, 1984, attempts to explain. The latter is often referred to as a management development program. In a world that is becoming ever more subject to change.
Strategic management involves the related concepts of strategic planning and strategic thinking. Strategic management is the direct organizational application of the concepts of business strategy that have been developed in the academic realm. Explain the setting in which management theory first developed. Structureconductperformance and the resourcebased approach. The key concepts of the companies concerned the sources of sustained competitive advantage i. That is, strategic management entails the analysis of internal and external environments of a firrrm to maximize the utilization of resources in relation to objectives. Strategic management theories global journals incorporation. Strategic planning is, in the military sense, an ancient science of warfare. Without the leadership provided by management, the resources of production remain resources and never become production. The real accomplishment of a historian is to present the historical facts in a coherent way, by adding original explanation for why the facts occurred.
Accordingly, research on the strategic management has evolved in several ways by interconnecting with different disciplines. Perspectives on strategic planning university of south. The historical development of the strategic management concept. In this case, the development of organizational strategy depends on understanding the. Historical development of the strategic management concept scribd. Strategic management is a continuum of successive stages such as. This paper examines the issue of the historical development of the knowledge dubbed strategic management. Military campaigns and battles are typically referred to in historical literature as largescale stratagems to confront and engage the enemy. Strategy the word strategy has so many meanings itself and all these meanings are useful, important and relevant to the people who. Introduction to management and leadership concepts. This research was also made possible thanks to the financial support of the governments of france, korea, norway, sweden and the united states.
Great wisdom about strategy can be acquired by understanding the past, but ignoring the lessons of history can lead to costly strategic mistakes that could have been avoided. With a millen nium distancing the word from its origins, the word strategy has had several meanings but without ever losing its semantic roots. The strategic development process is defined here to embrace the management processes that inform, shape and support the strategic decisions confronting an organisation. The history of strategic management 2012 book archive. Various attempts have been made towards tracing the historical development of. Evolution of strategic management from the 1950s to the. The theory and practice of strategy in business organizations. The history of strategic management mastering strategic. Pdf historical evolution of strategic management, volumes i and ii. What is strategic management, and why is it important. It is management that regulates mans productive activities through coordinated use of material resources. The scientific approach taylor was the founder of the scientific approach to management, which focused on efficiency of movement and the task at hand.
It highlights the different perspectives of strategy that have emerged from. Theory and concept of sustainability and sustainable. Many authors have focused their attention on the concept of strategy but have failed to. If you continue browsing the site, you agree to the use of cookies on this website. A brief history of the concept 8 a multiplicity of meanings assumptions and metatheories 20 strategists and stakeholders 26 the social web and the political process of strategy making 33 2 thinking and acting strategically 43 case study scenariothe ikea way 44 the distinction between strategic thinking, strategic management and.
An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. His book, strategic planning 2, is close to being a bible on the subject. Examples of planning are strategic planning, business planning, project planning, staffing planning, advertising and promotions planning. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Although strategic management as a field of study has developed mostly over the last century, the concept of strategy is much older. Industrial economics and industrial organisation provided the basis to develop strategic management theories in the 1950s. Concepts by frank rothaermel free downlaod publisher.
The concept of business strategy started out as business policy, a term still in widespread use at business schools today. A contemporary perspective kipkemboi jacob rotich1, moi university, school of human resource development, department of development studies, p. Understanding strategic management can benefit greatly by learning the lessons that ancient history and military strategy provide. The historical development of the strategic management. Introduction to sea history of development of strategic environmental assessment history of environmental assessment in the western countries began in 1969, with adoption of national environmental policy act1 by. A highly readable summary of major milestones in the development of management thought. Wiggins environmental scanning strategy formulation strategy implementation evaluation and control external. Management theorists and practitioners may chose one or two of the five functions as most important, but this is not borne out normatively. Historical development of the strategic management concept free download as pdf file.
European journal of business and strategic management. Institution national center for higher education management. Critical approaches to strategic management 95 uses economic analysis of market failures to suggest how firms might seek abovenormal profits in less than competitive market segments. According to tseng 83 and obembe 60, knowledge management in an organization begins by identifying the knowledge that individuals bring in from outside the company. Structure, culture, resources missions, objectives, strategies, policies. The evolution of business strategy over the past 50 years has been significantly influenced by two general approaches. In this reading, we will discuss taylors management approach and other early management theories, and then move on to more modern approaches. In section 4, after defining the concepts of development and development paradigms, some key ingredients of recent past and prevailing development recipes are identified. The term strategic management is used to denote a branch of management that is concerned with the development of strategic vision, setting out objectives, formulating and implementing strategies and introducing corrective measures for the deviations if any to reach the organizations strategic intent. Readers get an intimate feel for the evolution of management theory through reading these original articles. In the early stages of development, strategic management concepts revolved around microeconomics. Little that managers at all levels in an organization do falls outside the purview of the five management functions. The use of strategy has existed for many centuries although its use in management has a more recent history, dating back about 40 years. Much knowledge has been generated during the different phases of the development of the concept or discipline.
Strategic management theories 2015 global journa1ls inc. Both perspectives were developed from leading academic centers and have managed to stand the test of time, albeit with occasional cosmetic changes. The historical deveiopment of the strategic i\lanagement concept jeffrey bracker georgia state university. Basic concepts of strategic management professor robert r. The purpose of this chapter is to explain the origins of strategic management. Indeed, the view on the strategic management by a certain group of people is often shaped by the groups own functional heritage and disciplinary legacy mckiernan, 1996. Strategic management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. The strategic hrm has been developed from different stages starting from personnel management and human resource management it has long historical development.
In its least appealing incarnation, history is about memorization of important events and their dates. Introduction to management and leadership concepts, principles, and practices ing. Strategic management in the 1950s started with business case studies and the works and theories of druker, selznick, chandler, and ansof and others. Management history management oxford bibliographies.
The complete concept of strategic management embraces a combination of strategic planning, planning of organizational capability and effective management of resistance to change, typically caused by strategic planning. The historical development of the strategic management discipline. The history of strategic management can be traced back several thousand years. Strategic management meaning and important concepts. The chapter presents the concept of management and its relationship with strategy and. History of management thought the evolution of management theory upon completing this chapter, you should be able to. In sections 5 to 9, the mutual links among them are explored through selected contributions from available literature which focus on development issues. Wiggins basic model of strategic management mgmt 4710 professor robert r. Learn all about management and business managementin this topic from the free management library. The chapter concludes with a strategic management framework which explains the linkages between an organizations internal and external environment, its strategy, and its stakeholders. Document resume ed 274 266 he 019 706 author chaffee, ellen earle. Ebscohost serves thousands of libraries with premium essays, articles and other content including the historical development of the strategic management concept. Historical evolution of strategic management, volumes i and ii.
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