The process of strategic management helps the managers to find out the answers of the above questions and designing or reshaping the strategy in order to respond to the needs of change required. These change plans are then implemented in different departments and in different phases by adjusting with the culture, environment and people of the organisation. With the increasing globalisation the importance of strategic management in bringing about change in the business organisation is also multiplied.
The role of a change manager has become complex due to the multicultural workforce increasing diversity, difference in perceptions and lack of synchronisation in different departments. On the other hand the increasing expectations of customers also add to the challenges facing today’s managers. According to Ajayi “ Several factors such as distance time, culture, history, demographics and the internal and external forces are needed to adjust in order to undertake an effective change process. ” (p. 51) This is impossible without planning and implementing change in a strategic manner.
In order to undertake the change process effectively it is important to change the culture of organisation. This can be done in a strategic way by communicating with the employees and making them getting over their fears regarding the change. The change applications and projects that develop those applications have always been subject to certain behavioural influences. The influences that can affect the performance of employees as they perform their tasks are regarded as human factor considerations. Fear as the Underlying Factor:
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The employees of the firms that installed the first data processing systems experienced fear. The employees feared that the computers would put them out of work, and in some cases that actually happened. However, even in those firms in which management had no intention-replacing people with the computer, the employees were still distrustful and expected the worst. How Employees Express Their Fears: When employees are afraid of the change they may react in various ways. The healthiest response is to openly express their fears to management.
Management then has the opportunity to respond and put the fears to rest. Many times, however, the employees will keep their fears to themselves. A relationship of trust between the employees, the information specialists, and management should be developed. Such a relationship is achieved by being honest about the projected impacts of change in the organisational systems and in living up to promises. Such formal communications and the inclusion of employee management team go a long way toward achieving trust. Align the employees needs with the objectives of the firm.
First identify the employees’ needs, then motivate the employees by showing them that working toward the firm’s objectives also helps them meet their own needs. The speed and nature of change should be given special attention. The method of undertaking the process of strategic management is of immense importance. This also effects the results of the process. An environment of trust and understanding is the most important benefit of strategic management. Managers and employees become more innovative and productive when they tend to understand the mission of the organisation and align their efforts accordingly.
Thus the productivity of the organisation improves increasing the profitability of business. The relationship between the employee compensation and the organisational performance multiplies the productivity of the organisation. The process of the strategic management empowers the employees of an organisation. The empowerment of employees increase their participation in the decision making process of the organisation. When the employees become the part of the change decision they actively participate in the whole process and play important role in the effective implementation of the change strategy.
Hence the employees help each other in the process of learning, educating, sharing and supporting the change activities. (David, p. 16) Most of the companies experiencing hyper growth rely on the strategic management and flexible business model in order to undertake effective change strategies. But it should also be kept in mind that the strategic management undertaken in a haphazard manner could be harmful for the business. According to Cook and Ferris the practices of high-performing firms reflect a more strategic orientation and longer-term focus. (P. 454)