Strategic management Link between strategic planning and performance Essay

Strategic management Link between strategic planning and performance - Essay Example Here strategic planning is used as a term to illustrate an organisational decision-making process, which can be generally defined as the process of realising the mission, primary goals, tactics, and approaches that govern the attainment and allocation of resources to accomplish organisational objectives (Pearce et al., 1987, p. 658). The major intention of this essay is to contribute new pragmatic evidence on the connection between strategic planning and performance, and to reflect on the effect of a set of related variables on this association. Mintzberg and Lampel, (1999, pp. 21-30) indicate that the term formal strategic planning is an intention to express that an organisation's strategic planning overall process entails apparent systematic procedures used to increase the participation and commitment of those chief stakeholders influenced by the plan. Study on the association between strategic planning and firm's performance has proved indecisive. From the early researches it is revealed that strategic planning improved performance (Herold, 1972, p. 94). However, later studies revealed that there was no patent systematic relationship between them (Shrader et al., 1984, pp. 149-171). Bresser and Bishop (1983) argued that if strategic planning bring in firmness and supports excessive bureaucracy then it might be called as dysfunctional. Despite the sustained significance of performance aim... 101-109) has mentioned that concentration has not been given to strategic planning and performance in experiential study. According to Greenley (1994), primarily, it should enhance the organisation's performance. The basic conjecture of strategic management emphasises on the planning of a task, aims and targets, of which organisation performance is a component, the practice of strategies to achieve these aims and targets, and control to guarantee that the targets are accomplished. Second, the intention of strategic planning is to increase the value of management all over an organisation. As a result this could bring about indirect perfection in performance, although its effectiveness may, certainly, be lost in the intricacy of variables with the likelihood to influence performance. However, managers may understand that it adds to effectiveness, giving them a sentiment of confidence and control. Strategic planning may therefore be useful as a process of management, in spite of the performance attained. In fact, the entire concentration of strategic management evolves around the accomplishment of objectiv es, which correspond to ambitions for future performance. Boyd (1991, p. 355) defines that strategic planning is a mean to run environmental turmoil, which has been adopted by numerous organisations. In addition, formal strategic planning is an unending managerial process, with a number of elements, embracing establishment of objectives and creation and assessment of strategies. A useful strategic planning system creates a link between long-range strategic objectives with both mid-range and functional plans. Planners gather data, estimate, and frame out and build alternative future scenarios. Ostensibly, such activities permit organisations to