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CHAPTER 6: CHARTING THE FUTURE IN STRATEGIC
MANAGEMENT
6.1 INTRODUCTION
Dramatic changes are taking place within the environmental context of South
African business organisations. The management of these organisations can
no longer afford to ignore the changes that are taking place within South
Africa at present, particularly within the business environment of the
organisations concerned. In order to position the organisation optimally within
a turbulent environment management needs to manage both the strategy and
the culture of organisations. Few South African managers understand the
dynamics of culture formation or change and, for many, integrating the
strategy and culture of their organisations into a synergistic entity will be a
new experience.
In order to manage strategic and cultural change effectively managers need to
acquire a clear understanding of the concept of organisational culture and its
role in the implementation of strategy.
Executives responsible for the
formulation and implementation of organisational strategy therefore need to
develop insight into the culture formation, preservation and change
processes, as well as the function of organisational culture within the business
strategic management process.
The insight gained and the conclusions
drawn from this study should assist strategic management executives in this
regard.
6.2 A STRATEGIC MANAGEMENT PERSPECTIVE ON CULTURE
STRATEGY
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6.2.1 Strategic management
Strategy is a deadly serious operational tool because the livelihood, and
indeed the lives, of all depend upon how and with what results it is achieved.
Similarly, in business, strategic management is a process whereby the
organisation is optimally positioned in its competitive environment to ensure
both the survival and growth of the organisation.
Most researchers view strategic management as a process consisting of
various components. The researchers differ with regard to the components
that are included in the strategic management process and the order in which
the components should be implemented.
There appears to be general
agreement, however, that strategy formulation and implementation constitute
the core of the strategic management process. Few researchers specifically
include organisational culture as a major component of the strategic
management process.
This reflects the lack of understanding about the
concept of organisational culture within the context of strategic management.
Senior managers in organisations tend to follow the trends established by
strategic management theorists and researchers. They therefore fail to take
the prevailing culture of their organisations into account in formulating and
implementing organisational strategy.
The difficulties executives experience in implementing strategies formulated
for their organisations may partially be attributed to the fact that the
organisation’s prevailing culture does not support the strategy formulated for
the organisation.
Organisational culture should therefore form a component
of the strategic management process. Torrington & Hall (1995: 114) concur
with this conclusion:
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Organisational culture is the characteristic spirit and belief of an
organisation, demonstrated in the norms and values that are generally
held about how people should behave and treat each other, the nature
of working relationships that should be developed and attitudes to
change.
These norms are deep, taken-for-granted assumptions that
are not always expressed, and are often known without being
understood.
6.2.2 Organisational strategy
Organisational strategy has become a salient feature of management thinking
and action, especially as the business environment has become more
unpredictable. Strategy is about developing a vision of what the business is,
what it could be and how it could get there, and then setting objectives that
are milestones along that particular road through a changing environment.
The concept of organisational strategy encompasses both the formulation and
implementation of strategy. The two phases of the concept are so interrelated
and interdependent that they are viewed as an integral entity, only separated
for the purpose of studying the concept (Torrington & Hall 1995: 114).
Strategic management practitioners are unable to formulate strategy without
considering its implementation requirements and consequences.
In
formulating the strategy of the organisation, management needs to evaluate
the culture required for its implementation. The appropriate culture for an
organisation is that required for successfully implementing strategy in the
organisation.
Researchers tend to distinguish between three levels of organisational
strategy, namely corporate, business and functional levels of strategy
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(Pearce & Robinson 1995: 8-10). Strategy formulation at the various
hierarchical levels within the organisation differs in nature, scope and content.
Corporate executives formulate strategic objectives that span the activities of
the entire organisation.
At the business level of the organisation, executives
focus on positioning the business division optimally within its competitive
environment, with due reference to the attainment of the strategic objectives
formulated for the organisation at corporate level.
Business division executives therefore translate general statements of
strategic direction and intent, formulated at corporate level, into concrete
objectives and strategies for the business division (Torrington & Hall 1995:
24). At functional level, managers implement shor t-term strategies which are
directed at the realisation of the strategic objectives formulated for the
business division. In formulating strategy, business division and functional
division managers need to contend with strategy formulated at a preceding
hierarchical level within the organisation and, at the same time, they need to
position the business division within its environmental context (Gibson et al.
1997: 98).
6.2.3 Organisational culture
The history and tradition of an organisation reveal something of its culture
because the cultural norms develop over a relatively long period, with multiple
layers of practice both modifying and consolidating the norms and providing
the framework of ritual and convention in which people feel secure, once they
have internalised its elements (Carrol 1997: 67; Torrington & Hall 1995: 114).
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The definitions attributed to the concept of organisational culture by
researchers tend to vary in accordance with each researcher’s perception of
the concept and the context in which the concept is being analysed.
In
defining the concept, researchers have been influenced by the definitions
attributed to the concept within the field of anthropology, as the concept
originated from within this field of study.
Organisational culture has often been confused with other concepts, in
particular with organisational climate.
Within the context of strategic
management a clear distinction is drawn between organisational culture and
climate and this distinction is both subtle and relevant (Brown 1995: 150).
Cultural anthropology provides a conceptual frame of reference for defining
and researching organisational culture within the context of strategic
management. Anthropologists view the concepts of culture and society as
related
concepts.
From
a
strategic
management
perspective,
the
anthropological correlation requires strategic management practitioners to
view their organisations as social constructions.
This requires a reorientation of traditional views of the concept of an
organisation, which traditionally has been interpreted in terms of structures
and tasks and not as a social entity.
In formulating and implementing
strategy, managers now need to contend with the socio-cultural dimension of
the organisation, if the anthropological correlation is accepted as valid within
the context of strategic management.
The symbolic aspects of culture are stressed within an anthropological context
and it has become apparent in this study that managers need to take
cognisance of organisational symbolism as a cultural dimension in the
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implementation of strategy. For the anthropologist, culture is an integrated
system of beliefs, artefacts and patterns of behaviour which are shared by
members of society through a process of learning.
Viewed within this context, organisational culture provides a radically new
perspective on organisations as a means of implementing strategy. It is a
perspective with which many managers are often totally unfamiliar with.
Management researchers and practitioners are able to make use of many of
the cultural concepts developed in the field of anthropology to gain a better
understanding of the social interaction processes that take place within
organisations in implementing strategy.
Three levels of organisational culture have been identified, namely artefacts,
organisational values and the basic assumptions on which organisational
values are based. In practice few, if any, strategic management researchers
or practitioners delve into organisational culture at its lowest level in order to
determine the underlying assumptions on which organisational values are
based, as they are difficult to uncover or manage.
From a strategic management perspective the first two levels of organisational
culture have relevance in both deciphering and managing the culture of the
organisation.
Various definitions have been attributed to the concept of organisational
culture within the context of business strategic management. Central to this
definition is a pattern of shared values, beliefs, norms, assumptions and
behaviour that are associated with a particular organisation or groups within
the organisation.
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Organisational researchers and writers basically question which elements of
culture are shared by the group concerned. The definitions imply that
organisational behaviour is prescribed by collectively created and sustained
patterns of beliefs, values and norms, which, if accepted as being correct, will
mean that the organisation’s culture will exert a substantial influence on the
formulation and implementation of strategy.
Organisational researchers and practitioners are increasingly recognising the
limitations of traditional approaches to business strategic management and
are becoming more aware of the importance of using a cultural approach to
gain a better understanding of organisations as social constructions; a
dimension of an organisation that managers need to contend with in the
formulation and implementation of business strategy.
The concept of organisational climate is often confused in the literature with
that of organisational culture and this may result in management practitioners
confusing the concepts within a business management context.
Organisational climate is defined in terms of individual perceptions of the
organisation’s working environment. It may therefore be directly correlated to
job satisfaction. Researchers tend to differ as to which dimensions of the
working environment should be included or measured in climatic studies of
organisations.
Organisational climate is multi-dimensional in that several dimensions of the
working environment interact to constitute the climate within organisations.
Climate measures whether employees’ expectations about working in the
organisation are being met, while culture is concerned with the nature of these
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expectations. Organisational culture applies to the organisation as an entity,
with the emphasis on shared values and not on the individual perceptions of
the employees of the organisation.
Within the context of business strategic management it is the shared values
and beliefs of employees that will be a major determinant in aligning
organisational culture with strategy, not the individual perceptions of the
organisation’s employees. Individual perceptions may not correlate with the
values shared by the majority of the organisation’s employees and, in
formulating and implementing strategy, it is these shared patterns of values
and beliefs that have relevance.
The distinction drawn between organisational culture and climate is relevant
within a business strategic management context.
From a practical
perspective managers will not concentrate on changing the individual
perceptions employees have of the working environment, but will tend to
shape the shared values and beliefs within the organisation.
6.2.4 Culture formation
Organisational culture evolves through the social interaction that takes place
within organisations, as employees test various values and beliefs over a
period of time and develop a shared learning experience, which leads them to
accept certain assumptions made as valid. If these assumptions continue to
be effective in resolving the problems confronting the organisation on a
reliable
and
consistent
basis,
they
become
embedded
within
organisation’s system of cultural values and beliefs.
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Organisational culture gives rise to cultural artefacts and organisational
symbolism which play a major role in conveying and perpetuating the culture
of the organisation. By adding a socio-cultural dimension to organisational
reality,
a
totally
new
dimension
implementation of strategy.
is
added
to
the
formulation
and
Managers now need to align the socio-cultural
dimension of the organisation to the strategy formulated for the organisation.
Central to the culture formation process is the role played in the process by
the chief executive officer and the top management of the organisation. They
convey the desired core values of the organisation to employees through their
behaviour and actions, which are instrumental in shaping the culture of the
organisation.
This assumption has major implications for the top management of the
organisation, as they need to be aware of the values and beliefs that they are
conveying to members of the organisation through their behaviour and
actions. The values conveyed should be consistent with those needed for the
implementation of the organisation’s strategy.
6.2.5 Culture preservation
Researchers generally agree that an organisation’s culture is shaped by
means of its employee socialisation processes (Brown 1995: 150; Gibson
et al. 1997: 98; Johnson & Scholes 1999: 217; Stacey 1996: 155; Torrington &
Hall 1995: 114). The purpose of the socialisation process is to convey the
values, norms and beliefs of the organisation to the new members of the
organisation.
Strategic management practitioners should therefore ensure
that the values conveyed to new employees are those required for the
implementation of the organisation’s strategy.
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The organisation’s values, beliefs and norms are manifested by means of
organisational myths, stories, legends, rituals and specialised language
systems, which are all instrumental in conveying, interpreting and reinforcing
the culture.
By means of the symbolic interaction that takes place during
organisational rituals and ceremonies, managers are able to convey to
employees the cultural values deemed to be important from a strategic
management perspective.
6.2.6 Deciphering organisational culture
Researchers contend that major changes in organisational strategy can only
be implemented successfully if they are congruent with the culture of the
organisation. Business strategic management practitioners therefore need to
be able to decipher the cultures of their organisations.
The artefacts or
manifestations of an organisation’s culture need to be interpreted in order to
determine the values and beliefs of the organisation. This is a subjective and
extremely difficult task in which the skills of the investigator play a major role.
The deciphering process is based on the interpretation of the messages
conveyed
through
the
organisation’s
implicit
and
explicit
forms
of
communication. A detailed analysis of the organisation’s symbolism is an
essential component of this process.
Strategic management practitioners
therefore need to acquire sensitivity to organisational symbolism and its
interpretation in order to decipher the cultures of their organisations.
A few researchers have grouped organisational cultures into one of four basic
types, namely a power, role, task and person culture. This typology of culture
may not characterise the culture of every organisation, but it does provide a
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form of reference for researching the concept and its influence on the strategy
of the organisation. The type of culture best suited for the implementation of a
particular strategy can be determined on a general basis by means of such a
typology of organisational culture.
6.3
ORGANISATIONAL CULTURE AND STRATEGY: AN
INTERACTIONAL ANALYSIS
Managing cultural and strategic change within the organisation is a complex
process which requires extensive managerial experience. Organisations
therefore tend to either include the prevailing values of the organisation, in its
mission statement and formulate strategy so as to ensure congruency
between the strategy and the culture of the organisation, or more often than
not they totally ignore the culture of their organisations in the formulation of
strategy. In the latter case organisations tend to exclude organisational culture
as a dimension of the mission statement as well (Weeks & Lessing 1988: 54).
6.3.1 Literature analysis
Notwithstanding the proliferation of literature on the concepts of organisational
strategy and culture, as well as the extensive emphasis placed on aligning the
organisation’s culture with its strategy, very few researchers have presented
theories as to how practitioners can integrate the concepts within a strategic
management context. In terms of the findings of this study it may be assumed
that the organisati onal culture can either support or inhibit the implementation
of organisational strategy.
Strategic management practitioners can therefore no longer afford to ignore
the socio-cultural dimensions of their organisations in formulating and
implementing strategy.
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6.3.2 The mission statement
The formulation of the organisation’s mission statement forms an essential
component of the strategic management process. The mission statement of
an organisation is the most generalised statement of organisational purposes,
revealing the strategic vision and objectives of the organisation, and can be
thought of as an expression of its raison d’être.
It also incorporates and
conveys the core values of the organisation, thereby entrenching the
organisation’s culture into its mission statement (Johnson & Scholes 1999:
224).
However, incorporating the organisation’s core values into its mission
statement does not imply that these stated values constitute the culture of the
organisation. If the top management of the organisation only pays lip service
to these values in implementing strategy and they are not reinforced by
managerial example, then the values symbolised by managerial behaviour will
be accepted as the true core values of the organisation.
Strategic
management practitioners therefore cannot promulgate the values required
for the implementation of strategy by means of the organisation’s mission
statement alone.
The core values conveyed to the members of the organisation through the
mission statement must be embedded within the organisation through
appropriate management behaviour and organisational culture support
systems. The organisation’s mission statement is an important first step in
identifying the values required for strategy implementation and for entrenching
these core values into the organisation.
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Either the prevailing core values of the organisation or the values deemed
essential for the implementation of the organisation’s strategy may be
included as a component of the mission statement.
By including the
prevailing values of the organisation in its mission statement practitioners
place a constraint on the formulation of strategy. An alternative and more
practical approach is to form a vision of the organisation’s future strategic
direction and then formulate strategies to realise this vision and position the
organisation in its future environmental context.
On the basis of the strategy formulated for the organisation, cultural values
are determined to implement the strategy. These values are then included in
the organisation’s mission statement as a first step in shaping the culture of
the organisation.
The only alternative is to align the strategy of the
organisation with its prevailing culture, thereby limiting the strategic options
available to management.
This can lead to the demise of the organisation as
it is unable to formulate strategies that will be optimally responsive to the
changes taking place in the organisation’s environmental context.
6.3.3 Corporate strategy: cultural perspective
Corporate strategy is concerned with what activities or businesses the
organisation should be involved in and how the corporate level should
manage that set of businesses. In other words, corporate strategy is about a
portfolio of businesses and what should be done with them.
In order to
determine whether a plan is likely to be acceptable in cultural terms it is
necessary to analyse the core beliefs that people in the organisation share.
Analysis of the core beliefs will reveal whether options being considered fall
within that culture or whether they require major cultural change.
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Traditionally corporate portfolio strategies have been formulated on the basis
of technological, financial and strategic considerations. The socio-cultural
dimension of the organisation was ignored in the formulation of the
organisation’s portfolio strategy.
The Boston Consulting Group (BCG) matrix is generally accepted as a basis
for portfolio management by researchers and practitioners.
A distinct
correlation between the BCG matrix, the organisation’s business product life
cycle and its culture has been established. The correlation between the three
elements concerned are best conceptualised by means of the contingency
model of strategic cultural planning. One view of strategic management is,
indeed, that strategy can and should be managed through planning processes
in the form of a sequence of steps involving objective setting, the analysis of
environmental trends and resource capabilities, continuing through the
evaluation of the different options, and ending with the careful planning of the
strategy implementation. Here, then, the underlying principle is that strategies
are the outcome of careful objective analyses and planning.
Many organisations do have formal planning systems, and find that they
contribute usefully to the development of the strategy of their organisation.
However, not all organisations have them, and even when they do, it would be
a mistake to assume that the strategies necessarily come about through these
systems.
It is assumed that a deeply entrenched corporate culture can be a major
barrier when an organisation implements a growth strategy which moves the
organisation into a different product market or life cycle stage. The
organisation’s culture tends to anchor the organisation to one of the four
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trends of the contingency model.
In formulating portfolio strategies,
management practitioners need to contend with both the organisation’s
culture and its life cycle.
The contingency model suggests that strategic
practitioners need to give particular attention to culture compatibility when
implementing growth strategies based on the acquisition of additional
businesses.
Four basic growth strategies are used to achieve organisational growth:
• vertical integration;
• horizontal integration;
• conglomerate diversification; and
• concentric diversification.
With the exception of conglomerate diversification, the failure to successfully
integrate the cultures of merging businesses is the cause of culture shock
within the businesses concerned.
Before implementing a growth strategy based on mergers or acquisitions, it is
important that managers determine whether there are any irreconcilable
mismatches between the culture of the business and the core values of the
organisation.
6.3.4 Business division strategy: cultural perspective
Business divisions need to formulate strategies and develop cultures that are
responsive to the environmental conditions confronting them. The business
division will be unable to formulate goals for the organisation without
conducting a detailed assessment of an organisation’s external and internal
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environmental context. The organisation’s culture is deemed to be a major
component of the organisation’s internal environmental context.
Strategy
formulation cannot be divorced from strategy implementation. In formulating
strategy executives will be influenced by the prevailing culture of the
organisation which acts as a cultural filter in an analysis of the organisation’s
environmental context.
Practitioners need to be aware of the influence of the organisation’s culture on
the formulation of strategy, so as not to be blinded by the prevailing culture of
the organisation, thereby making the organisation unresponsive to changes
taking place in the environmental context of the business division.
Organisational culture is viewed as a determinant of the business division’s
actual behaviour patterns and the organisation’s environmental context is
responsible for determining the required behaviour patterns for effective
strategy implementation.
It is the function of the strategic management
practitioners to correlate the two in formulating strategy.
Three key categories of business division strategies were identified:
• overall cost leadership;
• differentiation; and
• focus strategies.
Successful implementation of one of these strategies is only possible if
employees are committed to the principle underlying the strategy.
These
principles are based on the culture of the organisation and strategic
management practitioners need to ensure that this culture supports the
strategy to be implemented by the business division.
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6.3.5 Functional strategy
A business division plan sets out how the business division is going to build a
posture and position superior to that of its rivals, thus enabling it to achieve
the performance objectives set by the corporate level.
In other words,
business division strategy is about the means of securing and sustaining
competitive advantage.
Finally, since business divisions are generally
organised on a functional basis – finance, sales, production and research
departments, for example - the business division strategy will have to be
translated into functional or operational strategies.
Functional strategies are short-term and translate business division strategies
into action plans for the functional departments of the organisation. At the
functional
level
of
the
organisation
the
emphasis
is
on
strategy
implementation. Traditionally, strategy implementation has been viewed in
terms of policies, structures, budgets, programmes and procedures, with no
attention being given to the culture of the organisation as a behavioural
determinant essential for the implementation of strategy.
Subcultures evolve within the functional departments of the business division
and are a reflection of the socio-cultural systems within these businesses.
Underlying this view is the recognition that the department’s culture is socially
constructed through shared patter ns of values and beliefs, which are
responsive to the environmental conditions confronting the department
concerned.
Increased differentiation on a functional basis increases the opportunity for
the emergence of countercultures at the functional level of the organisation,
with a consequent increase in interdepartmental conflict in the implementation
of strategy.
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The dominant culture of the organisation acts as a unifying element within the
organisation’s
social
system
in
that
it
facilitates
interdepartmental
communication, understanding and co-operation in implementing strategy.
Strategic management practitioners therefore need to pay particular attention
to the core values of the business divisions as a means of reducing
interdepartmental conflict in the implementation of strategy.
6.4
MANAGING STRATEGIC AND CULTURAL CHANGE
Dynamic and effective organisational leadership plays a fundamental role in
the change process. It is the leaders of the organisation who translate the
strategic vision into reality by implementing strategic and cultural change.
Their role in the change process is both symbolic and substantive.
The
leaders of the organisation implicitly convey the core values of the
organisation to its employees by means of appropriate behaviour and
symbolic action. In implementing strategy, therefore, management needs to
be aware of this in order to ensure that the values conveyed are not
counterproductive to initiating and sustaining cultural change within the
organisation.
Environmental change acts as a catalyst for strategic and cultural change.
Managers in implementing strategy need to consider all organisational
systems at their disposal for effecting strategic and cultural change. The
interaction that takes place between these systems is extensive and they
need to be integrated into a concerted synergistic effort to realise strategic
and cultural changes required for the future survival and growth of the
organisation in a highly competitive environment.
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The intrinsic and extrinsic reward systems of the organisation are of immense
importance in the change process in that they motivate employees to react
positively to the changes initiated within the organisation. From a strategic
management perspective rewards need to be correlated to the achievement
of specific long- and short-term objectives, which are related to the realisation
of the strategic vision formulated for the organisation. The incentive
programmes need to include all levels of management and employees of the
organisation to be effective in realising strategic change.
Managers tend to avoid risk and all strategic changes involve an element of
risk. It is therefore essential that the organisation’s culture support risk-taking.
The organisation’s reward system needs to create and sustain a cultural
environment which will be conducive to risk-taking within the organisation. In
implementing strategic change within their organisations, practitioners
therefore need to ensure that reward systems of their organisations do not
inhibit but, instead, promote strategic change, by creating suitable sociocultural environments conducive to risk-taking and organisational change.
Organisational symbolism not only reveals and perpetuates the culture of the
organisation, but also acts as a means of effecting cultural change within
organisations. A change in the values or beliefs of the organisation is
communicated implicitly through organisational rituals, myths, stories, heroes
and
related
symbolic
forms
of
communication.
Implicit
forms
of
communication need to be interpreted by the employees of the organisation in
terms of their shared past experience. The organisation’s symbolic historical
context constitutes an interpreted meaning of historical events and is not an
objective account of the organisation’s history and traditions.
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Reinterpreting the organisation’s historical context through the collective
creation of new organisational experiences is an effective means of changing
organisational values and embedding these values within the organisation’s
revised historical context. Notwithstanding managerial efforts to shape the
culture of their organisations through symbol manipulation and interpretation,
the original legends and stories of the organisation will still be recounted.
The values espoused in these implicit forms of communication should be
exposed as the old way of doing things.
Practitioners therefore need to
establish new heroes, legends and myths within the organisation, which
personify the revised core values through symbolic interpretation.
At the
same time, they need to expose old values as inhibiting strategy
implementation and emphasise that for the organisation to survive, a new
methodology and its associated value system needed to be instituted.
Managing organisational symbolism is a complex task, and managers need to
be aware of their organisation’s symbolism, its interpretation, the means used
for conveying the symbolism and its influence on both the strategy and culture
of the organisation.
The importance of human resource management as a means of managing
strategic
and
overemphasised.
cultural
change
within
the
organisation
cannot
be
Various researchers have accentuated the value of
employee selection, socialisation and training programmes as a component of
the strategic and cultural change process. In theory, the organisation needs
to select employees who possess the cultural attributes for implementing the
organisation’s strategy.
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In practice, management is confronted with prospective employees from
diverse socio-cultural environments and they will need to redirect these
employees’ cultural orientations through appropriate socialisation and training
programmes in order to achieve cultural compatibility with the strategy of the
organisation.
Strategic changes are often associated with changes in the organisation’s
technological environment. In implementing strategy based on technological
innovation, organisations need to either retrain the employees of the
organisation or employ employees with the required knowledge, skills and
expertise to implement the technological changes.
The value needed for
implementing the technological innovations may differ substantially from the
prevailing culture of the organisation.
By employing employees who possess the required practical and cultural
attributes a change in the organisation’s culture is initiated. These employees
will convey the new skills and the associated cultural dimensions to the
employees of the organisation through the social interaction that takes place
between the employees concerned in the execution of their duties.
Organisational training programmes are an indispensable component of the
strategic and cultural change process. Training ranges from elementary onthe-job training for lower levels of employees to strategic development of
senior executives. It encompasses the conveying of cultural attributes, the
development of job skills and competencies, as well as management
educational programmes.
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Training ensures in this way that the organisation has the necessary human
resource capabilities and qualities needed for implementing strategic change
within the organisation.
In formulating strategy, management practitioners
need to pay particular attention to the organisation’s training progr ammes to
ensure that they are conveying the required cultural values and norms to the
employees, for the successful implementation of the strategy formulated for
the organisation.
Formal statements of organisational strategy, values and philosophy by
means of organisational charters, creeds, mission statements and annual
reports are explicit forms of cultural communication. They serve as a means
of explicitly conveying a change in the organisation’s values and strategies to
employees of the organisation.
Other forms of explicit communication are
departmental noticeboards, newsletters, managerial policy statements and
managerial speeches at organisational functions and ceremonies.
These all form valuable sources of communication with the employees of the
organisation and strategic management practitioners need to ensure that the
messages conveyed through these explicit forms of communication are
congruent with the strategic and cultural requirements for implementing the
strategy of the organisation.
6.4.1 Qualitative approach
Management science has become an integral part of the approach to
problem-solving in many business.
It has especially contributed to the
development of technical and conceptual skills, but has failed to properly
integrate the theory of management. Science models do not always take the
realities of the management situation into account and leave a gap between
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theory and practice.
Because many managers are still not familiar with
qualitative and quantitative methods they find it easier to cope with daily
problems, such as the motivation of subordinates, than with the abstract
activities embodied in the development of qualitative and quantitative models.
Qualitative, quantitative and simulation techniques together with queuing
theory were applied to analyse the respondents comments because of an
apparent misconception that has involved regarding the use of these
techniques by students of management. The myth is that these techniques
cannot be used without a total and complete theoretical and mathematical
appreciation. This needs not to be the case.
6.4.2 Quantitative approach
A major point for a student of management to realise is that many companies
are making extensive use of various techniques. The need may be different
for each company, but the fact remains they are being used. Another major
point that should be made regarding the use of any technique is that the
researcher must still use his or her personal judgement once an answer has
been obtained.
After all factors affecting a decision are considered,
researcher must still exercise sound judgement in deciding whether to use
solutions that have been derived from the use of techniques.
6.4.3 Conceptual techniques
Additional technique and theory that have proven successful in assisting
managers solve problems is simulation technique and queuing theory.
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Simulation is a technique that permits managers to ask many “what if”
questions without having to make the decision in the real world. With the
advent of high-speed electronic computers, simulation has come of age. A
simulation model is used to present a real world situation through
mathematical logic in an attempt to predict what will occur in an actual
situation.
Queuing or waiting line theory is used by management to determine how
much service to provide at the time of greatest need. Although the
mathematics of a waiting line problem is often quite complicated, business
have found that the technique can assist in the solution of a variety of
problems. All the above techniques were applied in the research project and
measured against the respondents interviewed comments.
6.5
CLOSURE
Business strategic management practitioners and researchers should include
the concept of organisational culture as a key component of the strategic
management process, due to the extensive interaction that takes place
between the organisational strategy and culture in the implementation of
strategy.
In view of the complex environmental conditions confronting South African
organisations and the rapid changes taking place within this environment,
many organisations will no longer be able to rely on traditional ways of
managing themselves. The importance of strategic management will increase
dramatically and organisations need, as a matter of urgency, to implement
strategic management systems within their respective organisations.
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Organisations that have done so without considering the cultural dimensions
of their organisations in formulating and implementing organisational strategy
need to ensure that the cultures of their organisations are taken into account
in both business strategy formulation and implementation.
Managers, in
particular, need to develop a cultural awareness in their management of their
organisations, due to their important role in the culture formation and
preservation process.
They need to be continually aware of the cultural
values espoused through their behaviour and actions.
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