Friday, December 11, 2020

What are the advantages & disadvantages of senior managers formulating strategy?

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Disadvantages


„h Implementing strategy is not a straightforward process especially in public services industries. In higher education for example it has been argued that formulating strategies might require a fundamental shift in education values which would include a much greater awareness of the students as customers. It would require changes in the concepts adopted by this self regulating organisation. ¡¥The goals of higher education are concerned with process as outcome¡K..these goals are concerned with the intellectual development of individuals, manifested in person, social & economically-relevant attributes¡¦ (Robertson, 1, pg 41).


„h Another disadvantage is that by choosing the wrong strategy this can lead to a compromise in the service provided in an organisation where this attribute is essential. Richards & Rodrigues (1) argue that there are two types of strategies in public services


(1) Type A driven by central planning & control with implementation within tight specifications


Help with essay on What are the advantages & disadvantages of senior managers formulating strategy?() Type B driven by market considerations


The NHS has adopted strategy type A. More control is put in the hands of managers. This strategy is being used more and more because of the pursuit of efficiency & the need to curtail public expenditure.


„h Implementing strategy for major organisations can also be very complex, costly & time consuming


What are the advantages & disadvantages of senior managers formulating strategy?


Advantages


There are many advantages to managers formulating strategy, the benefits to organisations include


„h Creating a capacity to be proactive & respond positively to change in the environment (this is an essential factor in todays rapidly changing marketplace)


„h Optimising organisational performance & results (this means greater efficiency & potential increase in profits)


„h Identifying different strategic options (there are many different strategic options out there. By looking at stratewgic management managers may find strategies which are more relevant to their organisations needs than perhaps 1 they are using already)


„h Identifying & exploiting opportunities & threats (this can help predict problems & be more prepared for them before they happen)


„h Reducing bureaucracy & the duplication of work. (by doing this it can lead to a more happier & productive workforce. It can be achievied by implementing strategies such as job empowerment, job flexibility, increasing job scope, etc.)


„h Encourage forward thinking by the organisation as a whole (this can mean more of the organisation working as a whole & can reduce the ¡¥blame culture¡¦ which plagues many organisations today)


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