In order to achieve this aim, an organizational strategy must be put into action. Managers need to think strategically as their decisions have a strategic impact as well as contributing to the organisational change (Emilia Papulova & Papulova 2006, p. 01). In essence, strategic management is a tool that is crucial to the success of the organization. This essay discusses strategic management of contemporary organisations. It argues that human resource management and marketing are the two areas of strategic management that are critical to the strategic success of contemporary organisations. It considers various global strategies used by organisations to deal with various challenges that include strategic planning.
It also includes approaches to stakeholder engagement and management by the organisations. Strategic management is a discipline that is relatively new to organisations. Its origin can be traced back to over five decades ago. It has since evolved and has become a consolidated field in the sphere of modern management (Guerras-Martin, Madhok, & Montoro-Sanchez 2014, p. 69). The discipline has gradually progressed towards maturity over the years due to various developments in the organisation.
For example, corporate social responsibility has become an important part of the organisational function. This has in turn led to the need for companies to institute strategies to deal with competitive pressures. Another reason indicating the growth of strategic management is the increased consensus in such notions as strategic management and strategy definitions (Ronda-Pupo & Guerras-Martin 2012, p. 165). However, diversity in the definition of strategic management is still a common feature. Despite this fact, several studies have identified some similar concepts that form strategic management. For example, Nag, Hambrick, & Chen 2007, p.
936) identified the internal organisation, firms, performance, resources, environment, strategic initiatives, and managers/owners as components of strategic management. Organisations are composed of many functional areas that interact for purposes of organisational success. Marketing, human resources management, finance, and operational management are areas of strategic management that are critical to the strategic success of the modern organisations. Human resource management (HRM) is an area of strategic management that must be managed properly to achieve organisational success. HRM has been linked with many aspects of the organisation.
For example, Welbourne and Andrews (1996) linked HRM with organisational survival. Furthermore, HRM has been linked with organisational turnover, firm value, productivity, and financial returns. It is often said that an organisation that managed its human resources properly is in a better position to achieve its goals and objectives. HRM affects many organisational functions and without it, an organisation cannot function. It is therefore not surprising that HRM is one of the important areas of strategic management, which has been called strategic human resource management (SHRM). This is because the emphasis is on the strategic role that human resource management play in the accomplishment of business objectives (Delery 1998, p.
289). Establishment of sound HRM practices is the first step that managers have to carry out in putting their organisations in a strategic position towards the achievement of organisational success. The field of human resource management strategy has considerably developed in the last two decades in both literatures and in practice.
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