Strategic Management: Formulation and Implementation

The Evaluation And Control Of Organizational Strategy

The basic premise of strategic management is that the chosen strategy will achieve the organization's mission and objectives.

A firm's successive strategies are greatly affected by its past history and often take shape through experimentation and ad hoc refinement of current plans, a process James Quinn has termed "logical incrementalism". Therefore, the reexamination of past assumptions, the comparison of actual results with earlier hypotheses have become common features of strategic management.

This chapter describes the nature of control, strategic controls and explains a how to set them up. It them explains key operational control systems necessary to support strategic control.

Nature Of Control

Management control refers to the process by which an organization influences its subunits and members to behave in ways that lead to the attainment of organizational objectives (Arrow, 1974; Flamholtz, Das, & Tsui, 1985; Ouchi, 1977)