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Evolution of Strategic management:

In the previous days, talking about the 1920s till 1930s, the managers used to work outthe
day-to-day planning method. Till this time they do not concentrate about the
futurework. However after this period, managers have tried to anticipate and predict about
thef ut ur e happeni ngs . The y s t ar t ed us i ng t ool s l i ke pr epar at i on of Budget s
and
cont r ol s y s t e m l i k e c a p i t a l b u d g e t i n g . Ho we v e r t h e s e t e c h n i q u e s a n
d t o o l s a l s o f a i l e d t o emphasize the role of future adequately.Then long-range planning
came into picture, giving the idea of planning for the long-termfuture. But it was soon replaced
by Strategic planning and later by Strategic management-a term that is currently being used to
describe the process of Strategic decision-making.The first phase of the planning can be tracked
in the mid of 1930s. The planning at that period was done on the premises of Ad Hoc policy
making. The reason why the need for planning arose at that period was that, many businesses
had just about started operationsand were mostly in a single product line and the ranges
of operation were in a limitedarea. As these companies grew they expanded their
products and also increased their geographical coverage. The method of using
informal control and coordination was not e nough and became i r r el evant
as t hes e compani es expanded. Thus ar os e a need t ointegrate functional areas.
Framing policies to guide managerial actions covered this
task of i nt egr at i on. Pol i ci es hel ped t o have pr edef i ned s et
of act i ons , whi ch hel ped t hemanager t o make deci s i ons . Pol i c y-
maki ng became t he wa y owner s managed t hei r business and it was considered
their
prime responsibility.Thus , t he i ncr eas i ng envi r onment changes i n t he 1930 s an
d 1940 s pl anned pol i cyformation replaced Ad Hoc policy making, which led to
the shifting of emphasis to
thei nt egr at i on of t he f unct i onal ar eas i n a pol i cy changi ng envi r onment , s h
owi ng anindication of the evolution of Strategic management.The Importance of Strategic
management:

Strategic management is a wide concept and encompasses all functions and thus
itseeks to integrate the knowledge and experience gained in various functional areas
of management.

It enables one to understand and make sense of the complex interacti on that
takes place between different functional areas.

There are many constraints and complexities, which the Strategic management dealswith. In
order to develop a theoretical structure of its own, Strategic management cutsacross the narrow
functional boundaries. This in turn helps to create an understandingof how policies are
formulated and also creating a solution of the complexities of theenvironment that the senior
management faces in policy formulation.Role of the Managers

Managers need to be in control and therefore begin by gaining an understanding of
the bus i nes s envi r onment . The y can become mor e r ecept i ve t o t he
i deas of t he s eni or managements. Keeping in mind todays scenario Mr.Kamat
from ICICI underlined thefollowing roles that are always expected from a manager:

Managing and understanding Information Technology, which is changing the face of the
business.

Manger s need t o be or i ent ed t owar ds s har ehol der val ue, as publ i c
and commoninvestors own more and more companies. Managers would need
to acquire skills tomaximize shareholder value.
I t i s es s ent i al f or t oday s manager t o f or es ee t he
f ut ur e and t r ack changes i ncustomer expectations thus take a Strategic
perspective.
Managers should have t he capability of initiating and managing change
throughleadership and personal qualities of patience, commitment and perseverance.
Manager s woul d have t o pr ovi de s peedy r es pons es t o envi r onment al
changes t h r o u g h i n f o r m a t i o n s y s t e m s a n d o r g a n i z a t i o n a l
p r o c e s s e s , b e c a u s e t h i s responsiveness is very important due to the
rapid changes in the environment andscenarios that the business faces.
They should be capable enough to deal with the chaotic situations and
the complexrelationship between decision variables.
Managers will need courage in decision making as the situation become
complexand uncertain. They would have to develop courage to make unconventional
decision.
Managers would have to maintain high ethical standards in business and
focus onsocial responsibility.