Other policies - Strategic Management

There is only one box left to consider from Figure, and this is not looked at in detail because what is strategic will vary from time to time. For example, remuneration may for much of the time be a purely administrative function. However, it may achieve strategic importance if the remuneration policy is hindering achievement of a corporate objective, such as a bonus scheme which emphasises individual effort, whereas the required climate of the company is to emphasise team working.

Here the bonus system may be driving people to behave in the wrong way.One way to determine areas which need attention for strategic reasons is to rate what each activity does to aid the achievement of the corporate objectives. A matrix such as Table may be helpful. This analysis will probably need to be undertaken at various levels in the organisation. Any activities which prove to be strategically critical should then be examined using the principles used for each of the other components of the model.


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Strategic Management Topics