How do strategic decision contribute to improving organizational performance?

Answer 1

ORGANIZATIONAL IMPROVEMENT AND STRATEGYFor the organization to be effective, the vision contained in the organization's strategy must be concerned with the overall task of the organization. There have been many descriptions of this task. However, for our purposes the description generated by Igor Ansoff will serve best. This states that the overall task of the organization is that of arranging, managing and controlling the 'resource conversion process in such a WA as to optimize the attainment of the objectives.'

For profit-making organizations, these objectives will be concerned with a complex mixture of often conflicting issues such as profit maximization, growth, revenue increase and power. Non-profit-making organizations will be concerned with an equally complex mixture which might include service provision, resource maximization, influence etc.

Whatever the nature or detail of these objectives might be, they are all concerned with gain. The common presence of this gain in the strategy of all organizations means that we begin to view strategy as an organization improvement process. This is so because the strategy or vision of an organization and the decision taken to arrive at it, represent, a deliberate and conscious attempt to improve outcome of the actions or performance of the organization.

These strategic decisions can be described as generating the framework within which performance improvement can take place. What certainly is true that the absence of organization strategy will mean that any effect at performance improvement might be short lived, in conflict with each other or even irrelevant.

 There is a need for well defined strategy for improving organization for achieving objectives of business and mutuality.

 Strategy can provide a steering force for organization improvement.

 Whether explicitly thought over, written or not in practice strategic decisions are taken by management for organizational improvement, as they are required for healthy existence and growth of the organization.