Organizations undergo developmental phases from the time of inauguration to maturity. Managing the progress steps is critical in the growth of companies. Adopting principles and tools of strategic management is essential for organizations since they provide an opportunity for effective milestone forecasting and planning while influencing leadership development. When firms are affected by physical, financial, and environmental challenges, they employ strategic development to streamline their operations and mitigate possible issues. Additionally, planning, analysis, assessment, and monitoring of activities and operational frameworks that lead to the attainment of goals and objectives are expectations of a progressive strategic plan (Bagheri, 2016). Therefore, implementing emerging technologies, digital innovations, and customer satisfaction systems is, arguably, one of the principles of achieving a strategic management plan. Hospitality is a competitive sector given the investments and systems automation that are adopted within the operations. Although the industry experiences high competition under digital innovations, the quality, and sustainability of service are under-utilized, hence the need to implement effective strategic planning to streamline focus and growth.
Tools and Principles of Strategic Management
Planning is an imperative foundation in the strategic administration of organizations. Businesses that demonstrate quality and competency of service usually employ strategic management systems within their operations. The process provides a blueprint that defines simple, manageable, attainable, and realistic milestones under a guided timeframe for an organization to realize within an implementation cycle. Bagheri (2016) maintains that to achieve forecasted indicators, a firm must utilize various strategic management principles and tools. Strategic management approaches are imperative when providing effective service, quality, and value positioning.
Achieving values and quality within an organization requires a consolidated strategic focus. An effective organization strategy configures the utilization of value chain and stakeholder analyses to set up operational standards on which a firm can gain competitive advantage. Notably, using empirical examination helps an organization to underpin environmental requirements when manufacturing. Therefore, to ensure that strategic planning milestones are achieved and to attain competitive edge, company executives employ models such as human resources planning, enterprise resources management systems, and digital technology (Bagheri, 2016). Furthermore, organizations develop and implement modern frameworks to manage both the perceived and achieved value and quality by stakeholders. Realizing value and quality positioning requires executing progressive strategic management systems for growth.
Balanced scorecard (BSC) is a strategic management toolkit that helps to transform organizations in readiness to accomplish set milestones. Türüdüoğlu, Suner, and Yıldırım (2014) aver that BSC interprets the mission and strategy of a firm into realistic goals where specific measures are derived to achieve set targets (p.373). The authors further state that BSC captures quantitative indicators and qualitative factors that are significant for hospitality sector operations (373). The strategic management tool influences performance and quality in the industry since the relevance of tangible and intangible assets has exceedingly improved. In addition, the authors maintain that when the BSC tool is used in hotel industry, it establishes stronger performance indicators, which enhance financial outcomes. BSC model is relevant in the hospitality sector because it strengthens management strategies of hotels through the cause-result relationship (Türüdüoğlu, Suner, and Yıldırım, 2014, p 373). Therefore, as the company attempts to accomplish its mission and objectives, it leverages on challenges likely to occur through the BSC to achieve growth.
The Kaizen tool provides step-to-step improvements system in an organization. The approach is to achieve quality and value in the workplace. The strategy is based on continuous improvements, developing a strong team spirit and incremental improvements in scheduled tasks. Rauch et al. (2016) illustrate that lean kaizen management is not common in the hospitality sector, but it can be achieved through integration. Yukai resort in Japan applies lean Kaizen to help in realigning employees to needy departments (p. 616). For instance, Dinner and breakfast are buffeted, which reduces costs while waiters can provide support to the kitchen or laundry, hence reducing of the staffing requirements (Rauch et al., 2016, p. 616). The authors maintain that gradual developmental changes unified in the philosophy of Lean-Kaizen can inscribe quality and value in operations and products, leading to customer satisfaction (p. 616). This strategic management tool is essential in developing a platform for attaining quality and value for products and services in the hospitality sector.
Six Sigma Frameworks
Organizations in the service sector focus on attaining sustainability through quality and value systems. Saad and Khamkham (2018) discuss the Lean Six Sigma (LSS) model as an integrated approach for reducing defects and variations in the company’s operations (p. 588). According to the authors, the integration of total quality management and the Lean Six Sigma models yields to better quality and value (p. 589). Thus, to ensure environmental standards are met, companies implement safe sourcing systems, distribution mechanisms, and simplified product development phases that enhance quality and conserve the environment. LSS supply chains are adopted as platforms that stimulate supply chain processes to deliver quality products to the end user in a cost-effective manner (Saad & Khamkham, 2018, p. 588). The LSS model prioritizes on swift operations, such as value identification and sequencing that enhance waste elimination. LSS focus on cost reduction through eradication of waste while utilizing the capabilities of workers. Therefore, the model utilizes the knowledge in a firm and break down systemic barriers that hinder employees from applying statistical problem-solving systems using a step-to-step guide (Saad & Khamkham, 2018, p. 591). The model supports aspects, such as organization structure, leadership, link to suppliers, effective communication, and quality commitments, which are effective performance indicators.
Assessment and Performance Management
Goal-oriented organizations schedule assessment of their processes to establish quality and performance levels. Measuring organizational activities or operations is vital in maintaining quality and value. Performance management is a critical aspect of strategic planning approaches since it inspires standards within company operations as builders towards quality and value. In addition, Scroggins (2015) notes that staff motivational techniques, such as promotions, challenging work environment, and compensation packages, influence an organization’s performance. Therefore, assessment of employees, suppliers, and other stakeholders is an essential initiative in achieving the operational goals of a company.
In addition, the development of standards and industry best practices is a significant part of strategic management. Common practices such as leadership, planning, people management, information, and process administration have been used as benchmarks for quality and comparative advantage. Industries such as hospitality are expected to employ standardization metrics in managing quality and value due to the nature of activities they undertake (Molina-Azorín et al., 2015, p. 42). Observing standards and industry best practices is a substantial prospect of strategic planning and can be attained through periodic exercise and process assessment as a performance management approach.
Stakeholders within an organization can influence operations to achieve or hinder the creation of value and quality. Managing stakeholders’ needs is an important strategic planning principle since it has a direct correlation with cost and value positioning. Bagheri (2016) outlines stakeholder mapping as an important tool that helps to evaluate and manage stakeholder networks. The framework assists to classify stakeholders based on their interest, such as political, social, and economic, for secure processing and management. Bagheri (2016) illustrates that in the public sector context, the process of value chain should be altered. Additionally, the author maintains that companies should adopt stakeholder-mapping model to realize meaningful and deliberate application (p. 433). Therefore, stakeholder mapping is significant in understanding the strategic position of an organization. The framework can also be employed in the hospitality industry to manage material sourcing and supplier trends among other aspects. Appreciating the relative position of stakeholders is essential in the delivery of quality and total value for firms.
Organizational culture refers to distinctive competencies, innovative outlooks, and orientations that define a company’s approach to operations. It is a strategic management tool that influences quality and value (Szczepańska-Woszczyna, 2015, p. 398). When employees commit to a culture, quality of operation is enhanced which leads to growth. Szczepańska-Woszczyna (2015) elaborates that organizational culture acts as a tool that bounds the intention of employees to achieve excellence when reflecting on the company’s image (p.398). According to the authors, an organizational culture that supports innovation focuses on managing uncertainty, improving systems of communication, and enhancing decision-making (p. 398). The authors maintain that for a successful culture to be cultivated in a company, principles such as corporate strategy, pro-innovation structures, and human resources management systems are essential. The pro-innovation organizational culture facilitates the sharing of knowledge, skills, tolerance, and respect for both conformist and non-conformist attitudes within a firm (Szczepańska-Woszczyna, 2015, p. 398). Such integrated approaches are imperative for quality and competitive advantage in the market. Accordingly, organization culture sets out criteria for determining positive attitudes and value for employees to attain the organizational goals.
The theory of strategic management is attributed to various positive developments in and growth of organizations. Strategic management theories improve information flow, enhance people’s behaviors, and ensure that motivational elements are handled within models that bring success and growth (Scroggins, 2015, p. 25). In addition, the human motivation theory seeks to understand employees’ motivational structures. The theory predicts an individual’s perception of work processes. According to Scroggins (2015), the theory’s main concern is to understand behavioral characteristics of individuals to make a prediction. The theory has a background connection with studies such as social sciences, cognitive, physiological, and behavioral models (p. 25). The author elaborates that the model seeks to articulate behavior traits that have a link with basic biological functions of employees and their cognitive capabilities (p. 25). The relevance of the theory in strategic management emanates from the perspective that understanding human behavior and their motivational elements can yield to structures that influence them positively for growth and value. The theory is classified into several subcategories, such as incentive-based intrinsic and extrinsic motivation, humanistic, and arousal-based.
The incentive model demonstrates employee inclinations to rewards. Intrinsic and extrinsic incentive motivation theory explains employee motivation systems from either external sources or internal. For instance, if an employee is appreciated for performing exemplarily, he or she is likely to be intrinsically motivated. The same applies to physical rewards, such as gifts or tips, which extrinsically motivates workers (Scroggins, 2015, p. 25). Hence, rewarding employees is an important practice that maintains quality within a sector. The arousal model suggests that an individual is linked to his or her desire to either increase or decrease their intensity of stimulation (Scroggins, 2015, p. 25). Employees regulate their arousal by participating in activities that excites or makes them to relax. The theory is significant to strategic management since it provides a platform for ascertaining whether job tasks or procedures have arousal elements that can yield a comfortable work environment. The arousal theory is linked to the business and performance systems of an organization. Although Scroggins (2015) argues that the model cannot be used to demonstrate job satisfaction and commitment, he illustrates that it is appropriate when approached from a perspective of stress reduction (p. 26). The model is relevant in the hospitality industry, where most services and operational procedures are repetitive and can be a source of workplace stress due to limited challenge. Human motivational theories are critical in strategic management since they influence the quality of operations, leading to value and customer satisfaction.
The implementation of quality in the workplace, especially in the hospitality sector, requires the fulfillment of stakeholders’ needs. The humanistic motivational theory reveals that human behavior and motivations are based on cognitive capabilities (Scroggins, 2015, p. 25). The author links the model to the needs theory by Abraham Maslow. Scroggins (2015) highlights Maslow’s hierarchy of needs as essential for firms in establishing quality standpoints. The theory illustrates the needs of stakeholders through a bottom-up approach and states that higher needs can only be attained after the lower ones. To increase workers’ performance as per Maslow’s hierarchy of needs, companies must ensure that their employees achieve self-actualization through positive workplace policies and procedures. Thus, strategic management plans should consider the way stakeholders’ desires and employees’ needs would be met to encourage growth and gain competitive advantage.
Strategic management is centered on the basic tenets of handling partnership interests. According to Jones et al. (2016), stakeholder theory demonstrates the interest of entities involved in company operations, such as shareholders, customers, suppliers, employees, and society. Therefore, while managing contracting interests, it is significant that quality approaches are used to attain sustainability. For instance, to maintain prominence within operations, an organization needs to ensure that the quality of materials and the entire value chain conforms to the set standards. Stakeholder theory can be integrated to manage sustainability approaches for quality of service in the hospitality sector. According to Jones et al. (2016), stakeholder theory demonstrates that firms can be sensitive to the concerns of stakeholders, such as customers, suppliers, and society to gain long-term business relationship, which enhances sustainability (p. 5). Arguably, organizations that invest in stakeholder management and generate discourses on possible distractors, such as inter and intra political and environmental issues, realize quality and sustainability.
Leadership as a Tool of Strategic Management
As organizations conduct their business, the levels of competition increases leading executives to make decision that enhance productivity. It is worth noting that industry regulators also develop principles and monitoring frameworks as check and balances that guide operations. The hospitality sector has high competition levels that create the need to implement effective strategic planning to enhance focus and growth. Principles and tools of strategic management enhance growth in the hospitality sector. Performance management tools, such as Balance scorecard, Lean Six Sigma, and Kaizen are relevant in providing quality and value in the industry. Strategic management practice is necessary as a guide to firm’s procedures by providing simple, manageable, achievable, realistic, and time-bound milestones for growth and developments. Additionally, quality and value positioning for companies require conceited efforts integrated between company executives and employees. Strategic planning ensures a consolidation of synergies between management team and workers while mainstreaming efficiency and effectiveness of operations for sustainability. However, to achieve milestones set within the strategic planning systems, effective leadership is critical. Therefore, organizational leadership should implement effective approaches that will enhance a positive culture and fulfill the needs of stakeholders for purposes of gaining competitive advantage.
Bagheri, J. (2016). Overlaps between human resources’ strategic planning and strategic management tools in public organizations. Procedia-Social and Behavioral Sciences, 230, 430-438. doi: 10.1016/j.sbspro.2016.09.054
Jabbar, A. A., & Hussein, A. M. (2017). The role of leadership in strategic management. International Journal of Research-Granthaalayah, 5(5), 99-106. doi: 10.5281/zenodo.583890
Jabbar, A., & Hussein, A. (2017). The role of leadership in strategic management. International Journal of Research-Granthaalayah, 5(5), 99-106. doi.org/10.5281/zenodo.583890.
Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), 1-35, doi: 10.1108/IJCHM1020120180
Langvinienė, N., & Daunoravičiūtė, I. (2015). Factors influencing the success of business model in the hospitality service industry. Procedia-Social and Behavioral Sciences, 213, 902-910. doi: 10.1016/j.sbspro.2015.11.503
Molina-Azorín, J. F., Tarí, J. J., Pereira-Moliner, J., López-Gamero, M. D., & Pertusa-Ortega, E. M. (2015). The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry. Tourism Management, 50, 41-54. doi: 10.1016/j.tourman.2015.01.008
Rauch, E., Damian, A., Holzner, P., & Matt, D. T. (2016). Lean Hospitality-Application of Lean Management methods in the hotel sector. Procedia CIRP, 41, 614-619. doi: 10.1016/j.procir.2016.01.019
Saad, S. M., & Khamkham, M. A. (2018). Development of an integrated quality management conceptual framework for manufacturing organisations. Procedia Manufacturing, 17, 587-594. doi: 10.1016/j.promfg.2018.10.100
Scroggins, R. (2015). Strategic management theories. Global Journal of Computer Science and Technology. 15(1), 24-31. Retrieved from https://computerresearch.org/index.php/computer/article/download/1240/1227
Slavik, J., Putnova, A., & Cebakova, A. (2015). Leadership as a tool of strategic management. Procedia Economics and Finance, 26, 1159-1163. doi: 10.1016/S2212-5671(15)00946-6
Szczepańska-Woszczyna, K. (2015). Leadership and organizational culture as the normative influence of top management on employee’s behaviour in the innovation process. Procedia Economics and Finance, 34, 396-402.
Szczepańska-Woszczyna, K. (2015). Leadership and organizational culture as the normative influence of top management on employee’s behaviour in the innovation process. Procedia Economics and Finance, 34, 396-402. doi: 10.1016/S2212-5671(15)01646-9
Türüdüoğlu, F., Suner, N., & Yıldırım, G. (2014). Determination of goals under four perspectives of balanced scorecards and linkages between the perspectives: A survey on luxury summer hotels in Turkey. Procedia-Social and Behavioral Sciences, 164, 372-377. doi: 10.1016/j.sbspro.2014.11.090