WHAT ARE STRATEGIC MANAGEMENT AND STRATEGIC DECISIONS AND FACTORS AFFECTING THEM?

9.3.1 STRATEGIC MANAGEMENT

There are many definitions of strategic management; the closest to our study is the definition of a crow who praised that the matter in strategic management is related to making major decisions that have a fundamental impact on the future of the institution, as these types of decisions are usually called strategic decisions [7].

9.3.2 STRATEGIC DECISION

They are taken by the senior management of the organization and need to allocate a large number of resources, as it is characterized by the direction and future aspiration, because it significantly affects the long-term success of the institution, and must take into account the factors of the external environment [7].

It should be noticed that there are three levels of strategic decisions [7]:

  • • The fust level includes strategic decisions at the level of the whole organization;
  • • The second level includes strategic decisions at the business unit level; and
  • • The third level includes strategic decisions at the functional level.
  • 9.3.3 FACTORS AFFECTING DECISION MAKING

Factors that influence decision-making are divided into:

i. External environment factors are concerned with the external environment of the institution, like economic conditions.

ii. Internal environment factors are concerned with the internal environment of the institution, like organizational relations in the institution.

iii. Personal and psychological factors: Psychological factors are related to a person’s internal motivations, but personality is linked to the personality of the decision-maker and his abilities and behavior [8].

DIAGNOSE THE STEPS, METHODS, AND APPROACHES OF STRATEGIC DECISION-MAKING

9.4.1 STEPS IN THE DECISION-MAKING PROCESS

The decision-making process in the institution is not a random process, as it entails strict results that should not be directed to the issuance of ill-considered decisions. In order to make the right decision, the decision-making process must go through the following stages [2]:

  • • Identifying the problem that has been detected when there is a discrepancy between the objectives and the actual level of performance.
  • • Identifying and analyzing the necessary data and information.
  • • Development of alternatives, any solutions or possible means, and available to deal with the problem and solve it.
  • • Evaluation of alternatives: to know the strengths and weaknesses of every alternative, his revenues, costs, advantages, and disadvantages.
  • • The choice of alternatives can be based on three perspectives: experience, experience, research, and analysis, but relying on experience is what is adopted as a basis for some to consider it as then guide to know the future.
  • • Follow-up and evaluate the implementation of the resolution: Once a decision has been made and an alternative selection is made, those concerned are informed of it. It should monitor and evaluation of its implementation by comparing the actual results with the expected objectives of this decision.
  • 9.4.2 DECISION-MAKING METHODS AND APPROACHES

Methods of decision-making: It is done according to traditional methods (non-quantitative) and scientific methods (quantitative): [1]

the CEO of the institution to make decisions himself, i.e., the central decision-making, it must be more powerful and influential and has a vision and insight on what to do and how.

  • • The Middle Entrance: The executive officer of the foundation shall initiate strategic decision making with the assistance of his senior subordinates, in order to use them later in the implementation of these decisions, and depends on achieving cooperation and encouraging innovation and contributing opinions and ideas.
  • • Delegation to Others: That is, the president delegated decisionmaking to others [7].

The information system provides information that senior management needs in order to use it to support strategic decision-making. Management, therefore, uses database systems to provide data that it can use to make decisions at the strategic, managerial, and operational levels, and organize their retention in the computer’s internal memory, and facilitate referrals to them when needed. Decision-support systems are also based on the usage of data and help rationalize management decisions.

Generally, different types of decisions demand a lot of information. Management must provide information according to the nature of the work of each administrative level in order to maximize the benefit of the decisionmaking process because providing the wrong type of information to a certain administrative level is not useful in decision-making and may lead to failed decisions [3].

After discovering the problem, the institution’s decision-maker must undertake several steps, studies, and research to differentiate between alternatives, which necessitates continuous research in the institution’s environment to obtain new data that are processed in an efficient information system in order to obtain quality information. It cannot be assured that an organization does not rely on an information system that helps it analyze the data. It may cause it to discontinue.

The need for data that produces information in abundant quantity, as the more information, the more the decision-maker is able to differentiate, as well as the availability of the time needed to enable it to be used in a timely manner.

  • [1] Traditional Methods (Other Thau Quantitative): By amendingthem to the previous experience using the method of experienceand knowledge, personal evaluation following the method of self-government, and the method of conducting experiments by thedecision-maker yourself, and the study of ideas and suggestions andanalysis in order to choose an alternative solution. 2. Scientific Methods (Quantitative): Scientific methods (quantitative): It relies on mathematical models and electronic computersthat analyze data and information in order to reach the appropriatedecision, such as operations research [8]. Concerning the decision-making approaches, we can mention: • President’s Control of Strategic Decision-Making: Assign the chiefexecutive for the foundation of your decision-making. It means that
 
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