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Table of Contents

Barriers to Implementation of Auditing in an organization: Case study of Kuwait State Audit Bureau - Part 3

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2.5 The differences between strategic management and traditional management with the processes of strategic management definition and literature review

Traditional and strategic management based models vary in significance with several businesses shifting towards human resources based on the strategic model due to the unifying aspect and business building (Ugbora, et al 2010: 95). As such can observe that strategic based management is geared towards the development of strategic planning that fits within the broad structures of the organizational plans whereas the traditional approach to human resource management is vital in the development of small business based organizations;

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The main point of both practices of management lies in their variation whereby while strategic management emphasizes the internal and external relations we see the traditional approach emphasizes the aspects that have an impact on people within the industry. Since analysis on an individual basis is better rather than on a relationship scope, we can observe that the traditional approach is at loss at this point (Sonia, et al 2013: 115).

A systematic methodical approach calls for all degrees of management to work in cooperation with consideration of several factors in observation of all levels. Another major variation is the strategic management approach advocates for leadership which entails the provision of changes whereas the traditional approach to management tends to create more followers than leaders.

In addition, whereas the strategic management approach entails a transformational phase with initiation of changes the traditional management approach merely responds to the changes. Furthermore strategic management within an organization unlike the traditional approach to management calls for the employment of adoptive changes with faster initiation of the learning pace and variations in technology in which regard we can observe that all the stated conditions bear fruit with dependence on the situation that prevails and the argument that is canceled.

2.6 Strategic management process with definition and literature review

The process of strategic management entails the five processes of goal setting, analysis, and formulation of strategy, implementation of strategy as well as evaluation and control. These procedures are more than a collection of regulations to be adhered to but rather entail a philosophical approach to the management needs of an organization (Hitt 2011: 12). As such, it is upon senior management to strategically think with this being the initial approach followed by an application of the process thought with the best implementation of the strategic management approach being a collective understanding by all members within the organization.

The goal setting phase deals with the clarification of vision for the organization in addition to being comprise do the identification three major facets. The initial facet being the short and long term goals in definition with second facet entailing the procedures of accomplishment of the set objective and the final facet being the customization of procedures for members within the organization with specific task assignment to individuals so as to succeed; It should be noted that in this phase it is important to keep in mind the detailed procedures of the objectives with realism and value matching to the vision (Randolph 2013: 37).

On the other hand, the analysis phase as the major stage since information attained at this point is fundamental in the shaping of the two next phases. The emphasis of this stage is the perception of the business needs in an entity that is sustainable with a direction that is strategic and initiative identification for assistance in organizational growth.

The next phase deals with the formulation of the strategy whereby we observe information review with completion of analysis as well as resource determination with consideration of the present organizational resources. In this phase we observe the call for the clarity in responsibility and duty and how it fits in the general objective with an extra resources or funds for the organization being secured at this stage at which point with everything in place employees are ready for plan execution (Moon 2013: 1702).

The next phase entails the strategic implementation as a vital aspect to the success of the business venture with actions within the phase dealing with strategic management procedures at which point we are introduced to the final phase of evaluation and control that comprises of measured performance with consistency in review of internal and external matters with formulation of corrected action when required.

2.7 The importance of the implementation

In consideration the strategic implementation phase is the most complicated level in the procedures of strategic management with the need for managers to be involved in conversion of strategies into actions with the ultimate outcome being the an increased performance level (Rosalie and Christian 2011: 13).  As such, the implementation phase is important because it provides organizational leadership management with the capabilities for management and motivation of the organizational team members, organizational vision communication as well as objectives in addition to performance monitoring and detection and rectification of concerns in a fashion that is timely with a played role of significance.

It is also important as it provides leadership quality display while calling for increased participation in aspects of organizational operations that call for a need of a more hand on approach with opposition to the developmental phase of the strategy comprising of plans and analytical factors of the organization (Bracker 2010: 220). As such, it can be observed that in the development of the organizational strategies there is a need for thorough perception and awareness of the organization and its operational environment with the inadequate capability of the effective implementation of such strategies entailing the conversion into positive outcomes.

In this regard it is imperative for the organization to ensure that the strategic management aspects are not put to waste as failure to implement strategic management and associated concepts will lead to reduced innovation and valuation of strategies with managers also lacking the capability of implementation (James 2010: 59). It is also important to consider that the skills of the organizational members as well as related resources in addition to organizational procedures that play a major role in the implementation of tasks needed for the achievement of objectives related to the strategies.

2.8 Barriers to strategy implementation within an auditing organization and their impact on the organization with solutions to overcome the barriers

In the implementation of Strategic management and related concepts within an auditing organization it is important to note that strategic planning does not entail prediction of the future as an auditing organization may carry the notion that there is appeal in exercise of future planning that culminate in the audacious prediction of the future (Arndt 2011:325). On the other hand the real danger can be identified with the emergence of the prediction in the planning procedures as such organization can be faced with several barriers at different levels within the auditing organization in the process of implementing strategic management aspects. Such barriers include mind set barriers, which are the driving force behind the attitudes among auditing organizational members with outcomes being reflected in their behaviors at which point unless change occurs within their mindsets there will be no change in behavior and perception towards work within the organization.

Another barrier is identified in the core values whereby the inadequate shared meaning of the core values within the auditing organization enhances creation of clarity in articulation of the meaning of the core values with the objective being to attain increased performance with ease. Leadership can yet be identified as another barrier to the implementation of strategic management within an auditing organization as it is the most vital condition of ownership and success with involvement being undertaken by the top management (Fiegen 2011: 248). This is because strategic management implementation requires changes from all aspects and levels within the auditing organization with teamwork and coordination of these changes with mobilization being undertaken from the top in the form of an established urgency notion in the creation of coalition guidelines in combination with development of vision and strategy.

With regard to auditing organizations and the barriers  identified at all levels we can solve these barriers through elimination of support as in this organizational structure the obligation lies with the audit program manager the is required to provide an explanation with assistance in the perception of performance reasons for internal auditing (Ugbora, et al 2010: 95). Other problem solving factors can be the undertaking of classed communication in verbal and non-verbal skills with training in the difficulties in working with organizational members with difficulties. In addition there is need to perceive, the variations in culture with explanation of the benefits to the auditor as required by the organization with asking of questions with the checklist that open ended.

2.9 Creation of model barriers of strategy implementation with regard to the literature review

From the literature provided, we can create models for strategic implementation related to the obstacles in the implementation of the strategic management with the formulated model dealing with the procedures of the strategy in its evaluation and implementation stages.

The model will first address the faulty performance benchmark as the encountered strategies for instance the benchmarks to be set, the format of setting as well as their expression (Sonia, et al 2013: 115). As such for the determination of performance benchmark there will be a need for discovery of specialized requirements in the major task performance. The indicators of performance are well identified and expressed in the specialized requirements in the determination of the utilized evaluation.

Fig 1: Placed value in organizational asset alternatives

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The other barrier from the models deals with shortcomings in performance measurement as the standardized performance in actuality in comparison with report and communication systems provides assistance in the measurement of performance (Hitt 2011: 12). Furthermore, the other barrier is the failure in variance analysis, as actual performance measurement in comparison with standard performance will reveal variations that require analysis between performance in actual and standard levels in acceptance.

The final aspect within the model is the lack of corrective action as after the identification of deviated performance there is need to undertake planning for action that is corrective with reduced consistency in desirable performance that requires detailed analysis of strategies and the responsible aspects of presented performance (Randolph 2013: 37).

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