Thursday, February 18, 2010

Role of chief executive in strategic management

Role of chief executive in strategic management
The chief executive is the executive head of the organization.He represents the management.
The
chief executive's principle duty is to define long-term direction and scope of the organization.He has ultimate responsibility for its success.He leads the formulation and implementation of the strategy. He guided by the board of directors.
  • Formulation of strategic
  • Implementation of strategic
  1. Formulation of strategies :Strategy provides future direction and scope to the organization for gaining competitive advantage.The roles of chief executive in strategic formulation are :
  • Key strategic role :The chief executive plays the role of chief architect in defining vision,mission,and objective of the organization.He conceptualizes and crafts strategic to achieve objectives.
  • Decision making role :The chief executive makes strategic decisions related to strategy formulation .He makes strategic choice from among strategic options for achieving objectives.This role involves risk-taking.
  • Resources planing role :This role of chief executive involves coordinated allocation of significant resources to planes.such plans can be organization wide or related to strategic business units or function.Resources can be people,money,technology,time and information.
  • Negotiator role :Strategic must fulfill the expectation of various stakeholders of the organization.The chief executive balance there conflicting interest by negotiating disputes.The stakeholder can be owners,customers,employees,suppliers,government,labour unions,and financial institution.
2. Implementation of strategic :Implementation is putting strategy into action.The chief information about strategy to the implementers within the organization.He serve as a spokesperson for strategic implementation.
  • Leadership role :The chief executive assumes overall leadership for the implementation of strategy.He inspire trust and self-confidence among implements of strategy.He ensures there participation.He motivates them for higher productivity.He provides direction for implementation of strategy.
  • Organizer role :The chief executive is an organization builder.He determines the structure for strategy implementation.He establishes reporting relationship and span of control.He assigns authority and responsibility for petitions and people in the organization for key result areas.
  • Resources manager role :The chief executive ensures officiant and effective mobilization,allocation and utilization of resources for implementation strategy.Budgets are preppier for management or resources.
  • Monitoring :The chief executive monitors and evaluates the performance results of strategy implementation.He takes corrective actions to resolve performance problems.He handles unexpected distributors and crisis situation.

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