The challenge of planning, steering and controlling all activities of a company requires a wide
range of decisions made by the management. Management itself can be divided into three
subcategories: normative management, strategic management and operative management with
strategic management linking normative and operative management.
Subject of this paper is the explanation of the impact of normative management on the strategic
orientation of a company with focus on the importance of a mature vision, mission and goals.
Table of Contents
1 Introduction
2 Normative, strategic and operative management
3 Definition of terms
3.1 Vision
3.2 Mission
3.3 Goals
3.4 Strategy
4 The process of strategic management
5 Leadership requirements
6 Conclusion
Objectives and Topics
The main objective of this paper is to explain the impact of normative management on the strategic orientation of a company, with a particular focus on the significance of a mature vision, mission, and clearly defined goals.
- Analysis of normative, strategic, and operative management levels.
- Definition and functional roles of vision and mission statements.
- Examination of the stakeholder approach versus the shareholder approach in goal setting.
- Investigation into the development and implementation process of strategic management.
- Evaluation of leadership requirements for maintaining corporate identity and vision.
Excerpt from the Book
3.1 Vision
The vision is the source and the main idea of a company. It is a picture of how a company should look like in the future, formulating a core ideology and a purpose of existence of the company guiding the basic direction for the desired company development. Visions are often the result of the imagination of an individual about a possible trend-setting development - visionary ideas so to say, which can be the basis for great entrepreneurial performance. Visions can therefore have similarities with scenarios, but they usually don’t offer alternatives and are of higher commitment towards their recipients.
Towards employees, visions fulfil an Identity function, an identification function and a mobilizing function. As a sign of identity, a vision shall describe a picture of the company’s future making it unique and distinctive. Moreover, a clear vision shall convince staff of the sense and importance of their work, enabling them to identify themselves with the company and finally encouraging them in their commitment towards work and towards the vision as a common objective.
Because of their importance for all subsequent decisions within a company, effective visions are required to be imaginable, desirable, achievable, focussed, flexible and communicable.
Summary of Chapters
1 Introduction: Provides an overview of the three management subcategories and states the primary focus on normative management's impact on corporate strategy.
2 Normative, strategic and operative management: Explains how normative management defines the core self-concept of a company and its relationship with strategic and operative levels.
3 Definition of terms: Breaks down the fundamental components of management, specifically detailing the roles and definitions of vision, mission, goals, and strategy.
4 The process of strategic management: Outlines the sequential phases of strategy development, from analysis and selection to implementation and feedback loops.
5 Leadership requirements: Discusses the management's responsibility in communicating and maintaining normative guidelines to ensure employee commitment and alignment.
6 Conclusion: Summarizes the essential role of normative management as the starting point for all organizational activities and its importance for long-term success.
Keywords
Normative management, strategic management, operative management, vision, mission, corporate goals, stakeholder approach, shareholder approach, corporate culture, strategic planning, business strategy, organizational leadership, corporate identity, competitive advantage.
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on the hierarchical influence of normative management—specifically vision, mission, and goals—on the broader strategic orientation and operational activities of a company.
What are the primary thematic areas covered?
The key themes include the definitions of management levels, the distinction between vision and mission, the methodologies of goal setting, and the strategic management process.
What is the main goal or research question?
The primary aim is to explain how a company's normative framework impacts its strategic direction and the importance of having mature, well-defined corporate guiding principles.
Which scientific methods are employed?
The paper utilizes a literature-based theoretical analysis, drawing upon management theory and models (such as the stakeholder vs. shareholder approach) to explain corporate structures.
What topics are discussed in the main body?
The main body examines the definitions of vision, mission, goals, and strategy, the process of strategic implementation, and the leadership requirements for sustaining a company's normative values.
Which keywords characterize the work?
Essential keywords include Normative management, Strategic management, Vision, Mission, Stakeholder approach, and Corporate culture.
How does the author distinguish between vision and mission?
The vision is described as the company's future picture and core ideology, whereas the mission is the enduring purpose that sets the firm apart from others and guides daily conduct.
What is the distinction between the stakeholder and shareholder approach?
The stakeholder approach considers the interests of all groups necessary for company survival, while the shareholder approach prioritizes the financial interests and risk exposure of the shareholders.
How does the author define an "emergent strategy"?
An emergent strategy refers to a consistent strategic path that develops through a sequence of individual decisions rather than being pre-planned through a rigid, structured process.
- Quote paper
- Stefan Sabrautzki (Author), 2009, Strategies, mission, vision, goals, Munich, GRIN Verlag, https://www.grin.com/document/146767
