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Top-level management can help identify, coordinate, and implement an organization’s overall strategy, which can include a direction for the services that the organization provides.
3.1 Overview of Strategic Planning
Strategic planning is the development of a plan that integrates all organizational activities into a coherent course of action. The many types of organizations that deliver health care vary in the exact natures of their management structures, but they all tend to pursue many similar activities. Top-level executives are responsible for the oversight of the entire organization. In profit-seeking organizations, the CEO has the primary responsibility of caring for the interests of stockholders and other investors, balancing profit goals with other strategic corporate objectives. CEOs in nonprofit organizations tend to issues such as financing; however, their primary objective is to sustain organizational services and operations, rather than seeking profits as the final outcome. In smaller organizations, the top-level executive might carry the title of president or chief administrator rather than CEO.
Strategic management is a top-level management f
unction, overseeing both the short- and long-term organizational objectives and outcomes. This function integrates and coordinates all company activities. Strategic management helps executives steer and manage a company to achieve success over time—not just for the next quarter or year, but for the long term. It includes providing direction for the organization, detailing the goods and services the organization will provide, and determining how the organization will respond to competitors within the industry. It requires an understanding of the organization’s publics and what they want (Ginter, Duncan, & Swayne, 2018). Top executives are charged with four major tasks:
1. Develop the organization’s mission and vision statements. 2. Analyze and diagnose organizational strengths and weaknesses. 3. Decide upon an overall organizational strategy. 4. Oversee the implementation of the organizational strategy at the tactical and operational levels.
To complete these assignments, top managers continually assess and reassess elements of the organization’s operations and the external environment. Let’s look at each of these four functions and how they apply to health care administration. At the end of the chapter, use your understanding of these four tasks and their applications to evaluate Case: Proactive Prevention.