Tactical management
| Tactical management |
|---|
| See also |
Tactical management involves the medium- and short-term technical, organisational, workforce and financial aspects of the company's operations. Decisions are made, especially, at the middle management level and concern how strategic objectives relate to the implementation of methods and techniques (e.g. better use of machinery and equipment, raw materials, workforce, implementation of various types of standards etc.).Tactical management is concerned with the objectives to be achieved over a period of 1-3 years, and provides an answer to the question of how to implement a strategic plan (Marian Siminica, Alina Motoi, Aurelia Dumitru, 2017).
Strategic and operational management
In addition to tactical management, two other, complementary to each other, types of management can be distinguished: strategic and operational and can be defined as follows:
- Strategic management - defines basic objectives of the activity, creates the development of the company in the long term. Activities in the scope of strategic management are undertaken at higher management levels of the company's organizational structure, and especially concern the effective (rational) use of resources. The scope of these decisions includes, among others, determining the vision and mission, development prospects (new markets, new products, entering foreign markets, etc.), formulating strategic options, as well as projects leading to their implementation.
- Operational management - related to the short-term operation of a company, concerns the implementation of handling or service tasks, requiring the presence of technological operational, transport, control, storage and handling etc. Solutions (Marian Siminica, Alina Motoi, Aurelia Dumitru, 2017).
The basis of tactical management
In order to talk about tactical management, tactical objectives and plans have to be established first. Setting tactical objectives, i.e. objectives necessary to achieve a particular aim, and a tactical plan - the basis for the realization of the strategical plan, result in the occurrence of the tactical managing. The development of a tactical plan includes:
- identifying and understanding key strategic plans and tactical objectives,
- identifying the adequate resources and deadlines,
- identifying and specifying available human resources.
The realization of a tactical plan includes:
- the evaluation of each line of action from the objective point of view,
- the observation of horizontal and vertical interconnectivity and integration of activities,
- the observation of current activities undertaken to achieve the objective,
Effective tactical planning is depended on many factors that change depending on the situation. Tactical planning should relate to a number of tactical objectives stemming from a broader strategic objective (Marian Siminica, Alina Motoi, Aurelia Dumitru, 2017).
Management based on strategic, tactical, operational objectives
The first step in a goal-based management process is to set goals for the top management of the organization based on strategic goals. The result of this process is a so-called "core bundle of objectives" and strategic management at this stage. Later, the top management of the organisation divides the goals into specific objectives - tactical objectives and delegates them to subordinate directors/managers who deal with tactical management. Then each superior (e.g. head of department) designates his or her subordinates (e.g.managers) with operational objectives on the basis of those which he or she had previously received from their superior - operational objectives, the implementation of which is related to the operational management. The process described above is called cascading. The basic assumption of cascading is that the subordinate's objectives result from the superior's objectives, and setting of objectives and assigning them "from top to bottom" allows for the delegation of responsibility for the result (Henry L. Tosi, John R. Rizzo, Stephen J. Carroll, 1970).
References
- Jordi Cl., (2010), Rethinking the firm’s mission and purpose, European Management Review
- Lambin JJ., Chumpitaz R., Schuiling I., (2007), Market-Driven Management: Strategic and Operational Marketing, Palgrave Macmillan, New York
- Siminica M., Motoi A., Dumitru A., (2017), Financial management as component of tactical management, Polish Journal of Management Studies, 15(1)
- Tosi HL., Rizzo JR., Carroll SJ., (1970), Setting Goals in Management by Objectives, California Management Review
Author: Sylwia Pasternak
