For Correctly Understanding of the Essence of Strategic Planning and Strategic Management

Abstract

Strategic planning is the most significant function of strategic management, during which from many alternatives is selected the best set of vision, mission and goals which should be the most acceptable for the organization , on the basis of which a complex plan will be formed. Strategic management also considers its realization-implementation and evaluation along with planning. It is known that during some time, many of the functions of management formulated by the founders of management F. Taylor, A. Fayoli, as well as famous authors I. Ansof, M. Meskoni, M. Alberti, F. Khedouri, R. Dafti and others have been combined and expanded to form the four basic functions: planning, organizing, motivating, and controlling. In the scientific literature, there are attempts to replace the function of "motivation" with "leadership" and "Guidenance" (Daft, Robbins and others), but none of the authors could justify the need to ignore the real essence of motivation. The basis of such a feeling is created by famous
authors Fred R. David and Forrest R. David .The opinion expressed on page 41 of David's textbook – "Strategic Management": "We use the term – strategic management – in this book as a synonym for strategic planning." It can be said directly, such opinions without proper explanation are unacceptable and raise many questions. Here it should also be said that in Table 6.3 placed on page 220 of the above-mentioned manual, when Fred R. David and Forrest R. David discusses the relationship between management functions and elements of the strategic management process, noting that strategy formulation corresponds to the "planning" function, strategy implementation corresponds to the "organizing", "motivation" and "personnel management" functions, and strategy evaluation corresponds to the "control" function and all this is thoroughly argued, which we fully agree with. The differences between the terms "strategic planning" and "strategic management" are recognized and shared by world-famous authors (Robbins, Coulter, Thompson, Strickland, Mescon, Albert, Khedour, and others.). In conclusion, it should be said that assuming the identity of the above-mentioned concepts requires either thorough explanations (which is impossible by our opinion), or even needs its denial, thus all misunderstandings will be easily removed.