Abstract:

The study of strategic management has become an important research topic in organizational behavior and organizational psychology. In this perspective, researchers have attempted to understand the methods used in promoting strategic management and its impact on organizational performance The widespread agreement amongst scholars is that strategic thinking is important for the increased growth and productivity of organizations; however, it is often absent or at least significantly lacking in depth, application and effectiveness. Strategic thinking and its related drivers are deemed to be crucial for the core functioning of business firms including family managed enterprises and as such require extensive focus. Within the various organizations that exist, family businesses differ from other forms of business enterprises in terms of ownership, social philosophies and approaches to leadership and management practices. Studies of family businesses indicate that the influence of family members and the resulting implications of family involvement affect the conceptualization, development and implementation of strategic thinking. This study aims to understand how strategic thinking is developed and encouraged within the family businesses, the participants included in such drives and the (perceived) impact on organization performance. The qualitative study for this research was conducted with interviews of 7 Human Resources managers within 5 industries: Engineering, Manufacturing, Image Management, Textile and Shipping. The selection of the companies was based on their scope of business and geographical spread in the global markets. The results of the study show that family businesses pay less heed to developing strategic thinking of its employees. While there are certain methods employed by the organizations to develop leaders, such programs are few and far in between and the return on investment for these programs is not calculated. Major reasons cited for the lack of focus on strategic thinking are: focus of the leader on the operational side of the business, emphasis on the growth of strategy for the family members only and the lack of training opportunities provided within the organization. It was also noted that within the enclaves of the HR Heads and leaders, the self-management of employees in furthering their career growth and their learning was a much needed and required trait.