The strategic management tools and their relation to competitiveness in higher education

THE STRATEGIC MANAGEMENT TOOLS AND THEIR RELATION TO COMPETITIVENESS IN HIGHER EDUCATION Ma kó And ea1, Szűcs Edi 2 1 2Uni e si y o Deb ecen andi[email p o ec ed], edi @eng.unideb.hu Keywo ds: highe educa ion, compe i i eness, s a egic managemen , Abs ac : The Uni e si y o Deb ecen, simila ly o o he ins i u ions o highe educa ion, has o pe o m i s asks unde con inuously changing ex e nal and in e nal condi ions. Al hough ex e nal economic and demog aphic condi ions a e likely o be un a o able in he coming pe iod, he ins i u ion has o es ablish he po en ials o a new pa hway o de elopmen , o else i will lag behind in he ie ce compe i ion o highe educa ion. We can main ain ou compe i i eness i he Uni e si y enhances i s quali y insu ance sys em in compliance wi h new challenges, so ha mo e and mo e o ou g adua es can wo k success ully in egional, na ional o in e na ional labo ma ke s. The s udy p esen s hose s a egy c ea ion and planning ools, which helps he highe educa ion ins i u ions o imp o e hei compe i i eness. ORGANIZATIONAL CULTURE AND COMPETITIVENESS To unde s and he highe educa ion ins i u ional compe i i eness we ha e o assume he o ganiza ional (company‟s) o ganiza ional cul u e and o ganiza ional compe i i eness. To de ine he compe i i eness as a unc ion means no less han he su i al o he o ganiza ion. Schein (1989) de ines o ganiza ional cul u e as i is no hing mo e han " he basic assump ions, models o which he o ganiza ion's ex e nal and in e nal p oblems in lea ning and ha wo ked well enough o accep hem as alid and wo kable o simila p oblems." The unc ionalis pe spec i e ou lined by Schein a gues ha he su i al o any o ganiza ion has o sol e wo basic p oblems: - su i al and adap a ion o he ex e nal en i onmen ; - in eg a ion o he in e nal capaci y o ensu e ha capaci y which is necessa y o he su i al and o he adap a ion. The o ganiza ional cul u e is he p oduc o he g oup's collec i e lea ning and p oblem-sol ing p ocesses, which is pe o med in o de o su i e. The o ganiza ion's adap a ion abili y o en i onmen al and in e nal changes allows long- e m unc ionali y, which is he o ganiza ion's compe i i eness. (Chikan, 2001). The concep o o ganiza ional compe i i eness, as a kind o su i al skill will be in which o ganiza ions con inually seek o ex e nal and in e nal en i onmen s, u ilizing, aligning ope a ions o ensu e he long e m. This is he su i abili y o he o ganiza ion (ins i u ional) ope a ing one o he mos complex phenomena. By Chikán and Gelei (2006) compe i i eness depends on wo ac o s. On he one hand o de e mine how he o ganiza ion can p o ide he necessa y cus ome alue, which equi es ha he o ganiza ion can iden i y he cus ome ‟s dimensions o alue? Rela ion be ween he cus ome alue and dimension o alues, is p esen ed in Figu e 1. ANNALS o he ORADEA UNIVERSITY. Fascicle o Managemen and Technological Enginee ing, Volume XI (XXI), 2012, NR2 5.63 Figu e 1: Rela ion be ween no ions- cus ome alue, dimension o alues and con ol alue (sou ce: Chikán – Gelei, 2006.) The cus ome alue is he subjec i e opinion o he cus ome s (s akeholde s), abou how o package he se ice me expec a ions (Pa asu aman e al., 1985). The cus ome alue spli in o componen s he dimensions o cus ome alue, which indica e ha , he se ice package, wha a e he impo an dimensions, which con ibu e g ea ly o he g ow h o cus ome alue (Wal e s, 2002). I is also necessa y o de e mine he indi idual alue dimensions o p o ide he essen ial skills - his kind o esou ces and skills a e - equi ed o build. The cus ome alue and he co e compe encies needed o ensu e con inuous coo dina ion can only be based on long- e m compe i i eness o he o ganiza ion The o ganiza ional compe i i eness is essen ial o ecognize he o ganiza ion‟s mos impo an cus ome s o he alue dimensions, and p o iding hose esou ces, capabili ies and compe encies which will make hem able o p o ide. The managemen ha e o be able o de e mine he impo an cus ome alue dimensions in which alue con ols, so i could be in luenced wi h ope a ional pe o mance indica o s and also needs o know ha ,how he chosen alue con ols ( esou ces and capabili ies in wha combina ion) can be de eloped. Table 1: Componen o he o ganiza ional compe i i eness in highe educa ion O ganiza ional compe ences Cus ome alue Financial esou ces Financial s abili y P ojec esul s Cus ome sa is ac ion he cus ome opinion abou he gi en supply De e mina ion o he alue dimensions ha con ibu e o cus ome alue g ow h. Ma e ial esou ces The in as uc u e o he ins i u ions (building, labo a o ies, ools, e c) In o ma ion sys ems, da abases Technological esou ces Quali y managemen sys em VIR-DPR sys em Pa en s Ma ke posi ion Fame and popula i y Social e ec In e na ional ela ions O ganiza ion compe encies T aining po olio O ganiza ional s abili y Abili y o inno a ion Resea ch ac i i y suppo ed by o ganiza ional s uc u e Human esou ces Employee commi men O ganiza ional cul u e- he a e o indi idualism/collec i ism P o essional compe encies The wo columns o compe i i eness - he cus ome alue and he ins i u ional compe ence - phasing p ocess ep esen he so-called compe i i eness spi al. In Figu e 2 ANNALS o he ORADEA UNIVERSITY. Fascicle o Managemen and Technological Enginee ing, Volume XI (XXI), 2012, NR2 5.64 he compe i i eness spi al has been comple ed, wi h hose s a egy de elopmen s, s a egic planning design ools, which a e assigned o speci ic s eps o con ibu e o he ins i u ional compe i i eness. Figu e 2: Rela ion be ween compe i i eness spi al and s a egic planning ools (sou ce: Chikán – Gelei, 2006 – ans o ma ion) PEST ANALYSIS PEST, as an analysis amewo k o mac o-en i onmen al ac o s, is also e e ed o as, STEP (Clulow, 2005), SEPT (Na ayanan and Fahey, 1994: 199-202), o STEEP (Vo os, 2001). The cons i uen s o PEST can be conside ed as mac o-en i onmen al ac o s and i s use ulness lies in he assump ion ha he success o a pa icula o ganiza ion o managemen solu ion canno be unde s ood wi hou ha ing he in o ma ion ele an o he speci ic business en i onmen (Buchanan and Gibb, 1998). Business en i onmen could be de ined as all ele an physical and social ac o s ou side an o ganiza ion ha a e conside ed in o decision-making p ocess. MARKET ANALYSIS Due o ex ensi e wo k o he highe educa ion ins i u ions in all cases should be de ined ac i i ies and ope a ional pu poses o which he ins i u ions could conside as a ma ke a ea. The highe educa ion ma ke analysis and assessmen o he cu en si ua ion should se e as a s a ing poin o highligh he s a egic goals. The de ini ion o ANNALS o he ORADEA UNIVERSITY. Fascicle o Managemen and Technological Enginee ing, Volume XI (XXI), 2012, NR2 5.65 ma ke size and ma ke sha e analysis o he uni e si ies can ge a ealis ic pic u e abou hei ac i i ies; imp o e hei se ices in wha di ec ion o enhance hei compe i i eness. The ma ke analysis, consis om he ollowing s eps: - Iden i ica ion o he ma ke ; - Size analysis o he ma ke : o Numbe o cu en ly ained s uden s o Numbe o applican s o Numbe o he annual g adua ed s uden s o The uni e o he no ma i e suppo o Employmen oppo uni ies o How he admission did quo es se ? o How many ins i u ions ha e been on he ma ke ?, e c. - Ma ke sha e analysis BENCHMARKING Benchma king does no mean copying. Quali y gu u W. Edwa ds Deming eaches “Adap , don‟ adop .” You uni e si y is no exac ly like any o he , bu disco e ing which p ocesses you ins i u e mus excel a will inc ease you awa eness o how much he e is o lea n om o he uni e si ies. Benchma king is an ongoing, sys ema ic p ocess o measu ing and compa ing wo k p ocesses o one o ganiza ion o hose o ano he o iden i y bes p ac ices. Highe educa ion can gain much om his echnique, as indus y has. The me hod is objec i e, educes esis ance o change and can lead o d ama ic inno a ion and apid de elopmen . COMPETENCE ANALYSIS (VRIO) The esou ce-based s a egic app oach (Resou ce Based View, RBV), a key poin ha he ins i u ion needs o iden i y he a ailable esou ces and capabili ies a e hose which domina e he long- e m compe i i eness. The me hod highligh s ou cha ac e is ics o he esou ces and capabili ies (Black-Boal, 1994): - The esou ces mus be aluable, i is necessa y o examine i i c ea es alues by allowing esou ces o en i onmen al h ea s o changes - The esou ces mus be a e , due o his aspec we should examine he numbe o compe ing o ganiza ions a e al eady in possession o some aluable esou ces and capabili ies - I is impo an ha he esou ce imi a ion be cos ly. I is wo h o analyze whe he hose ins i u ions ha do no ha e any esou ces, hey wan o acqui e skills. - An impo an ea u e o he esou ces is he o ganiza ional i ing, i he ins i u ion‟ o ganiza ional and managemen sys em allows he maximum u iliza ion o he esou ces. Acco ding o he VRIO model - named by he ou essen ial ini ials - hose esou ces and capabili ies play a key ole in he success o he o ganiza ion in e ms o which each o he ou essen ial cha ac e is ic a e ue pa allel. ANNALS o he ORADEA UNIVERSITY. Fascicle o Managemen and Technological Enginee ing, Volume XI (XXI), 2012, NR2 5.66 EFQM MODEL The EFQM Excellence Model is a non-p esc ip i e amewo k o o ganiza ional managemen sys ems, p omo ed by EFQM ( o me ly known as he Eu opean Founda ion o Quali y Managemen ) and designed o helping o ganiza ions in hei d i e owa ds being mo e compe i i e. The Model is egula ly e iewed and e ined: he las upda e was published in 2010. Es ablished in 1992, he p ize ecognizes companies wi h excellen and sus ainable esul s ac oss all a eas o he EFQM Excellence Model. The Eu opean model, in oduce wo g oups o c i e ia: enable s and esul s. The nine c i e ia co e e e y impo an ac o o o ganiza ional being. The EFQM model gi es a complex managemen concep . Leade ship, S a egy, People, Pa ne ship & Resou ces and P ocesses and P oduc s & Se ices a e he enable s. People, Cus ome , Socie y and Key Resul s a e he esul s. The con en o he enable s a e he ollowing: o Leade ship: Excellen o ganiza ions ha e leade s who shape he u u e and make i happen, ac ing as ole models o i s alues and e hics and inspi ing us a all imes. They a e lexible, enabling he o ganiza ion o an icipa e and eac in a imely manne o ensu e o ganiza ion o an icipa e and eac in a imely manne o ensu e he ongoing success o he o ganiza ion. o S a egy: Excellen o ganiza ion implemen s hei mission and ision by de eloping a s akeholde - ocused s a egy. Policies, plans, objec i es and p ocesses a e de eloped and deployed o deli e objec i es and p ocesses a e de eloped and deployed o deli e s a egy. o People: Excellen o ganiza ions alue hei people c ea e a cul u e ha allows he mu ually bene icial achie emen o o ganiza ional and pe sonal goals. They de elop he capabili ies o hei people and p omo e ai ness and equali y. They ca e o communica e, and p omo e ai ness and equali y. They ca e o communica e, ewa d and ecognize, in a way ha mo i a es people, builds commi men and enables hem o use hei skills and knowledge o he bene i o he o ganiza ion. o Pa ne ship & Resou ces: Excellen o ganiza ions plan and manage ex e nal pa ne ship, supplie s and in e nal esou ces in o de o suppo s a egy and policies and he e ec i e ope a ion o p ocesses. o P ocesses, P oduc s & Se ices: Excellen o ganiza ions design, manage and imp o e p ocesses o gene a e inc easing alue o cus ome s and o he s akeholde s. ANNALS o he ORADEA UNIVERSITY. Fascicle o Managemen and Technological Enginee ing, Volume XI (XXI), 2012, NR2 5.67 Figu e 3 EFQM model (Sou ce: www.e qm.o g) BALANCED SCORECARD The balanced sco eca d sugges s ha we iew he o ganiza ion om ou pe spec i es, and o de elop me ics, collec da a and analyze i ela i e o each o hese pe spec i es: The Balanced Sco eCa d (BSC) gi es a comp ehensi e ame o manage s, which allows an o ganiza ional u u e ision and s a egy coo dina ed pe o mance – indica o . Mos o he o ganiza ions d aw hei mission, which communica es he base alues o hei employees. This mission includes he key concep s and iden i ies he goals and main p oduc s. (Robe S. Kaplan - Da id P. No on, 2004). Balanced Sco eCa d: S a egic planning me hods, based on indica o s. Objec i e: The applica ion o measu e e u ns. Applica ion: P ocess Con ol and sense-making ask ha can be localized by means o in e nal communica ion and educa ion o. The ole o Balanced Sco eCa d: • helps cla i ying he ision and he s a egy, and o de elop as an a angemen • a BSC is a s a egic business managemen and pe o mance measu emen sys em which, • links he s a egic goals and indica o s and helps hem communica ed , shows a conc e e s a egy o he employees. • Imp o e he incen i e sys em, c ea ing an objec i e oppo uni y o he company‟s managemen o measu e he pe o mance • con ol oppo uni y o hose who makes he measu es • i is in eg a ed o he o ganiza ion1s quali y managemen sys em- i can be connec ed wi h he EFQM model and wi h he ISO 9001:2008 quali y managemen sys em, and could be ollowed he achie ing o business excellence The Balanced So eCa d di ided he s a egy in o goals and indica o s, and so sin ou poin o iew. The ou dimensions a e: inancial accomplishmen , he cus ome s, ope a ional p ocess, lea ning and g ow h, which is p esen ed in Figu e 4. ANNALS o he ORADEA UNIVERSITY. Fascicle o Managemen and Technological Enginee ing, Volume XI (XXI), 2012, NR2 5.68 Figu e 4 Balanced Sco eCa d poin o iew (sou ce: Robe S. Kaplan – Da id P. No on, 2004) SUMMARY D . Joseph M. Ju an, p obably he g ea es pionee in Quali y ma e s, e e ed o he 20 h cen u y as he „cen u y o p oduc i i y‟ a he Ame ican Socie y o Quali y Con ol (ASQC) on 24 May, 1994. He also p edic ed ha he 21s cen u y will be he „cen u y o quali y‟. Eigh een yea s has passed since ha s a emen and in he pas couple o yea s, Hunga ian ins i u ions ha e unde gone conside able changes. In o de o be able o s ay in he ma ke and he necessi y o become compe i i e equi ed hem o place he majo emphasis on sa is ying he needs o cus ome s. The s udy sough answe o how he s a egy managemen ools could help compe i i eness. Re e ences: 1. Black, J.A. – Boal, K.B. S a egic esou ces: T ai s, con igu a ions and pa hs o sus ainable compe i i e ad an age. S a egic Managemen Jou nal, ol. 15. no, pp.131-148., 1994. 2. Buchanan, S. and Gibb, F. The in o ma ion audi : an in eg a ed s a egic app oach, In e na ional Jou nal o In o ma ion Managemen , 18(I), 29-47., 1998. 3. Chikán - Czakó – Pap ika. A állala i e senyképesség a globalizálódó magya gazdaságban Akadémiai Kiadó, Budapes , 2002. 4. Clulow, V. Fu u es dilemmas o ma ke e s: can s akeholde analysis add alue?, Eu opean Jou nal o Ma ke ing, 39 (9/10), 978-997., 2005 5. Gelei A. – Shube A. Kompe encia alapú e senyképesség egy eze ő FMCG állala példáján, Műhely anulmányok, Vállala gazdaság an In éze , Budapes i Co inus Egye em, Budapes , 2006. 6. Na ayanan, V. and Fahey, L. Mac oen i onmen al analysis: unde s anding he en i onmen ou side he indus y. In Fahey, L. and Randall, R. (Eds.), The Po able MBA in S a egy, 2nd edi ion, 189–214, New Yo k: Wiley, 1994. 7. Vo os, J. Re aming en i onmen al scanning: an in eg al app oach”, [Online], 2001. h p://www.s adsad iseu .nl/buu on wikkelaa / eks /en -scanning.pd [Accessed 8. 16/05/2006]. ANNALS o he ORADEA UNIVERSITY. Fascicle o Managemen and Technological Enginee ing, Volume XI (XXI), 2012, NR2 5.69