Q: Explain the basic elements of strategic management process.

There are four basic elements of strategic management process which are as follows:

1. Environmental Scanning
2. Strategy Formulation
3. Strategy Implementation
4. Evaluation and Control

Environmental Strategy Strategy Evaluation and

Scanning Formulation Implementation Control

Figure 1.1 Basic Model

Environmental Scanning
Environmental scanning includes collecting data by analysing the internal and external
factors affecting the organization. This could be done through SWOT (Strengths,
Weaknesses, Opportunities, Threats) analysis which helps the organization in realizing the
strengths and weaknesses through internal evaluation and helps the company in realizing the
flaws of organization and to make a strong internal system of organization. It also helps the
organization in determining the threats and opportunities by evaluating external factors which
helps the company in improving their database.

Strategy Formulation
Strategy formulation is the next step in environmental scanning in which the company
determines how it wants to be perceived in future. This includes the mission and vision
statement. A company at this stage clearly sets their mission to define what company wants to
achieve and why it exists furthermore a vision statement is also defined to set its main goals
and objectives.
Strategy Implementation
This is the third step of strategic management process in which the mission and vision which
were defined in the strategic formulation are put into action. In this step different methods
and processes are being used by the organization to effectively implement the goals and
objectives of the organization for better future.

Evaluation and Control

This is the final step of strategic management process. In this step after successful
implementation the company continuously evaluates and assess the results of strategy
implementation and also seek out if any improvements are needed. It makes sure that the
company is meeting its goals and objectives.

Q: Explain the relationship between rewards and employee motivation.

Rewards and employee motivation are directly related to each other. The more the rewards
the happier the employees. Rewards improve the productivity of employees resulting in
improving organizations overall performance.

Job
Rewards
satisfaction

Employee
Motivation

Figure 2.1 Relationship between Rewards and Employee Motivation

If the employee is motivated enough to work, he will give a better performance than the
employee who is not motivated. A company should assess and evaluate the performance of
the employees with and without rewards. Companies should arrange various campaigns for
the employees in which it should be made compulsory for every employee to participate thus
it will encourage them to work hard for the rewards. It is also an important factor in employee
satisfaction.
Rewards play a significant role in boosting the confidence of employees and improving their
performance. An employee automatically gets excited if the company announces
performance-based bonuses monthly along with the monthly salary. It also helps in retaining
the talented employees in the organization. For example: During covid-19 the employee
retention ratio was very low but on the other side there were such organizations which
retained their employees by providing continuous motivation to their employees through
different rewarding schemes and thus rewarding system helped those organizations in
successfully retaining their employees. This happened solely because the employees were
motivated enough to work with the organization which happened via monetary benefits,
bonuses i.e., rewards.