What does strategic management encompass?

Strategic management is a comprehensive process that involves aligning various operational aspects of an organization with its overarching goals. The correct answer highlights the connection of criteria to employee, unit, and organizational outcomes, which is fundamental to understanding how strategic management functions.

This answer reflects the holistic view of strategic management, which integrates various levels of performance – from individual employees to entire units and the organization as a whole. By linking these criteria, organizations can effectively assess performance, identify areas for improvement, and ensure that every aspect of the workforce is aligned with the strategic objectives of the company. This alignment leads to enhanced productivity, better resource utilization, and ultimately, the achievement of strategic goals.

Focusing solely on individual employee performance, as suggested in one option, overlooks the necessary connections between various levels of an organization that are essential to strategic management. Another option that emphasizes goals for organizational outcomes alone fails to account for how those outcomes are influenced by unit and individual performance. Lastly, while budgeting and resource allocation are important components of operational management, they do not encompass the broader scope and critical connections central to strategic management. Thus, the correct choice captures the essence of what strategic management truly involves.