Struggling to Understand Strategic vs. Tactical vs. Operational Pay: Can You Help?

Lashanya
Hi, I am doing a project for my compensation management course and I have had a few difficulties with differentiating between the strategic, tactical, and operational application of performance-related pay.
Dinesh Divekar
Understanding Strategic, Tactical, and Operational Roles

Have you studied the difference among strategic, tactical, and operational roles? Do you know what strategic planning, tactical planning, and operational planning are? Do you understand the difference between strategy and tactics? If you are not clear on these concepts, then it is better if you update yourself on them. This conceptual clarity is very important.

In most large companies, strategic roles are handled by top management, tactical roles by middle management, and operational roles by lower management personnel.

Most top-notch IT companies are changing their direction of business. In a company like Infosys, Vishal Sikka, CEO of the company, is introducing design thinking. This company-wide change in response to the changing business environment is his strategic role. HP is no longer just a hardware-producing company but provides solutions in cloud computing.

Once the strategic shift is decided, like Infosys's design thinking or HP's cloud computing, creating industry-specific solutions is a tactical role. Once the industry-specific solutions are developed, marketing them and providing excellent customer service is the operational role.

Thanks,

Dinesh Divekar
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