Chapter 9

Strategy Implementation:
Staffing and Directing
Copyright 2005 Pearson Education Canada Inc.

Concepts in Strategic Management, Canadian

Edition
Wheelen, Hunger, Wicks

9-1

Strategy Implementation

Staffing
Hiring

new people with new skills, firing

people with inappropriate skills, and/or
training existing employees to learn new skills.

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9-2

Strategy Implementation

Staffing follows strategy:

Matching

the manager to the strategy

Executive type
Executives with a particular mix of skills
and experiences

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9-3

Selection & Management Development

Executive Succession:
Process

of replacing a key top manager.

Boards help CEO develop succession plan
Identify succession candidates below top
layer
Measuring internal candidates against
external candidates
Appropriate financial incentives
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9-4

Selection & Management Development

Identifying Abilities & Potential:

Establish

a sound performance appraisal system

Assessment centers

Used to evaluate a persons suitability for an advanced

position.

Job

rotation

Used to ensure that employees are gaining the appropriate

mix of experiences to prepare them for future responsibilities.

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9-5

Strategy Implementation

Problems in Retrenchment:
Downsizing

(rightsizing)

Planned elimination of positions or jobs

Used in retrenchment strategies

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9-6

Strategy Implementation

International issues in staffing:

Considerable

planning
Can be very costly
Cultural differences must be considered
Experience through international assignments

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9-7

Strategy Implementation

Managing Organizational culture:

Organizational

culture

Affects firms ability to shift its strategic direction

Strong tendency to resist change
Organizational culture should support the strategy

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9-8

Strategy Implementation

Four methods of managing different

cultures:
1.
2.
3.
4.

Integration
Assimilation
Separation
Deculturation

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9-9

Strategy Implementation

Management by Objectives (MBO):

Establish

and communicate objectives

Set individual objectives
Develop action plan
Review performance periodically

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9-10

Strategy Implementation

Total Quality Management (TQM):

Philosophy

committed to customer
satisfaction and continuous improvement.

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9-11

Total Quality Management (TQM)

Four Objectives:
1.
2.
3.
4.

Better, less variable quality in product

Quicker, less variable response to customer
needs
Greater flexibility to customer requirements
Lower cost through quality improvement;
elimination of non-value adding work.

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9-12