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IMPLEMENTATION:
Management and
Operation Issues
STRATEGY
IMPLEMENTATION
1. managing forces
during the action.
2. focuses on
efficiency
3. primarily an
operational process.
4. requires special
motivation and
leadership skills.
5. requires
coordination among
many individuals.
Management Issues
Annual Objectives
Policies
Resources
Management
Issues
Organizational Structure
Restructuring
Rewards/Incentives
Ch 7-7
Management
Issues
Production/Operations
Human Resources
Ch 7-8
Annual Objectives
Establishing annual
objectives
Decentralized activity that directly
involves all managers in an
organization
Active participation in establishing
annual objective can lead to
acceptance and commitment
Policies
Policy
- Refers to specific guidelines,
methods, procedures, rules, forms
and administrative practices
established to support and
encourage word toward stated goals
- Instruments for strategy
implementation
- Set boundaries, constraints and
limits on the kinds of administrative
actions that can be taken to reward
and sanction behavior
Policy
Provide a basis for management
control, allow coordination across
organizational units and reduce the
amount of time managers spend in
making decisions
Promote delegation of decision making
Should be stated in writing whenever
possible
Resource Allocation
Four Types of
Resources
1.Financial resources
2.Physical resources
3.Human resources
4.Technological resources
Managing Conflict
Resource-Specific Conflict
- Interdependency of objectives
and competition for limited
resources often leads to conflict.
- Conflict can be defined as a
disagreement between two or
more parties on one or more
issues.
Confrontation is exemplified by
exchanging members of
conflicting parties so that each
can gain an appreciation of the
others point of view, or holding
a meeting at which conflicting
parties present their views and
work through their differences.
Management Issues
Managing Conflict
Conflict not always bad
No conflict may signal apathy
Can energize opposing groups to
action
May help managers identify
problems
Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 7-31
Matching Structure
with Strategy
ADVANTAGES
Ability is clear
Employees can see clearly the results
of their good or bad performance
Employee morale is generally higher
Creates career development
opportunities for managers
Allow local control of situations
Leads to a competitive climate w/in
organization
ADVANTAGES
Allows business and products to be
added easily
LIMITATIONS
-Costly for a number of reasons
-It may be difficult to maintain
consistent, companywide practices
Restructuring, Reengineeri
And E-Engineeri
Restructuring
A.k.a. downsizing, rightsizing or
delayering
Involves reducing size of the firm in
terms of number of employees, number
of divisions or units and number of
hierarchical levels in the firms
organizational structure
Primary benefit is cost-reduction
Can rescue the firm from global
competition and demise
Concerned with eliminating or
Restructuring
The downside of restructuring can
be reduced employee commitment,
creativity and innovation
Another downside is that many
people today do not aspire to
become managers
Characterized by strategic
decisions
Reengineering
Concerned more with employee and
customer well-being than shareholder
well-being
A.k.a. process management, process
innovation or process design
Involves reconfiguring or redesigning
work, jobs and processes for the
purpose of improving cost, quality,
service and speed
Focus is changing the way work is
actually carried out
Reengineering
Characterized by many tactical
decisions
Cornerstones are decentralization,
reciprocal interdependence and
information sharing
Benefit is that it offers employees the
opportunity to see more clearly how
their particular jobs affect the final
product or service being marketed by
the firm
However, reengineering can also raise
Managing Resistance
To Change
Resistance to Change
Can be considered the single greatest
threa to successful strategy
implementation
It may take on such forms as sabotaging
production machines, absenteeism, filing
unfounded grievances, and an
unwillingness to cooperate.
There are three commonly used strategies
for implementing change:
-Force change strategy
-Educative change strategy
Managing the
Natural Environmen
Jack Duncan
Triangulation
Effective, multi-method technique for
studying and altering a firms culture
Includes combined use of obtrusive
observation, self-administered
questionnaires and personal interviews to
determine the nature of a firms culture
Reveals changes that need to be made a
firms culture to benefit strategy
Schein
Elements that are most useful in linking
culture to strategy:
Formal statements of organizational
philosophy, charters, creeds,
materials used for recruitment and
selection and socialization
Designing of physical spaces, facades
and buildings
Deliberate role modeling, teaching
and coaching by leaders
Explicit reward and status system,
promotion criteria
Schein
Stories, legends, myths and parables
about key people and events
What leaders pay attention to measure
and control
Leader reactions to critical incidents and
organizational crises
How the organization is designed and
structured
Organizational systems and procedures
Criteria used for recruitment, selection,
promotion, leveling off, retirement and
Production/Operations Concerns
When Implementing Strategie
Production/Operations Concerns
Production/operations capabilities,
limitations, and policies can
significantly enhance or inhibit
attainment of objectives.
Production processes typically
constitute more than 70% of firms
total assets
Examples on adjustment of
Production/Operations
Decisions
Plant size
Inventory/Inventory control
Quality control
Cost control
Technological innovation
Factors to be considered
before
locating production
facilities
Availability of major resources
Prevailing wage rates in the area
Transportation costs related to
shipping and receiving
Location of major markets
Political risks in the area
Availability of trainable employees
Type of
Organization
Strategy being
implemented
Production
System
Adjustments
Hospital
Pur. Specialized
equipment and add
specialized people
Bank
Beer brewery
Steel manufacturer
Acquiring fast-food
chain (unrelated
diversification)
Computer
company
Purchasing retail
distribution chain
(forward integ.)
Responsibilities of human
resource manager
1. An ESOP is a tax-qualified,
defined-contribution,
employee benefit plan
whereby employees
purchase stock of the
company through borrowed
money or cash contributions.
2. ESOPs reduce worker
alienation\estrangement,
stimulate productivity, and
Work/family
strategies
have
become
so
popular
among
companies that the strategies now
represent a competitive advantage
for those firms that offer such
benefits as elder care assistance,
flexible scheduling, job sharing,
and so on.
Human resource managers need to
foster more effective balancing of
professional and private lives
Benefits of a Diverse
Workforce
Benefits of a Diverse
Workforce
End