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CHAPTER 7 (B):IMPLEMENTING STRATEGIES: MGT AND OPERATION ISSUES (Creating…
CHAPTER 7 (B):IMPLEMENTING STRATEGIES: MGT AND OPERATION ISSUES
Strategy formulation vs implementation
F= positioning forces before action, I=managing forces during action
F= focuses on effectiveness, I= focuses on efficiency
F=intellectual process, I=operational process
F=require good intuitive&analytical skill, I=required motivation &leadership
Annual obj
represent basis for allocating resources
are primary mechanism to evaluate managers
are the major instrument for monitoring progress toward achieveing LT obj
establish organizational, divisional and departmental priorities
Policies
specific guidelines, methods, procedures, rules, forms, and administrative practices establish to support&encourage work toward goals
instrument for strategy implementation
set boundaries, constraints and limits
clarify what can do and cannot be done
Resources allocation
central mgt activity that allows for strategy execution
often based on political/personal factors
Type
Financial
Physical
Human
Technological
Conflict
disagreement between 2 or more parties on one/more issues
Managing conflict
Avoidance
Defusion (redakan)
Confrontation (have meeting)
matching structure with strategy
Functional
group tasks&activities by business fx
Divisional
functional activities are performed both centrally and in each separate division (geographic area, customer, process)
Strategic business unit (SBU)
groups similar division into strategic business unit& delegates authority&responsibility for each unit to a senior executive who report directly to CEO
Matrix
depend on both vertical&horizontal flow of authority&communication
Restructuring
involve reducing the size of the firm in terms of num of employees, num of division/unit
also called downsizing, rightsizing, delayering
Reengineering
involve re configuring/redesigning work, job and processes for the purpose of improving cost, quality, services, and speed
also called process mgt, process innovation, process redesign
benefits
Empowering employees
Eliminating waste
Linking performance and pay to strategies
Provide full transparency to all stakeholders
Reward LT performance with LT pay
Base executive compensation on actual company performance, rather than on stock price
Extend time horizon for bonuses, replace ST with LT incentives
Increase equity between workers&executives. delete many special perks&benefits for excutives
Managing resistance to change
Force change strategy (giving orders&enforcing those orders)
Educative change strategy ( one that presents info to convince people of need to change)
Self-interest change strategy ( one that attempts to convince ind that the change is to their personal advantage)
Creating a strategy supportive culture
Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection and socialization
Designing of physical spaces, facades and buildiing
Deliberate role modeling, teaching and coaching by leaders
Explicit rewards and status system, promotion criteria
Stories, legends, myths and parables about key people and events
What leader pay attention to,measure and control
Leader reaction to critical incidents and organizational crises
How organization is designed and structured
Organizational system and procedures