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Topic 10 -Strategy Execution (Part 1) (Symptoms of an Ineffective …
Topic 10 -Strategy
Execution (Part 1)
Strategy
Formulation
Position forces before the action
Focus on effectiveness
An intellectual process
Require good intuitive and analytical skills
Strategy
Implementation
Manage forces during the action
Focus on efficiency
It's an operational process
Require special motivation and leadership skills
Policies
Instruments for strategy implementation
Such as
Methods
Rules
Form
Procedure
Encourage work towards stated goals
Types of
Resources
Financial
Physical
Human
Technological
Managing
Conflict
1. Conflict
Disagreement between 2 or more parties on one or more issues
2. Avoidance
Actions such as ignoring the problem hoping the conflict will resolve itself or physically
3. Defusion
Playing down differences between conflicting parties
Accentuate similarities and common interests
4. Confrontation
Gain appreciation of other's POV or hold a meeting, so each other can present their views and work through their differences
Symptoms of an Ineffective
Organisation Structure
Too many levels of management
Too many meetings attended by too many people
Too much attention being directed solving interdepartment conflicts
Too large a span of control
Too many unachieved objectives
Declining corporate / business performance
Lose ground to rival firms
Functional
Structure
Group task and activities by business
Example
Production / operation
Marketing
Finance / accounting
R&D
Management Information System
Pros
Simple and inexpensive
Minimise needs for elaborate control system
Cons
Accountability forced to the top
Minimise career development
Low employee / manager morale
Lead to narrow thinking
Lead to communication problem
Inadequate planning for products and services
Divisional
Structure
Explanation
Activities are performed both centrally end in each separate division
Organised by geographical area, product or service, customer or process
Pros
Clear accountability
Allow local control of local situation
Lead to competitive climate internally
Create career deviation chance
Cons
Can be costly
Duplication of functional activities
Require a skilled management force
Require an elaborate control system
Strategic Business Unit
(SBU) Structure
Group similar divisions and delegate authority and responsibility for each unit to senior executives
Can facilitate strategy implementation by improving coordination between same divisions and channeling accountability to distinct business units
Restructuring
Reduce the size of the
firm in terms of
Number of employees
Number of divisions or units
Number of hierarchical level on firm's organisation structure
Reengineering
Reconfigure / redesign work, job and process for purpose of improving cost, quality, service and speed
Does not affect the organisation structure or chart