Professional Documents
Culture Documents
Ch.7-1
Management Issues
Strategy Implementation
more difficult to do something
Strategy Formulation
easier to say going to do it
Ch.7-2
Management Issues
Strategy Formulation
Strategy
Implementation
Focuses on effectiveness
Focuses on efficiency
Primarily an intellectual
process
Requires good intuitive
and analytical skills
Requires coordination
among a few individuals
Primarily an operational
process
Requires motivation and
leadership skills
Requires coordination
among many persons
Ch.7-3
Management Issues
Transition to Strategy Implementation
Revising
Reward &
Incentive
Programs
Minimizing
Resistance
to
Change
Developing
HR
Function
Developing a
Managing
Strategy
the
Supportive
Natural
Culture
Environment
Adapting
Production/
Operations
Processes
If Necessary
Downsizing
Ch.7-5
Establishing
Annual
Objectives
Devising
Policies
Ch.7-7
Allocating
Resources
Altering
Existing
Organizational
Structure
Function
Divisional
SBU Structure
Matrix Structure
Ch.7-9
Reducing size of
firm
Employees
Divisions
or units
Hierarchical levels
Restructuring
Benchmarking
against competitors
Ratios
out of line
Primary benefit =
cost reduction
Ch.7-10
Employee/custome
r well-being
Redesign
work
Redesign jobs
Redesign processes
Reengineering
Improvement in:
Costs
Quality
Service
Speed
Ch.7-11
Revising
Reward &
Incentive
Programs
Pay-for-performance
plans
Flexibility in
compensation systems
is necessary
Dual bonus system
Annual
objectives
Long-term objectives
Profit Sharing
Ch.7-12
Managing
Resistance
To
Change
Raises anxiety/fear
Force change strategy
Educative change
strategy
Rational or self-interest
change strategy
Most
desirable
Ch.7-13
Managing
the
Natural
Environment
Creating a
StrategySupportive
Culture
Triangulation as method
to determine changes in
a firms culture that
could benefit strategy
Weak linkages between
strategic management
and organizational
culture can jeopardize
performance and
success
Ch.7-15
Production/
Operations
Concerns
Production processes
typically constitute
more than 70% of firms
total assets
Decisions on:
Plant
size
Inventory/inventory
control
Quality control
Cost control
Technological innovation
Ch.7-16
Human
Resources
Concerns
Management Issues
Important Implementation Concerns
work
Ch.7-18
Annual objectives
Avoidance
Benchmarking
Bonus system
Conflict
Confrontation
Culture
Defusion
Delayering
Decentralized
structure
Divisional
structure
Downsizing
Educative change
strategy
Employee Stock
Ownership Plan
(ESOP)
Ch.7-19
Establishing annual
objectives
Force change strategy
Functional structure
Gain sharing
Horizontal
consistency of
objectives
Just in time
Matrix structure
Policy
Profit sharing
Rational change
strategy
Reengineering
Resistance to change
Resource allocation
Restructuring
Rightsizing
Self-interest change
Triangulation
Vertical consistency
of objectives
Ch.7-20