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Chapter 9 PowerPoint Presentation

Chapter 9

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Chapter 9

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  1. Chapter 9 Strategy Implementation: Staffing and Directing PowerPoint Slides Anthony F. Chelte Western New England College Chapter 9 Wheelen/Hunger

  2. Strategy Implementation Staffing: • Hiring new people with new skills, firing people with inappropriate skills, and/or training existing employees to learn new skills. Chapter 9 Wheelen/Hunger

  3. Strategy Implementation Staffing follows strategy: • Training and development • Firms with training programs 19% higher productivity • Reduction in scrap • Overall cost savings Chapter 9 Wheelen/Hunger

  4. Strategy Implementation Staffing follows strategy: • Matching the manager to the strategy • Executive type • Executives with a particular mix of skills and experiences Chapter 9 Wheelen/Hunger

  5. Strategy Implementation Executive Types: • Dynamic industry expert • Analytical portfolio manager • Cautious profit planner • Turnaround specialist • Professional liquidator Chapter 9 Wheelen/Hunger

  6. Matching Chief Executive “Types” with Strategy Business Strength/Competitive Position Strong Average Weak Growth—Concentration Dynamic Industry Expert Retrenchment—Save Company Turnaround Specialist High Stability Cautious Profit Planner Medium Industry Attractiveness Low Growth—Diversification Analytical Portfolio Manager Retrenchment—Close Company Professional Liquidator Chapter 9 Wheelen/Hunger

  7. Strategy Implementation Executive Succession: • Process of replacing a key top manager. Chapter 9 Wheelen/Hunger

  8. Strategy Implementation Executive Succession: • Boards help CEO develop succession plan • Identify succession candidates below top layer • Measuring internal candidates against external candidates • Appropriate financial incentives Chapter 9 Wheelen/Hunger

  9. Strategy Implementation Identifying Abilities & Potential: • Establish a sound performance appraisal system Chapter 9 Wheelen/Hunger

  10. Strategy Implementation Identifying Abilities & Potential: • Assessment centers • Used to evaluate a person’s suitability for an advanced position. Chapter 9 Wheelen/Hunger

  11. Strategy Implementation Identifying Abilities & Potential: • Job rotation • Used to ensure that employees are gaining the appropriate mix of experiences to prepare them for future responsibilities. Chapter 9 Wheelen/Hunger

  12. Strategy Implementation Problems in Retrenchment: • Downsizing (“rightsizing”) • Planned elimination of positions or jobs • Used in retrenchment strategies Chapter 9 Wheelen/Hunger

  13. Strategy Implementation Guidelines for Downsizing: • Eliminate unnecessary work vs. making across-the-board cuts • Contract out work for efficiencies • Plan for long-run efficiencies • Communicate reasons for action • Invest in the remaining employees • Develop valued-added jobs to balance out job elimination Chapter 9 Wheelen/Hunger

  14. Strategy Implementation International issues in staffing: • Considerable planning • Can be very costly • Cultural differences must be considered • Experience through international assignments Chapter 9 Wheelen/Hunger

  15. Strategy Implementation International issues in staffing: • Effective management of foreign assignments: • Focus on transferring knowledge and developing global leadership • Foreign assignments to people with technical skills matched or exceeded by cross-cultural abilities • Deliberate repatriation at end of assignment with career guidance and jobs Chapter 9 Wheelen/Hunger

  16. Strategy Implementation Effective implementation requires: • Leadership • Leading people to use their abilities and skills most effectively and efficiently to achieve organizational objectives Chapter 9 Wheelen/Hunger

  17. Strategy Implementation Managing corporate culture: • Corporate culture • Affects firm’s ability to shift its strategic direction • Strong tendency to resist change • Corporate culture should support the strategy Chapter 9 Wheelen/Hunger

  18. Strategy Implementation Strategy-Culture Compatibility: • Consider the following: • Is the planned strategy compatible with the firm’s current culture? • Can the culture be easily modified to make it more compatible with new strategy? • Is management willing to make major organizational changes? • Is management committed to implementing the strategy? Chapter 9 Wheelen/Hunger

  19. Strategy Implementation Managing corporate culture: • Communication • Key to effective management of change • Rationale for strategic change should be communicated to all Chapter 9 Wheelen/Hunger

  20. Assessing Strategy—Culture Compatibility Is the planned strategy compatible with the current culture? No Yes Can the culture be modified to Tie changes into the culture. make it more compatible with the new strategy? Yes Is management willing and able to make major organizational No changes and accept probable delays No Yes Manage around the culture by Is management still committed establishing a new structural unit to implementing the strategy? to implement the new strategy. No Yes Find a joint-venture partner or Formulate a different strategy contract with another company to carry out the strategy. Chapter 9 Wheelen/Hunger

  21. Strategy Implementation Managing different cultures: • Integration • Assimilation • Separation • Deculturation Chapter 9 Wheelen/Hunger

  22. Managing the Culture of an Acquired Firm Chapter 9 Wheelen/Hunger

  23. Strategy Implementation Action Planning: • Action Plan • States what actions are going to be taken, by whom, during what time frame, and with what expected results. Chapter 9 Wheelen/Hunger

  24. Action Plan Elements • List specific actions. • List dates to begin and end each action. • Name person responsible for each action. • Name person responsible for monitoring timelines and effectiveness of each action. • Estimate expected financial and physical consequences of each action. • Develop contingency plans. Chapter 9 Wheelen/Hunger

  25. Strategy Implementation Management by Objectives (MBO): • Establish and communicate objectives • Set individual objectives • Develop action plan • Review performance periodically Chapter 9 Wheelen/Hunger

  26. Strategy Implementation Total Quality Management (TQM): • Philosophy committed to customer satisfaction and continuous improvement. Chapter 9 Wheelen/Hunger

  27. Strategy Implementation Total Quality Management (TQM): • Four Objectives • 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. Chapter 9 Wheelen/Hunger

  28. Strategy Implementation Total Quality Management (TQM): • TQM Essentials: • Intense focus on customer satisfaction • Internal and external customers • Accurate measurement of operations • Continuous improvement • Work relationships based on trust and teamwork Chapter 9 Wheelen/Hunger

  29. Strategy Implementation Power distance (PD) Uncertainty avoidance (UA) Individualism-collectivism (I-C) Masculinity-femininity (M-F) Long-term orientation (LT) Hofstede’s Dimensions of National Culture Chapter 9 Wheelen/Hunger

  30. Strategy Implementation Internet Impact on Staffing & Leading: • Intranet: • Internal Internet created for the use of a corporation’s employees Chapter 9 Wheelen/Hunger

  31. Strategy Implementation Internet Impact on Staffing & Leading: • Intranet: • Static • Updated periodically • Dynamic • Updated continuously Chapter 9 Wheelen/Hunger

  32. Strategy Implementation Advantages of Intranets: • Speed, effectiveness, low cost • Elimination of time and space barriers • Can use existing infrastructure • Ease of use • Enhances productivity Chapter 9 Wheelen/Hunger

  33. Strategy Implementation Disadvantages of Intranets: • Information needs to be continuously updated • Technology is continually changing • Technical support needed to maintain system • Security • Access Chapter 9 Wheelen/Hunger