chapter8-strategy-implementation.ppt

1、 Chapter8 Strategy Implementation:Organization for actionStrategy implementationlStrategy implementation:process through the development of programs,budgets,and procedures.who will carry out the strategic plan?What must be done?How are they going to do what is needed?Who implements strategylMuch mor

2、e diverse group of peoplelIn most large,multi-industry corporation,the implementers will be everyone in the organization.Vice presidentsDirectors of divisionPlant managersProject managersUnit headlUnless changes in mission,objectives,strategies,and policies and their important to the company are com

3、municated clearly to operational managers,resistance can result.What must be donelProgram:statement of the activities or steps needed to accomplish a single use plan.The purpose of a program is to make the strategy action-oriented.lBudget:statement of a corporations programs in dollar terms.Cost vs.

4、benefitlProcedures:a system of sequential steps or techniques that describe in detail how a particular task or job to be done.How is strategy to be implementedlA change in corporate strategy will likely requires some sort of change in organizational structure and in the skills needed in particular p

5、ositions.lStrategy and structureStructure follows strategyOrganizations follow a pattern of development from one kind of structural to another.lStrategy,structure and the environment need to be closely aligned.Otherwise organizational performance will likely suffered.lNo agreement optimal organizati

6、onal designStages of corporate developmentlStage I:simple structureEntrepreneur tends to make all the important decisions.The greatest strength is flexibility and dynamism.Crisis of leadership Owner-managerWorkersStages of corporate developmentlStage II:functional structureEntrepreneur is replaced b

7、y a team of managersThe strength lies in concentration and specialization in one industry.The weakness is that all of its eggs are in one basket.Crisis of autonomyStrategic PlanningCorporate FinanceCorporate R&DCorporate MarketingSenior ExecutiveCorporateHumanResourcesStages of corporate development

8、lStage III:divisional structureDecentralize the decision-making authority.Crisis of controlThe strength is its unlimited resourcesThe weakness is so large and complex,become relatively inflexible.Strategic PlanningCorporate FinanceCorporate R&DCorporate MarketingProductionFinanceEngineeringAccountin

9、gHuman ResourcesDivisionDivisionDivisionSales&MarketingSenior ExecutiveCorporateHumanResourcesStages of corporate developmentlStage Iv:beyond SBUsRed tape of crisis:corporate has grown too large and complex to be managed through formal programs and rigid systems and procedures take precedence over p

10、roblem solving.Matrix or network structurePress-cooker crisis:emotionally and physically exhausted from the intensity of teamwork and the heavy pressure for innovation solutions.Stages of corporate developmentlStage Iv:matrix structureThree conditionsCross-fertilization of ideas across projects or p

11、roducts is needed.Resources are scaresThe abilities to process information and to make decisions need improvementIn practice,it is often too clumsy and confusing.Conflict and power struggles;low accountabilityStages of corporate developmentlStage Iv:network structureA newer and somewhat more radical

12、 organizational design,is an example of what could be termed a nonstructure because it virtually eliminate in-house business function.Virtual organizationMost useful when the firms environment is unstableLong-term contract with supplier and distributors to replace vertical integrationElectronic mark

13、et and sophisticated information systemLinked with computers in an information system that designs,produces,and markets a product or serviceStages of corporate developmentStages of corporate developmentreengineeringlReengineering:radical redesign of business processes to achieve major gains in cost,

14、service,or time.It is not in itself a type of structure,but it is an effective way to implement a turnaround strategy.lRather than attempting to fix existing problems through minor adjustments and fine-tuning existing process.Job designlJob design:rethinking of individual tasks in order to make them

15、 more relevant to the company and to the employees.lJob enlargement:combining tasks to give a worker more of the same type of duties to perform.lJob rotation:moving workers through several jobs to increase varietylJob enrichment:altering jobs by giving the worker more autonomy and control over activ

16、itiesJob Characteristics Model lTask IdentityExtent to which employees complete a whole,identifiable piece of worklJob FeedbackExtent to which completing a task provides clear&timely performance feedbacklAutonomyExtent of freedom and discretion available to determine how to perform the jobJob Charac

17、teristics ModellSkill Variety Extent to which job requires a range of competencies and abilitieslTask SignificanceExtent to which employees impact others and the companyPersonaland WorkOutcomesCore JobDimensionsCriticalPsychologicalStatesSkill varietyTask identifyTask significanceExperiencedmeaningf

18、ulnessof the workExperiencedresponsibilityfor outcomesof the workKnowledge of theactual results ofthe work activitiesAutonomyFeedbackHigh internalwork motivationHigh-qualitywork performanceHigh satisfactionwith the workLow absenteeismand turnoverEmployee GrowthNeed StrengthJob Characteristics ModelI

19、nternational issuelProduct group structure:enable the company to introduce and manage a similar line of products around the world.lGeographic are structure:allow a company to tailor products to regional differences and to achieve regional coordination.International issueInternational issueInternational issueInternational issue