Professional Documents
Culture Documents
Session 8 PDF
Session 8 PDF
Strategy Implementation
Management Issues
Session 8
Some Quotes
“A management truism says structure follows strategy. However, the truism is
often ignored. Too many organizations attempt to carry out new strategy with an
old structure.”
Dale McConkey
“The ideal organizational structure is a place where ideas filter up as well as
down, where the merit of ideas carries more weight than their source, and where
participation and shared objectives are valued more than executive orders.”
Edson Spencer
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Session 8
Annual Objectives
1. Basis for allocating resources
2. Primary basis for evaluating managers
3. Major instrument for monitoring short-term progress toward meeting long term goals
4. Establish organizational, divisional and departmental objectives.
Measurable, Consistent, Reasonable, Challenging, Clear, Communicated throughout the organization,
time dimension, reward and sanctions.
Words like maximize, minimize, as soon as possible etc. should be avoided.
Side-effects of over-emphasis : faking numbers, distorting records etc.
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Annual Objectives
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Policies
• Specific guidelines, methods, procedures, rules, forms and administrative
practices established to support and encourage towards achieving goals.
• Policies set boundaries, constraints and limits on the kind of administrative
actions that can be taken to reward and sanction behavior.
About 40% of companies today do not have a formal policy preventing employees
from surfing the Internet, but software is being marketed now that allows firms to
monitor how, when, where, and how long various employees use Internet at work.
Session 8
Policies
Some typical examples of policies:
• To buy, lease or rent new equipment.
• To recruit through employment agencies.
• To negotiate directly with labor unions.
• Not allow overtimes.
• To promote from with or hire from outside.
• To centralize or decentralize training activities.
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Policies
Class Discussion
Can policies help a firm achieving the set objectives or it creates limitation for
generating new ideas.
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Resource Allocation
• Financial, physical, human resource and technological.
Factors prohibiting resource allocations are:
• Overprotection of resources.
• Too much emphasis on short-run financial criteria.
• Organizational politics.
• Vague targets.
• Reluctance to take risks.
• Lack of sufficient knowledge.
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Managing Conflict
Disagreement between one or more issues.
• Setting up objective can invite conflict.
• Conflict should be unavoidable and should be managed before it produces dysfunctional
consequences.
• Conflict is not always bad. It can energize or bring new ideas.
Resolving conflict through:
• Avoidance: Separate people so that it automatically gets resolved.
• Diffusion: Playing down differences and accentuating similarities viz. majority, appealing to
higher authority etc.
• Confrontation: Conflicting parties present their views and sorting out the differences.
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McDonald’s reorganized its operation in 2001, going from thirty seven geographic locations in
the United States to twenty-one divisions. This streamlining eliminated 700 managerial jobs.
Kodak reduced its number of business units from seven by-customer divisions to four by-
product divisions. As consumption patterns become increasingly similar worldwide, a by-
product structure is becoming more effective than by-customer or by-geographic type division
structure. In the restructuring, Kodak eliminated its global operations division and distributed
those responsibilities across the new by-product divisions.
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THANK YOU
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