Leadership and Management

Topic 2: Approaches to Management

BBM1 Lecture 6
10/25/2020
Managing Strategically- Lesson objectives

• This lecture answers the following questions

• Define strategy
 Managing Strategically- introduction

• Strategy consists of a statement or an understanding of what the

organization or a part of it wants to become, where it wants to go and,
broadly, how it means to get there.

• Strategy determines the direction in which the enterprise is going in

relation to its environment in order to achieve sustainable
competitive advantage.

• Individual managers develop strategies for the accomplishment of

their longer-term objectives.
 Strategic management

• Strategic management is what managers do when they look ahead at

what they need to achieve in the middle or relatively distant future.

• ‘Strong leaders articulate direction and save the organization from

change by drift… They see a vision of the future that allows them to
see more clearly what steps to take, building on present capacities and
strengths’.
 Strategic management

• PROCESS

• defining the organization’s mission, analysing the internal and

external environment, exercising strategic choice (there is always
choice), formulating corporate and functional strategies and goals,
implementing strategies, and monitoring and evaluating progress in
achieving goals.
 Developing a shared vision

• A vision provides a broad picture of what the future might look like. It
provides the basis for formulating and implementing strategic plans.
Visionary management is the process of developing, sharing and
implementing a view of what needs to be done.
 Developing strategic plans

• Process for developing a sense of direction. It has often been

described as a logical, step-by-step affair, the outcome of which is a
formal written statement that provides a definitive guide to the
organization’s or the manager’s long-term intentions.

• Strategy formulation can best be described as ‘problem-solving in

unstructured situations’ (Digman, 1990)
 Strategic capability

• the capacity to create an achievable vision for the future, to foresee

longer-term developments, to envisage options (and their probable
consequences), to select sound courses of action, to rise above the
day-to-day detail, to see the big picture, and to challenge the status
quo.
 Strategic capability
• Managers with high levels of strategic capability will:
• understand the strategic goals

• comprehend how sustainable competitive advantage can be obtained

• development of a clear vision and a set of integrated values

• ensure that SMT understands the business implications of the

function

• be aware of the broader context

• think in terms of the bigger and longer-term

• be capable of making a powerful business case for any proposals

 MANAGING FOR PERFORMANCE

10/25/2020
 Managing for Performance
• Managing for results means managing for performance. This involves
developing a high-performance culture and high-performance work
systems for the organization as a whole, and managing the
performance of individuals and teams.
 High-performance culture
• A high-performance culture is one in which striving for improved
performance is a recognized way of life. The characteristics are:
• people know what’s expected of them – goals
• people have the skills and competencies to achieve their goals;
• high-performance is recognized and rewarded accordingly;
• people feel that their job is worth doing;
• managers act as supportive leaders and coaches, providing regular
feedback,
• a pool of talent ensures a continuous supply of high performers and
 Developing a high-performance culture
• The approach to development is therefore based on:

• (1) an understanding of what those goals are and how people can
contribute to their achievement; and

• (2) assessing what type of performance culture is required. This

provides the basis for creating a high-performance work system.
High-performance work systems (HPWS)
• three themes underpinning the HPWS concept:
1. An open and creative culture that is people-centred and inclusive,
where decision-taking is communicated and shared through the
organization.
2. Investment in people through education and training, loyalty,
inclusiveness, and flexible working.
3. Measurable performance outcomes such as benchmarking and
setting targets, as well as innovation through processes and best
practice.
High-performance work systems (HPWS)
• three themes underpinning the HPWS concept:
1. An open and creative culture that is people-centred and inclusive,
where decision-taking is communicated and shared through the
organization.
2. Investment in people through education and training, loyalty,
inclusiveness, and flexible working.
3. Measurable performance outcomes such as benchmarking and
setting targets, as well as innovation through processes and best
practice.
 High-performance work systems (HPWS)-
components
• Thompson and Heron (2005):
• information sharing;
• sophisticated recruitment;
• formal induction programme;
• five or more days of off-the-job training in the last year;
• semi- or totally autonomous work teams, continuous improvement
teams, problem solving groups;
• interpersonal skill development;
• performance feedback;
• involvement – works council, suggestion scheme, opinion survey;
• team-based rewards, employee share ownership scheme, profit-
sharing scheme.
 High-performance work systems (HPWS)-
how it impacts
• The survey provided evidence that the level of high-performance
practice as measured by the number of practices in use is linked to
organizational performance. Those adopting more of the practices
as ‘bundles’ had greater employee involvement and were more
effective in delivering adequate training provision, managing staff and
providing career opportunities.
 High-performance work systems (HPWS)-
how to develop?
• In groups, prepare a flow chart to show how this can be developed

• 10 minutes
 Managing individual performance
• The management of individual performance involves five elements:
agreement, measurement, feedback, positive reinforcement and
dialogue.
 Managing team performance
• Performance planning involves managers and individuals reporting to
them reaching an agreement (often called a performance and
development agreement) on what needs to be done by both parties to
improve performance.

• Monitoring performance: Managers should therefore be ready, willing

and able to deal with performance issues as they arise.

• Reviewing performance: it is still necessary to have a

formal review once or twice yearly

 Managing team performance

• Teams can provide the ‘elusive bridge between the aims of the
individual employee and the objectives of the organization, [they]
provide the medium for linking employee performance
targets to the factors critical to the success of the business’ (Purcell et
al, 2003).
 Managing team performance

• Group work 2

• Discuss what might be the factors managers consider before

evaluating team’s performance

• 10 min
 Managing team performance- Team performance
management processes

• Team performance management involves the team in agreeing work

and process activities and conducting team performance reviews.

• The aim should be to give teams and their team leaders the maximum
amount of responsibility to carry out all activities. The focus should be
on self management and self-direction.
Managing team performance- Team performance
management processes

1. Setting work objectives

2. Setting process objectives

3. Team performance reviews

Managing team performance- Team performance
management processes

1. Setting work objectives

2. Setting process objectives

3. Team performance reviews