Behavioural

Implementation
Strategic Management
 It is important to emphasize that culture,
value, and leadership significantly influence
the implementation of corporate strategies.

The culture of an organization is reflected in the way that

Aspects of people in the organization perform tasks, set objectives, and
administer resources to achieve them.

Behavioural Organisational values describe the core ethics or principles

which the company will abide by, no matter what. They

Implementation
inspire employees' best efforts and also constrain their
actions. ... Over time, improve the organisation's ethical
character as expressed in its operations and culture.
A third element in the threesome is leadership. It is
universally recognized that the more successful organizations
are those that are well led rather than those that are only
well managed.
 Corporate level managers

Strategic Business level managers

leadership Functional level managers

Operational level
 Determining strategic direction

Effectively managing the organisational

resources portfolio
Task of
strategic Sustaining an effective organisational culture

leaders Emphasising ethical practices

Establishing balanced organisational controls

 Kurt lewin – democratic,
The styles of
autocratic and laissez
strategic leaders
faire style.
 Role of strategic
leaders
 Role of chief executive officer
 Role of senior managers
 Role of business-level executives
 Role of functional and operational
managers
 Developing
strategic leaders
Choice of future strategies
Career planning and development
Succession planning
Corporate Culture
and Strategic
Management
 Composition of
Culture
 Beliefs

 Values

 Norms
Beliefs are considered to be
assumptions about reality and are
derived and reinforced by
experience.
Values are considered to be
assumptions about ideals that are
desirable and worth striving for.

Norms are expected standards of

behavior.
Impact of As a strength:
culture on • facilitates communication
corporate • decision making and control
life • create cooperation and
commitment
 Founder or an influential leader
who established desired values.

Building of a
Sincere and dedicated
strong commitment.
culture
Concern for stakeholders.
 Strategy
Culture
Relationship
 To ignore corporate culture

Approaches
to create a To adapt strategy implementation to
suite corporate culture

strategy-
To change the corporate culture to suit
supportive strategic requirements

culture:
To change the strategy to fit the
corporate cultures
Corporate Politics and
Power
Understanding Politics and Use of Power

Reward Power

Coercive Power

Legitimate Power

Reference Power

Expert Power
 Negative
Power and
Politics
Positive
Strategic use of
power and
politics
  Accept the inevitability of politics being there
in the organization
Strategic use of  Understanding the power structure

power and  Lead strategy

 Be sensitive and alert to political signals
politics  Reward organizational commitment
 Use openness and honesty
 Nature of Indian society

Higher level of enviousness

Pervasive enviousness

Corporate politics and power in

the Indian context
Personal values

 Personal values refers to a

conception of what an
individual or group regards as
desirable.
 It is the study of how personal
moral norms apply to activities and
goals of a commercial enterprise.
Business
ethics It is concerned primarily with the
relationship of business goals and
techniques to specify human ends.
 A major task of leadership is to
inculcate personal values and
impart a sense of business
Personal ethics to the organizational
values and members.
business Personal values and business
ethics ethics seek to prevent an
indiscriminate use of power
politics within organization.
Values : Principles or
standards of behavior.
Ethics : The rules of
conduct recognized in
respect to a particular
class of human actions or
a particular group,
culture.
Strategy : Strategists
take strategic
decisions on the basis
of values and ethics.
Advantage of business ethics and Values

Attraction of
Competitive
investment and
advantage
human capital

Retention of
valuable
employees
 Transparency in Training and
the recruitment educational
and selection programs

Inculcating
values and Communication of
values and ethics
Consistent
nurturing of values

ethics
Paying special
attention to
ethically-
sensitive activities
Reconciling Divergent Values.

Modifying Values to Create

Consistency.
SOCIAL RESPONSIBILITY AND STRATEGIC
MANAGEMENT
Corporate Social Responsibility began as a philanthropic
activity where organizations contributed to social causes. It
started gaining in importance and became an essential activity
for business. The increasing emphasis on CSR by the corporate
organizations and the recent business scandals reflect on the
urgent and essential need to pay attention to CSR. At the
global level, there are emerging trends in terms of increased
spending on CSR and search for new modes of imparting CSR
benefits by the corporate sector. More and more Indian
business organizations also are embracing the practice of CSR
under different names such as Corporate Philanthropy,
Corporate Sustainability, Social Responsibility and Corporate
Citizenship etc.
 Corporate Social responsibility

Corporate Social responsibility is an organization's

obligation to benefit society in ways that transcend
the primary business objective of maximizing
profits.
• Responsibility towards owners
• Responsibility towards Investors
• Responsibility towards employees
• Responsibility towards customers
• Responsibility towards competitors
• Responsibility towards suppliers
• Responsibility towards Government
 CSR Activities
The CSR activities that corporations undertake to
contribute to a social issue are most commonly in the
areas of health, community development, environment
etc. They include the following:
 Corporate cause promotion partnership
 Corporate cause related marketing partnership
 Corporate social marketing partnerships
 Corporate volunteering
 Corporate philanthropy
 Socially responsive business practices
 Factors affecting CSR

 Organisation’s stage of
development
 Strategy
 Quality of leadership
 Profits
 Social responsibility in Indian
context
Indian business organisations are embracing the practice of
CSR under different names such as Corporate Philanthropy,
Corporate Sustainability, Social Responsibility and Corporate
Citizenship etc. These are well reflected in the Annual Reports
and other corporate reports on their respective websites.
Reports of surveys and rankings of CSR conducted by
organisations such as Time Foundation and Karmayog etc. are
also available CSR refers to corporate activities demonstrating
the inclusion of social and environmental concerns in business
operations and in interactions with stakeholders also
according to the ambition levels of corporate sustainability
 Profits Vs. Shared Values
Profits do matter. Good firms bring innovations to
the market, which in turn provide economic
growth, employment and enrich people’s lives.
Michael Porter has written about the concept of
“shared value” for companies, which involves
creating economic value in a way that also
creates value for society by addressing its needs
and challenges. Companies should take the lead
of bringing business and society back together.
 Firms of Endearment
FoE are loved as they have ‘hearts’. These
companies do not fit into the norms that Wall Street
is comfortable with. They create value by aligning
stakeholders’ interests with a long-term
perspective of organic growth through endearment.
They take care of the interests of stakeholders
strategically. These firms meet the tangible and
intangible needs of the stakeholders through
affection and loyalty to the company. They adopt a
different kind of Stakeholder Relationship Model.
 Conscious Capitalism
Until recently words like love, joy, authenticity,
empathy, soulfulness and other terms of
endearment did not have place in business. Today
a growing number of Firms of Endearment (FoE)
embrace such terms.
Conscious Capitation is another evolving paradigm
for business that simultaneously creates multiple
kinds of value and well being for all stakeholders:
financial, intellectual, physical, ecological, social,
cultural, emotional, ethical and even spiritual.
 Gandhian model: voluntary
commitment to public
Models of welfare based on ethical
awareness of social needs.
CSR
Operating In Nehruvian model: state-
driven policies including
India state ownership and
extensive regulation and
administration
 Milton-friedman model:
corporate responsibility
primarily focused on owners
objectives
Contd…
Freeman model: stakeholders
responsiveness which
recognizes direct and indirect
stakeholders interests.