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2A. David - sm15 - Inppt - 07
2A. David - sm15 - Inppt - 07
Strategies:
Management
Managemen
and Operatio
Operati ns
Issue
Issu s
Chapter Seven
7-1
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► Strategy formulation is positioning forces
before the action.
► Strategy implementation is managing forces
during the action.
► Strategy formulation focuses on
effectiveness.
► Strategy implementation focuses on
efficiency.
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► Strategy formulation is primarily an
intellectual process.
► Strategy implementation is primarily an
operational process.
► Strategy formulation requires good intuitive
and analytical skills.
► Strategy implementation requires special
motivation and leadership skills.
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► Strategy formulation concepts & tools do not
differ greatly for small, large, for profit- & not-
for-profit organization
► Strategy implementation varies substantially:
Among different types & sizes of organizations
7-5
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► Requires shift in responsibility from strategists
to divisional & functional managers:
Comes as surprise to middle- and lower- level
managers
Motivated more by self-interests than by
organizational interests, unless the two coincide
Hence need for early participation
7-6
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7-7
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Annual objectives:
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7-9
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► Policy
► Specific
guidelines, methods, procedures, rules,
forms, and administrative practices established
to support and encourage work toward stated
goals
7-10
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► Policies
► Set boundaries, constraints, and limits on the
kinds of administrative actions that can be taken
to reward and sanction behavior
► Clarify what can and cannot be done in pursuit of
an organization’s objectives
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► Policies let both employees & managers know what
is expected of them, thereby increasing the
likelihood that strategies will be implemented
successfully
► They provide a basis for:
► Management control
► Allow coordination across organizational units
7-13
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► Resource allocation
► centralmanagement activity that allows for
strategy execution
► often based on political or personal factors
7-16
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► Over protection of resources
► Too great an emphasis on short-run financial
criteria
► Organizational politics
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► Yavitz & Newman explain why:
► Managers normally have more tasks than they can do
► Managers must allocate time & resources among these
tasks
► Pressure builds up
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► Avoidance
► includessuch actions as ignoring the problem in
hopes that the conflict will resolve itself or
physically separating the conflicting individuals
► Diffusion
► includes playing down differences between
conflicting parties while accentuating similarities
and common interests
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► Confrontation
► exemplified by exchanging members of
conflicting parties so that each can gain an
appreciation of the other’s point of view or
holding a meeting at which conflicting parties
present their views and work through their
differences
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► Involve
reducing the size of the firm inn terms of
number of:
► Employees
► Divisionsor units
► Hierarchy levels
► Also called:
► Downsizing
► Rightsizing
► Delayering
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► Involves reconfiguring or redesigning:
► Work, job, processes
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