Ronaldo ParenteChapter 1Wheelen & Hunger 10ed

*Business Strategy Course Code: MGT 401 Course Teacher: M Akbar Ali, DIG of Police alibpm@yahoo.com+8801711 806 888LECTURE 18 :CSR in SM

Chapter 1Wheelen & Hunger 10ed

Chapter 5Wheelen/Hunger *

Strategy Implementation:Staffing and Directing

Chapter 5Wheelen/Hunger

*Evaluation and Controland ControlStrategic Management ModelStrategy FormulationStrategy Implementation MissionObjectivesStrategiesPoliciesFeedback/Learning Environmental ScanningSocietal Environment General ForcesTask Environment Industry AnalysisStructure Chain of CommandResources Assets, Skills Competencies, KnowledgeCulture Beliefs, Expectations, ValuesReason for existenceWhat results to accomplish by whenPlan to achieve the mission & objectivesBroad guidelines for decision makingProgramsActivities needed to accomplish a planBudgetsCost of the programsProceduresSequence of steps needed to do the jobProcess to monitor performanceand take corrective actionPerformanceExternalInternalEvaluationand Control*Lecture 9 Ch10 (W/H) M Akbar Ali alibpm@yahoo.com

Lecture 9 Ch10 (W/H) M Akbar Ali alibpm@yahoo.com

*Strategy Implementation The implementation of new strategies and policies often calls for new HRM priorities and a different use of personnel. Such staffing issues can involve:Hiring new people with new skills,Firing people with inappropriate skills, and/orTraining existing employees to learn new skills.Research findingCompanies with enlightened talent management policies and programs have higher returns on sales, investments, assets, and equity.*

*Staffing follows StrategyGrowth StrategyNew people may need to be hired and trained.Experienced people may need to be found for promotion to newly created managerial positions.1. Acquisition StrategyMay need to replace several managers in the acquired company.Executives quit the acquired company at higher-than-normal rates.25% after 1st year, 35% after 2nd year, 48% after 3rd year, 55% after 4th year, 61& after 5 years.The turnover rate is higher in case of a foreign acquiring company2. Merger StrategyLose excess employees after a mergerHighly skilled people to be retained: Special Integration Managers3. Retrenchment StrategyA large number of people may be laid off or fired.

*Staffing follows strategy:Changing Hiring and Training RequirementsTo implement the new strategy, a corporation may find that it needs to either hire different people or retrain current employees.Training and developmentOne way to implement a companys business strategy, such as overall low cost, is through training & developmentASTD: the average annual expenditure per employee on corporate t & d is 1,000$ per employee.A study of 155 US manufacturing firms revealed that firms with training programs had 19% higher productivityAnother study found that a doubling of formal training per employee resulted in a 7% reduction in scrapTraining is especially important for a differentiation strategy emphasizing quality or customer service.

Chief Executive Types:Dynamic industry expertfor company following concentration strategy emphasizing vertical and horizontal growth would need an aggressive new CEO with a great deal of experience in that particular industry.Analytical portfolio manager for company following diversification strategy might call for someone with an analytical mind who is highly knowledgeable in other industries and can manage diverse product linesCautious profit planner for company following stability strategy would probably want a person with a conservative style, a production or engineering background, and experience with controlling budgets, capital expenditures, inventories, and standardization procedures. *Matching the Manager to the StrategyExecutive type - executives with a particular mix of skills and experiences

Turnaround specialist for company following a turnaround strategy would need a challenge oriented to save the company.Professional liquidator for company following liquidation strategy might be called on by a bankruptcy court to close the firm and liquidates its assets.

Chief Executive Types and overall strategy:Successful prospector firms tended to be headed by CEOs from research/engineering and general management background.High performance defenders tended to have CEOs with accounting/finance, manufacturing production, and general management experience.Analyzers tend to have CEOs with a marketing/sales background.*

*Matching Chief Executive Types with StrategyAverageHighLowBusiness Strength/Competitive Position Strong GrowthConcentrationDynamic Industry Expert StabilityCautious Profit Planner Retrenchment Close CompanyProfessional Liquidator Retrenchment Save CompanyTurnaround Specialist Industry AttractivenessMediumWeakGrowthDiversificationAnalytical Portfolio Manager*

*Selection and Management Development Executive Succession Process of replacing a key top manager.Boards help CEO develop succession planIdentify succession candidates below top layerMeasuring internal candidates against external candidatesAppropriate financial incentives*

*

Identifying Abilities & Potential:Establish a sound performance appraisal systemIdentify managers talents and behavioral tendencies so that he/she could be placed with a likely fit to a given competitive strategyCompanies select them to be in the executive development training programSpecial training, leadership experience, and mentorshipCombination of development assignments, classroom training, coaching, and participation in special project teams to enable employees to continuously learn and develop.Assessment centersA management assessment center is a two or three-day simulation in which 10 to 12 candidates perform realistic management tasks under the observation of experts who appraise each candidates potential.Special interviews, management games, in-basket exercise, leaderless group discussions, case analysis, decision-making exercises, and oral presentationUsed to evaluate a persons suitability for an advanced position.Job rotationUsed to ensure that employees are gaining the appropriate mix of experiences to prepare them for future responsibilities.

*Problems in Retrenchment:Downsizing (rightsizing)Planned elimination of positions or jobsUsed in retrenchment strategies

Guidelines for Downsizing:Eliminate unnecessary work vs. making across-the-board cutsContract out work for efficienciesPlan for long-run efficienciesCommunicate reasons for actionInvest in the remaining employeesDevelop valued-added jobs to balance out job elimination*

*International issues in staffing:Considerable planningCan be very costly: $3,00,000 to 1 million annually per executive. Cultural differences must be consideredExperience through international assignments

Effective management of foreign assignments:Focus on transferring knowledge and developing global leadershipForeign assignments to people with technical skills matched or exceeded by cross-cultural abilitiesDeliberate repatriation at end of assignment with career guidance and jobs

*Strategy-Culture Compatibility:Consider the following:Is the planned strategy compatible with the firms current culture?Can the culture be easily modified to make it more compatible with new strategy?Is management willing to make major organizational changes?Is management committed to implementing the strategy?*

*Assessing StrategyCulture CompatibilityNoYesNoYesYesNoNoIs the planned strategy compatible with the current culture?Can the culture be modified to make it more compatible with the new strategy?Is management willing and able to make major organizational changes and accept probable delays Manage around the culture by establishing a new structural unit to implement the new strategy.Find a joint-venture partner or contract with another company to carry out the strategy.Is management still committed to implementing the strategy?YesFormulate a different strategyTie changes into the culture.*

*Managing different cultures:Integration: Give-and-take of cultureFrances Renault and Japans Nissan Motor Company: CEO Carlos GhosnAssimilation: Domination of one culture over other.Not forced, but welcomed by the members of the acquired firmMaytags (now part of Whirlpool) purchase of Admiral.Separation: Structurally separated without cultural changeBoeings acquisition of McDonnell-Douglas, but keeping it separate to protect its strong cultureDeculturation: Disintegration of one companys culture resulting from unwanted and extreme pressure from the other to impose its culture and practicesAT&T acquired NCR Corporation in 1990.*

*Managing the Culture of an Acquired Firm*

*Strategy Implementation Action PlanStates what actions are going to be taken, by whom, during what time frame, and with what expected results.ElementsList specific actions.List dates to begin and end each action.Name person responsible for each action.Name person responsible for monitoring timelines and effectiveness of each action.Estimate expected financial and physical consequences of each action.Develop contingency plans.*

*Review QuestionsLecture 181.a. Explain executive succession.b. What are the ways for Identifying abilities & potential?c. What is the differences between downsizing and rightsizing?2. a. What actions you must undertake to implement a strategy?b. What staffing strategies you have to follow to implement your companys changed strategies?c. What are the types CEOs you need for different strategies?3. a. Suppose you have acquired a foreign company. How best you can manage the cultural differences of the acquired company with your own?b. How can you assess that your new company strategy is compatible with your companys culture?c. Suppose you have acquired a foreign company. How will you manage the cultural differences of the acquired company with these two matrix:i. How much the members of the acquired firm value preservation of their own firmii. Perception of the attractiveness of the acquirer company

******************