Strategy implementation
- 2. What is strategy implementation?Strategy implementation as the act of turning strategies, plans or ideas into actions that are tangible, so that certain goals can be achieved.It includes allocating resources, organising, assessing appropriate authority to the key managers, setting policies & developing procedures Management issues:-Annual objectivesPoliciesResource allocationRestructuring & re-engeneeringRewards & recognition
- 3. Annual ObjectivesAnnual objectives are serve as guidelines for action, directing & channelizing efforts and activities of the organizationsReasons for annual objective settings in strategy implementation:- It allows proper resource allocationThey are a primary mechanism for evaluating managersMonitoring progressTo establish organizational, divisional and departmental priorities
- 4. PoliciesPolicy refers to specific guidelines, methods, procedures, rules, forms, & administrative practices established to support and encourage work toward stated goalsPolicies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward & sanction behaviour
- 5. Resource AllocationResource allocation is a plan for using available resources . It is the process of allocating resources among the various projects or business units.There are four types of resources:-Financial resourcesPhysical resourcesHuman resourcesTechnological resources
- 6. Managing ConflictConflict is a disagreement between two or more parties on one or more issues. It arises whenever there is interdependency of objectives & competition for limited resourcesVarious approaches to manage & resolve conflict:-AvoidanceDefusionConfrontation
- 7. Matching organizational structure with strategyReasons for changes in strategy often requires changes in structure:-Structure largely dictates how objectives & policies will be establishedStructure dictates how human resources will be allocatedThere are three types of organizational structures:Functional structureDivisional structureMatrix structure
- 8. Functional structureIt groups tasks and activities by business functions. Advantages:-It is simplest & least expensiveAllows rapid decision makingIt promotes specialization of labour Disadvantages:-Minimizes career development opportunitiesLow employee moraleLine /staff conflictsPoor delegation of authority
- 9. Divisional StructureThe divisional structure can be organized in four ways:By geographic areaBy product or serviceBy customerBy process
- 10. Matrix structureMatrix structure depends upon both vertical & horizontal flows of authority and communicationAdvantages:Project objectives are clearEmployees can clearly see results of their workFacilitates uses of special equipment/personnel/facilitiesDisadvantages:Requires excellent vertical & horizontal flows of communicationCostlyCreates dual lines of budget authority