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1、CluipnsIssuesCHFER7IMP1.EMENTINGSTRATEGIES:MANAGEMENTANDOPERATIONSISSUESCHAPTEROUT1.INE TheNatureofSlralcgyhnple11cnla(ion AnnualObjectives Policies ResourceAllocation ManagingConflict MatchingStnicturewithStrategy Restructuring.Rccnginccring,andE-Enginccring 1.inkingPerformanceandPaytoStnitcgics Ma
2、nagingResistanceioChange CreatingaSlralegy-SupportiveCulture PrxlucIin,0peralionsConcernsWhenImplementingStrategies HUlnanResourceConcernsWhenImplementingStrategiesCHAlrIEROBJECTIVESAfterMudyingIhiSchapter,youshouldbeableiodothefollowing:1. Explainwhystrategyinple11entationis11rcdil11cul(thanstrateg
3、yIbnnulalion.2. DiscusstheimportanceofannualobjectivesandpoliciesinhicvingOrganiZatiOnalcommitmenttorstrategiestobeimplemented.ExplainwhyorganizationalStnictureissoimportantinstrategyimplementation.COlnpareandcontrast!Xistruciuringandreengineering.Describetherelationshipsbelween11)duclionroperalions
4、andstrategyinlenwnlali(1n.Explainhowafirmcanefteclivelylinkperfb11narcandpaytostrategies.Discussemployeestockownershipplans(ESOPs)asast11tcgic-managcmcntconcept.Describehowto11xlifyanorganizationalculturetosupportnewstrategics.DiscussthecultureinMexiandJapan.1().DescribetheglasceilingintheUnitedSlat
5、es.CHAPTEROVERVIEW,hestrategic-managementprocessdoesnotendwhen(hefirmdecideswhichstrategyorstrategiestopursue.Theremustbeatranslationofstrategicthoughtintostrategicaction.Thistranslationismucheasierifmanagersandemployeesofthefirmunderstandthebusiness,ledapartofthecompany,and,throughinvolvementinslra
6、lcgy-formulationactivities,havebecomecommittedtohelpingtheorganizationsucceed.Withoutunderstandingandcommitment,strategy-implementationeftbrtsfacemajorproblems.Thischapterfocusesonmanagementissuesmostcentraltoimplementingstrategiesin201020l1.DoingGreatinaWeakEconomy-GoogleWhennoslfirmswerestruggling
7、in20()8,Googleincreaseditsrevenuesandprofitssuch(hatFortunemagazinein2009ratedGooglcasitsfourth,MostAdmiredCompanyintheWorldintermsofitsmanagementandperformance.In2009,Googlcbegansellingbooksonline.ThisrelateddiversificationstrategyledGoogletodigitizecloseto10millionbooksbyyearsend.Googlesphilosophy
8、isthat44Iowpricesaregood,buttreeisbelter/*InadirectassaultonMicrosoft.Googleispreparingtolaunchitsownoperatingsystemforcomputers.GoogleChrome.TheGooglCstrategyisahugebe(thatonlineProgramScaneventuallyovertakeandcrushdesktopsoftware.EXTENDEDCHAPTEROUT1.INEWITHTEACHINGTIPSI. THENATUREOFSTRATEGYIMP1.EM
9、ENTATIONA. IheStrategy-ImplemeniationStageofStrategicManagement1. Tliestrategy-impleinentationstageoistrategicmanagementis代WeaIedinRgure7-1.2. Successfulstrategyformulationdocsnotguaranteesuccessfulstrategyimplementation.Itisalwaysmon?difficulttodoSoIneihing(strategyimplenntation)thantosayyouaregoin
10、g(odoit(strategyfbmwlation).B. ManagementPerspectives1. Inallbutthesmallestorganizations,thetransitionfromstrategyformulationtostratcgj,implementationrequiresashiftinresponsibilityfromstrategiststodivisionalandfunctionalmanagers.2. ManagementissuescentraltoStraIegyimPlementationincludeestablishingan
11、nualnustrategynu(lulelskl()44.htmfivesa(*Mldefinitionofstrategyimplementation.II. ANNUA1.OBJECTIVESA.EstablishingnnualObjectives1. Establishingannualobjectivesisadecenlralizcdactivitythaldirectlyinvolvesallmanagersinanorgani/iiiion.2. AnnUalobjectivesareessentialforstrategyimplementationbecausethey:
12、a. Repsentthebasisibrallocatingresources.h. AaprimaryIixxhanism(brevaluatingmanagers.i. Arcthemajorinstrumentfbrmonitoringp11)gressIowanlsachievingIong-Iennobjectives.j. Establishorganizational,divisional,anddepartmentalpriorities.3. ClearlyslatedandCCmmuniCatedObjeCIiVeSan?criticallosuccessinallIyp
13、eSandsizesoflinns.FigIlTV7-2illustrateshowtheSlalmusCompanycouldestablishannualobjectivesbasedonIong-Icnnobjectives.Table7-1revealsassociatedrevenueflgutvsthatcorrespondtotheobjectivesinFigure7-2.a. Objectivesshouldbeconsistentacrosshierarchicallevelsandformanetworkofsupportiveaims.Horizontalconsist
14、encyofobjectivesisasimportantasverticalconsistencyofobjectives.b. AnnualobjectivesshouldbeInCaSunIblc,consistent,reasonable,challenging,clear,communicatedthroughouttheorganization,characterizedbyanappropriatetimedimension,andaccompaniedbycommensuraterewardsadsanctions.c. Toooften,objectivesarestated
15、ingeneralities,withIiuleoperationalusefulness.4. Annualobjectivesshouldbecompatiblewithemployees,andmanagersvaluesandshouldbesupportedbyclearlystatedpolicies.III. PO1.ICIESA. Changesinafirmsstrategicdirectiondonotoccurautomatically.Onaday-to-daybasis,policiesareneededtomakeastrategywork.B. Broadlyde
16、fined,PoliCyrefers(ospecificguidelines,elhods.Pn亢CdUres、rules,RMls,andadministrativepracticesestablishedtosupportandencourageworktowardstatedgoals.C. PoliciesletbothemployeesandmanagersknowWlJatisexpectedofthem,therebyincreasingtheIikelihcxxlthatstrategieswillbeimplementedsuccessfully.D. Examplesofp
17、oliciesthatsupportacompanystrategy,divisionalocctivc.aladepartmentalobjectivearegiveninTable7-3.E. SoineexampleissuesUIatnIayrequireamanagementxlicyareprovidedinTable7-4.IV. RESOURCEA1.1.OCATIONA. Resourceallocationisacentralmanagementactivitythatallowsforstrategyexecution.1. InorganizationsIhaldotu
18、seaStrategic-Inanagenientapproachtodecisionmaking,resourceallocationisoftenbasedOnPOliIicalOrpersonalactors.2. Strategicmanagementenablesresourcestobeallocatedaccordingtoprioritiesestablishedbyannualobjectives.B. Allorganizationshaveatleastfourtypesofresourcesthatcanbeusedtoachievedesiredobjectives:
19、1. Financialresources2. IjhySiCalresources3. iIununresources4. TechnologicalresourcesV. MANAGINGCONF1.ICTA. Resource-SpecificConflict1. InterdependencyofobjectivesandCompelilionIbrlimitedresourcesoftenleadstoConfIie1.Issues2. Conflictcanbedefinedasadisagreementbetweentwoormorepartiesononeornreissues
20、.3. EstablishingOhjeCIiVeNcanleadtoCOnfliClbecause11anagersandMrategislsmustInakCt11lc-ofts.Table7-5revealssomeimportantmanagement(11dc-offdecisionsrequiredinstrategyimplenwniation.4. Conflictisunavoidableinorganizations,andistalwaysbad.AnabsenceofCOnfIiClcansignalindifferenceandapathy.B. Approaches
21、forManagingandResolvingConllictVariousapproachestormanagingandresolvingconflictcanbeClassitkdintothreecategories:avoidance,delusion,andconfrontation.1. Avoithnccincludessuchactionsasignoringtheprobleminhopes(hat(heCOnniClwillresolveitselforphysicallyseparatingtheconflictingindividuals(orgroups).2. D
22、efusioncanincludeplayingdowndifierencesbetweenconflictingpartieswhileaccentuatingSimilarilieandCQmlnOninterests.CQmPromiSingsothatthereisneitheraclearwinnerIK)Tkscr,resorting(omajorityrule,appealingtoahigheraulhwOlyectivesandpoliciesWinbeestablished.Forexample,objeciivesandpoliciesCNlablishedUrKlCra
23、geographicorgani/xitionalstructurearecouchedingeographicte11ns.Objectivesandpoliciesarcstatedlargelyintermsofproductsinanorganizationwhosestructureisbasedonproductgroups.Ibestnc(uralformulafordevelopingobjectivesandpoliciescansignificantlyimaciallotherstrategy-iinplenientationissues.b. Thesecondmajo
24、rreasonwhychangesinstrategyo11enrequirechangesinStnicturcisthatstructuredictateshowresourceswillbeallocated.2. Changesinstrategylead(0changesinorganizationalSiruciure.Structureshouldbedesignedtotaciliatethestrategicpursuitofafirmand.Ihereibre.followstrategy.Figure7-3illustratesastructuresequenceIepe
25、atedasorganizationsgrowandChangeoverlime.3. Thereisno(justoneoptimalorganizationaldesignorstructureforagivenstrategyortypeoforganization.4. AsillustratedinTable7-6.symptomsofanineffectiveorganizationalstructureincludetoomanylevelsofmanagement,100manymeetingsHlendedbytoomanypeople,Kxmuchallentionbein
26、gdirectedtowardsolvinginle11lepartnentalconflicts,tIargCaSPanofcontrol,andtoomanyUnaChiCVCdobjectives.VTN(VisirtheNet):,snrtdniw,c(Hn(offerssoftwareJbrdrawingOrganizaiiotMlclrts.Ifoffersafreehirty-daytrial.B. TheFunclionalStwcture1. ThemostwidelyusedstructureisthefunctionalorBnIraliZCdtypebecausethi
27、sstructureisthesimplestandleastexpensiveofthesevenalternatives.2. AfunctionalSructuregroupstasksandactivitiesbybusinessfurtcionsuchas11)duclopera(i()ns,marketing,llnareaccounting,R&D,andcomputerinfc(urecanbeorganizedinoneoftourways:bygeographicarea,by11luci(H,service,bycustomer,orbypr11nedbolhcentra
28、llyandineachseparatedivision.a. Advantages:AdivisionalStnicturehassomeclearadvantages.First,andperhapsforemost,accountabilityisclear.Otheradvantagesofthedivisionalstructurearethatitcreatescareerdeveloxnen(OPPOnUniIieSforniaiiagers.allowsIOCaIcontrolofIoCalsituations,leads(oacompetitiveclimatewithina
29、norganization,andallowsnewbusinessesandp11luctstobeaddedeasily.b. Disadvantages:Perhapsthemostimportantlimitationisthatadivisionalstructureiscostly.c. Table7-8summarizestheadvantagesanddisadvantagesofdivisionalorgani4lionalstructure.3. Adivisionalstructurebygeographicareaisappropriatetororganization
30、swhosestrategiesneedtobetailoredtofittheparticularneedsandcharacteristicsofcustomersindiflerenigeographicareas.4. AdivisionSlruclurebyp11luctismosteffectivel()rimplementingstrategieswhenspecificproductsorservicesneedspecialemphasis.5. AdivisionalstructurebyCUStoInercanbethemosteffectivewaytoimplemen
31、tstrategiesWhenafewmajorCUSlomeiSareOfPanm)OUnlimportateandmanydifTercn(servicesarcprovidedtotheseCUSIOmers6. AdivisionStnicturcbyprocessissimilartoafunctionalst11ctrc,becauseactivitiesareorganizedaccordingtothewayworkisactuallyperformed.AkeydifferenceisthatfunctionallaccounlablcIbrp11)fitsorrevenue
32、s,whereasdivisionalprocessdcpartncnisarcevaluatedonthesecriteria.D. IheStrategicBusinessUnit(SBU)Structure1. TlieSBUSlnicluregn)upssimilardivisionsintostrategicbusinessunitsanddelegatesauthorityarlresponsibilityIbreachunitIoaseniorexeculivewhorqxxtsdirectlytotheCEO.2. Advantages:ThischangeinStiuctui
33、x?canfacilitatestrategyinplenenationbyimprovingcoordinationbetweensimilardivisionsalCluinnelingaccountabilitytodistinctbusinessunits.AnotheradvantageoftheSBUSInICIurVisthatitmakesthetasksofplanningandcontrolbythecorporateofficemoremanageable.3. Disadvantages:TWodisadvantagesofanSBUstructureare(hatit
34、requiresanadditionallayerofmaiiagenient.whichincreasesSaIaryexpetses.Also,theroleofthegupvicePreSi加ntisoftenambiguous.4. Figure7-4illustratestheSBUSlruclureusedbySonoCoPnxluclsCOrPoralion.E.IheMatrixStnicture1. ItisthemostCOmPleXofalldesignsbecauseitdependsuponbothverticalandhorizontalflowsofaulhori
35、lyandcommunicalion.2. ItCanresultinhigherOVCrhCadbecauseitcreatesmoremanagerialpositions.3. Italsocreatesduallinesofbudgetauthority,dualsourcesofrewardandpunishment,sluuvdauthority,avddualreportingdannels.4. AsindicatedinTable7-9,SOlneadvantagesofamatrixstructurearethat11ycxlobjectivesarcclear,there
36、arcmanychannelsofcommunication,workerscanseevisibleresultsofWOrtUandprojectscanbeshutdowneasily.ThisStnicturealsofacilitatestleuseofspecializedpersonnel,equipment,andfacilities.5. Figure7-5illuNtralesaIypicalmatrixst11utu.6. ForamatrixStnicturctobeeffective,organizationsneedPaniCiPaliVCplanning,trai
37、ning,clearmutualunderstandingofrolesandresponsibilities,excellentinternalcommunication,andmutualtrustandconfidence.F.SoineDosandDon,lsinDevelopingOrganizationalCharts1. RcscrrcthetitleofCEOforthe(oppersonintheorganizationandusethetc11nPresidenttordivisiontopmanagers,iftherearedivisionsinthefirm.Issu
38、es2. FurKiionalbusinessexecutivessluldhavetitleslikeChief.VicePresident.Manager,orOnker3. ItisbesttohaveaCOOreportingtotheCEOandalldivisionalpresidentswillreportCoiheCOO.4. Figure7-6illusiraesanorganizationalchartfbrtopInallagerSofalargei11n.VII. RESTRUCTURING,REENGINEERING,ANDE-ENGINEERlNGA. ReshapingCorporate1.andscape1. ReS(TUCIUring,alsocalleddownsizing,rightsizing,ordelayering,involvesreducingthesizeofIbeIinninIermSofnumberofemployees,divisionsorunits,andhierarchicallevelsinthefirmsorganizationalstmctur.a.RecessionaryeconomicconditionshaveforcedmanyEuropeancompa
