Description
issues in strategy implementation like leadership and Power, Directing and staffing, Values and Ethics, Managing change and Managing conflict.
Behavioural Issues in Strategy Implementation
Behavioural Issues in Strategy Implementation
• Leadership and Power
• Directing and staffing • Values and Ethics • Managing change • Managing conflict
Leadership
• Leadership success is linked to the ability of a leader to exercise the right kind of influence at the right time, • Influence Tactics
– – – – – – – Consultation Persuasion Inspirational appeal Coalition Pressure tactics Upward appeal Exchange tactics
Power
• Leaders use power to influence and implement strategy • Types of Power
– Formal Power
• • • • Legitimate Reward Punishment Coercive
– Informal power
• Referent • Charisma • Information
Leadership Style and Strategy Implementation
• Growth Strategy with Concentration
– Dynamic industry expert
• Growth Strategy with Diversification
– Analytical portfolio manager
• Stability:
– Cautious profit planner
• Retrenchment to save company
– Turnaround specialist
• Retrenchment to close company
– Professional liquidator
Leadership Style and Strategy Implementation
• Transformation leaders needed to bring culture change • Transformation leaders transmit a sense of mission, stimulate learning and inspire new way of thinking.
– Henry Ford envisioned a people’s car – Selling price dropped from $500 in 1913 to $390 in 1915 and $260 in 1925. – Time to produce car reduced from 12.5 worker hours in 1912 to 1.5 in 1914.
Directing and staffing
• Implementation of new strategy calls for new HR priorities
– Hiring people with new skills – Firing people with obsolete skills – Training existing people in new skills A study of 102 companies following an acquisition shows that, 26% of old employees were asked to leave within one year and 61% within five years
Directing and staffing
• Differentiation strategy:
– People with high internal locus of control – Expertise in R&D
• Low Cost strategy
– Expertise in production – Eye for minute details When past CEO successful, company repeats the background (P&G: always from brand management route)
Selection strategy
• Insider vs outsider • Four options
– Selective blend: internal when existing skills match new strategy else outsider – Stability: mainly internal – Turnaround: outsiders with new skills/attitude – Reorientation: outsider to replace weakness
Retrenchment
• Retrenchment is combination of organising and staffing • Downsizing very crucial
– – – – Necessary jobs may be eliminated VRS may bring negative outcome Overload on remaining employees Morale and productivity issues
Survey of 400 companies after downsizing: only 50% recorded improved earning 34% increased productivity 33% improved customer service 50% reported to refill the jobs within one year
Guidelines for successful retrenchment
• Eliminate unnecessary work • Contract out non core activity • Plan for long term efficiencies
– Redeployment – Maintenance – R&D
• Invest in employees
– – – – New job specification Performance standard Compensation package Training
Values
•Values represent basic convictions that specific mode of conduct or end-state existence is personally or socially preferable an opposite mode of conduct or end-state existence. ‘a of to of
•We have a hierarchy of values that forms our value system. This system is identified by the relative importance we assign to values such as freedom, pleasure, self-respect, honesty, obedience, and equality.
Ethics
• Study of moral issues and choices • Concerned with right vs. wrong, good vs. bad • Ethics try to set the standard for the ultimate end or the highest good to be pursued • Normative; judgmental • Unstructured; abstract
No universal Standard
Different background of people Different experiences Value System Moral standards Ethics Behaviour
Work Ethics
A trade-off between economic objectives and social obligations Management Dilemma : Choice between right and wrong (Gray areas)
Characteristics of Work Ethics
• Differ with individuals No unique solutions Multitude of alternatives • Have synchronic effects • Involve trade-off between costs & benefits profits and responsibility the ethical dilemma
Impact on strategy implementation
• Studies show that there is high positive correlation between value based business and success. • Companies facing global challenges are formulating globally consistent codes for ethical understanding and decision making at all levels.
Forces of Change
•
– –
Internal forces
Human Resource Factors Managerial Decisions
•
– – – –
External forces
Technological developments Demographic characteristics Market changes Social and political pressure
Change Actors
• Change Strategists – Contribute to initiating, planning and designing change
• Change Implementers – Flag bearers of change programs
• Change Recipients – Affected by the change
Change levers
Technology Quality
Leadership
Marketing
Costs
Change levers
Leadership
• Without leadership organization is VICTIM of change rather MASTER of change. • The leader empowers the organizational members through appropriate changes, so employees feel important and work becomes exciting. • Creates a trusting culture and builds the credibility of the change programme.
Change levers
People • New organisational culture • New entrants • New skills • Changed relationships • Changed responsibilities
Change levers
Strategy
• It’s like a map that shows path and goal of change • It aims to create unity, cohesion, focus and energy. • it spells out the direction of change. • Strategy is different from vision statement. If the vision statement tells the organization where to go, the strategies tell how to reach there.
Change levers
Structure
• Change in roles, responsibilities, decision making, procedure and coordination mechanism. • More and more Organic structure characterized by: Less of hierarchy and rules More of teamwork Decentralisation
Change levers
Technology
• The term ‘Technology’ does not refer to tools, equipment and machinery alone. It includes information, knowledge and expertise. • Faster and cheaper computers induced changes • New mobile communication devices also forced to change.
Change levers
Marketing
Contd…
• Customers are more quality and cost conscious. • More customization of products and services. • Demand more than mere delivery and after-sales service.
Strategy for Managing change
Do not Change Environment Don’t Change Company Change Environment
Avoid • ignore • hide
React • follow leader • reorganise
Influence • lobby • co-opt Anticipate • Strategic management
Change Company
Rules for Effective Change Management
• • • • • • • • • Work hard at establishing a sense of urgency Do not think out the change, think through it Form powerful coalition Initiate change through informal discussion to get feedback and participation Positively encourage objections Listen actively Plan for and create short term gains Institutionalise new approaches Monitor the change and reinforce it
Create Learning Organisations
• Learning organisation is one that has developed continuous capacity to adapt and change. • It uses double-loop learning – Errors are corrected by modifying existing organisational objectives, policies, standard routines and not merely on basis of past practices.
Characteristics of Learning Organisations
• Shared vision • Creating new ways of solving problems
• A system of interrelationships
• Open communication
• Superiority of organisational interest
International Perspective of Change management
• MNCs/ Companies with offshore clients • New Market Development Strategy • Effective change management requires
– Training and knowledge of host country’s culture to expatriate. – Rational compensation package. – A well defined repatriation plan
Conflict
• A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. • New Strategy implementation may bring out many such concerns among different group of persons.
Conflict management
CONFLICT MANAGEMENT
Conflict Stimulation Conflict Resolution Techniques Techniques
Conflict management
CONFLICT RESOLUTION TECHNIQUES • Problem Solving : Analytical; face to face discussion • Super ordinate goals: Creating a shared goal that cannot be attained without the cooperation of each conflicting parties • Expansion of resources: expansion of resources can create a win -win situation • Avoidance: Withdrawal or suppression of conflict • Smoothing: Playing down the difference and highlight common interest between conflicting parties • Compromise: Each party to conflict give something of value • Authoritative command: Management uses formal authority to resolve conflict and then conveys their wishes to concerned parties.
Conflict management
CONFLICT STIMULATION TECHNIQUES
• •
•
•
Communication: Using ambiguous or threatening messages Bringing in outsiders: adding employees to a group whose backgrounds values or styles differ from present members Restructuring the organization: realigning workgroup, altering roles, increasing inter dependence to disturb the status quo Appointing a devil’s advocate: designating a critique to purposely argue against the majority positions.
Conflict- handling Strategies
doc_967409049.pptx
issues in strategy implementation like leadership and Power, Directing and staffing, Values and Ethics, Managing change and Managing conflict.
Behavioural Issues in Strategy Implementation
Behavioural Issues in Strategy Implementation
• Leadership and Power
• Directing and staffing • Values and Ethics • Managing change • Managing conflict
Leadership
• Leadership success is linked to the ability of a leader to exercise the right kind of influence at the right time, • Influence Tactics
– – – – – – – Consultation Persuasion Inspirational appeal Coalition Pressure tactics Upward appeal Exchange tactics
Power
• Leaders use power to influence and implement strategy • Types of Power
– Formal Power
• • • • Legitimate Reward Punishment Coercive
– Informal power
• Referent • Charisma • Information
Leadership Style and Strategy Implementation
• Growth Strategy with Concentration
– Dynamic industry expert
• Growth Strategy with Diversification
– Analytical portfolio manager
• Stability:
– Cautious profit planner
• Retrenchment to save company
– Turnaround specialist
• Retrenchment to close company
– Professional liquidator
Leadership Style and Strategy Implementation
• Transformation leaders needed to bring culture change • Transformation leaders transmit a sense of mission, stimulate learning and inspire new way of thinking.
– Henry Ford envisioned a people’s car – Selling price dropped from $500 in 1913 to $390 in 1915 and $260 in 1925. – Time to produce car reduced from 12.5 worker hours in 1912 to 1.5 in 1914.
Directing and staffing
• Implementation of new strategy calls for new HR priorities
– Hiring people with new skills – Firing people with obsolete skills – Training existing people in new skills A study of 102 companies following an acquisition shows that, 26% of old employees were asked to leave within one year and 61% within five years
Directing and staffing
• Differentiation strategy:
– People with high internal locus of control – Expertise in R&D
• Low Cost strategy
– Expertise in production – Eye for minute details When past CEO successful, company repeats the background (P&G: always from brand management route)
Selection strategy
• Insider vs outsider • Four options
– Selective blend: internal when existing skills match new strategy else outsider – Stability: mainly internal – Turnaround: outsiders with new skills/attitude – Reorientation: outsider to replace weakness
Retrenchment
• Retrenchment is combination of organising and staffing • Downsizing very crucial
– – – – Necessary jobs may be eliminated VRS may bring negative outcome Overload on remaining employees Morale and productivity issues
Survey of 400 companies after downsizing: only 50% recorded improved earning 34% increased productivity 33% improved customer service 50% reported to refill the jobs within one year
Guidelines for successful retrenchment
• Eliminate unnecessary work • Contract out non core activity • Plan for long term efficiencies
– Redeployment – Maintenance – R&D
• Invest in employees
– – – – New job specification Performance standard Compensation package Training
Values
•Values represent basic convictions that specific mode of conduct or end-state existence is personally or socially preferable an opposite mode of conduct or end-state existence. ‘a of to of
•We have a hierarchy of values that forms our value system. This system is identified by the relative importance we assign to values such as freedom, pleasure, self-respect, honesty, obedience, and equality.
Ethics
• Study of moral issues and choices • Concerned with right vs. wrong, good vs. bad • Ethics try to set the standard for the ultimate end or the highest good to be pursued • Normative; judgmental • Unstructured; abstract
No universal Standard
Different background of people Different experiences Value System Moral standards Ethics Behaviour
Work Ethics
A trade-off between economic objectives and social obligations Management Dilemma : Choice between right and wrong (Gray areas)
Characteristics of Work Ethics
• Differ with individuals No unique solutions Multitude of alternatives • Have synchronic effects • Involve trade-off between costs & benefits profits and responsibility the ethical dilemma
Impact on strategy implementation
• Studies show that there is high positive correlation between value based business and success. • Companies facing global challenges are formulating globally consistent codes for ethical understanding and decision making at all levels.
Forces of Change
•
– –
Internal forces
Human Resource Factors Managerial Decisions
•
– – – –
External forces
Technological developments Demographic characteristics Market changes Social and political pressure
Change Actors
• Change Strategists – Contribute to initiating, planning and designing change
• Change Implementers – Flag bearers of change programs
• Change Recipients – Affected by the change
Change levers
Technology Quality
Leadership
Marketing
Costs
Change levers
Leadership
• Without leadership organization is VICTIM of change rather MASTER of change. • The leader empowers the organizational members through appropriate changes, so employees feel important and work becomes exciting. • Creates a trusting culture and builds the credibility of the change programme.
Change levers
People • New organisational culture • New entrants • New skills • Changed relationships • Changed responsibilities
Change levers
Strategy
• It’s like a map that shows path and goal of change • It aims to create unity, cohesion, focus and energy. • it spells out the direction of change. • Strategy is different from vision statement. If the vision statement tells the organization where to go, the strategies tell how to reach there.
Change levers
Structure
• Change in roles, responsibilities, decision making, procedure and coordination mechanism. • More and more Organic structure characterized by: Less of hierarchy and rules More of teamwork Decentralisation
Change levers
Technology
• The term ‘Technology’ does not refer to tools, equipment and machinery alone. It includes information, knowledge and expertise. • Faster and cheaper computers induced changes • New mobile communication devices also forced to change.
Change levers
Marketing
Contd…
• Customers are more quality and cost conscious. • More customization of products and services. • Demand more than mere delivery and after-sales service.
Strategy for Managing change
Do not Change Environment Don’t Change Company Change Environment
Avoid • ignore • hide
React • follow leader • reorganise
Influence • lobby • co-opt Anticipate • Strategic management
Change Company
Rules for Effective Change Management
• • • • • • • • • Work hard at establishing a sense of urgency Do not think out the change, think through it Form powerful coalition Initiate change through informal discussion to get feedback and participation Positively encourage objections Listen actively Plan for and create short term gains Institutionalise new approaches Monitor the change and reinforce it
Create Learning Organisations
• Learning organisation is one that has developed continuous capacity to adapt and change. • It uses double-loop learning – Errors are corrected by modifying existing organisational objectives, policies, standard routines and not merely on basis of past practices.
Characteristics of Learning Organisations
• Shared vision • Creating new ways of solving problems
• A system of interrelationships
• Open communication
• Superiority of organisational interest
International Perspective of Change management
• MNCs/ Companies with offshore clients • New Market Development Strategy • Effective change management requires
– Training and knowledge of host country’s culture to expatriate. – Rational compensation package. – A well defined repatriation plan
Conflict
• A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. • New Strategy implementation may bring out many such concerns among different group of persons.
Conflict management
CONFLICT MANAGEMENT
Conflict Stimulation Conflict Resolution Techniques Techniques
Conflict management
CONFLICT RESOLUTION TECHNIQUES • Problem Solving : Analytical; face to face discussion • Super ordinate goals: Creating a shared goal that cannot be attained without the cooperation of each conflicting parties • Expansion of resources: expansion of resources can create a win -win situation • Avoidance: Withdrawal or suppression of conflict • Smoothing: Playing down the difference and highlight common interest between conflicting parties • Compromise: Each party to conflict give something of value • Authoritative command: Management uses formal authority to resolve conflict and then conveys their wishes to concerned parties.
Conflict management
CONFLICT STIMULATION TECHNIQUES
• •
•
•
Communication: Using ambiguous or threatening messages Bringing in outsiders: adding employees to a group whose backgrounds values or styles differ from present members Restructuring the organization: realigning workgroup, altering roles, increasing inter dependence to disturb the status quo Appointing a devil’s advocate: designating a critique to purposely argue against the majority positions.
Conflict- handling Strategies
doc_967409049.pptx