Chapter 7: Implementing Strategies: Management & Operations Issues

Question 1

How to Avoid Manipulation

Answer 1

• Those who motivate others must appeal to good motives.
• Christians must be open and honest about the motivational techniques they are using
• Healthy motivational approaches encourage active choices on the part of participants

Question 2

The Nature of Strategy Implementation

Answer 2

• Successful strategy formulation does not guarantee successful strategy implementation
• Varies among different types & sizes of organizations

Question 3

Implementation Activities

Answer 3

• Altering sales territories
• Adding new departments
• Closing facilities
• Hiring new employees
• Cost-control procedures
• Modifying advertising strategies
• Building new facilities

Question 4

Management Issues: Annual Objectives and thier Purpose

Answer 4

• Decentralized activity
• Directly involve all managers in the organization
• Basis for resource allocation
• Mechanism for management evaluation
• Metric for gauging progress on long-term objectives
• Establish priorities (organizational, division, & departmental)

Question 5

Requirements of Annual Objectives

Answer 5

• Measurable
• Consistent
• Reasonable
• Challenging
• Clear
• Understood
• Timely

Question 6

Annual Objectives Should State

Answer 6

• Quantity
• Quality
• Cost
• Time
• Be Verifiable

Question 7

Mangament Issues: Policy

Answer 7

• Facilitate the solving or recurring problems & guide implementation of strategy
• Establish Boundries, Constraints, Limits

Question 8

Management Issues: Resource Allocations

Answer 8

• Central management activity that allows for the execution of strategy

Question 9

4 Types of Resources

Answer 9

• Financial resources
• Physical resources
• Human resources
• Technological resources

Question 10

Managment Issues: Managing Conflict

Answer 10

• Disagreement between two more parties on one or more issues
• Conflict not always “bad”
• No conflict may signal apathy
• Can energize opposing groups to action
• May help managers identify problems

Question 11

Conflict Management & Resolution

Answer 11

• Avoidance
• Diffusion
• Confrontation

Question 12

Management Issues: Organizational Structure

Answer 12

• Matching Structure w/ Strategy
• Changes in strategy = Changes in structure

Question 13

Structure & Strategy

Answer 13

• Structure dictates how objectives & policies will be established
• Structure dictates how resources will be allocated

Question 14

Chandler’s Strategy-Structure Relationship

Answer 14

• New strategy
  Is formulated
• New administrative
  problems emerge

- Organizational
performance
declines

• Organizational
  performance
  improves
• Organizational
  performance
  improves

-New organizational
structure is established

Question 15

Basic Forms of Structure

Answer 15

• Functional Structure
• Divisional Structure
• Strategic Business Unit Structure (SBU)
• Matrix Structure

Question 16

Management Issues: Restructuring

Answer 16

• Reducing the size of the firm – # of employees, divisions, and/or units, # of hierarchical levels
• Downsizing
• Rightsizing
• Delayering

Question 17

Management Issues: Reengineering

Answer 17

• Reconfiguring or redesigning work, jobs, & processes to improve cost, quality, service, & speed.
• Process management
• Process innovation
• Process redesign

Question 18

Managment Issues: Rewards/Incentives

Answer 18

• Linking Pay/Performance to Strategies
• Pay for performance systems
• Dual bonus systems
• Profit sharing systems
• Gain Sharing systems

Question 19

Tests for Performance-Pay Plans

Answer 19

• Does the plan capture attention?
• Do employees understand the plan?
• Is the plan improving communication?
• Does the plan pay out when it should?
• Is the company or unit performing better?

Question 20

Management Change: Resistance to Change

Answer 20

• Single greatest threat to successful strategy implementation
• Raises anxiety; fear concerning: Economic loss, Inconvenience, Uncertainty, Break in status-quo

Question 21

Change Strategies

Answer 21

• Change Strategies
• Educative Change Strategy
• Rational or Self-Interest Change Strategy

Question 22

Management Issues: Natural Environment

Answer 22

• Wide appreciation for firms that “mend” rather than “harm” the environment

Question 23

Natural Environment – Environmental Strategies

Answer 23

• Develop/acquire “green” businesses
• Divesting environmental-damaging business
• Low-cost producer through waste minimization & energy conservation

Question 24

Management Issues: Supportive Culture

Answer 24

• Preserve, emphasize, & build upon aspects of existing culture that support new strategies

Question 25

Management Issues: Production/ Operations

Answer 25

• Production processes typically constitute more than 70% of firm’s total assets

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Question 26

Elements Linking Strategy to Culture

Answer 26

• Formal statements of philosophy, charters, etc. used for recruitment and selection, and socialization
• Designing of physical spaces, facades, buildings
• Deliberate role modeling, teaching and coaching
• Explicit reward and status system, promotion criteria
• Stories, legends, myths about key people and events
• What leaders pay attention to, measure and control
• Leader reactions to critical incidents and crises
• How the organization is designed and structured
• Organizational systems and procedures
• Criteria used for recruitment, selection, promotion, retirement

Question 27

Production/Operations Decisions

Answer 27

• Plant size
• Inventory/Inventory control
• Quality control
• Cost control
• Technological innovation

Question 28

Managment Issues: Human Resources

Answer 28

• HR manager position has strategic responsibility & has changed dramatically as companies continue to reorganize, outsource, etc.

Question 29

Human Resource Strategic Responsibilities

Answer 29

• Assessing staffing needs/costs
• Developing performance incentives
• ESOP’s
• Child-care policies
• Work-life balance issues