Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION

Question 1

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 1 -

Discuss the reasons why leadership is an important driver of strategy implementation.(5)

Answer 1

Role - drive strategic change,
- cannot be implemented in isolation
-lead and coordinate this process
About - influencing people so they perform required
tasks/activities
Effective - typically high levels of emotional intelligence
Leadership - important for successful implementation
Ensure commitment - among internal and external stakeholders to implement strategies.
Ability to :
–Anticipate,
–Envision,
–Maintain flexibility,
–Empower others to create strategic change

Question 2

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 2 -

Discuss the attributes of emotional intelligence.(10)

Answer 2

(MARES)
** Focus ** on self-management skills
– Self-awareness –
1. extent to which individual aware of emotions,
strengths, weaknesses, needs and drivers.
– Self-regulations–
2. extent are in control of emotions, feelings, impulse.
–Motivation–
3. deep desire to achieve for the sake of achievement not large salaries or status.
**Focus ** on ability to manage relationships with
other people
—Empathy–
4. Extent can thoughtfully consider employees
feelings in the process of making decisions.
—Social skills–
5. Leading people in a desired direction and being able to build relationships throughout the organisation.

Question 3

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 3 -

Discuss the responsibilities of a strategic leader.(6)

Answer 3

scram spelt wrong (SCCRGM)
Strategy, Communicate, Culture, Reward, Governance, Motivate

• Leaders are not only a driving force behind the strategy -Also need to perform certain tasks and take responsibility for the performance of activities such as:
  
  • Developing an appropriate vision or strategic direction
  • Ensuring that org incorporates good governance
  • Communicating the vision and strategic direction
  • Developing and maintaining an effective org culture.
  • Designing appropriate reward systems and structures
  • Inspiring and motivating employees to achieve the strategic goals of the organisation.

Question 4

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Questions 4 -

Discuss the aspects and levels of organisational culture.(10)

OR

Explain the different aspects and levels of organisational culture (as identified by Thompson & Martin, 2005).(12)

Answer 4

The aspects/levels of culture can be grouped into manifestations, people and power.
*Manifestation
- Most visible level: is artefacts and symbols.
- Artefacts include - physical and social environment,
written communication, advertisements, etc.
- Symbols include the organisations logo, etc.
- Values are the 2nd level:
“what ought to be”  -
- Underlying assumptions are the 3rd level:
“the taken-for-granted way of doing things.”
*People
Is also an important part of an organisations culture.
The way people do things, their values and underlying assumptions are based on stories of the past, the leadership and management style of the organisation and by communications.
* Power
Is reflected in the ownership of the organisation.
Structural issues include the extent to which the organisation is centralized or decentralized and will impact on control and reward systems.
Personal power is the power of key managers
Politics refers to the way in which managers use power to affect decisions and actions.

Question 5

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 5 -

Explain why organisational culture is an important driver for strategy implementation.

Answer 5

1) Affects the way people make decisions, think, feel and act in response to opportunities and threats.
2) The culture related to the people, their behavior and the operation of the structure.
3) When culture is strong, people know what is expected from them.
4) It’s also its policies, stakeholder relationships and its approach to corporate governance and ethics.
5) It can be a source of competitive advantage.

Question 6

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 6 -

Explain Hofstede’s five value dimensions of culture.(10)

Answer 6

(UP MIC)
1. Power distance,
that is the extent to which people accept that is
distributed unequally
2. Uncertainty avoidance,
that is, the extent to which people feel uncomfortable with uncertainty and ambiguity
3. Individualism/collectivism,
that is, the extent to which there is a preference for belonging to a tightly knit collective rather than a more loosely knit society
4. Masculinity/femininity,
the extent to which gender roles are clearly district
5. Confusion dynamism,
the extent to which long-termism or short-termism tends to predominant

Question 7

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 7 -

Differentiate between adaptive, weak, strong and unhealthy cultures.(8)

OR

Differentiate between the different types of culture, as classified by Charles Handy.(8)

Answer 7

1. Strong culture
   a. Values, norms and beliefs are deeply ingrained
   and difficult to eliminate.
   b. It is a valuable asset if a tight fit exits between
   the chosen strategy and strong culture.
2. Weak culture
   a. Is a fragmented and there are very few traditions,
   values and beliefs that are shared.
3. Adaptive culture
   a. Members share a feeling of confidence that the
   organisation can neutralized the threats and
   exploit opportunities that cross its path.
   4.Unhealthy culture
   a. It has a politicised internal environmental where
   influential managers operate in
   autonomous kingdoms.

Question 8

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 8 -

Provide guidelines for structuring (establishing) effective rewards systems.(5)

OR

Identify five (5) guidelines for aligning reward systems with strategy.(5)

Answer 8

1. Pay-off must be a major piece of the compensation
   package.
   The pay-off for high performing individuals and teams
   must be substantially larger than for below-average
   performers
2. Incentive extent to all managers and all workers not
   just to top management
3. Reward system administered with fairness and
   transparency
4. Tightly linked to achieving only those performance
   targets set out in the strategic plan
5. The performance targets for a individual should
   involve outcomes that the individual can personally
   influence in some way
6. Time between performance review and
   payment of the reward kept short
7. Make use of both monetary and non-monetary rewards
8. Avoid skirting the system to find ways to reward
   non- performers

Question 9

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 9 -

Discuss recognition as a component of reward systems.(6) [B1.3-Jun13]- Discuss recognition as a component of reward systems and describe the recognition practice.(5) [A4-Nov13]

Answer 9

1.Recognition and its role in strategy implementation is still a rather new concept in strategic management.
2.Brun and Dugas identify four approaches to recognition namely
(1) ethical perspective,
(2) the humanistic and existential view
(3) the work psychodynamic school
(4) the behavioural outlook
3.These four approaches are expressed through four employee recognitions practices:
existential recognition,
recognition of the way work is performed,
recognition of job dedication .
recognition of results
4.In an organisation, recognition is expressed through various types of interaction.
5.On the organisational level, employee recognition is expressed through the organisation’s policies and formal recognition programs
6.Interaction on a vertical or hierarchical level is related to the process of recognition between manager and employee
7.Interaction on a horizontal interaction refers to recognition between peers and team members.

Question 10

Topic 2 - THE DRIVERS OF STRATEGY IMPLEMENTATION Question 10 -

Discuss corporate governance and reward systems in the light of the King III Report.(4) [B1.4-Jun13]

Answer 10

1. Reward systems affect the kinds of norms, values and culture that develop in an organisation. They also affect the way managers and employees behave.
2. Therefore, it is important to design reward systems in such a way that they ensure the instalment of good corporate governance practices within an organisation.
3. King lll has developed recommendations regarding executive reward and compensation, namely:
   * *a.The King lll Report is applicable to all companies, and not only JSE-listed companies.
   * *b.Companies should not pay “balloon payments to directors who leave, or termination payments to directors who have been fired
   * *c.Share prices should not be re-priced to benefit directors when the company’s share are not performing well or the share price is low.
   * * d.Companies should publish a remuneration report that details directors remuneration and explain why directors receive this remuneration, and this should be put to shareholder vote.