CHAPTER 10 Strategy

Implementation: Staffing & Directing

Reporters:
THOMAS L. WHEELEN J. DAVID HUNGER
Lyana Mae Arciga
Mitzie Dwaine Fabian
Sandra Cortez
Ira Jesusa Briones
Angelo Donato

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 Staffing & Directing

Staffing – focuses on the selection and use

of employees. The implementation of new
strategies and policies often calls for a new
human resource management priorities and
a different use of personnel. Such staffing
issues can involve the following:

 Hiring new people with new skills;

 Firing people w/ inappropriate skills;
 Training existing employees to learn new
skills
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STAFFING FOLLOWS STRATEGY

A. Changing Hiring and Training
Requirements – having formulated a new
strategy, corporation may find that it
needs to either hire different people or
retrain current employees to implement
the new strategy.
– Training & Development
• Higher productivity
• Reduction in waste
• Overall cost savings

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B. Matching the Manager to the Strategy

– the most appropriate CEO of a
company changes as a firm moves from
one stage of development to another.

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Types of Manager

Executive type

Dynamic industry expert

Analytical portfolio manager

Cautions profit planner

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Selection & Management Development –

are important not only to ensure the
people with the right mix of skills and
experiences are initially hired but also to
help them grow on the job so that they
might be prepared for future promotion.

Executive Succession – is the process of

of replacing a key top manager.
• Insiders
• Outsiders
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Identifying Abilities and Potential - a

company can identify and prepare its
people for important positions in several
ways.
• Performance appraisal system – identify good
performers with promotion potential.
• Assessment centers – evaluate a person’s
suitability for an advance position.
• Job rotation – moving people from one job to
another.

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Retrenchment–
Downsizing – sometimes called “rightsizing”
or “resizing” it refers to the planned
elimination of positions or jobs.

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• Guidelines that have been proposed for

successful downsizing:
• Eliminate unnecessary work instead of
making across-the-board-cuts
• Contract out work for cost savings
• Plan for long-run efficiencies
• Communicate reasons for action
• Invest in remaining employees

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Leading
Strategy is implemented by modifying
structure (organizing), selecting the
appropriate people to carry out the strategy
(staffing), and communicating clearly how
the strategy can be put into action (leading).

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Managing Corporate Culture – an

organization’s culture can exert a
powerful influence on the behavior of all
employees, it can strongly affect a
company’s ability to shift its strategic
direction. Corporate culture has a strong
tendency to resist change because its
very reason for existence often rests on
preserving stable relationships and
patterns of behavior.

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Assessing Strategy – Culture

Compatibility
Consider the following questions regarding a corporation’s
culture:
• Is the proposed strategy compatible with the
company’s current culture?
• Can the culture be easily modified to make it more
compatible with the new strategy?
• Is management willing and able to make major
organizational changes and accept probable
delays and a likely increase in costs?
• Is management still committed to implementing the
strategy?

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 Managing Cultural Change Through
Communication
Communication is the key to effective
management of change. Companies in which
major cultural changes have successfully taken
place had the following characteristic in common:
 The CEO and other top managers had a
strategic vision of what the company could
become and communicated that vision to
employees at all levels.
 The vision was translated into the key elements
necessary to accomplish that vision.
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Managing Diverse Culture Following an
Acquisition
When merging with or acquiring another company,
top management must give some consideration to
a potential clash of corporate cultures.
Four general methods of managing two
different cultures:
 Integration – equal merger of both cultures into
a new corporate culture.
 Assimilation – domination of one organization
over the other

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Managing Diverse Culture Following an
Acquisition
 Separation – conflicting cultures kept intact, but
kept separate in different units.
 Deculturation – disintegration of one company’s
culture resulting from unwanted and extreme
pressure from the other to impose its culture and
practices.

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Managing Diverse Culture Following an
Acquisition
The choice of which method to use should be
based on the following:
 How much members of the acquired firm value
preserving their own culture.
 How attractive they perceive the culture of the
acquirer to be.

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 Action Planning
Activities can be directed toward accomplishing
strategic goals through action planning.
Action plan – states what actions are going to be
taken, by whom, during what time frame, and with
what expected results.

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Management By Objectives
Management by Objectives (MBO) – is a technique that
encourages participative decision making through shared
goal setting at all organizational levels and performance
assessment based on the achievement of stated
objectives.
MBO Process:
1. Establishing and communicating organizational
objectives;
2. Setting individual objectives;
3. Developing an action plan of activities needed to
achieve the objectives;
4. Periodically (at least quarterly) reviewing performance
as it relates to he objectives and including the results in
the annual performance appraisal.
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Total Quality Management

Total Quality Management (TQM)– is an operational
philosophy committed to customer satisfaction and
continuous improvement.
TQM has four objectives:
1. Better, less variable quality of the product and service;
2. Quicker, less variable response in processes to
customer needs;
3. Greater flexibility in adjusting to customers’ shifting
requirements;
4. Lower cost through quality improvement and
elimination on non-value adding work.

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Total Quality Management (TQM) essential ingredients:

 An intense focus on customer satisfaction.
 Internal as well as external customers.
 Accurate measurement of every critical variable in a
company’s operations.
 Continuous improvement of products and services.
 New work relationships based on trust and teamwork.

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International Considerations in Leading

 Power Distance (PD) – is the extent to which a society
accepts an unequal distribution of power in
organizations.
 Uncertainty avoidance (UA) – is the extent to which a
society feels threatened by uncertain and ambiguous
situations.
 Individualism-collectivism (I-C) - is the extent to which
a society values individual freedom and independence of
action compared with a tight social framework and
loyalty to the group.

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International Considerations in Leading

 Masculinity-Femininity (M-F) - is the extent to which a
society is oriented toward money and things or toward
people.
 Long-term Orientation (LT) - is the extent to which a
society is oriented toward the long versus short-term.

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THANK YOU!

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