CHAPTER 7 IMPLEMENTING STRATEGY

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CHAPTER 7 IMPLEMENTING STRATEGY

Divisional Structure

Disadvantanges

Requires a skilled management force

Duplication of functional activities

Can be costly

Promotes delegation of authority

Creates career development chances

Allows local control of local situations

SBU Structure

Matrix Structure

Violates unity of command principle

Costly because creates more manager positions

Requires excellent vertical and horizontal flows of communication

Shutting down a project is easily accomplished

Employees can clearly see results of their work

Project objectives are clear

Restructuring & Reengineering

Linking Performance and Pay to Strategies

Managing Resistance to Change

Self-Interest Change Strategy

Educative Change Strategy

Force Change Strategy

Functional Structure

Disadvantages

Lead to Short-Term, Narrow thinking

Inadequate planning for products and markets

Minimizes career development

Advantages

Allows for rapid decision making

Capitalizes on specification of business activities such as marketing and finance

Simple & Inexpansive

Managing Conflict

Confrontation

Defusion

Avoidance

Resource Allocation

Types of Resource

• Financial
• Physical
• Human
• Technological

TYPE OF RESOURCES

Technological

Human

Physical

Financial

Policies

Annual Objective

Human Resource

corporate wellness programs

benefits of a diverse workforce

balancing work life and home life

employee stock ownership plans (ESOPs)

Operation