CHAPTER 10 Strategy Implementation Staffing Directing STRATEGIC MANAGEMENT

CHAPTER 10 Strategy Implementation: Staffing & Directing STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN Prentice Hall, Inc. © 2006 J. DAVID HUNGER 10 -1

Staffing & Directing Staffing – 1. Hiring new people with new skills 2. Firing people w/ inappropriate skills 3. Training existing employees to learn new skills Recruit – Select – Train – Assess Prentice Hall, Inc. © 2006 10 -2

Staffing & Directing Growth through Acquisition Management Attrition Year 1 2 3 % that Leave 25 35 48 4 5 55 61 Prentice Hall, Inc. © 2006 10 -3

Staffing & Directing CISCO Acquisition Strategy 1. Similar Corporate Culture 2. Close to existing facility 3. Small in size Merger & Acquisition Finance Integration Manager • • • Competent Knowledge Acquirer Flexible Style Work with X Functional Teams Work Independently Emotional/Cultural Intelligence Prentice Hall, Inc. © 2006 10 -4

Staffing & Directing Staffing follows strategy – –Training & Development • Higher productivity • Reduction in waste • Overall cost savings Prentice Hall, Inc. © 2006 10 -5

Staffing & Directing Staffing follows strategy – Top Executive Life Cycle Learning - Harvesting - Decline Prentice Hall, Inc. © 2006 10 -6

Staffing & Directing Staffing follows strategy – Matching manager to strategy • Executive type • Dynamic industry expert - growth • Analytical portfolio manager - diversification • Cautions profit planner - stability • Turnaround specialist – weak company/active market • Professional liquidator – company can’t be saved • CEO characteristics also change with the development stage of the company. Prentice Hall, Inc. © 2006 10 -7

Staffing & Directing Selection & Management Development – –Executive Succession Insiders versus Outsiders? • Average tenure of CEO is just over 7 years • 2/3 of companies replace CEO’s every 5 years • Outsiders perform better in the short term • Insiders in the long term • Companies in trouble hire outsiders Prentice Hall, Inc. © 2006 10 -8

Staffing & Directing Selection & Management Development – –Identifying Abilities and Potential • Performance appraisal system Management Development Programs • Assessment centers • Job rotation Prentice Hall, Inc. © 2006 10 -9

Staffing & Directing Problems in Retrenchment– “Downward Spiral” –Downsizing (right-sizing? ) • Eliminate unnecessary work Not across the board cuts • Contract out work for cost savings but… Focus on the future • Plan for long-run efficiencies • Communicate reasons for action • Invest in remaining employees • Develop value-added jobs for redeployment Prentice Hall, Inc. © 2006 10 -10

Staffing & Directing International Staffing Options • Home Country National • Host Country National • Third Country Nationals (Internationals) Prentice Hall, Inc. © 2006 10 -11

Staffing & Directing Leading coaching individuals to use their abilities and skills most effectively and efficiently to achieve organizational goals. Prentice Hall, Inc. © 2006 10 -12

Staffing & Directing Assessing Strategy – Culture Compatibility Prentice Hall, Inc. © 2006 10 -13

Staffing & Directing Managing Diverse Cultures– –Integration Shared cultural/managerial practices –Assimilation Acquired company adopts new culture –Separation Unique cultures survive –Deculturation Impose cultural/managerial practices Prentice Hall, Inc. © 2006 10 -14

Staffing & Directing Prentice Hall, Inc. © 2006 10 -15

Action Plan 1. 2. 3. 4. 5. 6. Actions to be taken Dates to begin and end Person responsible for carrying out the action Person responsible for monitoring Expected financial and physical consequences Contingency Plans Prentice Hall, Inc. © 2006 10 -16

Staffing & Directing Management By Objectives – –Establish objectives –Setting individual objectives (shared) –Action plan –Periodic performance review Prentice Hall, Inc. © 2006 10 -17

Staffing & Directing Total Quality Management (TQM) – –Intense focus on customer satisfaction –Internal as well as external customers –Accurate measurement –Continuous improvement –Trust and teamwork Prentice Hall, Inc. © 2006 10 -18

Staffing & Directing International considerations in Leading – –Power distance (PD) Distribution of power (Autocratic/Participative) –Uncertainty avoidance (UA) Level of ambiguity –Individualism-collectivism (I-C) Independence vs. social framework –Masculinity-femininity (M-F) Money & things vs. people –Long-term orientation (LT) Hard work, education and persistence Prentice Hall, Inc. © 2006 10 -19

Staffing & Directing • Stars versus “B” Players – Stars don’t necessarily move well – 75% of your employees are “B” players that keep the company going – “if there’s only one ball, who needs 11 quarterbacks…” – Team work, respect and complementary skills are more important. Prentice Hall, Inc. © 2006 10 -20

Advisor Team • Psychological Personality Tests Online for organizational development, career planning, personal development • Guardians – natural talent in managing goods and services, dependable and trustworthy • Artisans – keen senses and are at home with tools, instruments and vehicles, risk-takers. • Idealists – concerned with growth and development, like to work with people, don’t like conflict. • Rationalists – problem solvers who like to know how things work, vary goal oriented. Prentice Hall, Inc. © 2006 10 -21

• • • • Free Report for: Paul Guardians are the cornerstone of society, for they are the temperament given to serving and preserving our most important social institutions. Guardians have natural talent in managing goods and services--from supervision to maintenance and supply--and they use all their skills to keep things running smoothly in their families, communities, schools, churches, hospitals, and businesses. Guardians can have a lot of fun with their friends, but they are quite serious about their duties and responsibilities. Guardians take pride in being dependable and trustworthy; if there's a job to be done, they can be counted on to put their shoulder to the wheel. Guardians also believe in law and order, and sometimes worry that respect for authority, even a fundamental sense of right and wrong, is being lost. Perhaps this is why Guardians honor customs and traditions so strongly--they are familiar patterns that help bring stability to our modern, fast-paced world. Practical and down-to-earth, Guardians believe in following the rules and cooperating with others. They are not very comfortable winging it or blazing new trails; working steadily within the system is the Guardian way, for in the long run loyalty, discipline, and teamwork get the job done right. Guardians are meticulous about schedules and have a sharp eye for proper procedures. They are cautious about change, even though they know that change can be healthy for an institution. Better to go slowly, they say, and look before you leap. Guardians make up as much as 40 to 45 percent of the population. The Four types of Guardians are: Supervisors (ESTJ) | Protectors (ISFJ) | Inspectors (ISTJ) | Providers (ESFJ Prentice Hall, Inc. © 2006 10 -22

CHAPTER 10 Strategy Implementation: Staffing & Directing STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN Prentice Hall, Inc. © 2006 J. DAVID HUNGER 10 -23