Professional Documents
Culture Documents
LECTURE 18 : CSR in SM
Understand the link between strategy and staffing decisions Match the appropriate manager to the strategy Understand how to implement an effective downsizing program Discuss the important issues in effectively staffing and directing international expansion Assess and mange the corporate cultures fit with a new strategy. Chapter 5 2 Formulate action plan.
Wheelen/Hunger
Strategy Formulation
Mission
Reason for existence
Strategy Implementation
Objectives
What results to accomplish by when
Strategies
Plan to achieve the mission & objectives
Policies
Broad guidelines for decision making
Internal
Structure Chain of Command Culture Beliefs, Expectations, Values Resources Assets, Skills Competencies, Knowledge
Programs
Activities needed to accomplish a plan
Budgets
Cost of the programs
Procedures
Sequence of steps needed to do the job
Performance
Feedback/Learning
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Strategy Implementation
The implementation of new strategies and policies often calls for new HRM priorities and a different use of personnel. Such staffing issues can involve:
Hiring new people with new skills, Firing people with inappropriate skills, and/or Training existing employees to learn new skills.
Research finding
Companies with enlightened talent management policies and programs have higher returns on sales, investments, assets, and equity.
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1. Acquisition Strategy
May need to replace several managers in the acquired company. Executives quit the acquired company at higher-than-normal rates. 25% after 1st year, 35% after 2nd year, 48% after 3rd year, 55% after 4th year, 61& after 5 years. The turnover rate is higher in case of a foreign acquiring company 2. Merger Strategy Lose excess employees after a merger Highly skilled people to be retained:
A study of 155 US manufacturing firms revealed that firms with training programs had 19% higher productivity Another study found that a doubling of formal training per employee resulted in a 7% reduction in scrap Training is especially important for a differentiation strategy emphasizing quality or customer service. 6
Matching the Manager to the Strategy Executive type - executives with a particular mix of skills and experiences
Turnaround specialist
for company following a turnaround strategy would need a challenge oriented to save the company.
Professional liquidator
for company following liquidation strategy might be called on by a bankruptcy court to close the firm and liquidates its assets.
Industry Attractiveness
Stability
Cautious Profit Planner
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Used to evaluate a persons suitability for an advanced position. Job rotation Used to ensure that employees are gaining the appropriate mix of experiences to prepare them for future responsibilities.
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Problems in Retrenchment:
Downsizing (rightsizing)
Planned elimination of positions or jobs Used in retrenchment strategies
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Strategy-Culture Compatibility:
Consider the following:
Is the planned strategy compatible with the firms current culture? Can the culture be easily modified to make it more compatible with new strategy? Is management willing to make major organizational changes? Is management committed to implementing the strategy?
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Can the culture be modified to make it more compatible with the new strategy?
Is management willing and able to make major organizational changes and accept probable delays No Yes
No
Manage around the culture by establishing a new structural unit to implement the new strategy.
Yes
Find a joint-venture partner or contract with another company to carry out the strategy.
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Strategy Implementation
Action Plan
States what actions are going to be taken, by whom, during what time frame, and with what expected results. Elements
List specific actions. List dates to begin and end each action. Name person responsible for each action. Name person responsible for monitoring timelines and effectiveness of each action. Estimate expected financial and physical consequences of each action. Develop contingency plans.
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Review Questions
Lecture 18
1. a. Explain executive succession. b. What are the ways for Identifying abilities & potential? c. What is the differences between downsizing and rightsizing? 2. a. What actions you must undertake to implement a strategy? b. What staffing strategies you have to follow to implement your companys changed strategies? c. What are the types CEOs you need for different strategies? 3. a. Suppose you have acquired a foreign company. How best you can manage the cultural differences of the acquired company with your own? b. How can you assess that your new company strategy is compatible with your companys culture? c. Suppose you have acquired a foreign company. How will you manage the cultural differences of the acquired company with these two matrix:
i. How much the members of the acquired firm value preservation of their own firm ii. Perception of the attractiveness of the acquirer company
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