Strategic Management

What is Strategy?
The companys long-term plan for how it will match its
internal strengths and weaknesses with external
opportunities and threats in order maintain a competitive
advantage.
!omprehensive plan for accomplishing an
organi"ations goals.
Strategy is a game plan of any company to compete in the
market.
What is Strategic Management?
Strategic management is the set of managerial decisions
and actions that determines the long-run performance of
an organi"ation.
Strategic management is the process of identifying and
executing the organi"ations mission #y matching its
capa#ilities with the demands of its environment.
comprehensive and ongoing management process
aimed at formulating and implementing effective
strategies$ a way of approaching #usiness opportunities
and challenges.
Why is Strategic Management %mportant?
&ne of the most significant reasons is that it can make a
difference in how well an organi"ation performs.
nother reason strategic management is important has to
do with the fact that organi"ations of all types and si"es
face continually changing situations.
Strategic management is also important #ecause of the
nature of organi"ations. They are composed of diverse
divisions' departments' functions' and work activities (
manufacturing' marketing' accounting' and so forth (
that all need to #e coordinated and focused on achieving
the organi"ations goal. .
)inally' strategic management is important #ecause its
involved in many of the decisions that managers make.
Today' strategic management has moved #eyond for-profit
#usiness organi"ations to include governmental agencies'
hospitals' and other non-profit organi"ations' we know
its important for these organi"ations as well.
The Strategic Management *rocess
Step +, %dentifying the &rgani"ations !urrent Mission'
&#-ectives and Strategies
Step ., /xternal nalysis
Step 0, %nternal nalysis
* SWOT Analysis
S- Strengths
W- Weaknesses
O- Opportunities
T- Threats
Step 1, )ormulating Strategies
Step 2, %mplementing Strategies
Step 3, /valuating 4esults
Types of &rgani"ational Strategies
!orporate-5evel strategies
a. Single-*roduct Strategy
#. 4elated 6iversification
c. 7nrelated 6iversification
6irections of !orporate Strategies,
a. 8rowth
-Vertical Integration
-Horizontal Integration
-Diversification
#. Sta#ility
c. 4enewal
- etrench!ent Strategy
- Turnaroun" Strategy
9 !orporate *ortfolio nalysis
!ategories off :usiness under :!8 Matrix,
a. Stars
#. !ash !ows
c. ;uestions marks
d. 6ogs
:usiness <or !ompetitive= Strategy
The 4ole of !ompetitive dvantage
;uality as a competitive dvantage
Sustaining !ompetitive dvantage
!ompetitive Strategies
ccording to Michael *orter' in any industry five
competitive forces dictate the rules of competition. Together'
these five forces determine industry attractiveness and
profita#ility. Mangers assess an industrys attractiveness
using these five factors,
+. Threat of new entrants
.. Threat of su#stitutes
0. :argaining power of #uyers
1. :argaining power of suppliers
2. !urrent rivalry.

nother thing *orter did identify three generic competitive
strategies mangers can use. Which one they select depends on
the organi"ations strengths and core competencies and its
competitors weakness.
a. !ost 5eadership Strategy
#. 6ifferentiation Strategy
c. The )ocus Strategy
)unctional Strategy
Marketing Strategy
&perations Strategy
)inancial Strategy
>uman 4esource Strategy
Strategic Management in Todays /nvironment
Strategic )lexi#ility
?ew 6irections in &rgani"ational Strategies
What strategies are important for todays environment?
a. /-:usiness Strategies
#. !ustomer Strategies
c. %nnovation Strategies

Strategic lternatives for %nternational :usiness
a. >ome 4eplication Strategy
#. Multidomestic Strategy
c. 8lo#al Strategy
d. Transnational Strategy
Time Management
Time is the most important and precious resource availa#le to
the man to #e utili"ed instantly. %f it is passed it is gone. %t does
not wait for any #ody whosoever is the person. %t must'
therefore' #e utili"ed properly without wasting it. The
maximum utili"ation of the time in a day should #e adored
principle. &ne who kills time' kills his and his companys
progress. Time is the resource e@ually availa#le to each one of
us. There is no une@ual distri#ution of time still people cry
a#out short of time and non-availa#ility of time. Mangers'
employees and workers should understand the importance of
time. /veryone should #e time conscious. *eople say time is
money. Aes' it is. %f time is lost the income to #e generated
during that time span is lost.
There is no dearth of people who waste time. They waste time
and then complain a#out its shortage. %f time is wasted work
will suffer. Aou would not get time for work. Work goes on
increasing with the waste of time. %f each second at managers
or employees disposal is utili"ed work gets completed on time
should #e taught to the executives' employees and workersB %t
is freely availa#le resource and e@ually distri#uted to one and
all. %f it is wasted then it #ecomes costly. %ts wastage adds to
cost. Time is a resource' which cannot #e #orrowed.
We have twenty-four hours a day. fter reducing the hours of
rest' and other household compulsions a person is left with
hardly +C to C. hours. These are the working hours left with a
corporate man to execute his work to the maximum. Wasting
this precious time is crime. To save it from waste its effective
management is very essential.
%mportance of Time
Time #eing the most important resource' its value must #e
understood #y one and all. %ts more important than
money and other material resources.
Time is divided in to past' present and future. The present is
the most important of them all.
%n corporate life' time is the single common element of all
planning. *lans are formulated with respect to time as short
range' intermediate range and long range plans. Time
constraints make the things effective and accordingly future
actions are framed to make the things happen.
Time is like ready cash$ hence it must #e used immediately
with effective management.
/xecutives who utili"e time properly are time conscious' are
always on time.
The success and failure of executives depend on proper use of
time.
Time *lays an important role in the life of an individual and a
#ody corporate hence the management is essential for
efficiency' economy' accuracy and prosperity
?eed for Management of Time
Time is the most important resource that cannot #e
stored. >ence its instant utili"ation is a must.
The executive who is adept in the skillful management of
time can make proper and maximum utili"ation of
material and human resources at his disposal for
accomplishing the corporate o#-ectives.
The need of effective time management is #adly felt in the
modern times. %f you fail to do today' tomorrow may #e
too late.
To remain in the glo#al competition and survive in the
#usiness today' one must manage his time efficiently.
The time has now changed everything and time itself has
made the reali"ation of its need and importance to the
stalwarts of the companies to manage time properly to
save themselves from the disastrous failure.
*roper time management keeps the executives and
employees ahead of others and worry free and healthy.
The need for time management for the corporations
arises #ecause of fast changing world. /verything is
moving very fast. Taking decisions and on time is must.
The pace of technology is very great. What is new today
may #e outdated tomorrow. Modern technologies must #e
used as and when it is availa#le. This is all possi#le if time
is perfectly watched.
The glo#ali"ation and trade li#erali"ation has increased
the need for time management.
Ways to /nsure the *roper 7tili"ation of Time
The effective time management depends upon skillful and
proper utili"ation of time. This utili"ation should #e rational to
the maximum. The maximum work should #e completed
within minimum time.
To achieve effective management of time' following are the
ways for proper utili"ation of time,
The *lanning of Work
ssigning *riorities to the Work to #e 6one
6elegation of uthority
Target Setting
Simplify *rocedures
:e !omforta#le
6o not Waste Time
!lu##ing of %dentical Work
Take ;uick 6ecisions
:e Systematic
Take Sufficient 4est
7se /very Moment at your 6isposal
7se of daily *lanner
8ive Sufficient Time to )amily
Time Wasters
There are several aspects that waste time' a precious resource.
The following can #e listed as prominent time waster,
4ole m#iguity
5ack of /ffective 6elegation
%na#ility to !ommunicate
7nwanted or 7nscheduled Disitor
%na#ility to say E?oF
6aily work are not properly disciplined
Travel
/ating
Sipping Tea
)ormal Meeting
Telephone
)illing and 4ecord Geeping
*aper Work
5oitering
>unting
Tendency to Talk for >ours
*erfectionalism
Training
n %ntroduction to Training
&rgani"ation run on long-term #asis also termed as Heternal
#asis adapting with changing conditions. >ence' they need
human resources should #e fit present and future. The process
of human resource management starts with planning for how
many and what kind of people will #e needed at different
points of time in the organi"ation. Therefore' once employees
have #een recruited and selected' the next step involved in the
>4M process is to transform them to meet the future
re@uirements of the organi"ation. Such transformation of
employees is done #y means of training and development.
Meaning of Training
Training refers to a planned effort #y a company to
facilitate employees learning of -o# related competencies.
These competencies include knowledge' skills' or
#ehaviors that are critical for -o# performance. The goal
o training is for employees to master the knowledge' skill
and #ehaviors emphasi"ed in training programs and to
apply them to their day-to-day activities.
Training is the systematic modification of #ehavior
through learning that occurs as a result of education'
instruction' and development and planned experience.
Training and development means ... it is any attempt to
improve current or future employee performance #y
increasing an employees a#ility to perform through
learning' usually #y changing the employees attitude or
increasing his or her skills and knowledge.
Training Dersus 6evelopment
Training is the act of increasing the knowledge and skills
of an employee for doing a particular -o#. %t is the process
of providing employees with specific skills or helping
them correct deficiencies in their performance.
6evelopment covers not only activitiesBskills that
improves -o# performance' #ut also those activities that
#ring a#out growth of the personality' help individuals
progress toward maturity and actuali"ation of their
potential. %t is an effort to provide employees with the
a#ilities the organi"ation will need in future.
Training Dersus 6evelopment
)ocus
Scope
Time )rame
8oal
?ature
Target group
Training 6evelopment
!urrent Io#
%ndividual
employees
%mmediate
)ix current skill
deficit
Technical and
mechanical
operation
?on-managerial or
operative personnel
!urrent and future -o#
Work group and
organi"ation
5ong term
*repare for future work
demands
Theoretical and
conceptual ideas
Managerial B
Supervisory personnel
%mportance of Training in &rgani"ations
The following two !hinese prover# highlight the importance
of the employee training,
E8ive a man a fish' and you have given him meal. Teach man
to fish' and you have given him livelihood.F
E%f you wish to plan for a year sow seeds' if you wish to plan
for ten years plant trees' if you plan for life-time develop men.F
Training is the act of improving ones knowledge and skill
to improve hisBher performance. Training is -o# oriented. %t
#ridges the gap #etween what the employee has and what the
-o# demand. %mparting training to employees working in all
organi"ed sectors of human activity is no longer a matter of
de#ate. Several factors have contri#uted to make the
organi"ations reali"e and recogni"e the need for imparting
training to their employees.
+. :etter *erformance
.. %mproved @uality
0. 5ess Supervision
1. 5ess 5earning *eriod
2. >igh morale
3. *ersonal 8rowth
J. )avora#le &rgani"ational 8rowth.
reas of Training
Gnowledge
Technical Skills
Social Skills
Techni@ues
ttitudes
/xperience
%dentification of Training ?eeds
%dentifying training needs is a process that involves
esta#lishing areas where employees lack skills' knowledge' and
a#ility in effectively performing their -o#s. Training
needs have to #e related #oth in terms of the organi"ations
demands and that of the individual employees.
Training needs identification consists of the following,
+. &rgani"ational analysis
#i$ Analysis of o%&ectives
#ii$ esource utilization Analysis
#iii$ 'nviron!ental scanning
#iv$ Organizational cli!ate analysis
.. Task analysis
a. Io# 6escription
#. Io# Specification
0. *erson nalysis
*erformance ppraisal
Io# 4elated *erformance 6ata
&#servation #y Supervisor
%nterviews with the /mployees or >is
Supervisor
Test of Things 5ike Io# Gnowledge'
Skills' and ttendance
ttitude Surveys
%ndividual employee daily diaries
ssessment !enter 4esults

9 !ant 6o B Wont 6o *ro#lem and Training
Setting Training &#-ectives
a. 4eaction &#-ective
#. 5earning &#-ective
c. :ehavior &#-ective
d. 4esult B &utcome &#-ective
6esigning Training Methods
Training methods can #e #roadly categori"ed as follows,
&n-the--o# &riented Training Methods
#i$ On-the-&o% training
#ii$ (o% instruction training
#iii$ )oaching* +entoring
#iv$ (o% rotation
#v$ Apprenticeship Training
#vi$ Action ,earning
Simulation Methods
#i$ ole play
#ii$ )ase +etho"
#iii$ +anage!ent -a!es
#iv$ In-%asket e.ercise
#v$ Vesti%ule training
Gnowledge-:ased Methods
#i$ ,ectures * Discussion
#ii$ )onference*Se!inars
#iii$ /rogra!!e" ,earning
/xperimental Methods
#i$ Sensitivity training
#ii$ Transactional analysis
!omputer-:ased Training
a0 /rogra!!e" Instruction
%0 Intelligent Tutoring Syste!
c0 Interactive +ulti!e"ia
"0 Virtual eality
udiovisual Media
Static Media
i0 1e2sprint3 )harts3 an" /osters
ii0 /ro&ecte" Te.t an" I!ages
6ynamic udiovisual Methods
i0 Au"io-Only Tapes
ii0 +oving 4il! an" Vi"eos
iii0 )o!puter--enerate" Dyna!ic /resentations
Selecting ppropriate Training Method
!learly' training is intended to increase the expertise of
trainees in a particular area. When thinking a#out what
training method or methods to use' it is useful to consider the
current level of expertise that trainees possess.
5earning *yramid to 8uide in the Selection of ppropriate
Training Method
With Such array of training methods and media availa#le'
>46 professional should consider the following factors in
choosing appropriate method,
+. The &#-ectives of the *rogram
.. Time and Money vaila#le
0. vaila#ility of &ther 4esources
1. Trainees !haracteristics and *references
&ffice Management
Meaning of &ffice
*lace where #usiness is transacted
place where #usiness is carried on
&ffice is a place where policy matters and administrative
decisions are taken
&ffice is place from where the activities of the
organi"ation are directed
&ffice is the centre of the organi"ation or office is the
nerve centre of an organi"ation
*urpose of an &ffice
To furnish essential services to the management
To provide needed information to the management for
formulating policies and strategies
)unctions of an &ffice
+. To receive and collect information
.. To record such information
0. To arrange the information suita#le to management
1. To collate the information so collected
2. To furnish information to the management and others
3. To maintain the records
J. To safeguard the assets
K. To have liaison with the stakeholders
&ffice Management
The process of performing the related activities of an office #y
applying the #asic principles' policies' and techni@ues of
management in utili"ing the resources in the #est way to
achieve the o#-ectives of the same with ensuring effectiveness
and efficiency.
&ffice SystemB &ffice *rocedure <S&*=' &ffice Manuals'
!entrali"ed versus decentrali"ed office
&ffice Managers )unctions
)ormulating plan
&rgani"ing the activities
*roviding necessary instruction
/nsuring the implementation of planned activities
4ecruiting and selecting the right person for office
rranging relevant training to office staff and executives
Maintaining networks with various internal and external
stakeholders
!oordinating function
ddressing the issues of employees related with their pay
and work
Some !ommon )aults of &ffice Manager
5ess delegation' results over#urden
More delegation' results poor @uality performance
More paper work' results inefficiency
;ualities of a Successful &ffice Manager
#ility to get the work done
/ducated and Trained
#ility and mentality to delegate power #and work
Must #e good organi"er and team #uilder
Sincerity' integrity' and trustworthy
/motional sta#ility and emotional intelligence
Self esteem and a#le to inspire confidence
4ole of >uman 4esource Management in
/ffective &ffice Management
>uman resource management may #e defined as programs'
policies' and practices for managing an organi"ations
workforce.
>uman 4esource management is concerned with the people
dimensions in management. Since every organi"ation is
made up of people' ac@uiring their services' developing their
skills' motivating them to higher levels of performance and
ensuring that continue to maintain their commitment to the
organi"ation are essential to achieving organi"ational
o#-ectives. This is true' regardless of the type of
organi"ation ( government' #usiness' education' health'
recreation' or social action.
>uman resource management can #e defined as a process of
procuring' developing and maintaining competent human
resources in the organi"ation so that the goals of an
organi"ation are achieved in an effective and efficient
manner.
>4M is an art of managing people at work in such a
manner that they give their #est to the organi"ation for
achieving its set goals.
&#-ectives of >uman 4esource Management
a. >elping the organi"ation to reach its goals
#. /mploying the skills and a#ilities of the workforce
efficiently
c. *rovide the organi"ation with well trained and well
motivated employees
d. %ncreasing to the fullest the employees -o#
satisfaction and self actuali"ation
e. 6eveloping and maintaining a @uality of work life
that makes employment in the organi"ation desira#le
f. !ommunicating >4M policies to all employees
g. >elping to maintain ethical policies and socially
responsi#le #ehavior
h. Managing change to the mutual advantage of
individuals' groups' the enterprise' and the pu#lic.
*rinciples of >4M
a. *utting right person at the right place
#. Training the new recruits
c. Transforming the organi"ation into a coordinated entity
d. /nsuring employee security
e. Supplying proper e@uipment and promoting right
condition
f. /nsuring production and distri#ution of superior @uality
goods and services
g. 4ewarding star performers
h. *roviding participation in decision making
6ifference #etween *ersonnel Management and >uman
4esource Management
6imensions *ersonnel
Management
>uman 4esource
Management
?ature of
4elation
*erception of
!onflict
*luralist
!onflict is
institutionali"ed
7nitarist or neo-
unitarist.
!onflict is
pathological
!ontract
4ole of
*rocedure
*anning
*erspective
ccepta#ility
of 7nions
5evel of Trust
Gey 4elation
Managements
4ole
:asis of Io#
6esign
Gey *eople
Skill
c@uisition
4eward
Management
/mphasis in
compliance
4ules dominated
d hoc' reactive
ccepta#le
5ow
5a#or-
Management
Transactional
6ivision of la#or
*MB%4 Specialist
Training and
6evelopment
Standardi"ed Io#
/valuation
:eyond contract-
commitment
!ulture and values
dominated
%ntegrated
proactive
?ot accepta#le
>igh
!ustomer
Transformational
Teams
5ine *eople and
8eneral Managers
&rgani"ation
*erformance
:ased
Key Functions of HRM
>4M is mainly concerned with people related matter of the
organi"ation' which are,
!onducting -o# analysis
*lanning >4 needs and recruiting -o# candidates
Selecting -o# candidates
&rienting and training new employees
Managing wages and salaries
*roviding incentives and #enefits
ppraising performances
!ommunicating <interviewing' counseling' disciplining=
Training and development
:uilding employee commitment
Importance of HRM In Office Management
To hire appropriate person for the -o#s
To experience low turnover
To find people for doing their #est
To reduce wastage of time with useless interviews
To reduce discriminatory action
To ensure fair and e@uita#le salaries relative to other
organi"ation
To provide training for using maximum potentiality of
employees
>uman 4elations in &ffice Management
>uman 4elations usually focused on relations #etween
employer and employee' employee versus management and
employee versus employee in an organi"ation.
The Mission of human relation is to promote ways in which
people in communities learn to get along and to safeguard
e@ual opportunity for all. >uman relations activities help
communities to #ecome more harmonious' respectful' and
cohesive. >uman relations uses tools of fact finding' staff
training' information sharing' cultural literacy' hate crime
response and conflict management.
>uman 4elations School of Management Thought
!auses for *oor >uman 4elations in an office
*oor Staffing practices
%rrational compensation system
%nappropriate supervisory #ehavior and gesture
*oor working conditions
%neffective promotion policy
5ack of fair treatment and -ustice
:iased appraisal
%nterpersonal and intergroup conflict
*olitical divisions among employees
/mployee diversity
*rofiteering motive of employer
:aseless rumors
Tips for improving >uman 4elations in an &ffice
+. Trust and #e trustworthy
.. *rovide feed#ack that has an impact
0. 4eceive feed#ack with grace and dignity
1. Show appreciation
2. :uild alliance
3. *lay well with other, 6evelop effective work relationship
J. &vercome your fear of confrontation and conflict
K. Manage difficult conversation
L. !onsciously create team norms
+C. 03C 6egree performance evaluation
++. void all forms of discrimination
+.. %ntroducing /ffective >4 *ractices
+0. /ncouraging two way communication
Some &rgani"ational ctions for Sustaining >uman
4elations
a. )lexi Time
#. %ntrapreneurship
c. 8rapevine
d. Io# /nrichment
e. Telecommuting
f. Team Management
g. /thical 6ecision Making
h. /mployee %nvolvement and /mpowerment
i. :uilding %nformal /mployee ?etwork
-. Transformational leadership
k. Managing /mployee 6iversity
l. /mployee 4ecognition and 4ewards