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CHAPTER 10 Strategy

Implementation: Staffing &


Directing

STRATEGIC MANAGEMENT & BUSINESS POLICY


10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER

Prentice Hall, Inc. © 2006 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

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Staffing & Directing

Growth through Acquisition


Management Attrition

Year % that Leave


1 25
2 35
3 48
4 55
5 61

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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
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Staffing & Directing

Staffing follows strategy –

–Training & Development


•Higher productivity
•Reduction in waste
•Overall cost savings

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Staffing & Directing

Staffing follows strategy –

Top Executive Life Cycle


Learning - Harvesting - Decline

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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.

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Staffing & Directing

Assessing Strategy – Culture Compatibility

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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

Action Plan
1. Actions to be taken
2. Dates to begin and end
3. Person responsible for carrying out the action
4. Person responsible for monitoring
5. Expected financial and physical consequences
6. Contingency Plans

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Staffing & Directing

Management By Objectives –

–Establish objectives
–Setting individual objectives (shared)
–Action plan
–Periodic performance review

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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


10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER

Prentice Hall, Inc. © 2006 10-23