A process by which strategies and policies are put into action through the development of programs, budgets, and procedures.
A. Short term objectives
My short term goal is to improve my problem solving and inter-personal skills by working in a team of intelligent and committed people.
1. Qualities of effective short term objectives.a. Measurable.
Achievement of the skill or behaviour is quantifiable and observable.
- Measurable activity.
- Measurable outcomes.
- Simple ranking.
- Relative priority / weights.
c. Linked to long term objectives.
- Cascading effect.2. The value added benefits.
- Give operating personnel a better understanding of their role in a firm’s mission.
- Provide basis for accomplishing conflicting concerns.
- Motivation – clarity personal and group roles in a firm’s strategies.
- Provide basis for strategic control.
B. Functional Tactics.
Key, routine, activities that must beundertaken in each functional area to provide the business’s product.
1. Time horizon.
Focus must be o immediate and current activities,
Functional tactics are activities and how these are expected to achieve the business strategy.
Senior managers are responsible for business strategy. Operational managersset-up short term objectives and functional tactics that lead to success of the business.
C. Employee Empowerment.
1. Organization’s policies.
D. Organizational Structure.
1. Functional Organizational Structure.
• Small size, single-product line
• Undifferentiated market
• Scale or expertise within the function• Long product development and life cycles
• Common standards
• Hybrids in large organizations may follow structure by division or business unit
a. Strategic Advantages and disadvantages.
• Centralized control of strategic results.
• Very well suited for structuring a single business.• Structure is linked tightly to strategy by designating key activities as functional departments.
• Promotes in-depth functional expertise.
• Well suited to developing functional skills and functional based competencies.
• Conducive to exploiting learning/experience curve effects associated with functional specialization.• Enhances operating efficiency where tasks are routine and repetitive.
• Excessive fragmentation of strategy-critical processes.
• Can lead to inter-functional rivalry and conflict, rather than team-play.
• Multi-layered management bureaucracies and centralized decision-making slow response time.• Hinders development of managers with cross-functional experience because the ladder of advancement is up the ranks within the same functional area.
• Forces profit responsibility to the top.
• Functional specialists often attach more importance to what's best for the functional area than to what's best for the whole business - can lead tofunctional empire-building.
• Functional myopia often inhibits creative entrepreneurship, adapting to change, and attempts to create cross-functional core competencies.
2. Geographic Organizational Structure.
• Low value-to-transport cost ratio.
• Service delivery on-site.
• Closeness to customer for delivery or support....