Essential of Strategy Implementation

By: Emilee Ann Tingala

Production/Operations Concerns
when Implementing Strategies

Type of Strategy Being Organizations Implemented Hospital

Production System Adjustments

Adding a cancer center Purchase specialized (Product Development) equipment and add specialized people

Bank

Adding 10 new branches (Market Devt)

Purchasing a barley farm operation (Backward Integration) Purchasing a retail distibution chain (forward integration) Acquiring a fast-food chain (unrelated diversification)

Perform site location analysis

Revise inventory control system Alter shipping, packaging and transportation systems Improve the quality control system

Beer brewery

Computer company Steel Manufacturer

Production/Operations Concerns
when Implementing Strategies

Just-in-Time (JIT)
Parts and materials are delivered to a production site just as they are needed Reduces the costs of implementing strategies

Factors to be studied before locating production facilities:

Availability of major resources Prevailing wage rates in the area Transportation costs Location of major markets Political risks in the area Availability of trainable employees

Cross-training of employees

Employees gain a better understanding of the whole business They can contribute better ideas in planning sessions

Problems with cross-training employees:

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It can thrust managers into roles that emphasize counseling and coaching over directing and enforcing It can necessitate substantial investments in training and incentives

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It can be very time-consuming Skilled workers may resent unskilled workers who learn their jobs

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Older employees may not want to learn new skills

Human Resource Concerns

when Implementing Strategies

Strategic responsibilities of a Human Resource Manager:

Assessing the staffing needs and costs for alternative strategies Developing a staffing plan for effectively implementing strategies

Developing performance incentives that clearly link performance and pay to strategies Linking company and personal benefits Establishing and administering an employee stock ownership plan (ESOP)

Instituting an effective child-care policy Providing leadership for managers and employees in a way that allows them to balance work and family

Causes of problems that arise when implementing strategies:

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Disruption of social and political structures Failure to match individuals aptitudes with implementation tasks Inadequate top management support for implementation activities

Employee Stock Ownership Plans (ESOPs)

Employee Stock Ownership Plans (ESOPs)

A tax-qualified, defined-contribution, employee-benefit plan Whereby employees purchase stock of the company through borrowed money or cash contributions Empower employees to work as owners Used as a tactic for preventing a hostile takeover

Balancing Work Life and Home Life

HR managers need to foster a more effective balancing of professional and private lives

A good home life contributes to a good work life

Actions in response to work/family issues:

Providing spouse relocation assistance as an employee benefit Providing company resources for family recreational and educational use Establishing employee country clubs Creating family/work interaction opportunities

Actions in response to work/family issues:

Developing family days

Family is invited in the workplace Inexpensive Increase employees pride in working

Other issues in work life and home life

Glass ceiling

the invisible barrier that bars women and minorities from the top level management positions

Extramarital affairs

Diverse Workforce
Diversification

A basic growth strategy that implements the expansion of product lines or expanding into another industry.

An organization can be most effective when a workforce mirrors the diversity of its customers.

Benefits of a Diverse Workforce

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Improves corporate culture Improves employee morale Leads to a higher retention of employees Leads to an easier recruitment of new employees Decreases complaints and litigation

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Increases creativity Decreases interpersonal conflict between employees Enables the organization to move into emerging markets Improves client relations Increases productivity Improves the bottom line Maximizes brand identity Reduces training costs