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Introduction
Organisations are complex entities.
They have systems and subsystems.
Functional strategies are carried out through Functional functional and operational is done implementation. implementation through functional plans and policies in different functional areas.
Functional strategies
Functional strategy deals with a relatively restricted plan designed to achieve objectives in a specific funtional area, allocation of resources among different operations within that functional area and coordination among different functional areas.
Functional strategies are derived from business and corporate strategies and are implemented through functional and operational implementation. A key task of strategy implementation is to align or fit the activities and capabilities of an organisation with its strategies.
horizontal fit
VERTICAL FIT
Any functional strategy becomes strategic when it is vertically fitted to the upper level business and corporate strategies .
Horizontal fit
The consideration of horizontal fit means that there has to be an integration of all operational activities undertaken to provide a product or service to a customer. This has to take place in the course of operational implementation.
Just like corporate and business startegies , functional strategies are not implemented directly. They have to be first defined in terms of plans and policies. So , functional implementation takes place through functional plans and policies.
Development
The process of development of functional plans and policies whether formal or informal is similar to that for strategy formulation . Environmental factors and organisational plans and policies affect the choice of functional plans and policies.
Cost leadership/differentiation/focus
Nature of product /service Nature of market Manner
Personnel Plans and Policies Personnel Plans and Policy relates to the Personnel system, organizational and employee characteristics, and industrial relations.
Personnel System
Plans and Policies related to the Personnel system deal with factors like manpower Planning, Selection, Development, Compensation , Communication and Appraisal. The importance of such Plans and Policies lies in the role that personal system play in providing and maintaining human resources.
Industrial Relations
It deal with issues such as union management relationship, collective bargaining, safety, welfare and security, employee satisfaction and morale, and so on.
Retrieval and usage of information It deals with factors such as availability and appropriateness of information formats, and the capacity to assimilate and use information. Transmission and dissemination of information The plans and policies with regard to the transmission and dissemination of information deal with factors such as, speed, scope, width, and depth of coverage of information, and willingness to accept information.
Operational implementation
Operational implementation deals with the nittygritties of strategy. This is the time for action as this is the stage at which the most tangible works gets done. Obviously, the scope of operational implementation would be very wide. It would cover practically everything that is done in an organization.
Operational effectiveness
Porter considers operational effectiveness as necessary but not sufficient to the success of strategy. He explains the term as performing similar activities better then rivals perform them. Operational effectiveness includes but is not limited to efficiency. It refers to any number of practices that allow a company to better utilize its inputs by, for example, reducing defects in products or developing better products faster.
Operational effectiveness
People
Pace
Productivity
Productivity is the measure of the relative amount of input needed to secure a given amount of output. The Significant modern practices observed here are of: Just in time manufacturing, Cycle time reduction, Group technology , Optimized production technology , Flexible manufacturing system , Cellular manufacturing , Total productive maintenance , Lean manufacturing
Processes
Processes are courses of action used for operational implementation . Processes are often implemented through methods. Business process reengineering Enterprise-wide resource planning Quality management processes Benchmarking, value chain and Supply chain management.
People
People are the stakeholders in the organization. The significant people are the investors, employees, suppliers, and customers. Among these employees play a direct and central role in operational implementation. Strategic recruitment Performance management Training and development Performance appraisal and retention management Separation management
Pace
Pace is the speed of operational implementation and is measured in terms of time. Efficiency is the parameter often used to express the pace of operational implementation . Efficiency is the amount of work done per unit time. Time study Time nature of managerial work Network analysis and activity charts Time based management
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