strat 9+10

65問 • 1年前

Ruzelle Abellera

通報

問題一覧

l is a method of managing the execution of a strategic plan

Strategy control

Two central aspects of strategic control

informational control behavioral control (

ability to respond effectively to environmental change).primarily concerned with whether or not the organization is ‘doing the right things’.

informational control

the appropriate balance and alignment among a firms culture, rewards, and boundaries . Asks if the organization is ‘doing things right’ in t

behavorial control

approaches to informational control. Although both have the same purpose — using information to select, monitor, and implement effective strategies —

traditional” and “contemporary

Two Types of Control Sysytem

Traditional approach contemporary approach

1) strategies are formulated and top management sets goals. 2) strategies are implemented. 3) performance is measured against the predetermined goal set Adapting to and anticipating both internal and external environmental change is an integral part of strategic control

traditional approach

Involves informational control and behavioral control

contemporary approach

goals and objectives are set, strategies are implemented, and performance is compared to the desired standards.

Traditional” Approach to Strategic C

Because business conditions typically change rapidly, information controls are needed that can quickly adjust

Contemporary” Approach to Strategic C

an organization’s assumptions, goals, and strategies are continuously monitored, tested, and reviewed. Thus, anticipating and adapting to change is built into the control process.

Contemporary” Approach to Strategic Control

an approach to implementing strategy that relies on three behavioral forces or “levers”culture; rewards and incentives; and, boundaries.

Behavioral control

refers to the shared values, unspoken understandings, and sense of purpose within organizations

culture

Point out that a company’s culture is often what makes it unique compared to other firms in an industry.

The role of the culture

Companies use many different techniques to foster a positive culture and create an environment that is fun and motivating.

Sustaining an effective culture

specify who gets rewarded and why

Reward systems

need to be closely linked to culture since they “put the money where the mouth is” of the organization

reward system

Emphasize that one of the challenges for strategic managers is to design and implement reward systems in which what is best for the “rational” individual is also best for the organization.

The Potential Downside

Another challenge for strategic managers is to create reward and incentive programs that are effective across all parts of the organization

Creating Effective Reward and Incentive programs

This section discusses how rules and regulations, as well as aspiration levels and goals, can provide effective forms of organizational control

Setting Boundaries and Constraints

Used properly they can:

1. Focus individual efforts on organizational priorities. 2. Provide short-term objectives and action plans that channel efforts. 3. Improve efficiency and effectiveness. 4. Minimize improper and unethical conduct.

Vision, mission, and strategic objectives are a type of boundary that was introduced in Lecture 1.

Focusing Efforts on Strategic Priorities

Strategic objectives and actions plans may have a more direct impact on the behavior of an organization’s employees.

Providing Short-Term Objectives and Action plan

Discuss the attributes of short-term objectives that need to be present for them to be effective. They must:

1. be specific and measurable. 2. include a specific time horizon for their attainment. 3. be achievable yet challenging enough to motivate managers who must strive to accomplish them

must provide proper direction but also be flexible enough to keep pace with changing conditions and unexpected circumstances

short -term objectives

Rules-based controls are most appropriate in organizations where: 1. Environments are stable and predictable. 2. Employees are largely unskilled and interchangeable. 3. Consistency in product and service is critical. 4. The risk of malfeasance is extremely high (as in banking or casino operations), and controls must be implemented to guard against improper conduct.

1Environments are stable and predictable. 2. Employees are largely unskilled and interchangeable. 3. Consistency in product and service is critical. 4. The risk of malfeasance is extremely high (as in banking or casino operations), and controls must be implemented to guard against improper conduct.

Rules and guidelines are often used to control commercial practices such as bribes, kickbacks, and other forms of payment that may be illegal.

Minimizing Improper and Unethical Conduct

In this section, we take a contingency approach to behavioral control. That is, the effective use of rewards/incentives, culture, and boundaries are dependent on a variety of internal and external factors

Behavioral Control in Organizations: Situational Factors

In general, the use of culture and reward systems provides a more favorable “internalized” control system than a set of rules and regulations

Evolving from Boundaries to Rewards and Culture

In this section, we focus on the need for both shareholders (the owners of the corporation) and their elected representatives – the board of directors

The Role of Corporate Governance

Three key governance mechanisms are addressed in this section. The first two address the primary means by which the behavior of managers can be monitored:

A Committed and Involved Board of Directors

address some of the implications for the separation of ownership and management in the modern corporation.

The Modern Corporation: The Separation of Owners (Shareholders) and Management

Agency theory is concerned with resolving two problems that can occur in agency relationships:

• when the goals of the principal’s conflict, and, • when it is difficult or expensive for the principal to verify what the agent is actually doing.

the board of directors is the “middlemen” or “middle women” who provide a balance between a small group of key managers in the firm and a vast group of shareholders.

a committed and involved board of directors

practical matter, individual shareholders hold relatively little influence, they do —acting collectively — have power to bring about shareholder action suits and demand that key issues be brought up for proxy votes at annual board meetings.

. Shareholder Activism

From a corporate governance perspective, one of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of the owners of the corporations.

Managerial Rewards and Incentives

If a company’s internal control mechanisms are failing — that is, the board is not effectively monitoring managers and shareholders are largely indifferent,

market corporate control

one external mechanism that provides a potential solution to the problems above

markers corporate control

Despite stringent disclosure requirements, there is no guarantee that the information disclosed by a firm will be accurate.

auditors

Financial institutions and stock analysts are two external groups that monitor publicly held firms

Banks and Analysts

All corporations are subject to some regulation by the government and the extent of regulation is largely a function of the industry within which they compete.

regulatory bodies

Although the press is not typically recognized as an external control mechanism in the corporate governance literature, it would be hard not to argue that the financial press and media play an important role in monitoring the management of public corporations.

Media and Public Activists

is any effort by shareholder to communicate a need for change in company’s policy or management.

Shareholder activism

Individual or organization that owns part of a corporation through shares of its stock

Shareholder

Because most organizations are very small, they need only a ________ are usually highly centralized because the founder or a top executive makes nearly all of the decisions.

Simple Structure

As firms grow, excessive demands may be placed on the owner-manager in order to process all the information necessary to run the business. Specialists are needed in various functional areas

Functional Structure

As firms grow, excessive demands may be placed on the owner-manager in order to process all the information necessary to run the business. Specialists are needed in various functional areas

Functional Structure

The divisional structure is organized around products, projects, or markets. Each division has its own functional specialists organized into departments.

Divisional Structure

is, in essence, a combination of a divisional and functional structure

matrix structure

Four types of boundaries

Four types of boundaries • vertical boundaries • horizontal boundaries • external boundaries • geographic boundaries

Traditional Forms of Organizational Structure

• Simple • Functional • Divisional • Matrix

involve removing internal boundaries to encourage teamwork and widespread sharing of information.

Barrier-free

are used to make external relations more permeable and create seamless knowledge systems across organizations.

Virtual and modular organizational forms

a firm to bridge differences in culture, function, and goals to find common ground that facilitates information sharing and cooperation.

Barrier-Free Organization

Emphasize that barrier-free relationships must also extend to other divisions of a corporation and to external stakeholders. T

2. Developing Effective Relationships with External Constituencies

Not all efforts to create barrier-free structures have been successful.

Risks, Challenges, and Potential Downsides

Mississippi identified 5 reasons for failure:

1) limited personal credibility; 2) lack of commitment to the team; 3) poor communications; 4) limited autonomy; and 5) misaligned incentives.

type is actually a central hub surrounded by networks of outside suppliers and specialists that perform non-vital functions

modular organization

Strategic Risks of Outsourcing Potential disadvantages of the modular form include

1) loss of critical skills or developing the wrong skills; 2) loss of cross-functional skills; and 3) loss of control over a supplier.

is an evolving network of independent companies – suppliers, customers, even competitors — linked together to share skills, costs, and access to one another’s markets. B

Virtual Organization

Many times, the most effective way to design an organization is by using a combination of organizational types.

Boundaryless Organizations: Making them Work

next five subsections address factors that must be considered in any transition from traditional to boundaryless organization forms.

1. Common Culture and Shared Values 2. Horizontal Organization Structures 3. Horizontal Systems and Processes 4. Communications and Information Technologies

In this section we address the challenge that organizations face in rapidly changing and complex competitive environments: e

Creating Ambidextrous Organizational Designs

exploring for new opportunities (

adaptability

effectively exploiting the value of their existing assets and competencies

alignment

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38問 • 1年前

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Ruzelle Abellera · 61問 · 1年前

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61問 • 1年前

Ruzelle Abellera

問題一覧

l is a method of managing the execution of a strategic plan

Strategy control

Two central aspects of strategic control

informational control behavioral control (

ability to respond effectively to environmental change).primarily concerned with whether or not the organization is ‘doing the right things’.

informational control

the appropriate balance and alignment among a firms culture, rewards, and boundaries . Asks if the organization is ‘doing things right’ in t

behavorial control

approaches to informational control. Although both have the same purpose — using information to select, monitor, and implement effective strategies —

traditional” and “contemporary

Two Types of Control Sysytem

Traditional approach contemporary approach

traditional approach

Involves informational control and behavioral control

contemporary approach

goals and objectives are set, strategies are implemented, and performance is compared to the desired standards.

Traditional” Approach to Strategic C

Because business conditions typically change rapidly, information controls are needed that can quickly adjust

Contemporary” Approach to Strategic C

an organization’s assumptions, goals, and strategies are continuously monitored, tested, and reviewed. Thus, anticipating and adapting to change is built into the control process.

Contemporary” Approach to Strategic Control

an approach to implementing strategy that relies on three behavioral forces or “levers”culture; rewards and incentives; and, boundaries.

Behavioral control

refers to the shared values, unspoken understandings, and sense of purpose within organizations

culture

Point out that a company’s culture is often what makes it unique compared to other firms in an industry.

The role of the culture

Companies use many different techniques to foster a positive culture and create an environment that is fun and motivating.

Sustaining an effective culture

specify who gets rewarded and why

Reward systems

need to be closely linked to culture since they “put the money where the mouth is” of the organization

reward system

Emphasize that one of the challenges for strategic managers is to design and implement reward systems in which what is best for the “rational” individual is also best for the organization.

The Potential Downside

Another challenge for strategic managers is to create reward and incentive programs that are effective across all parts of the organization

Creating Effective Reward and Incentive programs

This section discusses how rules and regulations, as well as aspiration levels and goals, can provide effective forms of organizational control

Setting Boundaries and Constraints

Used properly they can:

Vision, mission, and strategic objectives are a type of boundary that was introduced in Lecture 1.

Focusing Efforts on Strategic Priorities

Strategic objectives and actions plans may have a more direct impact on the behavior of an organization’s employees.

Providing Short-Term Objectives and Action plan

Discuss the attributes of short-term objectives that need to be present for them to be effective. They must:

1. be specific and measurable. 2. include a specific time horizon for their attainment. 3. be achievable yet challenging enough to motivate managers who must strive to accomplish them

must provide proper direction but also be flexible enough to keep pace with changing conditions and unexpected circumstances

short -term objectives

Rules and guidelines are often used to control commercial practices such as bribes, kickbacks, and other forms of payment that may be illegal.

Minimizing Improper and Unethical Conduct

Behavioral Control in Organizations: Situational Factors

In general, the use of culture and reward systems provides a more favorable “internalized” control system than a set of rules and regulations

Evolving from Boundaries to Rewards and Culture

In this section, we focus on the need for both shareholders (the owners of the corporation) and their elected representatives – the board of directors

The Role of Corporate Governance

Three key governance mechanisms are addressed in this section. The first two address the primary means by which the behavior of managers can be monitored:

A Committed and Involved Board of Directors

address some of the implications for the separation of ownership and management in the modern corporation.

The Modern Corporation: The Separation of Owners (Shareholders) and Management

Agency theory is concerned with resolving two problems that can occur in agency relationships:

• when the goals of the principal’s conflict, and, • when it is difficult or expensive for the principal to verify what the agent is actually doing.

the board of directors is the “middlemen” or “middle women” who provide a balance between a small group of key managers in the firm and a vast group of shareholders.

a committed and involved board of directors

. Shareholder Activism

Managerial Rewards and Incentives

If a company’s internal control mechanisms are failing — that is, the board is not effectively monitoring managers and shareholders are largely indifferent,

market corporate control

one external mechanism that provides a potential solution to the problems above

markers corporate control

Despite stringent disclosure requirements, there is no guarantee that the information disclosed by a firm will be accurate.

auditors

Financial institutions and stock analysts are two external groups that monitor publicly held firms

Banks and Analysts

All corporations are subject to some regulation by the government and the extent of regulation is largely a function of the industry within which they compete.

regulatory bodies

Media and Public Activists

is any effort by shareholder to communicate a need for change in company’s policy or management.

Shareholder activism

Individual or organization that owns part of a corporation through shares of its stock

Shareholder

Because most organizations are very small, they need only a ________ are usually highly centralized because the founder or a top executive makes nearly all of the decisions.

Simple Structure

As firms grow, excessive demands may be placed on the owner-manager in order to process all the information necessary to run the business. Specialists are needed in various functional areas

Functional Structure

As firms grow, excessive demands may be placed on the owner-manager in order to process all the information necessary to run the business. Specialists are needed in various functional areas

Functional Structure

The divisional structure is organized around products, projects, or markets. Each division has its own functional specialists organized into departments.

Divisional Structure

is, in essence, a combination of a divisional and functional structure

matrix structure

Four types of boundaries

Four types of boundaries • vertical boundaries • horizontal boundaries • external boundaries • geographic boundaries

Traditional Forms of Organizational Structure

• Simple • Functional • Divisional • Matrix

involve removing internal boundaries to encourage teamwork and widespread sharing of information.

Barrier-free

are used to make external relations more permeable and create seamless knowledge systems across organizations.

Virtual and modular organizational forms

a firm to bridge differences in culture, function, and goals to find common ground that facilitates information sharing and cooperation.

Barrier-Free Organization

Emphasize that barrier-free relationships must also extend to other divisions of a corporation and to external stakeholders. T

2. Developing Effective Relationships with External Constituencies

Not all efforts to create barrier-free structures have been successful.

Risks, Challenges, and Potential Downsides

Mississippi identified 5 reasons for failure:

1) limited personal credibility; 2) lack of commitment to the team; 3) poor communications; 4) limited autonomy; and 5) misaligned incentives.

type is actually a central hub surrounded by networks of outside suppliers and specialists that perform non-vital functions

modular organization

Strategic Risks of Outsourcing Potential disadvantages of the modular form include

1) loss of critical skills or developing the wrong skills; 2) loss of cross-functional skills; and 3) loss of control over a supplier.

is an evolving network of independent companies – suppliers, customers, even competitors — linked together to share skills, costs, and access to one another’s markets. B

Virtual Organization

Many times, the most effective way to design an organization is by using a combination of organizational types.

Boundaryless Organizations: Making them Work

next five subsections address factors that must be considered in any transition from traditional to boundaryless organization forms.

1. Common Culture and Shared Values 2. Horizontal Organization Structures 3. Horizontal Systems and Processes 4. Communications and Information Technologies

In this section we address the challenge that organizations face in rapidly changing and complex competitive environments: e

Creating Ambidextrous Organizational Designs

exploring for new opportunities (

adaptability

effectively exploiting the value of their existing assets and competencies

alignment