STRAT 9-10

47問 • 1年前

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is a method of managing the execution of a strategic plan. It’s considered unique in the management process, as it can handle the unknown and ambiguous while tracking a strategy’s implementation and the subsequent results. In other words, strategic control is a way to find different methods of strategy implementation by adapting to changing external and internal factors to achieve strategic goals.

Strategic control

TWO CENTRAL ASPECT OF STRATEGIC CONTROL

1) informational control 2) 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 the implementation of its strategy

behavioral control

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

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

traditional approach,

Contemporary approach:

informational control and behavioral control

Behavioral control is an approach to implementing strategy that relies on three behavioral forces or “levers” –

culture rewards and incentives boundaries.

refers to the shared values, unspoken understandings, and sense of purpose within organizations. It provides unwritten standards of acceptable behavior.

Culture

are another type of boundary or constraint because they provide specific, measurable frameworks for how a strategy is to be implemented.

Action plans

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

Rules and guidelines

“An ingenious device for obtaining individual profit without individual responsibility.” is a mechanism created to allow different parties to contribute capital, expertise, and labor for the maximum benefit of each party.

Corporation

two primary players —

the principals who are the owners of the firm (stockholders) and agents who are the people paid by the board of directors to perform a job on their behalf (management).

the principals who are the owners of the firm

stockholders

agents who are the people paid by the board of directors to perform a job on their behalf ().

management

Three key governance mechanisms

committed and involved board of directors shareholder activism managerial incentives

wherein the owners of the corporation become actively involved in the governance of the corporation.

shareholder activism

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.

board of directors

any effort by shareholder to communicate a need for change in companies policy or management A 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.

Shareholders activism

(failure to exert maximum effort),

shirking

(which serves to reduce employment risk but often results in lower shareholder value).

excessive product-market diversification

is “a set of firms which, though legally independent, are bound together by a constellation of formal and informal ties and are accustomed to taking coordinated action.”

business group

Traditional Forms of Organizational Structure

Simple Functional Divisional Matrix

are usually highly centralized because the founder or a top executive makes nearly all of the decisions. Emphasize that the simple structure is the oldest and most common. It also tends to be the most informal with little specialization. This may enhance creativity since employees are often not bound by many rules, but may lead to management problems if employees do notunderstand their responsibilities. ___ organizations often offer few chances for career advancement.

Simple structures

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 (such as accounting, marketing, and engineering). Thus, a ______ often develops in which functions are managed by specialists. Then, the chief executive’s job shifts to coordinating and managing the departments. - are generally found in organizations in which there are single or closely related products or services, high production volume, and some vertical integration.

Functional Structure

is organized around products, projects, or markets. Each ______ has its own functional specialists organized into departments. ______ are independent units managed by a central corporate office. ________executives manage divisional performance to achieve corporate financial objectives.

Divisional Structure

a combination of a divisional and functional structure. Most commonly, functional departments are combined with product groups on a project basis. As a result, personnel from functional departments work under a product group manager for the duration of a project. Multinational corporations combine product groups and geographical units — an alternative to the product/function matrix. In both cases, personnel become responsible to two managers.

Matrix Structure

Four types of boundaries —

vertical boundaries horizontal boundaries external boundaries geographic boundaries

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

Barrier-free approaches

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

Virtual and modular organizational forms

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

barrier-Free Organization

A. The Barrier-Free Organization 1. Creating Permeable Internal Boundaries Teams are an important part of barrier free structures because they 1) substitute peer-based for hierarchical control; 2) often develop more creative solutions via brainstorming and other group problem solving techniques; and 3) absorb administrative tasks previously handled by specialists. 2. Developing Effective Relationships with External Constituencies 3. Risks, Challenges, and Potential Downsides

An example of team failure by Challenger Electrical Distribution in Jackson, 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.

is actually a central hub surrounded by networks of outside suppliers and specialists that perform non-vital functions. Such outsourcing allows the firm to tap into the knowledge and expertise of “best in class” suppliers but retain full strategic control. - type of organization allows a company to leverage relatively small amounts of capital and a small management team.

Modular Organization

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.

type of organization is an evolving network of independent companies – suppliers, customers, even competitors — linked together to share skills, costs, and access to one another’s markets By pooling and sharing resources and working together in a cooperative effort, each gain in the long run. are a type of strategic alliance in which complementary skills are used to pursue common objectives.

Virtual Organization

The next fivesubsections 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 5. Human Resources Practices

The firms organized their breakthrough projects into one of four primary ways:

• functional organizational structures • cross-functional teams • unsupported teams • ambidextrous organizations (structurally independent units integrated into the existing senior management structure)

ambidextrous organizational form was most effective on both dimensions:

success in creating desired innovations the performance of the existing business.

involves informational control and behavioral control

contemporary approach

duties of the board of directors

review of strategies financial objective providing advance and counsel to top management

individual an organization that owns part of the corporation through shares of its stock

shareholder

external control mechanism

market for corporate control auditors banks and analyst regulatory bodies media and public activists

two classes of shareholders

controlling shareholders minority shakeholders

three condition of pp

dominant owner or group of owners motivation for controlling stakeholders few formal

as activities that enrich the controlling shareholders at the expense of minority shareholders

expropriation

who have interest that are distinct from the minority shareholders

dominant owner or group of owners

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Jennie Rose Carpo · 24問 · 2年前

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