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Strategy Implementation-Management Issues1

The document discusses key issues in strategy implementation at the management level. It outlines how annual objectives should be set through a decentralized and participatory process to gain acceptance. Objectives then form the basis for resource allocation, performance evaluation, progress monitoring, and setting priorities across levels. Developing clear policies provides guidance for solving problems and carrying out strategic decisions. Resource allocation involves assigning financial, physical, human, and technological resources to achieve objectives. Managing conflicts that arise from interdependent objectives and limited resources is also important.

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David Adeabah Osafo
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230 views

Strategy Implementation-Management Issues1

The document discusses key issues in strategy implementation at the management level. It outlines how annual objectives should be set through a decentralized and participatory process to gain acceptance. Objectives then form the basis for resource allocation, performance evaluation, progress monitoring, and setting priorities across levels. Developing clear policies provides guidance for solving problems and carrying out strategic decisions. Resource allocation involves assigning financial, physical, human, and technological resources to achieve objectives. Managing conflicts that arise from interdependent objectives and limited resources is also important.

Uploaded by

David Adeabah Osafo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Strategy Implementation Management Issues

1. Setting of annual objectives

- Establishing annual objectives is a decentralized activity that directly involves all managers in an

organization.

- Active participation in establishing annual objectives can lead to acceptance and commitment.

- Annual objectives are essential for strategy implementation because they

(1) represent the basis for allocating resources;

(2) are a primary mechanism for evaluating managers;

(3) are the major instrument for monitoring progress toward achieving long-term

objectives; and

(4) establish organizational, divisional, and departmental priorities.

- Objectives should be consistent across hierarchical levels and form a network of supportive aims

- Annual objectives should be measurable, consistent, reasonable, challenging, clear,

communicated throughout the organization, characterized by an appropriate time dimension,

and accompanied by commensurate rewards and sanctions

- Annual objectives should be compatible with employees and managers values and should be

supported by clearly stated policies.

2. Developing policies

- Policies facilitate solving recurring problems and guide the implementation of strategy.

- Policies are instruments for strategy implementation.

- Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be

taken to reward and sanction behavior;

- They clarify what can and cannot be done in pursuit of an organizations objective.

- Policies let both employees and managers know what is expected of them, thereby increasing the

likelihood that strategies will be implemented successfully.


- They provide a basis for management control, allow coordination across organizational units, and

reduce the amount of time managers spend making decisions.

- Policies also clarify what work is to be done and by whom.

- They promote delegation of decision making to appropriate managerial levels where various

problems usually arise.

- Simply, policies provide guidance and direct behavior

- Thus, they represent the means for carrying out strategic decisions.

3. Resource allocation

- Four types of resources that can be used to achieve desired objectives: financial resources,

physical resources, human resources, and technological resources.

- Factors that prevents effective and efficient resource allocation are: overprotection of resources,

too great an emphasis on short-run financial criteria, organizational politics, vague strategy

targets, a reluctance to take risks, and a lack of sufficient knowledge.

- The real benefit of resource allocation has to do with the accomplishment of the organizational

objectives

4. Managing conflicts

- Interdependency of objectives and competition for limited resources often leads to conflict.

- Conflict can be defined as a disagreement between two or more parties on one or more issues.

- Conflict may be managed and resolved through avoidance, defusing and confrontation

5. Matching structure with strategy

- Strategy affects the structure of an organization largely because of how objectives and policies

are set; as well as resource allocation.

- Conflict can be defined as a disagreement between two or more parties on one or more issues.

- Conflict may be managed and resolved through avoidance, defusing and confrontation

6. Matching structure with strategy

7. Linking performance and pay to strategy


8. Managing resistance to change

9. Creating a strategy supportive culture

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