Chapter 2 mgmt
The basic premise behind strategy implementation is that:
"an org. has a variety of structural forms and org. processes to choose from when implementing a given strategy" choice of organizational processes and structural forms make an economic difference.
administrative linkage
(the lowest level of integration), -the HRM function's attention is focused on day-to-day activities (administrative work -HRM executive no time or opportunity to look at HRM issues -HRM department has no engagement in the strategic management process (ST. formulation and implementation)
5 major components of Strategical formulation
1) Mission statement reason of being, specificies the customer servs, needs to satify for customers vision/ values 2)Goals hopes the org. to achieve in the medium to long-term 3) External analysis 4) Internal Analysis 5) strategic choice choose of strategy; the way an org. will attempt to fulfill its mission and goals
what are the different types of linkages
1) administrative linkage 2) one-way linkage 3) two-way linkage 4) integrative linkage
HRM functions
1) ensuring that the company has a proper number of employees with the levels and types of skills required by strategic plan 2) developing "control" systems that ensure that those employees are acting in ways that promote the achievement of the goals specified in the strategic plan
what are the 6 menus of HR practices
1) job analysis and design 2) recruitment and selection 3) training and development 4) performance management 5) pay structure, incentives, and benefits 6)labor and employee relations
5 important variable of strategy implementation
1) organization structure 2) task design, 3) the selection, training, and development of people 4) reward system 5) types of information and info systems
what are the 3 sequential steps of two-way linkage
1) strategical planning team informs the HRM function of various strategies that company is considering 2) HRM executives analyze that HR implication of various strategies, presents the results to the strategic planning team 3) once the decision has been made, the Strategic plan is given to the HRM executive to implement it
HRM variables in charge
1) task design task must be designed and grouped into jobs in a way that is efficient and effective 2) people ensure the org is staffed with people with knowledge, skill, and ability to perform 3) reward system
Downsizing
A planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient "rightsizing"
differentiation strategy
A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions. are highly creative and cooperative Through brand image, customer service, offering unique features, etc Companies achieve above-average returns if they succeed in it
types of strategies used by firms and creates by Porter
Cost leadership and differentiation
Which of the following is a challenge of downsizing?
It is difficult to boost the morale of employees who remain after downsizing.
Pluto Inc., a large manufacturer of desktops and laptops, has decided to enhance revenues by expanding its product line. It has identified the tablet market as a possible market to expand, and has identified Compco Inc. as a potential competitor. Pluto Inc. is currently in the _____ stage of the strategic management process.
Strategical formulation
Saturn Inc. is a large manufacturer of footwear and accessories. It has always lagged behind its closest competitor Hexagon Inc. It plans to overtake Hexagon by leveraging its strength in women's footwear and entering markets in the Mid-West that it had traditionally ignored. Saturn Inc. is in the _____ phase.
Strategical formulation
Internal growth
Strategies focusing on market development, product development, innovation, or joint ventures
Which of the following statements is true of two-way linkages?
The strategic planning function and the human resource management function are interdependent.
Jane, an employee with Manor Electricals, has been transferred to a different division within the company. To facilitate a smooth transition, the company has initiated a program for Jane that will provide her with the necessary knowledge and skills required to perform the new role effectively. Which of the following human resources management practices did Manor Electricals perform?
Training
mergers and acquisitions
Two companies with distinct cultures are merged to form a new culture.
training
____ refers to an organization's planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job
Concentration strategy
a strategy focusing on increasing market share, reduction cost, or creating and maintaining a market niche for product and services emphasizing market share or operating costs . focus on what it does best within its established markets and can be thought of as "sticking to its knitting."
two-way linkage
allows for consideration of HR issues during the strategy formulation process it has 3 sequential steps:
competitive advantage
an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices what sets the organisation apart from others & provides it with a distinctive edge in the marketplace and is operating in a successful way that is difficult for competitors to imitate
External Growth Strategy
attempts to expand a company's resources or to strengthen its market position through acquiring or creating new businesses Companies attempting to integrate vertically or horizontally or to diversify exhibit
cost leadership strategy
becoming the lowest cost producer in an industry with high concern for quality reduce cost through capitalization on the experience curve, research and development, service, sale force, and advertising
Gemco Inc., a high-end luxury jewelry manufacturer, has training programs to ensure that its current employees always design and manufacture jewelry in keeping with its high quality standards. Which of the following directional strategies has Gemco adopted?
concentration
Labor and Employee Relations
decide how much employees should participate in decision making, company
CompX Inc. is an online retailer of electronic products including laptops and tablets. The company is known for its unique approach to customer support, which is known for going above and beyond in satisfying customer complaints and issues. What kind of a strategy is CompX using
differentiation
Integrative Linkage
dynamic and multifaceted, based on continuing rather than sequential interaction HRM functions built right into the strategy formulation and implementation processes does not rely on a interactive process of info exchange
Is it external or internal? technology advances that can aid the company labor pools that have not been tapped labor shortage new competitors in the market ending legislation that might adversely affect the company
external analysis
one-way linkage
firms strategic business planning function develops the strategic plan and then informs the HRM function of the plan. danger: leads to strategic plans that can't be successfully implemented
A company that follows an overall cost leadership strategy
focuses on becoming the lowest cost producer in an industry
Which of the following linkages has its human resource management functions built right into the strategy formulation and implementation processes?
integrative linkage
Pay structure/incentives/benefits
is the most important role in implementation strategies high level of ___/___ relative to attract and reatin high-quality employees, but negative impact on overall labor costs can elicit specific activities and levels of performance from employees
Anna, a HR manager at a technology firm, is entrusted with the task of hiring a member for a new team. She has already received information about what the new role will entail as well as the tasks that the new employee will be performing. She is currently using several mediums to seek applicants for the role. Which of the following human resources management (HRM) practice is Anna performing?
recruitment
External Analysis
scan external environment (national & global) to identify strategic opportunities & threats
development
the acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in customer demands
HR Practices
the practices that a company has put in place to manage employees
Selection
the process by which it attempts to identify applicants with the necessary knowledge, skills, and abilities, and other characteristics that will help the company achieve its goals
Job Design
the process of defining the way work will be performed and the tasks that a given job requires
Internal Analysis
the process of examining the org. strengths and weakness measure the quantity and quality of its resources (Business Level: competitive positioning, generic strategies, building competitive advantage, sustaining competitive advantage;
Job Analysis
the process of getting detailed information about jobs
strategy implementation
the process of putting strategies into action component of the strategic management process consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization's strategic goals.
Performance Management
the process through which managers ensure that employees' activities and outputs contribute to the organization's goals
recruitment
the process through which the organization seeks applicants for potential employment
strategy formulation
the strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.
internal growth (concentration) external growth (mergers and acquisitions) downsizing
what are the Growth Strategies?
