Strategic management 2 2
Terms
undefined, object
copy deck
- vision statement
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defines why exists
concisely communicate what the co does for who and inspire and describe the future of the co. - mission statement
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describes how vision statement will eb achieved
defines why exists
descrieb co. what it does, where it is going and how it is different.
directed to employees - corporate values statement
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executive team communique to workforce about org beliefs
what will remain true regardless of changes in focus and business
e.g. integrity, teamwork, excellence, etc.
goals need to align values with reality - corporate goals
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how will get there
short-term - up to 12 months
mid-range 1-3 years
long-range 3-5 years
uses smart model - SMART Model
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Goals should be:
Specific
Measurable
Action-oriented
Realistic
Time-based - 4. Strategy Implementation
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How to get there
tactical and operational plans
-develop tactical goals
-develop budget
-develop action plans
-execute plans - tactical goals
- defines implementation goals of strategic goals
- action plans
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step by step definition of implementation of tactical goals
corporate mission>
corporate goals
strategic goals)
tactical goals>
action plans - summary
- vision/mission>goals/strategy>tactical goals>action plan
- Develop budget
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*historic information
-based on last year's budget
*ZBB
*top-down budgeting
*bottom-up budgeting
- - *zero-based budgeting
- -as if starting from scratch, everything not adding value or needed will eb replaced or eliminated
- top-down budgeting
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-created by senior mgmt and imposed on rest of org.
-complete control of where money is spent
-internal battle and lobbying for budget
-decision makers far-removed from circumstancces - Bottom-up budgeting
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managers with direct responsibility suggest costs to big picture decision maker
-operating managers close to the front-lines influence decision
-unrealistic budget requests
-time-consuming - parallel budgeting
- senior management gives broad guidelines to operating managers to create budgets
- Management functions
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1. planning (previous cards)
2. organizing
3. directing
4. controlling - 2. Organizing
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Creating a company structure
centralized vs. decentralized org.
business functions and span of control - business funtions
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*line functions
-make decisions about operating needs
*staff functions
-advise line managers (HR,Accounting) - span of control
- # of direct reports to a manager
- Basic organization structures
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*Functional Structure
*Product-based Structure
*Geographic Structure
*Divisional Structure
*Matrix Structure
*Seamless organization - Functional Structure
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hierarchical, pyramid
formal and usually one product line where specialization is an advantage - Product-based Structure
- organized by product lines that are clear and separate, each product line reports to ceo
- Geographic Structure
- each region reports to central, used if each region is unique in its requirements, decentralized, decisions are local
- Divisional Structure
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like geographic but based on other like market or industry
e.g. GE medical - Matrix Structure
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employees report to 2 managers one for the product and one functional
encourages cooperation but can be conflicting in directions - Seamless organization
- horizontal and connected by networks
- 3. Directing
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management/leadership styles
-authoritarian,directive
-democratic
-laizzes-faire
-coaching
-transactional
-transformation - authoritarian/directive
- effective in life-threatening situations or when productivity is of great concern
- democratic
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effective with highly skilled professionals that are self-motivated
when relationships are of greatest concern - laizzes-faire
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no direction or guidance and can be destructive if people lack confidence
usually results in lower productivity - coaching
- develops skills and abilities so they're able to work on their own
- transactional
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focuses on geting the job done and offers reward
manage by exception, taking action where goal isn't met - transformation
- focus on relationships. act as role models and welcome new ideas
- 4. Controlling
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managers ensuring implementation of strategy
-use balanced scorecard - balanced scorecard
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keeps track of non-financial results and ties objectives to specific performance targets
4 results areas
-financial
-customer
-key internal processes
-hiring and training - Role of HR in org.
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Strategic, administrative, and operational
-HR audits
-HR Planning
-Change management
-Corporate ethics and social responsibility
-Lawmaking and regulatory processes - Strategic role of HR
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-build employee strength that contributes to corporate goals
-recruiting and retention
-performance management
-restructuring - Administrative role of HR
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-manage compliance issues
-govmt regulations
-records of benefits
-confidentiality of employee info - Operational role of HR
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-manage employee relations
-daily recruiting functions - HR Audits
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-assess status of HR programs, policies and practices
-id areas out of compliance or need help
-reviews all areas of hr - HR Planning
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develop tactical goals and action plans in accordance to co goals
-provide measures related to workforce issues, productivity and strategic HR - Yield ratios
- offers made to offers accepted
- Change Management
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-rengineering
-restructuring
-downsizing - Reengineering
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looks at entire org to improve efficiency
simplifies processes and eliminates unneeded processes - Restructuring
- looksat individual units in org. to reduce costs and increase production
- fiduciary responibility
- obligation to act in the best interest of stakeholders, not personal interest
- Sarbanes oxley act of 2002
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-established PCAOB
-required independence of auditors from businesses and required change every 5 years as well as restricting nonaudit services. must report audit to audit commmittee of the BOD.
-made CEO accountable for financial reports filed w/ sec
-required CEO&CFO reimburse compensation if there is a resatement due to misconduct
-no insider trading during pension blackout, wne employees can't trade stocks in pension fund
-assure ethics of stock analysis
-criminal penalties for shareholder fraud - Code of ethics
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-confidentiality
-conflicts of interest
-fairness
-honesty
-integrity
-gifts
-insider info, esp. trading
-personal use of co assets
-workplace privacy - ethics officers
- ensure adherence of co to its ethic code
- The foreign Corrupt Practices act of 1977
- prohibits payments of bribes and requires accounnting that precldes use of covert bank accounts to do so
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Legislative Process
12 steps
1-4 -
MOC, member of congress sponsors bill and presents to house or senate, commitee studies
2. committee determines likelihood it will pass and stops or continues process
3. sudied by subcommitee and hearing conducted
4. subcommitee may make changes, mark up bill and dies or is returned to full committee - 5-8
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5. may study more or send to full body
6. written report of recommendations prepared including dissents
7. placed on legislative calendar and scheduled for vote
8. members of body present views and debate and offer ammendments - 9-12
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9. vote conducted
10. if one body passes must go to the other and process begins again or may vote to pass as presented
11. president receives bill may sign, veto or fail to sign
if veto, congress must override by 2/3, if unsigned can become law in 10 days unless congress adjourns - administrative law
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3 types:
*agency rules and regulations
- published in federal register and take effect 30 days after notice
*agency orders
-orders by administrative law judge (ALJ)
*executive orders
-issued by president - lobbying
- -shrm has legslative affairs committees