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“An Overview of the Strategic Management; Concepts & Process”. by Sheikh Naseer-ul-Haq M.A. (Economics), MS Dev. Mgt (USA), PA & AS Former Director General, National Institute of Management Former Additional Secretary, Establishment Division Former Deputy Auditor-General of Pakistan. - PowerPoint PPT Presentation
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“An Overview of the Strategic Management; Concepts & Process”
byby
Sheikh Naseer-ul-HaqSheikh Naseer-ul-HaqM.A. (Economics), MS Dev. Mgt (USA), PA & ASM.A. (Economics), MS Dev. Mgt (USA), PA & ASFormer Director General, National Institute of ManagementFormer Director General, National Institute of ManagementFormer Additional Secretary, Establishment DivisionFormer Additional Secretary, Establishment DivisionFormer Deputy Auditor-General of PakistanFormer Deputy Auditor-General of Pakistan
MODULE OBJECTIVESMODULE OBJECTIVES
The main objectives of the module are:- To help the students understand the “Strategic
Management” Concepts and processes by highlighting key terms and steps of i) Strategy formulation ii) Strategy implementation iii) Strategy evaluation;
To identify the ever-changing, dynamic and challenging Organizational environment of 21st Century
To help the students understand the characteristics of an effective organization; and to make them aware of the steps required to achieve organizational effectiveness in a 21st Century dynamic managerial environment
Strategic Management; Definition Strategic Management can be defined “as the art
and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives”.(Fred R. David)
As the definition implies Strategic Management focuses on integrating various departmental units like Production/Operations, Marketing/Sales, Finance/Accounting, Research & Development, IT based Management Information Systems to achieve organizational success, goals and objectives
Stages of Strategic Management
The Strategic Management process consists of three stages;
Strategy FormulationStrategy ImplementationStrategy Evaluation
Strategy Formulation
Strategy formulation includes; Developing an organizational “Vision” and “Mission” Identifying an organization’s external “Opportunities”
and “Threats” Determining internal “Strengths” and “Weaknesses” Establishing long term “Objectives” Generating alternative “Strategies” (courses of action) Choosing particular “Strategies to pursue”
Strategy Formulation….cont.
Strategy formulation issues include deciding; What businesses to enter What businesses to abandon How to allocate resources (department-wise) Whether to expand operations or to diversify Whether to enter international markets Whether to merge or form a joint venture How to ovoid a hostile takeover
Strategy Implementation Strategy Implementation includes; Establishing “Annual Objectives” Develop “Policies” supporting new initiatives Motivate employees to pursue renewed objectives Allocate resources so that formulated strategies can
be executed Promote “Organizational Culture” supportive of the
change direction management
Strategy Implementation…cont.
Create effective organizational structures Redirect market efforts Prepare budgets for the change management Develop and utilize effective “MIS” Link “Employee Compensation to Organizational
Performance”
Strategy Implementation is “Action Stage”; most difficult stage in Strategic Management
Strategy Evaluation
Strategy Evaluation includes; Reviewing external and internal factors that
are the bases for current strategies Measuring performance; (Macro and Micro) Taking corrective action where needed
Strategy evaluation is extremely important to know the results of “Strategy Implementation”; success or failure
Other Critical variable of Strategic Management
Integrating Intuition with Analysis Adapting to Change; pro-actively managing
change externally and internally Managing Information Technology; e-
business and e-commerce Managing the natural environment Surviving in the “Global Context”
Key Terms in Strategic Management
Competitive Advantage Strategists Vision and Mission Statements Business ethics and Social Responsibility Operations Management Transition Management
ORGANIZATIONAL GOALS AND RELATIONSHIPS
Subject OverviewSubject Overview What is an Organization by “Definition” ? What are the environmental “Challenges of the
21st Century” for an organization ? What are its Strategic Planning/Management
capabilities to effectively meet these challenges ? How it sets the “Goals & Targets; Long term &
in the Short run” to achieve its “Organizational Objectives” ?
What are its “internal & external relationships” that are critical to its “effectiveness”
Organization; Definitions Definitions
Organization is a System of consciously coordinated activities or forces of two or more persons who get together and formally agree to combine their efforts for a common goals; (Chester Barnard around 1940)
An Organization is a “Structured Process” in which “individuals interact” for the attainment of “Collective Objectives”; (H.R.Hicks around 1970)
Organizations are “Social Inventions” for accomplishing “Common Goals” through “Group Effort”; (Gary Johns around 1990)
Organizational Environment; Internal Whatever resides within the System Structure and Design People; the Management & the Workforce State-of-the-Art; its level of professional work
processes Technology Architecture Systems and Procedure Leadership; the Management Philosophy/Approach Total Organizational Culture
Organizational Environment; External With whoever the Organization interacts at the “Task”
level and in “General” External “Task Environment” External “General Environment” The Clients, the Customers, the Suppliers, the
Regulatory Agencies, the Competitors, the Special Interest Groups constitute the “External Task Environment”
The Political, the Legal, the Social, the Economic, the Technological or even the International factors affect the “General External Environment” of the Organization
Organizational Environment
GeneralExternalEnvironment
Task External Environment
Internal Environment
The Organization; structure,Its people, technology,Systems, managementPhilosophy & Culture
The customers, clients, suppliers,The competitors, special interest groupsRegulatory agencies etc.
The Political, legal, economic,Social, technological,International factors
Major 21st Century Challenges for Organizations
Intense Competition (Bench marking) Globalization Information Technology (IT) Management Workforce Diversity/Morale Change Management Total Quality Management (TQM) Social Responsibility & Ethics
Process of Organization Development
PresentState
FutureState
Transition
ManagementThis is the Placewhere you are.
This is the Placewhere you want be.
OrganizationalStrategic Planning/ManagementCapabilities
PROCESS OF STRATEGIC PLANNING & MANAGEMENT
PRESENTSTATE
FUTURESTATE
TRANSITION MANAGEMENT
OPERATION’SMANAGEMENT
ANALYSIS OF THE PRESENT & THE ANALYSIS OF THE PRESENT & THE FUTURE STATE; and THE WAY FORWARD FUTURE STATE; and THE WAY FORWARD
Vision of the Organisational future state Clear Perception of the organisational present state
with deficiencies & gaps
(Knowledge, Skills and Abilities) Analysis of the organisational Present Strengths,
Weaknesses, Opportunities and Threats (SWOT Analysis)
Develop the Way Forward; the Mission, the Objectives, the Strategies and the Interventions
Strategic Planning/Management Strategic Planning/Management Capacity of the InstitutionCapacity of the Institution Build on all organisational Strengths Challenge, combat and remove all
organisational weaknesses and endeavour to convert them into strengths
Capitalise on all organisational Opportunities Face all organisational Threats with courage,
capability and sagacity to convert them ultimately as opportunities
Organizational Change CharacteristicsOrganizational Change Characteristics
WORLD-CLASS ORGANIZATIONS Today the very best Multi-National Today the very best Multi-National Corporations are going beyond even the Corporations are going beyond even the learning organization and have become learning organization and have become what can be called as “World-class what can be called as “World-class organizations (WCOs)” which are organizations (WCOs)” which are enterprises that are able to compete with enterprises that are able to compete with anybody, anywhere, anytime, anyway.anybody, anywhere, anytime, anyway.(Fred Luthans)(Fred Luthans)
Analysis Focal Point Analysis Focal Point (Step-1)(Step-1)
Visualise the future state in terms of :-» State-of-the Art (Professional expertise)» Technology Architecture
(Hardware/Software)» Management philosophy and Approach» Organisational Structure and Design» Systems and Procedures» Total Organisational Culture
Analysis Focal Point Analysis Focal Point (Step-2)(Step-2)
Analyse the present state in terms of the change parameters identified during step-1 with the following broad criteria in view:-
» Openness; towards all organisational issues» Critique; everything, no sacred cows» Creativity; analyse all situations with creative
inputs &» Personal Efficacy; the confidence among
organisational members to carve their own destiny
Clear Perception & AssessmentClear Perception & Assessmentof the Organisational Change Parametersof the Organisational Change Parameters
As a result of visualising the future state and the analysis of the present state, a clear perception & assessment of the organisational dynamics of the change process would be developed; on the basis of which ‘Strategic Action Planning’ exercise could be carried out to meet future challenges
Analysis Focal Point (Step-3)Analysis Focal Point (Step-3)
— Keeping in view the results of the Keeping in view the results of the SWOT SWOT ANALYSIS, and the dynamics of the Change ANALYSIS, and the dynamics of the Change as perceived; the “Organization” is now in a as perceived; the “Organization” is now in a position to determine its “Long term and position to determine its “Long term and Short run Goals & Targets”Short run Goals & Targets”
— Draw its Strategies to bring about and Draw its Strategies to bring about and manage Changemanage Change
— Use different “Interventions/Projects” to Use different “Interventions/Projects” to implement its change process and to implement its change process and to transform its “Vision” into “Action/Reality”transform its “Vision” into “Action/Reality”
Organizational Goals & Objectives
Goals & Objectives Goals provide a clear, engaging sense of direction
and specify what is going to be accomplished Objectives outline the desired results to be
attained/achieved
(Management Challenges in the 21st Century by Pamela, Goodman & Fandt)
Goals are quite often broken up into “Targets/Milestones” over a period of time
SMART; Goals & Targets
SMART Specific Measurable Achievable Realistic; & Time bound
Goals and Targets provide the Organization with the clear sense of “Direction and what is going to be accomplished over a stated period of Time; Long term or in the Short run”
Goal Setting; a dynamic exercise
Goal setting is a structured process of determining the “Long term and Short run Objectives of the Organization” by specifying the desired outcomes toward which individuals, groups, departments, and organizations should work to achieve “organizational efficiency and effectiveness”
Management By Objectives (MBO)
Given by Peter Drucker in 1954 Considered to be the “Management Technique
of the 20th Century” Effectively and successfully being used around
the world by Multi-National Corporations, Governments for setting Objectives, Goals and Targets
It is a four step process in which Objectives are set at three levels; the Corporate, the Departmental and the Individual level
Management By Objectives (MBO)
Objectives are Negotiated between Supervisor and the Subordinate; written down for a time period
Action Plans and Management Guides are developed to achieve these objectives and
Periodic Review is carried out and final Evaluation at the end of the stated period completes the process
Bench marks for Quality are observed and all compensations are linked to job performance
Organizational Relationships
Purpose
RelationshipsLeadership
Structure
Rewards
HelpingMechanisms Organizational
Environment
6 Box ModelOf OrganizationalDiagnosis by MarvinWeisbord
Organizational Relationships
Structure
Strategy SubordinateGoals
Systems
Style
SkillsStaff
Mckinsey’s 7 S ModelFor Strategy implementation
Japanese Management Style
Life time employment Organizational Commitment among its
workforce Training and skill development Respect for seniority Management philosophy based on core
values of Ethics, honour and Credibility Family type Organizational Culture
HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT
Definitions The process of developing, applying, and
evaluating policies, procedures, methods, and programs relating to the individual in the organization. (Miner)
Function in the organization concerned with the staffing, training, development, motivation and maintenance of employees. (Decenzo)
HRM IN A DYNAMIC ENVIRONMENT
Environmental Factors and their HRM implications
Globalization:The introduction and making of goods and services worldwide.
Cultural Environments: The attitude and perspectives shared by individuals from specific countries that shape their behavior and how they view the world.
HRM IN A DYNAMIC HRM IN A DYNAMIC ENVIRONMENT (Contd.)ENVIRONMENT (Contd.) Work-Force Diversity
The varied personal characteristics that make the work force heterogeneous.
Changing Skills Requirements
The lacking of basic abilities to perform many of today’s jobs.
Corporate Downsizing
An activity in an organization aimed at creating greater efficiency by eliminating certain jobs.
The Rationale Behind Downsizing
Making the organization leaner, smarter, reducing the overheads and bringing efficiency/effectiveness among the employees through self-management/ empowerment
Total Quality Management
A continuous process of Quality improvement Reengineering Work Processes for Improved
Productivity
Requires Radical, quantum change in perception of the organizational workforce
HRM IN A DYNAMIC ENVIRONMENT (Contd.)
The Contingent Work Force
The part-time, temporary, and contract workers used by
organizations to fill peak staffing needs, or perform work
unable to be done by regular employees. Decentralized Work SitesWork sites that exist away from an organization’s
facilities. A management culture that brings about
Employee Involvement by affording them more
delegation, participative management, work teams, goal
setting and training.
HRM IN A DYNAMIC HRM IN A DYNAMIC ENVIRONMENT (Contd.)ENVIRONMENT (Contd.)
Dynamics of the HRM Process
Recruitment Selection Training
CareerPlanning
PerformanceAppraisal
Separation
Compensation(Pay for Performance)
Vacancies
CRITICAL ISSUES IN PUBLIC SERVICE HRM PROCESS
An Evaluation of the critical HRM variables in terms of the Johari’s window:-
OK NOT OK
CHANGEABLE
NOT CHANGEABLE
STRATEGIC INTERVENTIONS:-LET US FOCUS ON “NOT OK BUT CHANGEABLE” PARAMETERS IN HRM CYCLE TO EFFECT THE KEY RESULT AREAS (KRA)
Recruitment, Selection, Training, Career Planning, Performance Appraisal,
Compensation
Separation
REQUIRED STRATEGIC/CRITICAL INTERVENTIONS IN HRM PROCESSA PLANNED SYSTEMS CHANGE IS REQUIRED IN THE FOLLOWING HRM AREAS
– RECRUITMENT/SELECTION– TRAINING– CAREER PLANNING/PLACEMENT– PERFORMANCE APPRASIAL – COMPENSATION
THROUGH A STRUCTURED PROCESS OF CIVIL SERVICE REFORMS
THE ABOVE STRATEGIC/CRITICAL INTERVENTIONS ARE PART OF A FIVE YEAR “PUBLIC SECTOR CAPACITY BUILDING PROJECT” IN THE COMPONENT OF ESTABLISHMENT DIVISION LAUNCED BY GOVT OF PAKISTAN IN 2004; but what has it achieved???
FOCUSED CIVIL SERVICE TRAINING “Orientation to public service” focus in the pre-service training at
Civil Service Academy. “Professionalism” at the specialized training institution. Advancement of Knowledge, Skills & Abilities; and Attitudinal
change perspective at the Mid Career Management Course (MCMC)
Senior Management Course for B-19 officers at Senior Management College, Lahore with a focus on “POLICY IMPLEMENTATION” in Public Service.
Training at the National Management College and National Defence University for B-20 officers to focus on “Capacity building for public policy formulation and development options”.
Training of the selected personnel through technical assistance programs abroad
CAREER PLANNING/PLACEMENT
BASED ON: “MAN FOR THE JOB” AND NOT “JOB FOR THE MAN”
JOB DESCRIPTION MATCH JOB SPECIFICATION
DESCRIBE THE JOB REQUIRED KNOWLEDGE CONTENT SKILLS, ABILITIES,
APTITUDE, EXPERIENCE AND BACKGROUNG REQUIRED FOR THE JOB.
COMPENSATION
ANY EFFORT AT CHANGE WOULD LACK IMPEUTS WITHOUT ADDRESSING THE ISSUE OF COMPENSATION.
COMPENSATION MUST BE LINKED TO RESPONSIBILITY AND PERFORMANCE.
JOB DESCRIPTION/JOB CONTENT ANALYSIS.
JOB SPECIFICATIONS.
COMPENSATION/PAY PACKAGE ACCORDING TO JOB CONTENT.
COPENSATION ENDEAVOURS PAY & PENSION COMMITTEE RECOMMENDATIONS
– RATIONALIZATION OF THE PAY & PENSION KEEPING IN VIEW THE CONCEPTS OF “MARKET WAGE” AND “LIVING WAGE”.
– MONETIZATION OF CERTAIN ALLOWANCE.
– INTRODUCE THE CONCEPT OF “PAY FOR PERFORMANCE”.
– PARAMETERIC REFORMS IN PENSIONS BY REDUCING THE PERCENTAGE OF COMMUTATION AND INCREASING TAKE- HOME PENSION.
National School of Public Policy
AIMS & OBJECTIVES
WILL PROVIDE AN UMBERLLA TO THE ENTIRE SPECTURM OF TRAINING FOR CIVIL SERVANTS i.e pre-service & In-service training.
Education in relevant areas of public policy like public finance, economic management, general management. (Eventually NSPP will become a degree awarding institution).
Research in areas of Public Administration i.e PUBLIC POLICY FORMULATION AND IMPLEMENTATION OVERSIGHT, DEVELOPMENT OF HRM CAPACITIES etc.
Research and consultancy of public policy options in critical areas. International level of training/education with standard/quality to
fill the critical gaps in civil servants training/education.
Human Resource Activities for Organizational Development
Organizational Input Transformation OrganizationalInputs Processes Processes Outputs
HumanResources
Merit basedRecruitment &
Selection
AppropriateTraining,
Compensation,Job Security &
Career Planning
Job Performance;Evaluated by
ObjectiveAppraisals to beThe benchmark
Forall compensations,
Promotions etc.
THANK YOUTHANK YOU
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