Learning Objectives 11-1 Explain the link between strategy and staffing decisions 11-2 Discuss how leaders manage corporate culture 11-3 Utilize an action planning framework to implement an organization’s MBO and TQM initiatives
11-2 Integration Managers • Prepare a competitive profile of the company in terms of its strengths and weaknesses. • Draft a profile of what the ideal combined company should look like. • Develop action plans to close the gap between actual and ideal. • Establish training programs to unit the combined company and make it more competitive.
11-3 Staffing Characteristics of successful integration managers include: 1. Deep knowledge of the acquiring company 2. Flexible management style 3. Ability to work in cross-functional teams 4. Willingness to work independently 5. Sufficient emotional and cultural intelligence to work in a diverse environment
11-4 Staffing Follows Strategy • One way to implement a company’s business strategy, such as overall low cost, is through training and development. • Executive characteristics influence strategic outcomes for a corporation.
11-5 Matching the Manager to the Strategy • Executive type – executives with a particular mix of skills and experiences – paired with a specific corporate strategy
11-7 Selection and Management Development • Executive succession – process of replacing a key top manag • Succession planning – identifying candidates below the top layer of management – measuring internal candidates against external candidates – providing financial incentives
11-10 Guidelines for Successful Downsizing • Eliminate unnecessary work instead of making across the board cuts • Contract out work that others can do cheaper • Plan for long-run efficiencies • Communicate the reasons for actions • Invest in the remaining employees • Develop value-added jobs to balance out job elimination
11-11 Leading • Implementation – involves leading and coaching people to use their abilities and skills most effectively and efficiently to achieve organizational objectives
• Without direction, people tend to do work
according to personal views of what tasks should be done, how, and in what order.
11-12 Managing Corporate Culture • Strong cultures are resistant to change. • Optimal culture supports mission and strategies. • Management must evaluate what a particular change in strategy means to the corporate culture, assess whether a change in culture is needed, and decide whether an attempt to change the culture is worth the likely costs.
11-15 Managing Cultural Change Through Communication Companies in which major cultural changes have successfully taken place had the following characteristics in common: • The CEO and other top managers had a strategic vision of what the company could become and communicated that vision to employees at all levels. • The vision was translated into the key elements necessary to accomplish that vision.
11-17 Managing Diverse Cultures Following an Acquisition (1 of 3) The choice of which method to use should be based on: 1. How much members of the acquired firm value preserving their own culture 2. How attractive they perceive the culture of the acquirer to be
11-18 Managing Diverse Cultures Following an Acquisition (2 of 3) • Integration – involves relatively balanced give-and-take of cultural and managerial practices between merger partners – no strong imposition of cultural change on either company • Assimilation – involves domination of one organization over the other
11-19 Managing Diverse Cultures Following an Acquisition (3 of 3) • Separation – characterized by separation of the two companies’ cultures • Deculturation – the disintegration of one company’s culture resulting from unwanted and extreme pressure from the other to impose its culture and practices
11-20 Action Planning (1 of 2) • Action plan – states what actions are going to be taken, by whom, during what time frame, and with what expected results
11-21 Action Planning (2 of 2) 1. Specific actions to be taken to make the program operational 2. Dates to begin and end each action 3. Person responsible for carrying out each action 4. Person responsible for monitoring the timeliness and effectiveness of each action 5. Expected financial and physical consequences of each action 6. Contingency plans
11-23 Importance of an Action Plan (2 of 2) • Helps in both the appraisal of performance and identification of any remedial actions • Explicit assignment of responsibilities for implementing and monitoring the programs may contribute to better motivation
11-25 Management by Objectives (1 of 2) • Management by objectives (MBO) – encourages participative decision-making through shared goal setting and performance assessment based on achieving stated objectives
11-26 Management by Objectives (2 of 2) The MBO process involves: 1. Establishing and communicating organizational objectives 2. Setting individual objectives 3. Developing an action plan to achieve objectives 4. Periodically (at least quarterly) reviewing performance
11-27 Total Quality Management (TQM) (1 of 2) • Total quality management (TQM) – an operational philosophy committed to customer satisfaction and continuous improvement – committed to quality/excellence and to being the best in all functions