View
1.148
Download
0
Category
Tags:
Preview:
DESCRIPTION
haiiiiii
Citation preview
STUDENT- PGDMINSTITUTE OF MANAGEMENT STUDIES, NOIDA
Prepared by –1.RAVISH ROSHAN (atulravish@gmail.com),9968009808 (m
ail ur comm
ents, please)
Certification Study Group
Managing Change
The Nature of Organization Change Organization Change
Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees).
Forces of Change External and Internal
The Nature of Organization Change Forces for Change
External forces in the organization’s general and task environments that force the organization to alter the way in which it competes.
Internal forces inside the organization that cause it to change its structure and strategy; some internal forces are responses to external pressures.
The Nature of Organization Change Planned Change
Change which is designed and implemented in an orderly and timely fashion in anticipation of future events
Reactive Change Change which is a piecemeal response
to circumstances as they develop
Managing Change in Organizations
Steps in the Change Process (Lewin Model) Unfreezing – Individuals must be shown why
the change is necessary. Implementing change – The change itself is
implemented Refreezing – Involves reinforcing and
supporting the change so that it becomes a permanent part of the system.
Steps in the Change Process
Establishment of goals for the change
Recognition of the need for change
Evaluation and follow-up
Diagnosis of relevant variables
Planning for implementation of the change
Selection of appropriate change technique
Actual implementationA Comprehensive Approach to Change
Reasons for Resistance to Change
Barney, Jay B. and Ricky W. Griffin, The Management of Organizations. Copyright © 1992 by Houghton Mifflin Company. Used with permissions.
Resistance to Change
Uncertainty about the extent and effects of change.
Threats to self-interests, power, and influence.
Different perceptions of change effects and outcomes.
Feelings of loss in disrupted social networks, power, security, and familiarity with existing procedures.
Overcoming Resistance to Change in Organizations
Barney, Jay B. and Ricky W. Griffin, The Management of Organizations. Copyright © 1992 by Houghton Mifflin Company. Used with permissions.
Overcoming Resistance to Change Encourage active participation in the
change process. Provide education and
communication about the change process.
Facilitate the change process by making only necessary changes, announcing changes in advance, and allowing time to adapt to change.
Overcoming Resistance to Change Force-field analysis, in which the
forces for and against the change are delineated and the forces against the change are minimized, can be used to reduce resistance to change.
Overcoming Resistance to Change
Force-Field Analysis for Plant Closing at General Motors
Outmoded production facilities
Excess capacity
Need to cut costs
Reasons for Closing
Possible future needs
Concern about worker welfare
Resistance from unions
Plant
closing
Reasons Against Closing
Figure 7.2
Certification Study Group
Logical Thinking Patters
Characteristics of Inductive Reasoning Unlike deductive reasoning, Inductive
reasoning is not designed to produce mathematical certainty. Induction occurs when we gather bits of specific information together and use our own knowledge and experience in order to make an observation about what must be true. Inductive reasoning does not use syllogisms, but series of observations, in order to reach a conclusion.
Characteristics of Inductive Reasoning Consider the following chains of
observations: Observation: John came to class late
this morning.
Observation: John’s hair was uncombed.
Prior experience: John is very fussy about his hair.
Conclusion: John overslept
Characteristics of Deductive Reasoning A deductive argument offers two or
more assertions that lead automatically to a conclusion. Though they are not always phrased in syllogistic form, deductive arguments can usually be phrased as "syllogisms," or as brief, mathematical statements in which the premises lead inexorably to the conclusion. The following is an example of a sound deductive sullogism.
Characteristics of Deductive Reasoning
Premise: All dogs have four legs.
Premise: Rover is a dog, Conclusion: Rover has four legs.
Characteristics of Deductive Reasoning As long as the first two sentences in this
argument are true, there can be no doubt that the final statement is correct--it is a matter of mathematical certainty. Deductive arguments are not spoken of as "true" or "false," but as "sound" or "unsound." A sound argument is one in which the premises guarantee the conclusions, and an unsound argument is one in which the premises do not guarantee the conclusions. A deduction can be completely true, yet unsound. It can also be sound, yet demonstrably untrue.
Certification Study Group
Organizational Planning
Plans
By Level Strategic Tactical Operational
StrategicStrategic
TacticalTactical
OperationalOperational
ManagerOperations
V ice PresidentOperations
D irectorAdvertising
V ice PresidentMarketing
ManagerAccounting
V ice PresidentFinance
President and CEO
Planning by Organizational Level
Time Frames for Planning The Time Dimension of Planning
is based on the principle of commitment. Planning must provide sufficient time to fulfill the managerial commitments involved.
Long-range Plans Intermediate Plans Short-range Plans
The Nature of Strategic Management Strategy
A comprehensive plan for accomplishing an organization’s goals.
Strategic Management A way of approaching business
opportunities and challenges A comprehensive and ongoing
management process aimed at formulating and implementing effective strategies.
The Components of Strategy
Distinctive Competence Something an organization does exceptionally
well. Resource Deployment
How an organization will distribute its resources across the areas in which it competes.
Scope Specifies the range of markets in which an
organization will compete.
Types of Strategic Alternatives
Business-level Strategy How the organization conducts
business in a particular industry. Corporate-level Strategy
The set of strategic alternatives that an organization chooses from as it manages its operations simultaneously across several industries and several markets.
Types of Strategic Alternatives
Strategy Formulation The set of processes involved in creating or
determining the organization’s strategies; it focuses on the content of strategies.
Strategy Implementation The methods by which strategies are
operationalized or executed within the organization; it focuses on the processes through which strategies are achieved.
Formulation and Implementation Across Strategic Alternatives
Corporate Strategy Corporate Strategy FormulationFormulationDecisions about which Decisions about which markets to compete inmarkets to compete in
Business Strategy Business Strategy FormulationFormulationDecisions about how to Decisions about how to compete in each marketcompete in each market
Functional Strategy Functional Strategy FormulationFormulationDecisions about how to Decisions about how to address each function address each function within the organizationwithin the organization
ImplementationImplementationCarrying out the functional-Carrying out the functional-level strategies chosenlevel strategies chosenfor each business functionfor each business function
ImplementationImplementationCarrying out the business-Carrying out the business-level strategies chosen for level strategies chosen for each businesseach business
ImplementationImplementationCompeting in the markets Competing in the markets via existing operations, via existing operations, mergers, acquisitions, new mergers, acquisitions, new ventures, divestituresventures, divestitures
SWOT Analysis
Strengths Weaknesses Opportunities Threats
MissionAn organization’s fundamental purpose
Best Strategies
SWOT AnalysisTo formulate strategies that support the mission
Those that support the mission and• exploit opportunities and strengths• neutralize threats• avoid (or correct) weaknesses
Internal AnalysisStrengths(distinctivecompetencies)
Weaknesses Threats
External AnalysisOpportunities
Using SWOT Analysis to Formulate Strategy
Evaluating Organizational Strengths Organizational strengths Distinctive competencies Sustained competitive advantage
Evaluating Organizational Weaknesses Organizational weaknesses Competitive disadvantage
Using SWOT Analysis to Formulate Strategy
Evaluating an Organization’s Opportunities and Threats Organizational opportunities
are areas in the organization’s environment that may generate
high performance.Organizational threats are areas in the organizations environment that make it difficult for the organization to achieve high performance
Using a SWOT Analysis to Formulate Strategy … An Example
OpportunitiesOpportunitiesHigh growth in market High growth in market for low-cost lodgingfor low-cost lodging
StrengthsStrengthsSolid hotel businessSolid hotel businessSolid food servicesSolid food services
WeaknessesWeaknessesPoor performance in Poor performance in cruise ship, travel cruise ship, travel agency, and theme agency, and theme parksparksWeak cash positionWeak cash position
ThreatsThreatsLow growth in the Low growth in the market for high-market for high-cost lodgingcost lodging
EnvironmentalEnvironmental AnalysisAnalysis
OrganizationalOrganizational AnalysisAnalysis
Porter’s Generic Strategies Differentiation strategy Overall cost leadership strategy Focus strategy
Porter’s Generic Strategies … Examples Differentiation
Nordstrom’s Overall Cost Leadership
Wal-Mart Focus
Gucci
Strategies Based on Product Life Cycle The Product Life Cycle
Introduction
Time
Stages
Growth Maturity Decline
High
Low
Sal
es V
olum
e
Figure 3.3
Strategies Based on the Product Life Cycle Product life cycle: a model that
portrays how sales volume for products changes over the life of products. Introduction Stage Growth Stage Mature Stage Decline Stage
Formulating Corporate – Level Strategies – Base Concepts
Each business or set of businesses within such a firm is frequently referred to as a strategic business unit, or SBU.
Diversification The number of businesses an
organization is engaged in The extent to which these businesses
are related to one another
Formulating Corporate – Level Strategies
Single Product Strategy No diversification involved Organization sells one
product/service in a single market
Formulating Corporate – Level Strategies
Related Diversification A strategy in which an organization
operates in several different businesses, industries, or markets that are somehow linked.
Related Diversification Bases of relatedness — bases include
common technology, common distribution networks, common marketing skills, common brand names and reputation, and common customers.
Basis of Relatedness Examples
Similar technology Phillips, Boeing, Westinghouse, Compaq
Common distribution and marketing skills RJR Nabisco, Phillip Morris, Procter & Gamble
Common name brand and reputation Disney, Universal
Common customers Merck, IBM, AMF-Head
Related Diversification Advantages of Related
Diversification Reduces organization’s dependence
on any one of its business activities and thus reduces economic risk.
Reduces overhead costs associated with managing any one business through economies of scale and economies of scope.
Related Diversification Advantages of Related
Diversification Allows an organization to exploit its
strengths and capabilities in more than one business.
Synergy exists among a set of businesses when the businesses’ value together is greater than their economic value separately.
Formulating Strategy -Unrelated Diversification
Unrelated Diversification When an organization operates several
businesses that are not associated Advantages
Stable performance over time Resource allocation spread over more
than one industry Reduced business cycle risk
Formulating Strategy Unrelated Diversification
Disadvantages Strategy does not usually lead to high
performance due to the complexity of managing a diversity of businesses
Firms with unrelated strategies fail to exploit important synergies, thus are at a competitive disadvantage to firms with related diversification strategies
Most organizations have now abandoned this strategy
Managing Diversification Major Tools for Managing Diversification
Portfolio management techniques Methods that diversified organizations use to
make decisions about what businesses to engage in and how to manage these multiple businesses to maximize corporate performance.
Two important portfolio management techniques
The BCG Matrix The GE Business Screen
BCG Matrix Provides a framework for evaluating
the relative performance of businesses in which a diversified organization operates.
Uses two factors to evaluate a firm’s set of businesses: market growth rate and market share.
The matrix classifies the types of businesses that a diversified firm can engage in.
BCG Matrix It helps managers to develop a better
understanding of how different strategic business units contribute to the overall organization.
By assessing each SBU on the basis of its market growth rate and relative market share, managers can make decisions about whether to commit further financial resources to the SBU or to sell or liquidate it.
SBU stands for …………………………….
The BCG Matrix
Relative market share
Cash cows Dogs
High
Low
High Low
Questionmarks
Stars
Mar
ket
gro
wth
rat
e
Source: Perspectives, No. 66, “The Product Portfolio,” Adapted by permission from The Boston Consulting Group, Inc., 1970.
BCG Matrix Dogs are businesses that have a very small
share of a market that is not expected to grow.
Cash cows are businesses that have a large share of a market that is not expected to grow substantially.
Question marks are businesses that have only a small share of a quickly growing market.
Stars are businesses that have the largest share of a rapidly growing market.
GE Business Screen A method of evaluating businesses
along two dimensions: (1) industry attractiveness and (2) competitive position
The GE Business Screen is a more sophisticated approach to portfolio management than the BCG Matrix
GE Business Screen A method of evaluating business in a
diversified portfolio along two dimensions, each of which contains multiple factors:
Industry attractiveness. Competitive position (strength) of each firm in the
portfolio.
In general, the more attractive the industry and the more competitive a business is, the more resources an organization should invest in that business.
The GE Business Screen
Competitive position
Low
Winner
Medium
High
Good
Competitive position1. Market share2. Technological know-how3. Product quality4. Service network5. Price competitiveness6. Operating costs
Industry attractiveness1. Market growth2. Market size3. Capital requirements4. Competitive intensity
PoorMedium
Winner
Profitproducer
Winner
Averagebusiness
Loser
Questionmark
Loser
LoserInd
us
try
gro
wth
ra
te
In general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business.
Tactical Planning
An organized sequence of steps designed to execute strategic plans
Tactical plans are to battles what strategy is to a war
Strategy focuses on resources, environment, and mission, whereas tactics focus primarily on people and action
Tactical Planning Developing and Executing Tactical Plans
Developing tactical plans
• Recognize and understand
overarching strategic plans
and tactical goals
• Specify relevant resource and
time issues
• Recognize and identify human
resource commitments
Executing tactical plans
• Evaluate each course of action
in light of its goal
• Obtain and distribute
information and resources
• Monitor horizontal and vertical
communication and integration
of activities
• Monitor ongoing activities for
goal achievement
Operational Planning
Single Use Plans – A plan that is not likely to be used again in the near future. Program plan Project plan
Standing Plans - a plan for activities that recur regularly over a period of time Policy Standard Operating Procedure Rules and Regulations
Contingency Planning
The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate.
Action Point 1:Action Point 1:
Action Point 2:Action Point 2:
Action Point 3:Action Point 3:
Action Point 4:Action Point 4:
Develop plans, considering Develop plans, considering contingency eventscontingency events
Implement plans and formally Implement plans and formally identify contingency eventsidentify contingency events
Specify contingency event Specify contingency event indicators and develop plans for indicators and develop plans for each eventeach event
Successfully complete each plan or Successfully complete each plan or contingency plancontingency plan
The Contingency Planning Process - An Ongoing Process
Recommended