Upload
aditi-chandra
View
217
Download
0
Embed Size (px)
Citation preview
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 1/23
Plans and Policies
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 2/23
Functional Strategies-Meaning
• Relatively restricted plan designed to achieve
the following:-
– Objectives in a specific functional area,
– Allocation of resources among different
operations within that functional area and
–Coordination among different functional areas
For achievement of the business and corporate level
objectives.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 3/23
Functional Strategies-Fit
Vertical Fit Horizontal Fit
•Congruence and coordination
among strategies at different
level.
•Lower Level Functional
Strategy aligned with Higher
Level Business Strategy.
•Leads to Functional Strategies
& their implementation.
•Congruence and coordination
among different strategies at
same level.
•Alignment among the various
activities performed in
different functional areas.
•Horizontal Fit leads to
Operational Implementation.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 4/23
Corporate Level strategies
Business Level Strategies
Functional-Level Strategies
Marketing
Plan &
Policies
Financial
Plan &
PoliciesOperational
Plan &
PoliciesHRM
Plan &
PoliciesInformation
Management
Plan &
Policies
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 5/23
Functional Plans and Policies
Functional strategies defined in terms of
functional plans and policies-plans or tactics
to implement business strategies- are made
within the guidelines set at the higher levels.
PLANS are made to select a course of action
while POLICIES are required to act as
guidelines to action.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 6/23
NEED
• Implement strategic decisions by all
parts of an organization;
• Control activities in different
functional areas of business;
• Reduce time spent by functional
managers in decision making
• Handle similar situations occurring
in different functional areas in a
consistent manner;
• Coordination across the different
functions takes place where
necessary.
OBJECTIVE
• PROFITABILITY
• MARKET SHARE
• HUMAN TALENT
• FINANCIAL HEALTH
• COST EFFICIENCY
• PRODUCT QUALITY
• INNOVATION
• SOCIAL RESPONSIBILITY
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 7/23
Financial Plans and PoliciesRelated to availability, usage & management of funds.
1. Sources of Funds:
1. Capital Mix Decisions: Capital structure, procurement of capital
and working capital borrowings, reserves and surplus,
relationship with lenders, banks and financial institutions.
2. Important since they determine how financial resources will be
made available for the implementation of strategies.
2. Usage of Funds:
1. Investment or asset-mix decisions: Capital investment, fixed
asset acquisition, current assets, loan and advances , dividend
decisions etc.
2. Important since it relates to efficiency & effectiveness of
resource utilization.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 8/23
Financial Plans and Policies
3. Management of Funds:
1. The system of finance, accounting and budgeting, cash,
credit and risk management, cost control and reduction
etc.
2. Important as it aims at the conservation & optimum
utilisation of funds.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 9/23
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 10/23
Marketing Plans and Policies
These have to be formulated and implemented on the
basis of 4 Ps of Marketing Mix.
1. Product: Characteristics like quality, features, choice of
models , brand names, packaging etc.2. Pricing: Discount, mode of payment, allowances, payment
period, credit terms etc.
3. Place: Channels to be used, transportation, logistics and
inventory storage management and coverage of markets etc.4. Promotion: Advertising, personal selling, sales promotion
and publicity.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 11/23
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 12/23
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 13/23
Operations Plans and Policies
Related to the production system, operational planning& control and R&D.
Production system - capacity, location, layout,product or service design, work systems, degree of
automation, extent of vertical integration. Operations Planning and control – aggregate
production planning; materials supply; inventory,cost and quality management; and maintenance of plant and equipment.
Research and development- product development,personnel and facilities, level of technology used,technology transfer and absorption, technologicalcollaboration and support.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 14/23
Personnel Plans and Policies
Personnel System - manpower planning, selection,
development, compensation, communication andappraisal.
Organizational and employee characteristics –
corporate image, quality of managers, staff andworkers, perception about and image of theorganization as an employer, availability of development opportunities for employees, working
conditions.
Industrial Relations – union-managementrelationship, collective bargaining, safety, welfare
and security, employee satisfaction and morale.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 15/23
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 16/23
Personnel Plans and Policies
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 17/23
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 18/23
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 19/23
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 20/23
Information Management Plans and
Policies
Acquisition and retention of information- sources, quantity,quality and timeliness of information, retention capacity and
security of information.For eg. CRM & SCM.
Processing and synthesis of information – database
management, computer systems, software capability and theability to synthesize information. For eg. RLI capital
investment on IT.
Retrieval & Usage of Information – Availability &
Appropriateness of Information formats & capacity to
assimilate & use information. For eg Reduction in paper work
by banks & other financial institutions.
Transmission & Dissemination of Information – Speed,
Scope, Width & Depth of coverage of Information &
willingness to accept information.For eg Work from home
INTEGRATION OF FUNCTIONAL PLANS
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 21/23
INTEGRATION OF FUNCTIONAL PLANS
& POLICIES- 5 Considerations – Need for Internal Consistency
• Ensures different functional areas operating in consonance.
– Relevance to development of organizational capability
• OC in terms of strategic or competitive advantage.
– Making trade off decisions• Integration ensures minimum aberration due to trade-off
decisions.
– Determination of Intensity of linkages
• Important to determine the level of coordination that should
exist between various functional areas.
– Timing of Implementation of plans & policies
•Implemented at appropriate time.
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 22/23
Example-Plans and Policies of Public Sector
banks
The public sector banks (the State Bank group and thenationalized banks) had to face a tough challenge whenthe new private sector banks made their entry in earlynineties.
The new banks had the benefit of starting on a cleanslate and had started with state-of-the-art technologywhich in turn helped them save on man power costsand provide better services.
The older banks had not kept up-to-date withtechnology and were facing competition of this kind forthe first time.
M k ti St t I t d ti f d t d
7/28/2019 Plans and Policies
http://slidepdf.com/reader/full/plans-and-policies 23/23
• Marketing Strategy--Introduction of new products and
services: new products include debit cards, credit cards,
international cards, special deposits, demat accounts and any-
where-banking. Some of the new services include round-the-
clock phone-banking, Automated Teller Machines (ATMs), inter-
city, inter-branch banking, net-banking and bill payment
services.
•
Information Technology Strategy--Computerisation andnetworking of branches: Many of these branches were also
networked so that their customers could be offered ‘any-time,
any-where’ banking services.
•
Financial Strategy--Risk Management and Capital Adequacy:Many public sector banks were saddled with large non-
performing assets (NPAs) and suffered from low capital
adequacy. Banks have since put in place stringent Risk
Management Systems to address not only credit risk, but alsok t i k d th ti l i k