Deck 11: Endocrine Disorders and Testing

Question 1

Compare and contrast action planning with management by objectives.

Answer 1

An action plan states what actions are going to be taken, by whom, during what time frame, and with what expected results. Action plans are the primary means by which programs are developed for the implementation of strategy. Management by objectives (MBO) is also a technique useful for the development of programs. Like action planning, MBO pinpoints individual responsibilities for each unit objective and specifies a time frame when that objective is to be achieved. Unlike action planning, however, MBO takes a more organization-wide approach to planning implementation programs and budgets. For MBO to work, it should be a complete system. Action planning can be done, in contrast, at the individual level only. The key difference is that MBO is a system of hierarchical objectives beginning at the top of the corporation and cascading down through the divisions and work units. MBO also encourages the superior to negotiate the subordinate's objectives with the subordinate's input. MBO includes action planning as part of the discussions between a manager and his/her subordinate. Action planning alone, however, can be done strictly on a top-down basis with little to no input from the subordinate.

Question 2

What value does a total quality management program have in implementing strategy?

Answer 2

Total quality management (TQM) is an operational philosophy that stresses commitment to customer satisfaction and continuous improvement. It aims at improving quality, increasing flexibility, and reducing costs in order to better satisfy the customer. Because TQM aims to reduce costs as well as improve quality, it can be used as a program to implement either an overall low cost or a differentiation business strategy. Like MBO, TQM helps keep employees' minds on a crucial objective of strategic management: increasing sales and profits by pleasing the customer. Because the mission of most business firms is customer driven, TQM helps to clarify and fine-tune the company's mission statement. TQM makes the key point that because competitive advantage is usually only temporary, the organization must emphasize continuous improvement to improve product quality and reduce costs. According to TQM, customers can be internal as well as external to the organization. To the extent that a company is able to continually improve its service to its internal customers, it is more likely to keep internal transaction costs low and thus be in a better position to reap the benefits and avoid the disadvantages of vertical integration.

Question 3

How can MBO help improve the implementation of strategy?

Answer 3

MBO is a powerful implementation technique because it is a system that links plans with performance. It forces managers to communicate the objectives of the overall business unit to their subordinates so they are better able to see how they fit into the company's goal accomplishment. MBO, therefore, acts to tie together corporate, business, and functional objectives, as well as the strategies developed to achieve them. This forms a hierarchy of objectives similar to the hierarchy of strategy mentioned in Chapter 1. The mutual give and take, together with the sense of personal responsibility exemplifying a successful MBO program, serves to motivate employees to help implementation activities succeed.

Question 4

What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one is available internally and the company has a policy of promotion from within?

Question 5

How can corporate culture be changed?

Question 6

When should someone from outside a company be hired to manage the company or one of its business units?

Question 7

How might manager-strategy fit be accomplished short of firing current managers?

Question 8

What are some ways to implement a retrenchment strategy without creating a lot of resentment and conflict with labor unions?

Question 9

Why is an understanding of national cultures important in strategic management?

Question 10

What are the unique impacts on a company that must staff in international settings?

Question 11

What are the critical issues that a company must consider when trying to match its staffing to its strategy?

Question 12

Does culture follow strategy or does strategy follow culture? Why?