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QUESTION: 1. While managing workforce, “Participation is an excellent method for identifying
differences and resolving conflicts.” Do you agree or disagree? Illustrate with
real life examples.
2. Many organizations begun to supplement their traditional pay systems with
“Pay – for – Performance”. Of these plans, discuss the role of individual vs.
group incentives.

2. Many organizations begun to supplement their traditional pay systems with
“Pay – for – Performance”. Of these plans, discuss the role of individual vs.
group incentives
The  current  trend  is  one  of  integrated  reward   approach.
Reward system usually mean the financial reward on organization gives its employees in return for their labour. While the term reward system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee.
The  integrated reward  system  includes:
Job evaluation and profiling
•   Defining key performance indicators
•   Analysis and modification of pay levels and structures to reflect both internal and market relativities
•   Designing of performance evaluation processes
•   Structuring of individual, team and corporate performance bonuses
Social climate surveys with focus on remuneration
•   Designing flexible benefits plans
•   Implementation of new reward components in compensation package
•   Implementation and assistance in change communications
•   Training for internal specialists in reward structure planning and maintenance

Performance Based Reward is based on the definition of key performance indicators identified as part of job evaluation, and linking these indicators with reward components. A combination of performance measuring system and additional motivational components delivers an integrated performance-based reward system.
Flexible Benefit Schemes are a modern approach to the management of budgets for staff remuneration. Employee benefits constitute a considerable portion of staff costs, but they are often expended without the desired effect since employees do not perceive the full value of benefits. This system   increases  the   effectiveness and enable better control.
Why reward system is required?
These components will be designed, developed and maintained on the basis of reward strategies and policies which will be created within the context of the organizations between strategies, culture and environment: they will be expected to fulfill the following broad aims;

1. Improve Organizational Effectiveness: Support the attainment of the organization's mission, strategies, and help to achieve sustainable, competitive advantage.

2. Support and change culture: Under pin and as necessary help to change the 'organizational culture' as expressed through its values for performance innovation, risks taking, quality, flexibility and team working.

3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process.

4. Supportive Managers: Support individual managers in the achievement of their goals.

5. Motivate Employees : Motivate employees to achieve high levels of quality performance.

6. Compete in the Labour Market: Attract and retain high quality people.

7. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf.

8. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization.

9. Improved Skills : Upgrade competence and encourage personal development.

10. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service.

11. Develop team working : Improve co-operation and effective team working at all level.

12. Value for money: Pride value for the money for the organization.

13. Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department.

14. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.
Describe the organisation you are referring to

The  organization, I am  familiar  with  is  a
-a  large  manufacturer/ marketer of  safety products
-the products  are  used  as  [personal  protection safety] [ industrial  safety]
-the products  are  distributed through  the distributors as well as  sold directly
-the  products  are  sold  to various  industries like  mining/fireservices/defence/
as  well  as  to  various  manufacturing  companies.
-the  company employs  about  235  people.
-the  company  has  the following  functional   departments
*finance/ administration
*human resource
*customer  service
*warehousing/  transportation

The  Reward systems focus on positive reinforcement. Positive reinforcement is the most effective tool for encouraging desired behavior because it stimulates people to take actions because they want to because they get something of value (internally or externally) for doing it. An effectively designed and managed reward program can drive an organization's change process by positively reinforcing desired behaviors.
The SMART criteria.
These criteria  used when designing and evaluating programs. Programs should be:
•   Specific. A line of sight should be maintained between rewards and actions.
•   Meaningful. The achievements rewarded should provide an important return on investment to both the performer and the organization.
•   Achievable. The employee's or group's goals should be within the reach of the performers.
•   Reliable. The program should operate according to its principles and purpose.
   *Timely. The recognition/rewards should be provided frequently enough to make performers feel valued for their efforts
Performance Management.  
The process of performance management reflects how the work gets done and creates the environment in which people feel valued for their achievements. The performance management process includes four critical components:
•   Focus on what is important to change or be improved.
•   Measures to determine whether and how much progress is being achieved.
•   Feedback so that performers will know whether and how much progress is being achieved.
•   Reinforcement so that everyone celebrates achievements as they are unfolding.
Indicators of successful performance management include the following:
•   All measures are understood by the employees, who can describe the importance of their activities to the agency. Measures address results and behaviors/processes.
•   A tracking system is used to monitor performance in the areas identified.
•   The performance measures and progress are displayed in a public area.
•   Data on the performance charts is current.
•   The team leaders/managers are actively engaged in coaching staff members and providing assistance to improve performance.
•   Periodic celebrations mark achievements as they are realized. These celebrations are regarded positively by employees.
•   Data indicate performance is improving.

Recommend that organizations:
•   focus on variables critical to success;
•   create timely, chart-oriented feedback;
•   create celebrations that mean something to the performers;
•   use performance reviews as an opportunity to reflect "how we won" and "how we lost" make them as often as necessary to cement the learning;
•   anchor the memory of achievements achievement-oriented firms measure a lot, accomplish milestones frequently, and do much celebrating;
•   don't rely on annual performance appraisals as the sole source of feedback;
•   when designing programs, avoid copying programs used by other organizations; and
•   don't make the design process into the "let's make a form" game.

Approaches of compensation management
There are 3P approach of developing a compensation policy centered on the fundamentals of paying for Position, Person and Performance. Drawing from external market information and internal policies, this program helps establish guidelines for an equitable grading structure, determine capability requirements and creation of short and long-term incentive plans.
The 3P approach to compensation management supports a company’s strategy, mission and objectives. It is highly proactive and fully integrated into a company’s management practices and business strategy. The 3P system ensures that human resources management plays a central role in management decision making and the achievement of business goals.
•   Paying for position
•   Paying for person
•   Paying for performance
Because it is so important to employees, the issue of pay deserves to be clearly addressed. In spite of their hesitance, managers are capable of dealing with this sometimes difficult issue in a professional and effective manner. By keeping the following basic points about pay in mind, they can address virtually any pay-related topic with their employees in a professional and productive manner.
Specificity is Key
Pay is a topic with many different shades and a variety of implications. Whenever approaching the subject, it is important to work out the details beforehand so that specifics can be clearly communicated. For the manager, this means that the increase amount is nailed down before discussing a promotion with an employee. No chance of misunderstanding or false expectations can be permitted. Far too often, managers are apt to discuss generalities. “It will mean a good increase.” What exactly does that mean in terms of the employee’s monthly budget? If care is not taken here, good news can become the source of conflict and resentment.
By the same token, if asked for a raise, the manager should request that the employee suggest a specific number that he believes reflects his value. Once the employee provides that number, the manager can do his homework and decide what, if anything can be done. The employee can then be given a definitive response.
Pay is Relative
What one employee considers a fantastic increase maybe an insult to another? Each individual has a unique set of creativity and competencies. Pay should be based on the performance, position and the competencies/skills the person is having.
Pay is Not Created Equal
Various forms of pay have different purposes. The two most common forms of direct cash compensation in most companies are base pay and bonus. Base pay is the annual salary or hourly wage paid to an employee given the job he holds, While bonus is typically (or at least should be) rewarded based on the achievement of a goal of the organization. Discussions about bonus payments should be as specific as possible. This is the opportunity to point out particular accomplishments that contributed to overall team or company success. Even if the bonus is paid to all employees based on a simple overall company profit target, the manager should use the opportunity to point out specifically how individual employees helped achieve that target.
Distributing bonus checks presents a unique motivational opportunity for a manager. Handing money to an employee while discussing actions and behaviors he would like to see repeated, creates a powerful link between performance and reward. Discussions about base pay increases can be a bit different. Most companies claim to link their annual base pay increases to performance. In reality, however, base pay decisions take into account a variety of factors, including the relative pay of others in the same job, the company’s increase budget, market practices and where the individual falls within his pay range.
Even when performance is a factor, the manager is faced with the difficult task of evaluating an entire year’s worth of activity and then categorizing it according to the percentage increase options allowed by the budget. It becomes very difficult to pinpoint specific employee actions or accomplishments as the reason for the increase.
For these reasons, it’s appropriate for the discussion about base pay increases to be more general and balanced. Both strengths and weaknesses of the employee should be addressed. The actual increase is then based on an overall assessment, as opposed to a link with one or two specific outcomes. Any other factors that impact the increase percent, such as budget or pay range should be openly discussed as well.


-base pay
-cost  of  living  rise
-merit INCREASE , which  is based  on
*performance  against  the KEY  PERFORMANCE  INDICATORS.
*bonus  for  exceptional  performance  with  the  scope of the  job  position


The following tentative guidelines are suggested:

1. A performance pay system should be designed to promote the kind of performance an organization needs. In order to do so
o an analysis should first be made of the objectives and results sought
o the principles/policies and practices needed to obtain the results (e.g. team work) should be established
o these policies and practices should form part of an overall human resource management strategy.
2. Employees should be consulted in the formulation of the plan (to ascertain the type of rewards most likely to have motivational effect), in regard to its operation and distribution of
rewards, and in monitoring the scheme.
3. The criteria for the determination of performance pay should be
o objective
o measurable and measure only what is important
o that it is operated along with an appraisal system which measures performance appropriately
o designed to feed back information to employees, and not only to management
o easily understood
o related to what is controllable, so as to exclude what is beyond the control of employees.

4. The intrinsic reward system should be strengthened if need be, e.g. through
o consultation, communication, participatory systems
o training
o job satisfaction and responsibility
o reorganization of work processes

5. How the performance pay is shared is as important as the quantum, because the manner of sharing affects employees' perceptions as to whether the scheme is equitable.

6. The impact of the scheme also depends on the frequency of the payment. Therefore the reward should follow the performance as soon as possible.

7. The scheme should be given wide publicity within the enterprise.

8. The performance level should be achievable or else the scheme will have no motivational impact.
9. The quantum of pay on account of performance which is placed at risk (i.e. the amount that can be lost due to poor performance) should be carefully determined. At the same time the scheme should be sufficiently flexible to absorb downturns and adequately reward when performance is good


1. Single Mindedness – “you get what you pay for” – no more, no less. The activities that are rewarded get done, to the exclusion of other activities that are not rewarded. Example: The dysfunctional behaviors that are observed when a sales representative is put on straight commission.
2.  Control – externalities can control the outcomes, positive or negative. There can be windfall affects (the bull market improving the stock value of all stock options) or negative externalities (a bear market or recession that lowers the value of all stocks). Employee performance results may be magnified or diluted by these effects.
3.  Measurement error – some measures can be “gamed” or manipulated and may not reflect “true” performance. Sales reps can withhold sales and report it in a different period so they are not penalized by a cap on sales commissions. Managers can use “creative accounting” measures to report greater profits than were actually experienced by the firm.

4. Inflexibility – managers or employees may resist change of the basis of compensation because they are comfortable with current basis for pay and want to avoid risk of taking reduction in earnings in new system.
5. Misalignment of incentives – if pay emphasis is on a goal that is no longer relevant, that goal will continue to be emphasized until the pay system places emphasis on a different objective.
For example,  managers may emphasize short-term goals, even  if long-term goals are more relevant,  until the pay system recognizes long-term  goals to a greater extent than short-term  goals.  The reward mix for complex  jobs with several goals must reflect the  relative value of attaining the mix of  goals.
6. Line of Sight problem - division performance and corporate performance should be reflected in the pay system. If division performance and corporate performance are closely linked than both division and corporate performance should contribute incentives to the managers’ pay for performance plan. If division  performance is independent of corporate performance, then the emphasis should be on rewards for meeting division goals.

1. While managing workforce, “Participation is an excellent method for identifying
differences and resolving conflicts.” Do you agree or disagree? Illustrate with
real life examples.

Employee involvement and  participation  is worldwide applicable technique. There is no single option for employee involvement. It includes suggestion systems, teams, focus
groups, surveys, self-directed work groups, incentive programs and more. The goal is to
determine the most effective employee involvement options that will be linked to specific organizational goals. In order to implement employee involvement and empowerment to
an enterprise the following key actions need to take place:
Giving employee the responsibility
Training employee to accept responsibility
Communicating and giving feedback
Giving rewards and recognition
Workers today are more and more being asked by management to join employee involvement programs in order to improve the quality of their work lives. Management
usually makes the case that the days of destructive adversarial labor management relations are over and that a ruthless competitive economic world requires that workers
and management cooperate so that both survive. It is in the best interest of both workers
and supervisors to increase happiness and satisfaction on the job, because happy and
satisfied employees are productive employees who insure the employer’s profit and
continued existence of the company and the worker’s jobs. In such programs management
usually wants:
1. Access to the workers' knowledge of the job.
2. Cooperation In the introduction of new technology without protest.
3. Flexibility regarding job classifications, work rules, job assignments, the contract for
the purpose of greater efficiencies.
4. Contract changes and sometimes contract concessions.
If the offer of employee involvement is sincere and valid, it should meet the following six
1. Management involves the union at the highest levels as an equal partner from
planning, through implementation, and evaluation of employee Involvement. The
union equally selects with management any consultants who are hired to set up and
coordinate employee involvement committee.
2. It is a voluntary process for both union and company. The union selects, elects, or
appoints its representatives on the committees that deal with employee involvement.
3. Collective bargaining and grievance matters are not a part of the program. These
subjects remain outside of employee Involvement.
4. Management agrees to the proposition in writing that no workers can be laid off or
downgraded as a result of ideas generated by the workers in employee involvement
5. Money savings of employee involvement are shared with workers through items
such as more money in the paycheck, free training, upgrading, a shorter workweek,
etc. The union and management jointly determine this.
6. Management actions on cooperation should be the same as management words.
Management encourages a good relationship in It's labor relations with the union as
it simultaneously seeks to settle grievances at the lower levels, does not force the
union to take tons of cases to arbitration so as to bankrupt the union treasury, treats
the officers and stewards of the union with equal respect, assures the right of
stewards to be present at disciplinary interviews, and does not suddenly harass,
pressure, or fire union representatives The right hand of management employee
involvement cooperation should not be chopped off by the left hand of management
hostility and confrontation with the union. Words and actions must be consistent.
If the above terms are not followed by management, the workers and union can quite
rightly suspect that employee involvement is a fraud designed to weaken if not bust the
union. If the union believes that employee involvement is not legitimate, it should
demand that management accept the six conditions of Employee Involvement outlined
above, or expose this program as phony and urge workers not to participate The union
should educate its people, in the words of one national union, that illegitimate employee
involvement is "an attempt to create a shop floor structure controlled by management, and
pushing management’s point of view, aimed at undermining the union steward system
and bypassing the union. The ultimate goal is to get rid of the union altogether, or
transform it into a totally company union."
Employee Involvement

•Processes or programs designed to fully integrate employees into our organization in a positive way so they feel part of the team.
•We want to tap our most important resource –each person in our organization and that requires full leadership commitment to make it work.
•This can be via sharing ideas/suggestions, recognizing people’s contributions, and in the long run creating a culture where everyone feels they have something to contribute (and that they will be heard).
•This requires clear communication of organization goals/needs, fairness, being open to change and listening fully to everyone’s inputs.
•Results improve all aspects of the organization and is a rewarding experience for participants.
Suggestion System

•An employee (associate) idea process openly invites ideas from individuals or groups in an organization.
•Each idea is treated with respect, fairly evaluated and every effort is made to work toward its timely closure, striving to implement every idea possible.
•Feedback and mentoring is invested with the participants so they can clearly define their ideas and the future ideas they develop.
•All people involved in the process are appropriately recognized and acknowledged for their efforts.
•Results of the process improve all aspects of the organization and is a rewarding experience for participants.

Recognition Program

Recognition is something that is fairly given to people who achieve a clearly defined goal or perform an unusual act deserving merit. The form of recognition must be timely with sincere meaning to the recipient and be in direct line with management and organizational goals.






•Strategic goal
•Satisfy customers

•Our competitors are doing it
•We believe in our people
•It is the ‘right’thing to do


What is important  EMPLOYEE  INVOLVEMENT ?

•Results –Senior Mgt
•Results –Supervisors
•Results –Participants
•Appropriate recognition & awards
•Sharing information
•Adding value to the organization
•Collaborating & teamwork
•Everyone has a voice

What is Employee Participation?
Employee Participation : Covers communications, employee participation in management decisions, conflict and grievance resolution, etc

Information & consultation arrangements
Many  companies already have established employee forums that serve as a channel for a two-way exchange of views and ideas that benefit the business. There is no single model for doing this and they come under a variety of names including: employee forum, company council and joint consultative committee. They can be single-tier or multi-tier in structure; some national forums dovetail with local or European bodies. Different kinds of representative structures have evolved in unionised, non-unionised or part-unionised workplaces. In unionised companies, the information and consultation forum often coexists with a separate negotiating process.
Employers are increasingly aware that having a mechanism in place to facilitate two-way communication and consultation with employees can be a key contributor to business success by promoting employee engagement and commitment. Management may also find that an employee forum proves to be a useful quality control mechanism on their decision-making. To give the workforce an effective voice, the forums need to be inclusive in character and employees need to perceive that their views are being taken seriously and given the weight they deserve. As far as the process of consultation itself is concerned, one of the greatest challenges is for all those involved to understand what this entails and when it has run its course.

Internal communications
While technology has opened up new possibilities for communicating to staff, in practice the best results are often achieved through a mix of traditional and contemporary media. Moreover, if internal communications are to be fully effective, management has to have a genuine commitment to creating a dialogue with staff that involves as well as informs them.
Internal communications are defined as 'direct', two-way communications between employers and their staff. Therefore, communications involving union or employee representatives - important in the mix of communication and consultative processes at most organisations - are beyond its scope. The contribution that clear and effective channels of communication can make to an organisation is substantial, not least in enlisting employees' support for business objectives and motivating them to raise performance. Where appropriate mechanisms are in place, employees are also more likely to offer feedback and come forward with ideas.
CHANNEL  includes  newsletters, e-mail, business TV, videoconferencing, team briefings and roadshow events. It also highlights the role of communications in change management, showing how special communications exercises are undertaken to raise staff awareness, reinforce messages and provide opportunities for senior managers to listen and respond to employee feedback.


WHICH   include:
•   Builds effective and responsive interpersonal relationships. Reporting staff members, colleagues and executives respect his or her ability to demonstrate caring, collaboration, respect, trust and attentiveness.
•   Communicates effectively in person, print and email.
Listening and two-way feedback characterize his or her interaction with others. Builds the team and enables other staff to collaborate more effectively with each other. People feel they have become more - more effective, more creative, more productive - in the presence of a team builder. Understands the financial aspects of the business and sets goals and measures and documents staff progress and success. Knows how to create an environment in which people experience positive morale and recognition and employees are motivated to work hard for the success of the business. Leads by example and provides recognition when others do the same. Helps people grow and develop their skills and capabilities through education and on-the-job learning.

• Balancing Work and Personal Life
Everyone is busy today. Managing the responsibilities of work and your personal life is becoming more and more complex.
-helps  how to bring harmony into your life with practical methods of making appropriate decisions on the roles you play, prioritizing, time management and organization.
-helps  how to do things right and also do the right thing.
• Communicating with Your Staff
If managing means getting things done through other people, then communicating is the vehicle to reach that goal.
-helps  to gain understanding and practice communication skills critical to building trust, increasing productivity and teamwork. -helps with  the Understanding styles of communication, using questioning techniques and giving feedback
• Conflict Management
Conflict is unavoidable, but not all conflicts need to end in arguments. The problem isn’t the conflict itself, but the way it is managed.
- help you develop the skills to identify, analyze and manage conflict.
• Customer Service
Without customers, there is no business. Competition is tough today. Customers are more demanding than ever before. Daily interaction with customers means you always need to put your best foot forward while still taking care of yourself.
-helps to  learn and practice customer service behavior that results in retaining current customers and acquiring new ones, methods to manage a difficult customer, techniques to reduce stress and keep a winning attitude.
• Dealing with Difficult People
We all encounter difficult individuals on a daily basis. These are not necessarily bad people, but people whose behavior impacts on productivity, morale and communication. To maintain our own constructive behavior, we need to effectively manage difficult encounters at work and in our personal lives.
-helps to  learn and practice coping methods of communication with common types of difficult people, learn how to turn confrontation into constructive problem solving, and understand what really triggers difficult people to behave negatively.
• Delegation and Feedback
Delegation and feedback are hallmarks of good management.
-helps to  learn why delegation is critical to meeting your own goals, how to identify and overcome barriers to delegation, to whom and how to delegate tasks.
-helps to learn and practice giving effective and appropriate positive and negative feedback.
• Getting Organized at Work
If you find yourself constantly looking for things, unable to prioritize tasks, overwhelmed with too much paper and too little time.
-helps to  learn and practice practical and simple techniques to help you become more productive and confident.
-helps to  ''how to end paper build-up, arrange your workspace for optimum efficiency, and get rid of clutter.
-helps to learn to distinguish “must-do” tasks from “can-wait” tasks, avoid being “victimized” by your e-mail, and use your peak energy times to get more done in less time.
• Managing Change
The only constant today is change. We live in a rapidly changing environment. Whether you are a change agent or have to deal with compulsory changes, managing and coping with change is crucial to success.
-helps to  learn to identify resistance factors, create ways to overcome them, and strategies to implement changes with minimum disruption and maximum results.
• Meeting Management
Do you find that you are attending or leading unproductive meetings?
-helps  to  learn tools and tactics to make your meetings productive and engaging.
- helps you polish your skills of planning for and managing meetings as well as understanding your role as a participant.
-helps to  learn how to keep control throughout the meeting while creating a receptive, engaging, and energetic atmosphere.
• Performance Appraisals
Employees need feedback in order to know if their performance is acceptable or needs to improve or change. It is your responsibility as a manager to communicate with your employees in a way that allows them to contribute to the discussion, to recognize their contributions, identify their areas of strength, where they need to improve and set realistic goals.
-helps to develop   skills and tools to help you conduct a performance review that will increase employee motivation, learning, productivity and collaboration.
-helps with  practice giving feedback and conducting performance review discussions.
• Positive Communication
Good business depends on developing solid relationships. To build rapport, you must be sensitive to other people, present yourself in the least controversial way and in essence, be likeable.
-helps with the tools for becoming more likeable, help you understand the impact of the message you are sending through emails, voice mails, telephone and face-to-face interactions.
-helps to learn the importance of netiquette skills and social skills including making appropriate introductions, writing thank you notes, and presenting a professional image.
. Setting Goals
It has been proven that people who set goals for themselves are more successful.
-helps to  learn how to set realistic goals and make specific plans to meet them.
-helps  to practice making goals, creating intermittent targets with deadlines, setting up accountability methods and learning strategies to stay on course or adapt when necessary.
• Stress and Management
Everyone is stressed today. Some stress is good but too much of it can impact negatively on productivity, morale and health.
-helps  to  learn and practice exercises to reduce stress.
-helps to practice deep breathing techniques, psychological tactics to overcome negative self-talk and remain centered, and you will develop an action plan so that you can stay healthy, positive and balanced.
• Team Building
Today teamwork is crucial in an organization, yet it takes understanding to build a team.
-helps to  learn what makes effective teams, how to keep open lines of communication, create common ground, overcome barriers and build that team spirit that breathes life and creativity into a group.
-helps  to analyze your own team and work on problem-solving techniques to enhance your team’s effectiveness.
• Time Management
Everyone complains that there’s never enough time to get everything done. To become more effective and efficient at work, you’ll need to manage your time. Since there is only a limited amount of time, it’s important to know what to do and what not to do.
-helps to  learn and practice tips and techniques to understand how you use time, make choices and set priorities, plan and schedule to maximize the time you have and control time robbers.


---------- FOLLOW-UP ----------

QUESTION: 1. Strategy refers to the plans made and actions taken to enable an organization
fulfill its intended strategy. Discuss the various characteristics of strategic
decisions. Also, explain the various reasons, due to which the firms often fail to
develop sound strategic management perspective.

2. Politics is a key aspect of strategy implementation because it enables managers
to be proactive and to influence their environment rather than being
manipulated and dominated by external events. In this context, what does
Politics and Machiavellianism mean? Also explain the various political tactics
applied to obtain results.

FOLLOW-UP ----------

QUESTION: 1. Strategy refers to the plans made and actions taken to enable an organization
fulfill its intended strategy. Discuss the various characteristics of strategic
decisions. Also, explain the various reasons, due to which the firms often fail to
develop sound strategic management perspective.

2. Politics is a key aspect of strategy implementation because it enables managers
to be proactive and to influence their environment rather than being
manipulated and dominated by external events. In this context, what does
Politics and Machiavellianism mean? Also explain the various political tactics
applied to obtain results.

Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It is the process of specifying the organization's objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives. Strategic management, therefore, combines the activities of the various functional areas of a business to achieve organizational objectives. It is the highest level of managerial activity, usually formulated by the Board of Directors and performed by the organization's chief  executive  officer (CEO) and executive team. Strategic management provides overall direction`
to the enterprise.
“Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.”

1. Defining business, stating a mission, & forming a strategic vision
2. Setting measurable objectives
3. Crafting a strategy to achieve objectives
4. Implementing & executing strategy
5. Evaluating performance, reviewing new developments, & initiating corrective adjustments
•   Convert mission into performance targets
•   Create yardsticks to track performance
•   Establish performance goals requiring stretch
•   Push firm to be inventive, intentional, focused
•   6.Setting CHALLENGING but ACHIEVABLE objectives guards against
•   Complacency
•   Drift
•   Internal confusion
•   Status quo performance
*Helps with  the  Outcomes that relate to improving firm’s financial performance
*Helps  with  the  Outcomes that will result in greater competitiveness & stronger long-term market position
Decision Making
1. Define the problem
This is often where people struggle. They react to what they think the problem is. Instead, seek to understand more about why you think there's a problem.
Defining the problem: (with input from yourself and others)
Ask yourself and others, the following questions:
a. What can you see that causes you to think there's a problem?
b. Where is it happening?
c. How is it happening?
d. When is it happening?
e. With whom is it happening? (HINT: Don't jump to "Who is causing the problem?" When we're stressed, blaming is often one of our first reactions. To be an effective manager, you need to address issues more than people.)
f. Why is it happening?
g. Write down a five-sentence description of the problem in terms of "The following should be happening, but isn't ..." or "The following is happening and should be: ..." As much as possible, be specific in your description, including what is happening, where, how, with whom and why. (It may be helpful at this point to use a variety of research methods.
Defining complex problems:
a. If the problem still seems overwhelming, break it down by repeating steps a-f until you have descriptions of several related problems.
Verifying your understanding of the problems:
a. It helps a great deal to verify your problem analysis for conferring with a peer or someone else.
Prioritize the problems:
a. If you discover that you are looking at several related problems, then prioritize which ones you should address first.
b. Note the difference between "important" and "urgent" problems. Often, what we consider to be important problems to consider are really just urgent problems. Important problems deserve more attention. For example, if you're continually answering "urgent" phone calls, then you've probably got a more "important" problem and that's to design a system that screens and prioritizes your phone calls.
Understand your role in the problem:
a. Your role in the problem can greatly influence how you perceive the role of others. For example, if you're very stressed out, it'll probably look like others are, too, or, you may resort too quickly to blaming and reprimanding others. Or, you are feel very guilty about your role in the problem, you may ignore the accountabilities of others.
2. Look at potential causes for the problem
a. It's amazing how much you don't know about what you don't know. Therefore, in this phase, it's critical to get input from other people who notice the problem and who are effected by it.
b. It's often useful to collect input from other individuals one at a time (at least at first). Otherwise, people tend to be inhibited about offering their impressions of the real causes of problems.
c. Write down what your opinions and what you've heard from others.
d. Regarding what you think might be performance problems associated with an employee, it's often useful to seek advice from a peer or your supervisor in order to verify your impression of the problem.
e.Write down a description of the cause of the problem and in terms of what is happening, where, when, how, with whom and why.
3.Define the Goal or Objective

In a sense, every problem is a situation that prevents us from achieving previously determined goals. If a personal goal is to lead a pleasant and meaningful life, then any situation that would prevent it is viewed as a problem. Similarly, in a business situation, if a company objective is to operate profitably, then problems are those occurrences which prevent the company from achieving its previously defined profit objective. But an objective need not be a grand, overall goal of a business or an individual. It may be quite narrow and specific. "I want to pay off the loan on my car by May," or "The plant must produce 300 golf carts in the next two weeks," are more limited objectives. Thus, defining the objective is the act of exactly describing the task or goal.
4. Identify alternatives for approaches to resolve the problem
a. At this point, it's useful to keep others involved (unless you're facing a personal and/or employee performance problem). Brainstorm for solutions to the problem. Very simply put, brainstorming is collecting as many ideas as possible, then screening them to find the best idea. It's critical when collecting the ideas to not pass any judgment on the ideas -- just write them down as you hear them.
5. Select an approach to resolve the problem
When selecting the best approach, consider:
a. Which approach is the most likely to solve the problem for the long term?
b. Which approach is the most realistic to accomplish for now? Do you have the resources? Are they affordable? Do you have enough time to implement the approach?
c. What is the extent of risk associated with each alternative?
6. Plan the implementation of the best alternative (this is your action plan)
a. Carefully consider "What will the situation look like when the problem is solved?"
b. What steps should be taken to implement the best alternative to solving the problem? What systems or processes should be changed in your organization, for example, a new policy or procedure? Don't resort to solutions where someone is "just going to try harder".
c. How will you know if the steps are being followed or not? (these are your indicators of the success of your plan)
d. What resources will you need in terms of people, money and facilities?
e. How much time will you need to implement the solution? Write a schedule that includes the start and stop times, and when you expect to see certain indicators of success.
f. Who will primarily be responsible for ensuring implementation of the plan?
g. Write down the answers to the above questions and consider this as your action plan.
h. Communicate the plan to those who will involved in implementing it and, at least, to your immediate supervisor.
(An important aspect of this step in the problem-solving process is continually observation and feedback.)
7. Monitor implementation of the plan
Monitor the indicators of success:
a. Are you seeing what you would expect from the indicators?
b. Will the plan be done according to schedule?
c. If the plan is not being followed as expected, then consider: Was the plan realistic? Are there sufficient resources to accomplish the plan on schedule? Should more priority be placed on various aspects of the plan? Should the plan be changed?
8. Verify if the problem has been resolved or not
One of the best ways to verify if a problem has been solved or not is to resume normal operations in the organization. Still, you should consider:
a. What changes should be made to avoid this type of problem in the future? Consider changes to policies and procedures, training, etc.
b. Lastly, consider "What did you learn from this problem solving?" Consider new knowledge, understanding and/or skills.
c. Consider writing a brief memo that highlights the success of the problem solving effort, and what you learned as a result. Share it with your supervisor, peers and subordinates


-apply the pestel analysis with respect TO ITS BUSINESS

1.Political (incl. Legal)

-Environmental regulations and protection
[what are the government regualtions/ protection laws that must be observed ]

-Tax policies
what tax hinder the business and what taxes incentives are available]

-International trade regulations and restrictions
[ does the government encourage exports / with high tariffs on imports]

-Contract enforcement law/Consumer protection
[does the government enforce on consumer protection ]

-Employment laws]
[ is the government encouraging skilled immigrants with temp. permits]

-Government organization / attitude
[ does the government have a very positive attitude towards this industry]

-Competition regulation
[ are there regulation for limiting competition]

-Political Stability
[ politically , does the government have a very stable government ]

-Safety regulations
[ has the government adopted some of the modern safety regulations]

-Economic growth
[ what is the economic growth rate / what are the reasons ]

-Interest rates & monetary policies
[ are the interest rates under control / is there a sound monetary policies]

-Government spending
[is government spending is significant and is it under control ]

-Unemployment policy
[what is the employment / unemployment policies of the government ]

[ has the taxation encouraged the industry ]

-Exchange rates
[ is there well managed exchange controls and is it helping the industry]

-Inflation rates
[ is the inflation well under control ]

-Stage of the business cycle
[ is your industry is on the growth pattern]

-Consumer confidence
[ is the consumer confidence is high/ strong and if not, why ]


-Income distribution
[is there balanced income distribution policy ]

-Demographics, Population growth rates, Age distribution
[ what is population growth and why ]

-Labor / social mobility
[ what are the labor policies and is there labor mobility]

-Lifestyle changes
[ are there significant lifestyle changes taking place--more modernization/ why ]

-Work/career and leisure attitudes
[ are the population career minded and are seeking better lifestyle]

[ what are the education policies / is it successful ]

-Fashion, hypes
[are the people becoming fashion conscious ]

-Health consciousness & welfare, feelings on safety
[ are the people becoming health consciousness]

-Living conditions
[ is the living conditions improving fast and spreading rapidly]


Government research spending
[is the government spending on research and development]

Industry focus on technological effort
[are the industries focused on using improved technology]

New inventions and development
[ are new inventions being encouraged for developments]

Rate of technology transfer
[ is the rate of technology transfer is speeding up ]

(Changes in) Information Technology
[ is the information technology rapidly moving and is there government support]

(Changes in) Internet
[ is the internet usage rapidly increasing and why]

(Changes in) Mobile Technology
[is the Mobile technology rapidly developing and is there government support]
5.External Assessment

Areas for opportunities and threats

* Markets [ what is the market situation, which is forcing the change requirements
*Customers [ how can service the customer -internal / external -better .
* Industry [ is the industry trend ]
* Competition [ is it the competitive situation
*Factors of business [ causing the change]
* Technology [ is it technology change ]

Internal Assessment

Areas for strengths, weaknesses, and barriers to success

*Culture [ is the working culture change ]
* Organization [ is the organization demanding change ]
* Systems [ is it the systems change ]
* Management practices [ change in managemement process]


*Cost efficiency[ is it for cost efficiency ]
* Financial performance [ is it for financial performance improvement ]
* Quality [ is it for quality performance improvement
*Service [ is it for service performance improvement
*Technology[ is it for technology performance improvement
* Market segments [ is it for sales performance improvement
* Innovation[ is it for performance improvement
*new products[ is it for new product performance improvement
*Asset condition[ is it for financial performance improvement
*productivity[ is it for financial performance improvement









Your Core markets;
Your CORE strategic thrusts.


The arena of products, services, customers, technologies, distribution methods, and geography in which you'll compete to get results.








2. Politics is a key aspect of strategy implementation because it enables managers
to be proactive and to influence their environment rather than being
manipulated and dominated by external events. In this context, what does
Politics and Machiavellianism mean? Also explain the various political tactics
applied to obtain results.
When you are aware of the key elements of implementing a business strategy, you can make sure your employees carry out all the activities it requires. Promising strategies often fail because their implementation does not include all the required elements. An effective strategy implementation means the success of the strategy depends on its quality rather than on how well you implemented it.
For a successful strategy implementation, you have to make sure your strategy matches the type of organization your business uses. A strategy that requires quick action at the working level and decisions by working-level employees needs an organizational structure that delegates authority. A strategy that relies on tight control from the upper management levels works best in a hierarchical structure with centralized authority. You have to adjust the strategy to match the organizational structure of your business.
Implementing your strategy requires a series of activities that results in your company meeting your targets and achieving your overall goals. To simplify working with the strategy, you have to identify the individual tasks that make up each activity, place them in the correct sequence and arrange them in a schedule. This plan forms the basis for your implementation and for further monitoring and control.
When you have completed your implementation plan, you can start assigning employees to the individual tasks. Some tasks require additional resources, such as computer software, promotional materials and money to cover special expenses. You must make sure that you have the necessary number of people on your team to carry out all the tasks and enough other resources for a complete strategy implementation.
Once your team is in place and you have assigned their tasks, you have to communicate the details of the strategy and how you plan to implement it. Written descriptions, procedures, images and drawings can serve as a basis for team meetings to answer questions, review progress and find solutions to problems. Online collaboration tools such as those found in office productivity software can help foster a cooperative working relationship among team members.
While your team is working to implement the strategy, your focus shifts from initiating to monitoring. You have to make sure work is on track and on schedule according to the planning documentation. When tasks are late or you find that assigned resources are insufficient, you can shift work around or free up resources by making changes to your plan.
Keys to Successful Strategy Implementation

Even great strategies fail to deliver needed performance gains, if they don’t get implemented well. It happens often. Our analysis estimates the annual impact of weaknesses in strategic-change implementation as xxxxx billion issue. Something better is needed, and now.
Over the years, we’ve participated in a great deal of strategy implementation, and have been witness to much more. Recently, we invested in an internal effort to collate observations about what we have seen, and identify the implications. We have two pieces of good news.
First, a short list of common gaps and problems emerged, and they are not rocket science. We consistently observed gaps in one or more of a series of basic best practices in the management of discontinuous change.
Second, not-for-profit executives are the centre of the opportunity – you have choices with your agenda and resource decisions that can be catalytic to implementation success.
Recognising the opportunity
In practice, new strategies designed to deliver significantly enhanced performance improvement have a poor track record of being implemented well. Most executives can easily recall internally-generated or consultant-developed strategy documents that have done little more than gather dust. Assuming a new strategy is sound, why isn’t it implemented effectively? Why doesn’t the organisation respond to management’s direction?
Some clear patterns have emerged.
Successful strategy-implementation efforts all met three common-sense tests:
A. They were managed to results milestones
B. They explicitly addressed the people issues
C. They were resourced properly, not just with money
Sound strategies that nevertheless failed to achieve their performance objectives generally flunked one of these tests.

A. Focus implementation on delivering important business results at major milestones throughout the effort. Manage for these results, not just for process activities. All too frequently, organizations mistake the accomplishment of an activity with getting a result. 1. Quantify explicitly and precisely the end result to be accomplished from the chosen strategy.
Determine exactly what you want and quantify it in business and financial results that can be objectively tracked and measured. This requires taking strategic objectives that are often amorphous, and translating them into a robust and comprehensive set of precise quantitative business and financial targets.
2. Translate the strategic direction into a comprehensive plan of action, which includes key performance milestones along the way and specific accountabilities for performance.
Using only sheer force of will almost never works. Leaders need to create and then manage for the execution of a detailed roadmap for installing the strategy, which includes:
The key business and financial results to be accomplished by what dates;
The workplan for accomplishing each of these key outputs;
Who is accountable for accomplishing what;
The identification and allocation of resources required to accomplish each action; and
The specifications and installation plan for the measurement systems by which implementation will be tracked and fine-tuned accordingly.
3. Put metrics in place to regularly measure both the output and process goals of the implementation effort, and ensure organisational adaptability to evolve the implementation plan based on the learning achieved.
Effort to scope and design these metrics is often very high-reward. Without them it’s impossible to tell if and why implementation is succeeding or failing, and to take timely corrective action as required. In our experience almost all implementation plans need to get tweaked at least now and then as unforeseen events, roadblocks, and/or consequences occur.
B. Don’t overlook or pay lip service to the people issues. Existing cultures and attitudes often prevent successful implementation. 1. Involve in the plan development those who will be key to implementation success.
Ensure these individuals are involved in both the development of the new strategy and its subsequent implementation plan. This helps maximize their sense of ownership in the strategy, and commitment and energy to its successful implementation.
Their input will also help to identify a priori, and take into account in the plan, the organizational gateways and roadblocks to the desired change. President Kennedy said, “If you go high enough in an organization, everything becomes possible because there is no appreciation of the practical problems involved”.
2. Determine the personal pay value (“what’s in it for them”) inherent in the new strategy for those employees whose support is needed in implementation.
Organizational research can discover the intrinsic benefits and motivational leverage points of the new strategy among key constituents. Once identified, ensure that this is communicated strongly, clearly and consistently through organizational messaging, programs, and management and reward systems.
The best strategies frequently involve discontinuous change in organizational culture, norms, and behaviours; change that puts people outside their comfort zone. It’s human nature to resist this type of change, unless people can see a win in it for them that’s worth the effort and inevitable short-term discomfort.
3. Avoid getting caught in the belief that changes in organizational policies and systems alone will create the required changes in behaviours and performance.
Focusing initially or exclusively on making changes to the organization’s human resource policies and systems rarely turns out to be effective at changing behaviours and the way an organization manages people. These policies and systems consolidate and reinforce the desired change. In the absence of strong leadership and management from above, they are ineffective at creating it.
C. Make sure the effort receives enough of the right kinds of resources, not merely cheerleading and money. 1. Determine the organizational positions that will have the most critical impact on implementation success, and then make sure these positions are filled by the company’s best people - people that can be relied upon, and delegated to with confidence.
Too many organizations see the short-term displacement/cost of moving/replacing personnel as a barrier to change without looking at the long-term economic consequence of only average performance.
2. Have enough of a grasp of the situation at ground level to know what’s needed and make sure your people get it on a timely basis.
In our experience, we have seen too many situations where the people responsible for implementation are given a results/output specification (what’s required) and an accompanying material specification (how you’ll do it) that don’t match.
The implementers think their leaders are too distant and out of touch with the reality in the trenches. They’re not always wrong.
3. Ensure that all managers, including yourself, have the time, skills and systems needed to actively lead, coach and mentor staff to do the job expected of them.
Almost always, this involves some degree of organizational development/redesign, as managers at all levels are challenged to redefine their roles and where they spend their time.
If the new strategy involves significant change in organizational attitudes and behaviours, these changes need to be visibly demonstrated, lead, and managed from the top. This leadership needs to be assumed by the leaders of the new strategic direction, not delegated by them to others. We have never seen success where senior management’s attitude has been, “we’ll just get the people below us to change, we don’t have to”.
Management needs to inspect what they expect, and demonstrate they care about the result. For some organisations, this requires significant change in where management spends its time. As General Patton once said, 5% of leadership is telling subordinates what you want them to do, and the other 95% is following up to make sure it happens. Unfortunately, many very bright, busy leaders have these proportions reversed.
Only when employees recognise that their leaders are committed to the effort, and giving it their regular and close attention, will they reconcile themselves to its inevitability and embrace its desirability.
Managers who want to drive successful implementation measured in improved results must successfully integrate two components:
A. Change-management experience and expertise
B. General-management perspective
You face a personal choice in how to accomplish that integration.

A. Change-management experience and expertise
If the drivers of successful implementation are not rocket science, why are they so frequently absent? Because the challenge of installing discontinuous change is fundamentally different than the continuous improvement that organizations are built to deliver. Not all of your team’s reflexes and attitudes are helpful.
You need to recognise that explicit project management of the change effort is required. You need to identify and partner with resources who bring expertise, are able to design in all of the basic ingredients to successful change, and who stay focused on ensuring the organisation follows through on that design.
B. General-management perspective
But the change effort ultimately needs to be steered for results, not change-management theory. The management of the change project needs to harness change-management wisdom to the practical realities of running the business.
Too often we see internal and external “change experts” whose expertise in their professional domain is deep, but who fundamentally do not understand much either about what the job of the senior executive is really like, or what’s at the heart of a high-performance business strategy. Like architects who know all about design but cannot deliver a building on time and on budget, or doctors who are great with diseases but poor with patients, these “professionals” require their clients to be responsible for the translation from the professional domain to the real problem.
Your choice
Let’s assume you want to enhance performance, and have a strong strategy for how to do it. And let’s assume that you recognise the importance of process design and project management of the change effort. The question is how will you integrate change management and general management?
You can assume the challenge of integration yourself, clearing your calendar enough to steer effectively the overall change effort, drawing on the experience of your change expert. We have seen business leaders who needed to invest 40% of their time in order to be effective at that integration. This is not a 2-hour a week meeting.
Or you can find a design and project management resource whose expertise isn’t just in the change-profession domain, but who can effectively stand in your shoes, take on your objectives, and understand your constraints. Good ones may be tough to find, but they exist.
Recognising the need for such a choice is where successful strategy implementation begins.

A company’s strategies are designed to increase revenues, enable it to compete more effectively and make the business more profitable. Sound, well-thought-out strategies help a company reach its objectives only if managers implement them just as thoughtfully and with precision.
Turn Strategies into Action
Strategic implementation requires completing a series of steps, referred to as action plans or tactics. An action plan must be extremely detailed, a step-by-step description of the requirements to execute the strategy. Omitting key details will derail implementation of the strategy. Action plans for a print advertising campaign, for example, could include tasks such as selecting the publications to be used, designing the ad layout and creating a schedule for ad placement. If the person responsible for creating the ad layout was not told when that task was due, his segment of the project not being completed on time could delay the entire implementation process.
Assign Individual Responsibility
Implementation of a strategy often requires the efforts of a number of different individuals in the organization and several different departments. Each piece of the overall implementation -- each tactic -- must be assigned to a person responsible for making sure all the details required to accomplish the tactic are completed.
Create an Implementation Calendar
Putting action plans into calendar form allows the business owner and his management team to determine if it is feasible to complete all the tasks by the projected dates. Showing the implementation schedule in 90-day increments rather than monthly is helpful because it takes more than one month to complete implementation of many of the strategies. After reviewing the implementation calendar, the business owner may conclude that he doesn’t have the personnel to complete all of the action plans on schedule. He could delay implementation of some action plans, add personnel to the organization, outsource some tasks or hire temporary personnel.
Build Team Spirit and Enthusiasm
The business owner must make sure his team is highly motivated to implement the strategies. He needs to communicate that each person’s effort and dedication are crucial to the strategic implementation process. In some situations, an employee might not initially support a new strategy because it results in a change in her workflow, workload or supervisor. The owner can still motivate her to work hard to accomplish the implementation of the strategy if he shows that he regards her as an important contributor to the team’s success.
Monitor Progress and Measure Success
Strategic implementation is an ongoing process because the business owner must periodically review -- at least every 90 days -- the implementation calendar to make sure tasks are being completed on time. He also must compare actual financial results to the strategic plan's forecast. Serious revenue shortfalls compared to plan results, for example, will require him to analyze why results are falling short of forecast. He may have to adjust his strategies to get the company back on course. For example, his print media campaign may have brought in fewer customers than expected, so he could divert resources from the print campaign into other strategies that are proving to be more effective.

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Leo Lingham


management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc


18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc


24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc




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