MNG3702_ EXAM REVISION PACK.

MNG3702_ EXAM REVISION PACK. MNG3702 - Strategic Implementation And Control IIIB. List some of the reasons why employees resist change and some solutions that can be applied to overcome resistance to change Reason for resistance How to overcome resistance Opposing strategic proposals Involve employees who are most resistant to change Pessimism Build support networks Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved. Anxiety Use effective communication and discussions Lack of interest Give incentives Different personal ambitions Use managerial authority (If nothing else helps Irritation with the new (old) things 11. Provide guidelines for overcoming resistance to change (5)  Education and communication o Help people to understand the need for change. o Must be communicated so that it is clearly understood by all.  Participation and Involvement o If people are part of the strategy formulation process, they will be more supportive of changes necessary to implement new strategy.  Facilitation and support o Building support networks helps to overcome resistance to change.  Negotiation and agreement o Linked to incentives and rewards.  Manipulation and co-optation o Influencing people to accept change and "buying-off" people to accept and promote change.  Giving clear direction o May use authority to set direction and impose means to implement change.  Explicit and implicit coercion o this may work in the short-term - unlikely that this will result in long term commitment from employees 12. What are the important characteristics of a learning organisation.  Learning as a continuous process  Employees working and learning as a team  Management development and personal growth  The sharing of visions for the future Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved.  The realisation that people skills are the most important asset of the organisation  Rethinking of organisational habits, generalisations and corporate interpretations that are perhaps no longer relevant.  Applying the systems approach when analysing and viewing the business environment 13. Discuss the ‘warm square’ in the modified McKinsey 7-S framework (5)  The warm square are style, skills, staff and shared values o Style  the leader and management style of the organisation o Staff  the people in the organisation o Skills  the organisations core competencies and source of competitive advantage o Shared values  the values the organisation believes in 14. Discuss the component of the McKinsey 7S framework  This model links the organisations strategy to the various factors that need to be addressed to ensure successful implementation and consequently strategic success. The 7 –s are:  The framework distinguishes between a cold triangle and a warm square.  The warm square are style, skills, staff and shared values Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved. o It refers to the people in the organisation. o Strategy  The organisations chosen strategy and the way it intends to achieve its strategic goals and vision. o Structure  The way in which an organisation is structured. o Systems  Including systems such as reward systems, strategic control systems and operational control systems. o Style  the leader and management style of the organisation o Staff  the people in the organisation o Skills  the organisations core competencies and source of competitive advantage o Shared values  the values the organisation believes in  The cold triangle refers to structure, strategy and systems of the organisation.  These issues cannot be isolated from one another. 15. Discuss the drivers of strategic implementation (5)  Leadership  This is vital in strategy implementation as it is only through effective leadership that organisations are able to use strategic management successfully.  Organisational culture  Is a set of important beliefs, behavioural norms and values that the members of an organisation share. It refers to the way we do things around here.  Reward system  Required to motivate managers and employees to ensure commitment to the implementation of new strategies.  Organisational structure  Refers to the framework within which the strategic process must operate to achieve the organisations goals. Identify the tasks necessary for strategy implementation and how is responsible for the tasks.  Resource Allocation Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved.  is essential that resources be allocated in such a way that they supports the organisations long-term goals, chosen strategy, structure and short term goals. Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved. Topic 2: The drivers of strategy implementation 16. Discuss attributes of emotional intelligence (10)  Self-awareness – self-awareness is the first component of emotional intelligence and refers to the extent to which an individual is aware of his or her emotions, strengths, weaknesses, needs and drives  Self-regulation – self-regulation refers to the extent that people are in control of their emotions, feelings and impulses.  Motivation – One trait common to almost all effective leaders is motivation. Leaders have a deep desire to achieve for the sake of achievement and not for large salaries or status and are driven to exceed expectations.  Empathy – Empathy refers to the extent that a leader can thoughtfully consider employees’ feelings in the process of making decisions. Empathy also refers to the extent that a leader is able to sense and understand the viewpoints of his or her team.  Social Skills – Good social skills in the context of emotional intelligence do not simply imply friendliness. They are about friendliness with the purpose of leading people in the desired direction, being able to establish a rapport with anybody, being able to network and interact with a wide circle of acquaintances, capable of managing teams and being able to build relationships throughout the organisation. 17. Discuss the reasons why leadership is an important driver of strategy implementation (5)  Somewhere in the organisation someone must have a vision of the ideal state and be willing to guide the organisation to the achievement of this vision through successful strategy implementation.  Such a person is a strategic leader.  Strategic leadership drives strategic change, and strong leadership is perhaps the most important “tool” that a strategist can have in the implementation toolkit to give direction and purpose to integrated strategy formulation, implementation and control.  Leadership is vital in strategy implementation as it is only through effective strategic leadership that organisations are able to use the strategic management process successfully.  Successful strategy implementation and strategic change also depend on the leaders and managers distributed throughout an organisation. 18. Discuss the key responsibilities of a strategic leader (6)  Developing an appropriate vision or strategic direction for the organisation in which as many stakeholders as possible participated Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved.  Communicating the vision and strategic direction to all the employees and other stakeholders of the organisation  Inspiring and motivating the employees to achieve the strategic goals of the organisation  With top management, designing appropriate reward systems and organisational structures  Developing and maintaining and effective organisational culture  With managers, ensuring that the organisation continually incorporates good corporate governance principles into its strategies and operations. 19. Indicate the difference between management and leadership (5) LEADERSHIP MANAGEMENT Coping with change Coping with complexity Concerned with guiding, encouraging and facilitating others in pursuit of ends by the use of means, both of which they have either selected or approved. Concerned with directing others in the pursuit of ends and by the use of means, both of which have been selected by the manager Tend to be more visionary, experimental, flexible and creative Tend to be more analytical, structured and controlled Value the intuitive side of their work Value the quantitative science part of their work Focus on the bigger picture Focus on the details Inspire and apply influence Instruct and apply authority 20. Differentiate between visionary and managerial leaders by identifying four key characteristics of each (HINT use table) (8) VISIONARY LEADERS MANAGERIAL LEADERS · Are proactive, shape ideas, change the way people think about what is desirable, possible and necessary · Are reactive, adopt passive attitudes towards goals. Their goals arise out of necessity and not out of desires and dreams, and are often are based on the past · Work to develop choice and fresh approaches to long-standing problems and work from high-risk positions · View work as an enabling process involving some combination of ideas and people interacting to establish strategies. · Are concerned with ideas, relate to people in intuitive and empathetic ways · Relate to people according to their roles in the decision-making process Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved. · Feel separate from their environment; they work in, but do not belong to, organizations; in other words their sense of who they are does not depend on their work · See themselves as conservators and regulators of the existing order. Their sense of who they are depends on their role in the organization. · Influence the attitudes and opinions of others in the organization · Influence the actions and decisions of those with whom they work · Are concerned with ensuring the future of the organization, especially through development and management of people · Are involved in situations and contexts characteristic of day-to-day activities 21. Discuss corporate governance and leadership in the light of the King II Report (4)  The King report on corporate governance 2002 (King II Report) emphasized the role of leadership in corporate Governance.  It stated that corporate governance is essentially about leadership and that leadership comprises four dimensions: efficiency, probity (honesty and decency); responsibility; and transparency and accountability.  In order for organisations to compete effectively in the global economy, leadership must be efficient.  Leadership for probity is important as it assures investors that the management of an organisation will behave honestly and with integrity towards its shareholders and other.  Addressing legitimate social concerns related to the organisation’s activities provides proof of responsible leadership.  Above all, leadership must be transparent and accountable for its activities. 22. Discuss the key responsibilities of a strategic leader (6)  Develop appropriate strategic direction  Communication of vision and strategic direction  Motivate employees to achieve strategic objectives  Design appropriate reward systems and organisation structure  The development of strategic and operational control systems  Develop and maintain effective organisational culture  Ensure good corporate governance and management 23. Explain why different strategies require different leadership styles (5)  As the environment in which the organisation operates changes, so does the choice of strategies. Downloaded by Larissa Lessing () lOMoARcPSD| © 2017 Together We Pass. All rights reserved.  Strategic implementation is essential about creating a tight fit between strategy and leadership, strategy with culture, strategy with reward systems, strategy with organisational structure and strategy with short-term objectives.  Different types of strategy require different types of leadership style.  When a growth strategy is followed, it is important that the leader pays attention to managing relationships, inspiring people and communicating the goals and strategies to them.  Corporate combination strategies require a leader who can integrate different cultures and value systems, and identify synergies, and who possesses a combination of people and task skills.  Organisations that follow decline strategies need leaders who are task oriented and who focus on reducing assets and costs; such a leader will often be more autocratic than when a growth strategy is followed. 24. Discuss five moral duties for strategic leaders and company directors (5)  Conscience. Strategic leaders and directors should act with intellectual honesty in the best interests of the organization and all its stakeholders and independence of mind should prevail.  Care. A director should devote serious attention to the affairs of the organization.  Competence. A director should have the knowledge and skills required for governing an organization effectively.  Commitment. A director should be diligent in performing director’s duties and responsibilities.  Courage. A director should have the courage to take the risks associated with directing and controlling a successful sustainable organization, but also have the courage to act with integrity in all strategic decisions and activities. 25. Explain the importance of organisational culture in strategy implementation (5)  Organisational culture refers to “the way we do things around here”.  It can be defined as the set of important, often unstated, assumptions, beliefs, behavioural norms and values that the members of an organisation share.  An organisational culture that is rare and not easily imitated can be a source of competitive advantage.  When the organisation’s beliefs, visions and goals underpinning its chosen strategy are compatible with its organisational culture, this culture serves as a valuable driver and simplifies strategy implementation efforts.