Functional implementation

Functional strategies- are the restricted plans to

achieve objectives in specific function

Vertical & horizontal Corp. level

strategies
fit

Business level
strategies

Functional level
strategies

Marketing Financial Operations

HR mgt.
Plans & Plans& plans
plans
policies policies
 Functional plans and policies
• Within functional strategies there are many sub
functional areas like mkt. department may have
sub functions like product dev., service,
advertising etc.
• We need to develop plans means definite course
of action within the guidelines of policies
• These are needed to ensure:-
– Strategic decisions are implemented in all parts of org.
– There is a basis available for controlling
– Time spent by functional managers is reduced as the plans are clear
– Similar situations are handled in consistent manner
– Coordination among various functions takes place wherever necessary
 Development of functional plans and
policies-
• It is a similar process as that of strategies but limited to
functional area
• These are guided by basic objectives and goals are
affected by resource allocation
• The functional divisions vary from org. to org. but
traditionally these are
– Finance
– Marketing
– Production
– Personnel
– Information
• The plans of every department is integrated with each
other
 Financial plans and policies
• Sources of funds
– Own capital
– Tie-up with financial institutions
– Venture capital
– Share issues
– Internal accruals
• Usage of funds
– Capital investment
– Fixed asset procurement
– Current asset procurement
– Dividend payments
– Loan & advances
• Management of funds
– Budgeting
– Cost benefit analysis
– Internal audits
– Codes, manuals and procedures
 Marketing plans and policies
• Product
– Quality/features
– Packaging
– Features/brand name
• Pricing
– Low price marketing- tata-nano, cheaper airlines
– Premium price strategy- high end cars, business class air travel, branded shoes
• Place
– Transportation
– Taxes at local level
– Channels to be used
• Promotion
– Type of campaign
– Media to be chosen
– Product placements
 Operations plans and policies
• Productions system
• Operations planning and control
• Research and development
 Personnel plans and policies
• Personnel systems
– Recruitment
– Development
– Compensation
– Appraisal
• Organizational and employee characteristics
– Corporate image
– Quality of managers, staff and workers
– Working conditions
– Opportunity for development
– Organizational culture building
• Industrial relations
– Relationship with unions
– Collective bargaining
– Labour welfare
– Safety standards
– Employee satisfaction and morale
 Information management plan &
policies
• Factors related to acquisition and retention of
information
• Factors related to processing and synthesis
• Factors related to usage
• Factors related to transmission and
dissemination
• Integrative, systemic and support factors
 Integration of functional plans and
policies
• Need for internal consistency
• Relevance to build organizations’ capability
• Making trade off decisions
• To determine intensity of linkages
• Timing of implementation
 Operational implementation
• This is the stage where most tangible work is
done
• This deals with the nitty- gritty of strategy
• This is a very wide scope, covers almost
everything which happens in organization
• Operational implementation plays a key role in
achieving organizational effectiveness which
gets measured in evaluation and control
process
 Operational effectiveness
• It is continual improvement through constant change,
flexibility and efforts to achieve best practice
• Though the scope of achieving effective ness is very
wide but we discuss primarily the four P’s
– Productivity
• Just in time concept (JIT)
• Cycle time reduction
• Total productive maintenance (TPM)
• Lean manufacturing
– Processes
• Quality management (TQM)
• Business process re-engineering
• Enterprise-wide resource planning (ERP)
• Benchmarking
• Supply chain management
• outsourcing
– People
• Performance management
• Training and development
• Performance appraisal
• Separation management
– Pace
• Time study
• Network analysis and activity charts
• Time management
 Conclusion
• Change tactics
– Timings of change
• Greater the degree of change required better the acceptability
• Window of opportunity like change of management
• No conflicting signals
• Not done in nervousness
– Job losses and delayering
• Sack the change blockers at first instance
• Avoid creeping job losses
• Visible caring approach who looses their jobs
– Visible short term wins
• Identify hot spot for immediate results