management strategists

7/29/2019 Management Strategists

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Gagan Bhatia, Prof.Marketing

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Strategists and Their Role

in Corporate Management


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Strategists


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Strategists are individuals or groups,

who are primarily involved in the

Formulation, Implementation and

Evaluation of strategy.


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Board of Directors


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Elected by the shareholders, controlling agencies ,

government, financial institutions & holding

company

Responsible for the governance of the organization


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Board of Directors


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Guide the senior management in setting and

accomplishing objectives

Review and evaluate organizational performance

Appoint senior executives


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Chief Executive Officer


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Responsible for formulation to evaluation of strategy

Designated as MD, ED, President or General Manager

Responsible of setting mission, objectives of the

organization

To see that organization does not deviate from the path


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Typical profile of a CEO

Fund raising experience. Deal maker with a successful track record. Marketing and business development skills. Strong presentation and inter-personal skills. International experience Ability to take products from R&D to market.


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Senior Management


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Managers @ highest level of organizational hierarchy.

Responsible for implementing strategies and plans & for

a periodic evaluation of performance.

Look after modernization, technology up gradation,

diversification and expansion, and new product

development.


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SBU Level Executives


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SBU level strategy formulation and implementation

Wield considerable authority within the SBU

Coordination maintained with other SBU heads and

corporate level management

.


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Corporate Planning Staff


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Plays a supporting role in strategic management.

Responsible for conducting special studies & research

pertaining to strategic management


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Consultants


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Many organizations do not have corporate planning

department

Reasons being small size, infrequent requirements,

financial constraints, etc.

These cos. take the help of consultancy firms


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Consultancy..


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Professional service

Performed by specially trained & experienced people

Consultantswork on specific, time boundassignments


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Middle Level Managers


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Rarely play an active role in Strategic Management

Involved in implementation of functional strategies

Designated as Managers & Asst. Managers

Functions include refinement of business, target setting,

man management, etc.


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13

STRATEGIC LEADERSHP


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Strategic leader is the one who influences value,style & culture of the organization

Leadershipis the ability to awaken in others thedesire to follow acommon objective

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Strategic Leadership Skills

Human Skills :-

Empathy

Objectivity

Ability to communicate ideas

Ability to sell vision

Social skills

Ability to lead

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Conceptual skills :-

An understanding of the Organization behavior

An understanding of the Competitors of the firm.

An understanding of the Financial status of the firm.

Ability to learn from success & failures

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Technical Skills :-

Specialized knowledge of tools & techniques.

Analytical skills

Through knowledge & competence pertaining to a job.

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Personal Skills :-

Ability to withstand mental & physical stress

Intelligence

Personal Motivation

Integrity

Ability to infuse trustworthiness & confidence insubordinates

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Manager Characteristics Leader Characteristics

Administers Innovates

A copy An original

Maintains DevelopsFocuses on systems &structure Focuses on people

Relies on control Inspires trust

Short range view Long range perspective

Accepts the status quo Challenges the status quo

Classic good soldier Own person

Does things right Does the right thing

Managers v/s Leaders19



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Kishore biyani of The Future Group

(Diversified business model-business ranging fromretail clothing, retail hypermarket to retail

electronics)

Ratan Tata of The Tata Group

(Business ranging from Automobiles, retail clothing,retail hypermarket, retail electronics to softwaresolutions)

To name a few20



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Leadership Styles


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Autocratic Leadership

Participative or Democratic leadership

Laissez Faire leadership

Paternalistic Leadership

Charismatic leaders


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Types of Leadership Styles :-

Autocratic Leadership :-

Gives orders which he insists must be obeyed.

Determines policies for the group without consulting them

Dictatorial

Gets work done by threats & imposing penalties.

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Ad lf Hitl nd his dminist ti n


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Adolf Hitler and his administrationwere responsible for the deaths ofmillions of Jewish people. Stalinkilled over 3 million people through

famines, executions and forcedlabor. Castro is symbolic with havingcontrol over Cuba's resources,resulting in food rationing and

numerous attempts by residents toflee the country.


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Participative or Democratic leadership :- He invites & consults subordinates in the

decision making process.

Ensures policies are worked out only ifaccepted by group.

Avoids use of power to get the job done.

Subordinates guided rather than threatened to

get work done

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Narayana Murthy and Infosys

Narayana Murthy turned asmall software developmentventure that he had set upwith his friends in 1981, into

one of the leading companiesof the country. Infosys grewrapidly throughout the1990s. He distributed thecompanys profits among the

employees through a stockoption program and adoptedthe best corporategovernance practice.


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Laissez Faire leadership :-

He does not lead but leaves the group to itself.

He has no clear ideas of goals to be attained.

He relieves himself of responsibilities and is ready toblame subordinates for any failure.

Can succeed only if subordinates are highly educated,brilliant and responsible.

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Paternalistic Leadership :- The leader assumes that his role is fatherly.

He works to help, guide, protect & keep his

subordinates happy. Provides subordinates with good working

conditions

Subordinates work harder out of sheer

gratitude as well as emotional bondage

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High

Entrepreneurship

Management

Partnership

Management

Low

Chaos

Management

Stipendiary

Management

Low High


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Degree of Involvement byBoard of Directors

DegreeofInvo

lvementby

TopMana

gement

Strategic Management Style


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Entrepreneurship Management


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InvolvementHIGH (Top Management):LOW(B.O.D)

B.O.D simply accepts what the top management

decides Changes initiated by top management are fully

endorsed by B.O.D. without any resistance


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Partnership Management


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InvolvementHIGH (Top Management):HIGH(B.O.D)

Board & top management work closely with eachother to establish mission, objectives, strategies &policies


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Chaos Management


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InvolvementLOW(Top Management):LOW(B.O.D)

Both are inactive for strategic decision making

Keep on looking each other for initiatives Firm unable to compete efficiently

Recipe for disaster


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Stipendiary Management


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InvolvementLOW(Top Management):HIGH(B.O.D)

Top management concerned primarily with running

the company B.O.D. takes all the vital decisions


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Functions of Management


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Planning


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Consists of managerial activities related to preparing for

the future

Specific tasks include Forecasting

Establishing objectives

Devising strategies

Developing policies

Setting goals


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Organizing


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Specific areas include job analysis.

job descriptions,

job specifications,


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Leading/ Motivating


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Motivating involves efforts directed towards shaping human

behavior.

Specific topics include-- leadership,

communication,behavior modification,

job enrichment,

job satisfaction,

organizational change,

employee & managerial morale.


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Staffing


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Staffing activities are centered on personal or human resource

management

Includes wage and salary administration,employee benefits,

interviewing, hiring, firing,

training, management development,

employee safety,

equal employment opportunity,

union relations,

grievance procedure,


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Controlling


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Managerial activity directed towards ensuring that actual

results are consistent with planned results.

Includesquality control

financial control

sales control

inventory control

expense control


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G Bh ti P f M k ti

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THANK YOU

management strategists

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