Strategy

Implementation
DIRECTING
MANAGING CORPORATE CULTURE

Organization culture exerts a powerful influence on

the behavior of all employees, therefore it can affect
the ability of the company to shift its strategic
direction.
In case of a strong culture the change in mission,
objectives, strategies and policies may not be
accepted.
Corporate culture has a strong tendency to resist
change.
ASSESSING STRATEGY—CULTURE COMPATIBILITY
Is the planed strategy compatible
 Managing Cultural Change through
Communication
Communication is key to effective management of change.
Rationale for strategic change should be communicated to
workers through newsletters, speeches, and training and
development.
Communicate the vision to the employees.
Translate the vision into key elements necessary to
accomplish that vision.
Managing Diverse Cultures Following an Acquisition

Top management must give consideration to

a potential clash of corporate culture.
When corporate cultures are similar
performance problems are minimized
It is dangerous to assume that the firms can
simply be integrated into the same reporting
structure
 METHODS OF MANAGING TWO DIFFERENT
CULTURE
• Integration balanced give and take of
cultures
domination of one culture
• Assimilation over the other
• Separation no cultural exchange
• Deculturation involves disintegration of
one company’s culture and
practices.
 Action Planning
1. List specific actions.
2. List dates to begin and end each action.
3. Name person responsible for each action.
4. Name person responsible for monitoring timelines
and effectiveness of each action.
5. Estimate expected financial and physical
consequences of each action.
6. Develop contingency plans.
MANAGEMENT BY OBJECTIVES
 Establishing and communicating
organizational objectives.
 Setting individual objectives through
superior-subordinate interaction that help
implement organizational objectives
 Develop an action plan of activities needed
to achieve the objectives
 Periodically review the performance as it
relates to the objectives and including the
results in the annual performance appraisal
 OBJECTIVES OF TOTAL QUALITY
MANAGEMENT (TQM)

1. Better, less variable quality of product /

service
2. Quicker, less variable response to
customers’ needs
3. Greater flexibility in adjusting to customers’
shifting requirements
4. Lower cost through quality improvements
and elimination of non value-adding work
 TQM’S ESSENTIAL INGREDIENTS

• An intense focus on customer satisfaction

• Internal as well as external customers
• Accurate measurement of every critical variable
in a company’s operations
• Continuous improvement of products and
services
• New work relationships based on trust and
teamwork
 INTERNATIONAL CONSIDERATIONS IN
LEADING

 Leaders must consider the dimensions of

national culture
 MNCs must pay attention to the many
differences in cultural dimensions around the
world and adjust their management practices
accordingly
 Hofstede’s International Cultural
Dimensions
1. Power distance
2. Uncertainty avoidance
3. Individualism—collectivism
4. Masculinity—femininity
5. Long-tern orientation