Management Strategy the Document States the Plan Capstone Project
- Length: 6 pages
- Sources: 4
- Subject: Business - Management
- Type: Capstone Project
- Paper: #56836479
Excerpt from Capstone Project :
The document states the plan of an organization in different phases. For each phase there will be a different management strategy. The document has described the management strategy and the effects that they will have on the performance of the business and why that particular management strategy has been chosen.
Management structure needs to be examined carefully when a new business venture is setup. In order to develop and build on the business plan a compact management structure is necessary. The managers are the people who are responsible for steering an organization towards achieving the business objectives. In the second phase the business plan will be implemented on the basis of geographical region and the management structure will be based accordingly.
The four key functions of management are planning, organizing, leading and controlling the business. The type of managers which are selected for the business venture must be appointed according to the management styles required and the organizational structure. Similarly the management structure also plays an integral part in a company's success. The management structure will consist of different kind of managers performing different functions. Since in the second phase the organization will be operating on a regional basis therefore regional managers will be appointed who will be held responsible for their respective regions. The functional managers will be setup in accordance with the split functions of the organization. The business will also be split in terms of different departments, for example a retailing outlet. The general managers will be responsible for managing the other managers as they will all report to him. It is the general manager's responsibility to make sure that the functional objectives are in line with the overall objectives of the company.
The management structure will make the managers responsible for establishing and prioritizing the objectives and make sure that they are achieved through proper management. The motivation of the employees is also an essential part of management and they need to ensure that the communication framework is well established. The budgets will be required to be monitored and all the administrative arrangements will be required to be done in advance in order to gain the finances for carrying out the business smoothly.
One of the most important parts of any management structure is to manage the resources of the business. This does not only refer to the financial resources; human resource is a vital component of a business. The human resource needs to be put in the correct structure according to the needs and wants of the organization and organizational culture should be built around in such a manner that the resources can be best utilized. The financial resources should be utilized in such a way that the organization can maximize their sales and profits through those finances. The new trend in the business is the proper utilization of the materials and to keep the waste materials to a minimum. Time management skills should be utilized to best of the abilities as time is money. One of the most important and expensive resource for any business is information. Information should be communicated to the relevant managers and communicated throughout the organization in order to get best results.
The organization will be based on a matrix structure which consists of two lines of communication. The first one is by product category and the second one is by geographical region. When the organization is based on the geographical region then it will require a lot of input from the regional managers and the regional managers must be given a higher level of authority.
Implementing the plan is an extremely critical phase. The management structure that has been planned, no matter how much efficient the planning process was will be of no use if the implementation of the plan is not managed properly. The implementation phase is hard to manage because there are a lot of constraints that come in the way during the course of time and remedial measures have to be taken which are different from the initial planning. A solid plan will actually minimize the risks but the remaining risks need to be managed and acknowledged. By making regional managers responsible for their respective areas, it helps in minimizing the risks and they get to know who is responsible for what and how things are required to be managed.
The management strategy chosen for them is the 3rd phase will be based on the product division management. This way it allows business can cut or increases pay every 6 months and review its bottom line. Employees can also benefit by having the opportunity to earn pay raises potentially twice a year, rather than the typical annual reviews." The strategy has been selected because it will provide greater flexibility for the management practices to be implemented. This strategy will promote a performance culture in the organization. This strategy the management will shift the entire corporate culture to reinforce the focus to performance and results. This will result in better performances and the employees with better results will gain a competitive edge. The management practices will focus on measuring each and every performance and reward it accordingly. The likely impact will be that the performance culture will be developed and only the productive employees and practices will survive which will be beneficial to the organization and the better performing employees, therefore it can have an influence on the whole organization. This strategy has been selected because this strategy is best suited for the organizations which are competing in a highly competitive market and are aiming towards getting a competitive advantage through management practices.
The core values of the organization are given significance at every level of hierarchy in the organization. The performance management process has been highly successful and has been responsible for the achievement of business objectives through skill development of employees and continuous training. The compensation packages are carefully designed to make the employees highly satisfied with their jobs, this is done so by providing intrinsic as well as extrinsic benefits. The performance appraisal is done on a semiannual basis which measures the performances of various departments and employees, if they are not found on track then remedial measures are taken. The question to be answered for them is to how to move ahead, the same practices cannot be used in future as times are changing and with them, the management practices are also evolving.
The change in the strategy will be for a temporary basis, this strategy will be reevaluated at the next annual meeting and after a careful monitoring of the results, and remedial actions will be taken. The strategy will be allowed time for its affects to take place but if it seems that the strategy is not making a positive contribution to the organization then a new system will be introduced. The employees which are not performing up to the mark will lose a lot because the compensation packages will be based on performance and unproductive employees will be resistant to this change. This strategy will put the focus on performance and is expected to raise the performance standards without incurring many costs, which can help the business to gain much needed profits. It can also create new job opportunities for productive candidates which will benefit the whole community be creating employment in such times when the unemployment issues are a major threat to the community. The international employees should be subject to the same changes as well. However local factors must be needed to take into consideration while formulating strategies in the international businesses. It is also extremely significant that the employees are carefully screened when sending abroad to international locations because some employees are not able to adjust away from home. On the other hand there are some employees who suffer from ethnocentrism which can limit the performance of the employee himself and for the organization overall.
This plan might seem to be extremely productive for the business; however poor implementation in the management practices can lead to a crisis. Therefore the art of proper implementation seems to be the key to progress and success for an organization. The implementation of the performance management practices in the organization is a phase between its realization and the decisions. The implementation of the management practices is placed in a continuum on which interaction takes place between the decision makers and the action takers. Implementation has a lot of significance because it springs out from the realization of the ideas. The strategy in the third phase can only be implemented if there is proper implementation management. The gaps between performance and intentions can only be done through effective implementation. Time factor also plays a crucial role in the implementation of the strategy. The strategy must have a time specific deadline for its implementation and there must be a review process if there are some issues in the implementation of the management strategy.
The implementation of the strategy will have a…