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CHAPTER ELEVEN
STRATEGY IMPLEMENTATION: STAFFING AND DIRECTING
This chapter deals specifically with staffing the corporation with people having the appropriate mix of abilities and
skills, and directing people to use their abilities and skills most effectively and efficiently to achieve organizational
objectives. The chapter explains how a change in strategy is most likely to have a significant impact on staffing
needs. Research is presented on matching the manager to the strategy. Executive succession issues are considered.
Downsizing is discussed as a commonly misused way to implement a turnaround strategy. International staffing
issues are presented in terms of managing international assignments and adjusting to cultural differences. The
chapter also explains how a corporation’s culture can be evaluated and managed to better suit the new strategy.
Action planning, management by objectives (MBO), and total quality management (TQM) are presented as useful
techniques to coordinate implementation activities. Hofstede’s research on the dimensions of national culture is used
to explain why some management techniques can work well in some countries but not in others.
LEARNING OBJECTIVES
1. Explain the link between strategy and staffing decisions.
2. Discuss how leaders manage corporate culture.
TOPICS OUTLINE COVERED
1. Staffing
a. Staffing Follows Strategy
2. Leading
a. Managing Corporate Culture
b. Action Planning
SUGGESTED ANSWERS TO MYMANAGEMENTLAB QUESTIONS
11-1. What are the critical issues that a company must consider when trying to match its staffing to its
strategy?
Strategy is implemented effectively when staffing is ready to meet the challenges set forth. There are several issues
11–2. What are the unique impacts on a company that must staff in international settings?
Implementing a strategy of international expansion takes a great deal of planning and can be very expensive.
Primarily due to cultural differences, managerial style and human resource practices must be tailored to fit particular
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SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
11-3. What skills should a person have for managing a business unit following a differentiation strategy?
Why? What should a company do if no one is available internally and the company has a policy of
promotion from within?
Research does appear to support the proposition that the manager of a corporation or business unit should be
matched to the strategy for successful implementation. Those executives who successfully implement a
differentiation business strategy tend to have a high internal locus of control and have more experience in R&D.
11-4. When should someone from outside a company be hired to manage the company or one of its business
units?
Research suggests that firms in difficulty can improve their chances for success if they bring in an outsider who does
not have the same devotion to past management practices as do most internal candidates. Many examples can be
provided of corporations turning to external turnover specialists (sometimes called “hatchet men”) to regain their
11-5. What are some ways to implement a retrenchment strategy without creating a lot of resentment and
conflict with labor unions?
The chapter discusses some of the problems involved in downsizing, a program usually used in implementing a
retrenchment strategy. Unless staffing issues are dealt with appropriately in retrenchment, a situation can develop in
which retrenchment feeds on itself and acts to further weaken instead of strengthening the company. The text
proposes six guidelines for successful downsizing:
• Eliminate unnecessary work instead of making across-the-board cuts.
11-6. How can corporate culture be changed?
The chapter points out that communication is key to the effective management of a change in culture. Top
management must be committed to a culture change and communicate that commitment to everyone in the
organization. The new culture must be part of a “strategic vision” that can capture the emotions of the employees. A
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11-7. Why is an understanding of national cultures important in strategic management?
An understanding of different national cultures is important in all aspects of strategic management. Because
international trade is becoming increasingly important, knowledge of national cultures is important to environmental
scanning. One must scan not only key forces in one’s industry, but also different societal forces in other parts of the
world where the company might do business. An understanding of national cultures is also important to the
ADDITIONAL DISCUSSION QUESTIONS FOR INSTRUCTORS
These are not found in the text and may be used by the instructor for classroom discussion or exams.
A11–1. How might manager–strategy fit be accomplished short of firing current managers?
If the current manager of an SBU is capable, but does not appear to have the skills and experiences necessary to
implement a particular strategy, the company might wish to either provide him/her with additional training or an
A11–2. Does culture follow strategy or does strategy follow culture? Why?
This question derives from the question raised in Chapter 9 regarding the relationship between structure and
strategy. The answer is much the same. To the extent that the formulators of strategy seriously consider
implementation issues in choosing a strategic alternative, they will have to assess the compatibility of a desired
strategy with the present culture. If the desired strategy cannot be implemented given the present culture, a lot of
A11–3. Compare and contrast action planning with management by objectives.
An action plan states what actions are going to be taken, by whom, during what time frame, and with what expected
results. Action plans are the primary means by which programs are developed for the implementation of strategy.
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A11–4. What value does a total quality management program have in implementing strategy?
Total quality management (TQM) is an operational philosophy that stresses commitment to customer satisfaction
and continuous improvement. It aims at improving quality, increasing flexibility, and reducing costs in order to
better satisfy the customer. Because TQM aims to reduce costs as well as improve quality, it can be used as a
A11–5. How can MBO help improve the implementation of strategy?
MBO is a powerful implementation technique because it is a system that links plans with performance. It forces
managers to communicate the objectives of the overall business unit to their subordinates so they are better able to
implementation activities succeed.
SUGGESTIONS FOR STRATEGIC PRACTICE EXERCISE
Using the Keirsey Temperament Sorter
This is a fun exercise that provides students some insight into their own personality and how they compare with
others in their decision-making style. First, ask the class to complete and score their Keirsey Temperament Sorter
before class. When the students come to class, each of them should give you a sheet of paper with their name and
personality type: Guardian, Artisan, Idealist, or Rational. As suggested in the chapter, put them into groups based on
their personality type. One idea is to form some groups containing the same personality type and some other groups
You may choose to do any one or all three of the options listed at the end of the exercise in the textbook:
• On a sheet of paper, each person in the class identifies his/her personality type and votes which team
did the best on the project.
Use this exercise to illustrate how important it is to consider personality differences when staffing an organization.
Should creative, entrepreneurial firms have a larger number of some personality types (such as Artisans) than
others? Do large bureaucracies thrive on Rationalists and Guardians to the disadvantage of Artisans and Idealists?
What is the best style for strategic decision making? Should a strategic planning committee be composed of a
mixture of all four styles or just one style?