Factors affecting resource allocation

The following factors affect resource allocation:

1. Objectives :Resource allocation must be oriented to objectives achievement.Objectives should be clearly laid down with strategic priorities for resource allocation.Critical success factors are considered.
2. Managerial preferences :Top managers who are dominated in strategy formulation tend t affect resources allocation.Their preferences attract more resources for their pet projects.
3. Internal policies :Resources area a symbol of power.Internal policies based on negotiations and bargaining affects resources allocation.
4. External influences :The demands of stakeholders also affect resource allocation.They can be owners,suppliers,customers,employees,bankers and community.Legal requirements may require additional resources allocation.For example pollution control,safety and labour welfare requirement.
   

Challaenges of intergration for strategy implementation

Strategic implementation requires an integrated thrust for unity of action and harmonization of efforts.The resources and competencies of strategic business units their functions need to be linked together to attain synergistic effects.
Challenges in integration can be as follows :

1. Cross SBU challenges of integration :Problems occur horizontally where SBUs are at the same level of hierarchy.Conflicts and misunderstandings among SBUs lead to dysfunctional consequences.Problems of integration can be handles by :

• Forming committees and task forces.
• Developing effective information systems in SBUs.
• Giving a liaison to a designated manager who acts as a facilitator to promote integration.
• Effective communication among SBUs.

2.Cross functional challenges of integration :Problems occur both vertically and horizontally among functions of an SBU.Each function may try to sub optimize.This can lead to conflicts.Such problems can be hand lead by :

• Effective communication among functions.
• Standardized policies,rules integration problems.
• Simplified structure of SBU.
• Decentralization.
• Reward system for compliance of performance standards that promote voluntary coordination.
• Reincarnating.
  

Role of policies in strategy implementation

Policies are empowerment tools.They simplify decision making.The guide the decision and action of mangers their subordinates in strategy implementation.They provide standard operating procedures.They are generally formal and written.The roles of policies in strategy implementation are:

1. Policies promote uniform handing of similar activities.This coordinates tasks.Frictions are reduced.
2. Policies ensure quicker decisions by standardizing answer to routine problems.They empower employees.
3. Policies reduce uncertainty in day-to-day decision making.They provide predetermined answer.
4. Policies establish consistent pattern of managerial actions.
5. policies reduces resistance to organizational strategies.
6. Policies establish indirect control over independent action.Misunderstanding.They improve job performance.
7. Policies help understand the business environment.
   

Tactical aspects of strategy implementation

The tactical of strategy implementation are:

1. Structure :The structure of the organization should be strategy friendly.The basis of structuring should be appropriate for putting strategy into action.The structure making should be decentralised.
2. Resources plans :They serve as framework for mobilising and allocating resources.Actions plans need to be prepared for various operational activities of the organization.Methods of resource allocation to SBUs and functions should be carefully determined.
3. Management system :The management system should be effective for operationalising strategy.

• Human resource management should be pro-strategy.
• Employees should have competency in operational activities.
• Information management should be developed based on informational technology.
• Leadership should have ability to motivate employees towards strategy implementation.
• Rule,regulation and procedures should be changed to facilitate operationlizing of strategy.
• Management should develop strategy supportive organization culture for operationalizing strategy.

4.Re engineering :Jobs and work processes should be radically redesigned to ope rationalize strategy.A start is made with a clean slate.The focus is on processes that create customer value.A top down approach is taken.

Operationalizing strategy

Strategic advantage is achieved at the operational level of the organization.If the operational aspects are not in line with the strategy,the implementation of strategy will not be effective.
The following factors are important for operational strategy.

1. Short term objectives :Long term objectives are translated into short term objective.They set annual targets for action.They provide specifics guidance for what is to be done.They ope rationalise long term objectives.They are measurable and prioritized.They assist strategy implementation by providing.

• Targets for year,month or week.
• Coordination to avoid conflicts.
• Measurable outcomes for functional activities for control purposes.

Action plans are based on short term objectives.Such plans identify:

• Specifics activities to be undertaken.
• Clear time frame for completion of activities.
• Responsibility for carrying out each activity.

Benefits

• They clarify of operating personnel.
• Conflicts can be addressed while developing them.
• They provide basis for control.
• They motivate for higher performance when liked with reward system.
  

Establishing management system

A management system is established for strategy implementation.A strong management team is put together.
Team members can come from within the organization or they can be outsiders.The term should have the right mix of skills with potential to developed.
The management performs the following function.

1. Human resources management :The employees are acquired developed,utilised and rain ted.

• Acquiring competent employees :Talented,experienced and competent employees are acquired for the organization.
• Developed of employees :Training and management development is made a continuous process to develop employees.This is essential to develop knowledge base and build human capital.
• Utilization of employees :Motivation is the key factors for effectively utilizing people.They are given challenging,interesting and creative job assignments.
• Retention of employees:The salary,benefits,service and incentives help retain high-potential ad high performance employees.

2.Information management :It is done through the use of information technology.
3.Leadership :It is exercised through guiding and influencing employees.It shapes organization culture.

Designing structure

Structure is a mean to implement strategy.It defines activities,levels,roles and reporting relationship.It facilitates resource allocation.Dimensions of structure are :

• Job design :Job required to implement strategy are defined.division of work is done.
• Job grouping :Similar jobs are grouped in departments.They can be production,marketing,finance,human resource,research and development.Jobs are assigned to people and position.
• Relationships :Authority responsibility relationships are established.A hierarchy is established which specifics who reports to whom.Span of control is decided.This provides formulation to the structure.

Modern structures reflex external focus.Flexible interaction,interdependency and bottom up approach.Globalisation,Internet and complexity have generally affects structures.Large organizations are getting complex.
Resources are important for strategy implementation.Resource plans are prepared to predetermine future resource needs.They serve as a framework for mobilizing and allocating.