Advanced Management

Prof.Dr. Ahmed Azmy

Strategic Management

Definition
Strategic Management
➢ Is a set of managerial decisions and actions that determines the
long-run performance of a corporation.

Strategy
➢ A strategy is a course of action.
➢ The company’s long-term plan for how it will balance its
internal strengths and weaknesses with its external
opportunities and threats to maintain a competitive advantage.
Strategic Management
Strategic Management Process
➢ Step 1: Define the Business and Its Mission
➢ Step 2: Perform External and Internal Audits
➢ Step 3: Translate the Mission into Strategic Goals
➢ Step 4: Formulate a Strategy to Achieve Strategic Goals
➢ Step 5: Implement the Strategy
➢ Step 6: Evaluate Performance
Strategic Management Model
Evaluation
Environmental Strategy Strategy
And Control
Scanning Formulation Implementation
External
Vision
Societal
Environment: What Mission
General forces
we
want to Reason
Task for Objectives
be?
existence
Environment: Strategies
Industry What
analysis results to
accomplish Plan to Policies
Broad
achieve
Internal guideline
the Programs
s mission
for Broad
Structure: decision guideline
& Budgets
s for Activities
Chain of making
objectives
decision needed to
Command Procedure
making accomplis Cost of
Culture: h a plan the Sequence Performance
Beliefs, programs of steps
expectations, needed to
values Actual
do the job Performance
Resources:
Assets, skills,
competencies,
knowledge

Feedback/ Learning
Strategic Management
Business Vision and its Mission
Vision
➢ A general statement of its intended direction that evokes
emotional feelings in organization members.

Mission
➢ Spells out who the company is, what it does, and where it’s
headed.
Strategic Management
Example of working Vision
➢ “To Be the Airline other Airlines want to be”… Singapore airlines.
➢ “To put a Coke within the reach of everyone” ……. Coca Cola.
➢ “To allow ordinary people to buy what rich people can”….
WalMart.
➢ “To make London the safest city in the world”….. Scotland Yard.
➢ “To give women unlimited opportunities” ….. Mary Kay Cosmetics.
Strategic Management
Environmental Scanning
Environmental scanning
is the monitoring, evaluating, and disseminating of
information from the external and internal environments to
key people within the corporation.

Strategic factors
which are those external and internal elements that will
determine the future of the corporations.
Strategic Management
Environmental Scanning
Internal Environment:
➢ Variables within the organization itself
➢ Variables form the context in which the work is done.
➢ Usually within the top management’s control.

Strengths and
Weakness
Strategic Management
Environmental Scanning
External Environment:
➢ Variables outside the organization and
➢ Variable forms the context the corporation exists
➢ Not within the top management’s control
AKA PEST variables:
✓ Political Opportunities
✓ Economical and Threats
✓ Social
✓ Technological
Strategic Management
Strategic Management
Strategy Formulation
SWOT Analysis
The use of a SWOT chart
to compile and organize
the process of identifying
company
Strategic Management
Setting Objectives - Broken down into Sub-Objectives

Corporate Mission

Business Unit Business Unit Business Unit

Sales Dep. HR Dep. Prod Dep..

➢ Linking of HRM with strategic goals and objectives in order to

support business performance and develop organizational cultures
that foster its success
Human Resources Management
Strategic Human Resource Management
➢ Linking of HRM with strategic goals and objectives
➢ HR objectives affect the business performance
➢ Develop organizational cultures that foster innovation and
flexibility.

➢ Formulating and executing HR systems—HR policies and

activities—that produce the employee competencies and
behaviors the company needs to achieve its strategic aims.
Human Resources Management
Human Resource Management - Concepts
➢ The design of formal systems in an organization to ensure
effective and efficient use of human talent to accomplish
organizational goals.

➢ It is the process of acquiring, training,

appraising, and compensating employees
and attending to their labor relations,
health and safety, and fairness concerns.
Human Resources Management
Different Roles for HRM

Strategic
Role

Operational &
Administrative Employee
Role Advocacy
Role
Human Resources Management
Changing Roles of HR Management
HR from Supporting Function to
Strategic Partner
HR from Supporting Function to Strategic Partner

1. Labor Law
2. Social Insurance
Most common Perception; 3. Employees Files
Personnel Function 4. Bonus and Penalties
5. Hire and Fire
HR from Supporting Function to Strategic Partner

1. Recruitment
2. Training
Most Practiced as a 3. Performance Appraisal
Supporting Function 4. Compensation
5. Benefits
6. Policy Compliance
HR from Supporting Function to Strategic Partner

1. Organizational
Interventions
2. Performance Management
Least Understood
3. Training Needs
& Rarely Practiced Assessment
HR as a Strategic 4. Retention Plans
Partner 5. Cultural Interventions
Human Resources Management
Employee Life cycle

Job
Analysis

Rewards
Recruiting
Management

Performance Training &

Management Development
Job Analysis
JOB analysis
The procedure for determining the duties and skill requirements of a job
and the kind of person who should be hired for it.

Job Job
Job
Right Fit
Description Specification

➢ A list of a job’s duties, ➢ A list of a job’s “human

responsibilities, reporting requirements,” that is, the requisite
relationships, working conditions, and education, skills, personality, and so
supervisory responsibilities—one on— another product of a job
product of a job analysis. analysis.
Job Analysis
Data Collection Tools/ Techniques

Interviews Direct Observations

Questionnaires Diaries or Logs

 Competency Framework

Job Descriptions Interviewing & Selection Performance Management

Training & Development Management Reward Management

Development
 Job Analysis
Position Title Sales Manager Main Accountabilities
6. Monitors competitors activities and new launches
Department Sales Department - Key Accounts
and prepares counter action plans accordingly.
Reports to Sales Director Responsible Sales Supv.
for Sales Reps.
People Management
7. Conducts quarterly appraisal session to ensure the
Objective continuous development of his sales team, assess
To achieve the sales quota for the Key Accounts sector across the 3 their training needs and recommends training
product lines in Cairo and Alexandria. courses accordingly

Main Accountabilities

Qualifications
Results
1. B.Sc. from any discipline, MBA or any relevant
1. Prepares the key accounts sales plan and budget of the year. advanced study is preferred.
2. Supervises and manages the planning and execution of key 2. 5-7 years of experience in relevant industry, of which 3
accounts sales and merchandizing teams activities. years at least in a managerial position.
3. Reports the monthly status of the overall key accounts sales
versus the set target to the Sales Director.
4. Communicates with Marketing Manager & Customer Service
Manager for sharing market information and ensuring synergy
between departmental activities for proper implementation of
Job description Sample
the sales initiatives.
5. Builds and maintains a credible relationship with key
customers to ensure an on-going relationship.
Job Analysis
Building Competency-based HRM Function
A set of Values & Competencies extracted from the
organization’s vision and strategic directions.

It reflects the behaviors required from all organization

employees, across all positions at all different levels in the
organization

It ensures a unique culture and a homogenous working force,

in addition to achieving the set organization objectives and
goals.
Job Analysis
Building Competency-based HRM Function

Values
They are the organization’s main principles & beliefs
which reflect organization direction & reason for its
existence.
Quality Orientation
Loyalty & Ownership
Integrity
Managing a Sense of Purpose
Environmental Health & Safety
Job Analysis
Building Competency-based HRM Function

Competencies

A Competency is a collective term used to identify a set

of skills, knowledge, attitudes and behaviors
necessary to fulfilling a task, activity or a career.
Job Analysis
Building Competency-based HRM Function

Core Competencies
Behaviors and attitudes required by all individuals at all levels in the
organization to ensure a homogeneous culture that fosters a productive
working environment to achieve the companies vision

Functional / Competencies
Are the functional skills required by individuals in certain functions/ departments to
undertake their jobs at the required level of efficiency to achieve the departments
objectives and ultimately the organization vision.

Managerial Competencies
Managerial competencies required by individuals holding
management positions across all functions.
Job Analysis
Soft & Technical Skills

Core Competencies

1. Drive for Results,

2. Effective Communication
3. Interpersonal Skills,
4. Customer Focus
5. Technical Mastery
Functional Skills
6. Negotiation Skills
7. Customer Management and Focus
Management Skills
8. People Management
9. Building Effective Teams

Working Conditions
Office based job, with frequent field visit and travel to the
assigned areas.
Job Profiling Sample
Human Resources Management
Employee Life cycle
Job
Analysis

Rewards
Recruiting
Management

Performance Training &

Management Development
Recruiting and Selection
Cost of Bad Hiring
➢ In your group, discuss the direct and indirect, tangible and
non-tangible costs of bad hiring

➢ Present your findings

A hiring decision is an
expensive investment
decision – making the wrong
decision can be an expensive
mistake!
Recruiting and Selection
Recruiting process
Work Force Decide what positions you’ll have to fill through
Planning personnel planning and forecasting

Sources of Build a pool of candidates for these jobs by recruiting

Candidate internal or external candidates

Have candidates complete application forms and may

Application undergo an initial screening interview

Use selection techniques like tests, background

Testing investigations, and physical exams.

Decide who to make an offer to, by having the

Interviewing manager and HR to take the hiring decision
Personal Planning & Recruitment
Personnel/ Workforce Planning
What to forecast?
➢ Overall personnel needs
➢ The supply of inside candidates
➢ The supply of outside candidates

➢ Succession planning
➢ Replacement Planning
Personal Planning & Recruitment
Recruiting process
Work Force Decide what positions you’ll have to fill through
Planning personnel planning and forecasting

Sources of Build a pool of candidates for these jobs by recruiting

Candidate internal or external candidates

Have candidates complete application forms and may

Application undergo an initial screening interview

Use selection techniques like tests, background

Testing investigations, and physical exams.

Decide who to make an offer to, by having the

Interviewing manager and HR to take the hiring decision
Recruiting process
Forecasting the Supply of Internal Candidates
Inside Sources of Candidates Outside Sources of Candidates
➢ Hiring From within the ➢ Executive recruiters
organization (headhunters)
➢ Re-Hire former employees ➢ College recruiting
➢ Job Posting ➢ Employee referrals
➢ Succession Planning ➢ Walk-ins
➢ Recruiting via the Internet
Personal Planning & Recruitment
Recruiting process
Work Force Decide what positions you’ll have to fill through
Planning personnel planning and forecasting

Sources of Build a pool of candidates for these jobs by recruiting

Candidate internal or external candidates

Have candidates complete application forms and may

Application undergo an initial screening interview

Use selection techniques like tests, background

Testing investigations, and physical exams.

Decide who to make an offer to, by having the

Interviewing manager and HR to take the hiring decision
Employee Testing & Selection
Developing and Using Application Forms
➢ Uses of information from applications
▪ About the applicant’s educational and experience qualifications
▪ Conclusions about the applicant’s previous progress and growth
▪ Indications of the applicant’s employment stability
▪ Predictions about which candidate is likely to succeed on the job
Personal Planning & Recruitment
Recruiting process
Work Force Decide what positions you’ll have to fill through
Planning personnel planning and forecasting

Sources of Build a pool of candidates for these jobs by recruiting

Candidate internal or external candidates

Have candidates complete application forms and may

Application undergo an initial screening interview

Use selection techniques like tests, background

Testing investigations, and physical exams.

Decide who to make an offer to, by having the

Interviewing manager and HR to take the hiring decision
Tests & Assessments
Types of Tests
1-Tests of Cognitive Abilities

➢ Intelligence Tests: Tests of General Reasoning Abilities like

the Intelligence Quotient (IQ).

➢ Tests of specific Cognitive Abilities: they measure specific

mental abilities such as
➢ Inductive and Deductive reasoning ‫التفكير اإلستقرائى واإلستنتاجى‬
➢ Verbal comprehension
➢ Memory and numerical abilities
Ex: Aptitude tests, Tests of mechanical comprehension
Tests & Assessments
Types of Tests
2-Tests of Motor and Physical Abilities:
➢ They test the motor abilities; like the manual dexterity test, speed
of arm movement and reaction time. Some tests also measure
strength, stamina, etc.

3-Measuring Personality and Interests:

o They measure aspects like intro/extroversion, stability,
dominance, etc.
o They measure the person’s motivation and interpersonal skills
(MBIType)
Tests & Assessments
Types of Tests
4- Work Samples and Simulations
➢ Installing a motor
➢ PC troubleshooting
➢ Sales Inventory
➢ Customer Service etc.

➢ Advantages & disadvantage?

Tests & Assessments
Assessment Center Technique
Assessment Tools

➢ The in-basket
➢ The leaderless group discussion
➢ Management games
➢ Individual presentations
➢ Case Studies
➢ Psychometric Testing
➢ Assessment Role Plays
Personal Planning & Recruitment
Recruiting process
Work Force Decide what positions you’ll have to fill through
Planning personnel planning and forecasting

Sources of Build a pool of candidates for these jobs by recruiting

Candidate internal or external candidates

Have candidates complete application forms and may

Application undergo an initial screening interview

Use selection techniques like tests, background

Testing investigations, and physical exams.

Decide who to make an offer to, by having the

Interviewing manager and HR to take the hiring decision
Interviews
Interviewing Candidates
What is an interview?
➢ A procedure designed to obtain information from a person
through oral responses to oral inquiries

Types of interviews – Purpose

1. Recruitment & Selection

2. Performance Appraisal
3. Exit Interviews
Types of Interviews
Types of selection interviews – Setting/ Sequence

1. One-on-one Interviews (Sequential/Serialized)

2. Panel Interviews

3. Mass Interviews

4. Assessment Centers

5. Tele-interviewing

6. Videoconferences
Conducting the Interview
Inappropriate questions
▪ What is your religion/ethnic group/age?
▪ What is your Political orientation?
▪ What is your heritage?
▪ Are you married? Single? Divorced?
▪ How old are you?
▪ Have you ever been arrested?
▪ What is the name of spouse?
▪ Are you pregnant?
▪ Do you think you might have a child in the near future?
Conducting the Interview
Interview Time Management
One hour interview guide-line
Introduction-build rapport 5 min
Information gathering 40 min
Information giving 10 min
Closing 5 min
Human Resources Management
Employee Life cycle
Job Analysis

Rewards
Recruiting
Management

Performance Training &

Management Development
General Concepts
Learning, Education, Training, Development
Education
▪ Traditionally, is centered around direct Teaching
▪ Refers to information and knowledge transfer.
▪ Its more theoretical and focuses on knowledge.

Training
▪ Refers to the acquisition of knowledge.
▪ Develop practical skills and competencies.
▪ It’s more practical and focuses on practice.
General Concepts
Learning, Education, Training, Development
Development
▪ Refers to unfold, bring out what is potentially obtained
▪ To become more fully to fit in future capacities.

Training and Development

▪ Is the field concerned with workplace Learning to
improve performance.
▪ Such training can be generally categorized as;
on-the-job or off-the-job.
General Concepts
Learning, Education, Training, Development
On-the-job training
▪ Is given in a normal working situation,
▪ using the actual tools, equipment and materials
▪ is usually most effective for vocational work.

Off-the-job training
▪ takes place away from normal work situation
▪ it allows people to totally concentrate on the training
▪ This is most effective for training concepts and ideas.
General Concepts
General Concepts
Learning, Education, Training, Development
Learning

➢ Is the process of bringing about relatively permanent change

through experience or/and education.

➢ Is the process of gaining understanding that leads to the

modification of attitudes and behaviors through the acquisition
of knowledge, skills and values, through study and experience.
Adult Learning
Pedagogy Versus Andragogy
Pedagogy Andragogy
➢ The art and science of ➢ The art and science of
teaching children helping adults to learn
➢ Term introduced in 1968 by
Malcolm Knowles
Adult Learning
Pedagogy Versus Andragogy
CHILDREN LEARNERS ADULT LEARNERS
✓ Subject-oriented ✓ Problem-centered
✓ Future-oriented ✓ Results-oriented
✓ Depend on adults for ✓ Self-directed
direction ✓ Skeptical about new info.
✓ Accepting new info ✓ Seek relevancy/goal
✓ Train for unclear future ✓ Accepts responsibility for
✓ Dependent on others own learning
✓ Time is more available ✓ Pressed in time
Adult Learning
Which means that …
➢ Adults want to be perceived as capable of taking responsibility
➢ Adults may feel resentment in if there is no room for express
themselves
➢ Adults’ experiences are part of their identities.
➢ Adults’ experiences and knowledge are rich resources for each
other.
Adult Learning

How do adults learn? …

➢ If they want and need to.
➢ By linking learning to past, present or future experience.
➢ By practicing what they have been taught.
➢ With help and guidance.
➢ In an informal and non-threatening environment.

➢ Safe, active learning environment

Adult Learning Styles
Types of learners – Honey & Mumford
Honey and Mumford categorized learners into 4
Learning Styles:
Prefer to Learn by trial & error
Activists Having a go
Accepting challenges & risks

Prefer to Learn by listening

Reflectors Watching the effort of others
Copying skills and behavior
Adult Learning Styles
Types of learners – Honey & Mumford
Honey and Mumford categorized learners into 4
Learning Styles:
Prefer to Learn by reading
Theorists
Abstract Conceptualization
Listening and analyzing

Prefer to Learn by debating the

Pragmatists practicalities.
Questioning others to arrive a
realistic approach
Human Resources Management
Employee Life cycle

Job Analysis

Rewards
Recruiting
Management

Performance Training &

Management Development
Performance Management (PM)
Performance Management Misconceptions
Most people associate PM with concepts such as:
● Performance Appraisal
● Performance-related pay
● Targets and objectives
● Motivation and discipline

➢ Yet, performance management is much more than this.

➢ The Performance Management Concepts have changed over
recent years.
Performance Management (PM)
Definition
Performance Management is an ongoing process of
communication between a Manager and a subordinate that
occurs regularly, in support of accomplishing the strategic
objectives of the organization.

➢ PM process includes setting

objectives, identifying goals,
providing feedback, and
evaluating results.
Performance Management
System Model
▪ Identify interests and Establish and define
needs to enhance
▪ Key responsibilities
performance
▪ Objectives
▪ Establish training plan
▪ Expected outcomes
▪ Review job description
Learning & Performance ▪ Priorities
▪ Identify new challenges
▪ Behavioral factors
Development Planning

▪ All about PA Timely, relevant

▪ Compile/review data Performance Performance feedback & Coaching
▪ Parties’ appraisals ▪
Appraisal Monitoring Observe & Monitor
▪ Appraisal errors ▪ Support & Motivate
▪ Rating ▪ Coach
▪ Common rating errors ▪ Deliver feedback
▪ The PA interview ▪ One on one sessions
Performance Appraisal
Who Appraises?

➢ The direct
supervisor/manager.

➢ Also, the appraiser’s

manager reviews and
endorses the appraisal.
Performance Appraisal
Common Appraisal Errors
1. Standards not adequately defined
2. Over-emphasis on recent performance
3. Relying on own gut feeling and perception
4. Basis for appraisal not understood by Employee
5. Documentation not sufficient or clearly written
6. Inadequate time allocation for discussion
7. Too much talking by evaluator
8. No action or follow-up plan
Performance Appraisal
Common Rating errors …
➢ Similar to Me. Tending to rate people up if they are similar to me or vice
versa.
➢ Positive Leniency. Rating higher than people deserve.
➢ Negative Leniency. Rating lower than people deserve.
➢ Halo/Horn effect. Excessively influenced by a single
favorable/unfavorable trait, which colors the judgment of the individual
other traits.
➢ Attribution Bias. Tending to see poor performance more within the
control of the individual, and superior one as more influenced by
external factors.
Performance Appraisal
Common Rating errors …
➢ Stereotyping. Generalizing across a class, not recognizing individual
differences.
➢ Contrast Effect. Evaluating employee relative to the person last
evaluated.
➢ First Impression. Forming initial positive or negative judgment then
ignoring/distorting data that can change initial impression.
➢ Central Tendency. Playing safe. Placing people in the middle of the
scale.
Human Resources Management
Employee Life cycle

Job
Analysis

Rewards
Recruiting
Management

Performance Training &

Management Development
Reward Management
What is Reward? INTANGIBLE BENEFITS
Emotional

Compensation Work Design Recognition Reward

• Freedom to Act • Praise • Tangibles
• Base Salary = Basic Salary +
Fixed Bonus (incl. 13th /14th
• Encouragement
Month) • Work Style
• Work Challenge • Promotions
• Total Cash = Base Salary +
Incentives + Cash Allowances • Building for the
future
- Career advancement
• Total Remuneration = Total
- Learning & development
Cash + Tangible Benefits (non-
- Performance Improvement
cash benefits) - Employability

REWARD = Total Remuneration + Intangible Benefits

Reward Management

Why is reward a STRATEGIC issue?

❑ Represents an investment in the most valuable asset in the

organization; Human Resources

❑ Is often the biggest recurring annual cost, therefore we need

to control and budget for

❑ Provides an excellent mechanism for aligning organizational

goals with employee goals

❑ Major leverage on employee behavior

Reward Management
Establishing Pay Rates

Step 1 Step 2 Step 3 Step 4

Job Job Job Job Worth Base Pay

Analysis Description Evaluation Hierarchy Structure
Reward Management
Establishing Pay Rates
Step 3. Job evaluation
A systematic comparison done in order to determine the worth of
one job relative to another.
Why Job Evaluation

➢ Helps set pay rates comparable to those for similar jobs

➢ Give structure for correlating job worth.
➢ Identify opportunity for upward movement and development
opportunities.
Reward Management
Reward Management Process
There are two basic approaches for comparing jobs:
▪ First, by using the intuitive approach where you decide
that one job is ‘more important’ than another

▪ Second, by focusing on job-related factors; compensable

factors, such as competencies, technical skills, effort,
impact of decision making and work scope.