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Functional & Operational Level Strategies

Strategic management notes

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Dàico Pieřıck
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0% found this document useful (0 votes)
89 views28 pages

Functional & Operational Level Strategies

Strategic management notes

Uploaded by

Dàico Pieřıck
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Entrepreneurs who follow traditional administration

strategies are likely to reach their desired objectives.


These strategies include operational and functional
level strategies, which are applied at different structural
levels within the business.
Functional level strategies are the goals and related
actions linked to specific departments in support of the
corporate level strategy. They develop the results the
business owner wants to see, from the daily operations
in the different departments of the company.
Operational level strategies cater to the entire
business's activities and are focused on resource
application and allocation. Operational level strategies
usually are driven by the overall business approach and
are designed to maximize the overall effectiveness of
the production, all the while minimizing risk to the
company goals.
Three Levels of Strategy

The highest level is the corporate strategy, and it


answers the fundamental question of what the business
aspires to achieve. It also defines the market the
company is operating within and plans how to best
approach these markets. The second level is
the business strategy, which considers the corporate
strategy while defining particular trends for each
market. It also illustrates how each business unit will
implement the strategy.
The functional strategy encompasses the day-to-day
activities, so the company maintains its overall
mission. It also deals with the relationships between
the project teams and the way the functional objectives
are met.
Functional Level Strategy in an Organization
The functional level strategies have to reflect the
business, and reaching corporate goals requires the
involvement of several functional areas. Therefore, to
increase market share, the functional level strategy
might include marketing to improve brand recognition,
quality improvement for the end products and the
hiring of specialized personnel. When these strategies
are met, departmental management can create
individual assignments geared to support sectoral
objectives. The functional level approach should have
the following key variables:
 Alignment. The functional strategies must align
with business and corporate strategies alike. If the
corporate approach is to improve the level of
market share and the business strategy involves the
improvement of brand identification, the
functional strategy should not include updating the
security systems because it is not in alignment
with the other strategies.
 Detail. The functional strategy should have a high
level of detail. There should be specific goals for
each department, and the respective managers
should have specific criteria through which the
successes of the team are measured.
 Existing Resources. Each functional strategy in
place has to use current resources present in each
department, whether they are personnel, equipment
or opportunity. The business should not base the
marketing department strategy on inaccessible or
imaginary resources.
 Progress. When trying to assess the level of
progress being made, it is possible to get caught up
in the available data. The management should
consider what the corporate and business level
strategies are and then provide frameworks to
assist in determining whether there is progress
toward these objectives.
Operational Level Strategy
Operational level strategy refers to the means the
companies use to accomplish overall objectives.
Through the development of operational strategies, the
firm can evaluate and implement efficient systems for
the use of resources and personnel. Without a stable
operations strategy, companies may not be able to keep
up with the changing markets and could start to lose to
trendier competitors.
One appropriate operational level strategy example was
when Amazon began to use drones for delivery. It was
a change from its traditional brick-and-mortar approach
coupled with physical deliveries. To be effective, all
parts of the company have to work together. Under the
operations level strategy, each department has to
contribute to the mission statement and administer
strategies which underlie the overall business strategy.
Functional level strategy may sound like a difficult
concept, but once you understand where it fits into
the overall strategy of your business, you’ll have
no problem developing functional level strategies
that will drive your business toward success.
Functional Level Strategy
Functional level strategies are the actions and
goals assigned to various departments that support
your business level strategy and corporate level
strategy. These strategies specify the outcomes
you want to see achieved from the daily operations
of specific departments (or functions) of your
business.
Your functional level strategies should reflect the
fact that corporate and business objectives
typically require the involvement of multiple
functional areas (e.g., HR, production, R&D, etc.).
So, continuing with the corporate level strategy of
increasing market share, your functional level
strategy would then be:
 HR: increase hiring of highly-trained
employees
 Marketing: improve brand identification
 Production: reduce rejections
Once these strategies are set,
department managers can devise individual
employee assignments to support the departmental
goals.
Key Variables Of Functional Level Strategy
1) Detail
Your functional level strategy will have the most
detail of the three strategy types. Of course, you’ll
have the specific goals and actionable items for
each department. But you’ll also have the
various metrics through which you gauge the
success of your team’s actions.
2) Alignment
Functional level strategies should always align
with the business level strategies and corporate
level strategies above them.
For example, if your corporate strategy is to
improve market share and your business strategy is
to improve brand identification, you wouldn’t
want one of your functional strategies to be for the
marketing department to update their computer
systems. Those goals are out of alignment.
You’ll ensure your success (and gain the support
of high-level management) when all three strategy
levels are pointed toward the same result.
3) Progress
When trying to measure your progress, it can be
easy to include too much information and become
inundated with data. It’s vital to keep in mind what
your business level strategies and corporate level
strategies are and only measure the aspects that
help you determine if you’re progressing toward
those goals.
4) Existing Resources
Every functional level strategy that you put in
place should utilize the existing resources — both
equipment and personnel — that each department
has to offer.
Put another way, you don’t want to base your
marketing department strategy on resources they
don’t have. Doing so could seriously undermine
the broader goals above it (at the business and
corporate levels).
5) Integration
In addition to vertical alignment, functional level
strategies should also be integrated horizontally
within and among departments.
For example, coordinate purchasing, inventory,
and shipping within your operations department,
and those activities with any new processes in the
production department. That way, actionable items
in one department don’t put a speed bump in the
actionable items of another department.
Now that you know what functional level strategy
is and how it fits into the hierarchy of your
business, let’s examine specific examples of goals
that work at this level.

18 Examples Of Functional Level Strategy

By way of illustration, let’s imagine that


Company X sets three corporate-level goals:
efficiency, quality, and delivery.
Here’s how those objectives would manifest as
functional level strategy in each of six
departments.
Human Resources
1) Efficiency
Reduce hiring and training expense by minimizing
employee turnover.
2) Quality
Provide extensive training to decrease employee
error.
3) Delivery
Streamline acquisition and education of talent.
Marketing
4) Efficiency
Maximize cost-effective targeting
of advertising campaigns.
5) Quality
Provide an accurate assessment of customer
product preference.
6) Delivery
Detect and react to evolving market trends.
Purchasing
7) Efficiency
Negotiate purchase price to provide increased
value.
8) Quality
Select vendors who are willing to become partners.
9) Delivery
Manage deliveries to avoid extensive inventory.
Operations
10) Efficiency
Minimize scrap.
11) Quality
Increase high-quality production.
12) Delivery
Adapt to the latest production demands with
minimal delay.
Accounting
13) Efficiency
Simplify and automate the process of
gathering information.
14) Quality
Reduce errors in data provided to other
departments.
15) Delivery
Provide access to information in real time.
Research & Development
16) Efficiency
Test the feasibility of concepts before producing
full-scale prototypes.
17) Quality
Design products that integrate customer demands
and production capabilities.
18) Delivery
Speed up overall innovation using parallel design
processes.
The Benefits Of Functional Level Strategy
Because functional level strategy is so specific, it
is usually more difficult to set than your corporate
and business strategy. But taking the time to
hammer out the actionable strategies of each
department can help you align your goals from the
top of your organization all the way down to the
individual employees.
This will help the managers throughout your
organization get a better understanding of how
their departments (and the employees that make
them up) impact your business and corporate level
strategy. And when all the pieces of your business
are united in achieving a singular goal, success is
inevitable.

1.We cannot do today’s job with We cannot do


today’s job with yesterday’s methods and be in
yesterday’s methods and be in business
tomorrow” business tomorrow”
--- Nelson Jackson
2.INTRODUCTION
Manager is a person who is elected by the
Top Manager is a person who is elected by the
Top Management and given a designation/post
in the Management and given a
designation/post in the Organization to the
fulfil the goal and Objective Organization to
the fulfil the goal and Objective of the
Organization. He is instructed by the top of the
Organization. He is instructed by the top
management to manage the activities (every
management to manage the activities (every
activity of the Organization) activities of the
Organization)
3.DEFINATION
A Manager Any person who perform the
functions of planning, organizing, staffing,
directing and controlling for the
accomplishment of Predetermined
Organization goals is called as Manager.
Manager is not actually do the work but guide
others to do things correctly.
4.A Good Manager has the capability to get
people of an ordinary ability to perform in an
extraordinary manner!
5.Role of Manager
By Henry Mintzberg
-Interpersonal Roles
- Figurehead
- Leader
- Liaison Informational Roles
- Recipient -
- Disseminator
- Spokesman
- Decisional Roles
-Entrepreneur
-Disturbance Handler
-Resources Allocator
-Negotiator
6.Interpersonal Roles
- Figurehead Performs symbolic duties like
signing legal documents, welcome to
visitors.
- Leader Motivation and direction to
subordinates, training, counselling
and communication with subordinates.
- Liaison Interaction with people both inside
and outside the Organization, use phones
outside the Organization, use phone calls,
email and meetings.
7.Informational Roles
- Recipient Receive information about
changes, opportunities, and problems that
the Organization may face.
- Disseminator or Forward information to
subordinates, send memos and reports.
- Spokesman Represent the Organization in
public through speeches and reports.
8. Decisional Roles Entrepreneur Identify new
ideas and seek innovative methods to improve
the performance of the Organizations
Disturbance. Take corrective action in case of
disputes. Resolve conflicts among
subordinates.
9.Resource Allocator: Allocation of various
resources like money, material, time,
scheduling, budgeting.
10. Negotiator: Negotiate with other parties
like customers, suppliers and government.
11. 5 Differences
a. WorkerWorker• Works alone•
b. Does the work•
c. Like a player in the team•
d. Is lead and Managed•
e. Responsibility
i. SingleManager•
ii. Works with others
iii. Develops people/customers•
iv. Like a coach and a counsel.
v. Pitches in as counsel;
vi. Pitches in as player when
needed•.
vii. Is the Leader/Manager
according to the condition•
Responsibility :
VariousResponsibility :
Various
12. Key Responsibilities
i. Planning of work
ii. Proper and effective
communication
iii. Getting co-operation of
Employees
iv. Encourages a team spirit
v. Better utilization of Resources
vi. Selecting the Procedure
vii. Maintaining good human
relations
viii. Solve the Problems
ix. Arrange training and
development facilities
13. Decision Making
i. Decision Making Focus on
Brands / New Products
ii. Distribution Channel
Management
iii. Timely Reporting and
Feedback
iv. Developing Team Members
v. Market Development
vi. Market Intelligence
vii. Strong Customer Focus
14. Key Special Qualities
i. Director
ii. Motivator
iii. Human Being
iv. Guide
v. Friend
vi. Planner
vii. Supervisor
15. Functions of Manager
i. Planning
ii. Organizing
iii. Staffing
iv. Controlling
v. Directing
16. A Good Manager will…..always succeed
in getting more output and better results from
his team members……and they will deliver
this willingly!
Thinking about becoming a manager? Or maybe
you’re creating a managerial position in your
business. Both demand that you know what the
manager duties will be. In this article, the experts
at Sling tell you everything you need to know
about being a manager in a business large or small.

Primary Manager Duties


Every business is different, but these main
manager duties are pretty much consistent across
industries.

1) Staffing
Using a smartphone to handle manager duties
Managers are responsible for all the jobs
associated with staffing. This includes:

Attracting the right employees


Interviewing
Hiring
Firing

2) Scheduling
Sling app helps businesses tackle manager duties

A big part of any manager’s responsibility is


scheduling when employees work. Without the
right tools, this job can take up a significant
amount of time. That’s where tools like Sling
come in. They give you everything you need to
streamline the scheduling process so you can
devote more time to what really matters:
improving your business.

3) Goal Setting
Managers make note of what needs to be done in
the business and then set the appropriate goals for
the team members to work on. Setting goals helps
keep your team focused and engaged and makes
hitting the necessary milestones that much easier.

4) Daily Operations
There’s a lot that goes into running a business, and
the manager is responsible for a large portion of
that daily activity. From opening the doors in the
morning to keeping everyone busy throughout the
day and closing the doors at night, a manager’s job
is really never done.

Thankfully there are tools that can help you in this


regard. Software like Sling can make it easier to
get employees clocked in, keep them on task, and
make sure everything runs smoothly.

5) Administration
Administration is a catch-all term that usually
refers to all the paperwork necessary to keep the
business running. This includes but is not limited
to:

Paying bills
Payroll
Taxes
Maintaining employee files
Setting policy
Creating an employee handbook
If you, as the manager, don’t have a good handle
on the administrative side of your business, it can
take up a big portion of your day.

6) Communication
Manager communicating with his employees

A manager acts as a means of communication


between employees and upper management. He or
she will often translate the wishes of the
executives into actionable items that team
members work on. Similarly, the manager will
communicate any ideas from the employees in the
trenches to the owners who run the business.

7) Advertising & Marketing


No business would be successful without
advertising and marketing. And the bulk of that
responsibility lies with the manager. Whether it’s
putting up flyers on telephone poles, designing a
menu, or redecorating the business, the manager is
largely responsible for the direction these activities
take.

8) Motivation
Keeping your team members motivated is an
essential part of their success. The manager is
responsible for inspiring each and every member
or team to reach for — and exceed — their
potential. When your team is successful, you and
your business will be successful as well. That all
comes from encouraging your employees to be
productive.

9) Delegation
Happy manager who has just delegated tasks

Managers have so much to do that sometimes it’s


imperative to delegate. They can pass on some of
their manager duties to trusted employees or
assistant managers. Tasks like paperwork, ordering
supplies, keeping track of inventory, and
onboarding new employees are jobs that you can
delegate to others in order to free up your time for
other key duties.

10) Training
Training new employees is a big part of what
makes a business successful. When a manager
takes the time to provide the best training from the
start, he or she ensures that employees know what
it takes to do well in their jobs. Taking an active
role in training team members also guarantees that
they recognize the standards you’ve established for
their positions.

11) Coaching
While training applies to new employees, coaching
serves to improve the way long-time team
members work. Each employee is different, so no
two coaching plans will be the same. Some team
members may be reaching out for more diverse
experiences, while other employees just want to
get better at the job they’re in right now.

As a manager, you need to know how to keep each


and every member of your team working at their
highest potential.

12) Evaluation
Example of evaluation as part of manager duties

When you conduct periodic employee evaluations,


you encourage your team to always be on the
lookout for ways to improve. Employee
evaluations should be done at least once a year, if
not more, to ensure that every team member
knows what they need to do to continue improving
in the job.
13) Decision Making
Managers make so many decisions during the
course of a day that we don’t have room to list
them all here. You should be comfortable making
choices with plenty of information or with little to
no information. Decisions can range from
mundane things like which type of soap to buy for
the bathrooms to vital things like who to hire and
fire.

14) Policy Enforcement


It’s the manager’s responsibility to create an
environment where your employees hold one
another accountable for their actions. This is done
by setting policy and then enforcing it when
conflicts arise (which they will).

Sometimes it’s as simple as setting ethical


behaviors for the workplace, while, at other times,
it’s more complicated (like when there’s friction
between employees). Either way, the manager
should monitor and enforce all the policies that the
business deems necessary.
Being A Manager Is All About The Team
Being a manager is not about your performance.
It’s about your team’s performance. When you
understand the role you play in your team’s
success, you can leverage your skills in planning,
leading, organizing, and controlling to make their
jobs easier. That’s what the manager duties on this
list are for: to give your team — and your business
— every chance to excel.

1. INTRODUCTION
Leadership is the one of the most important
function of management.
Leading involves directing, influencing &
motivating employees to perform
2.DEFINITION:
According to Peter Drucker, “ Leadership is
shifting of own vision to higher sights, the
raising of man’s performance to higher
standards, the building of man’s personality
beyond its normal limitations.”
3.WHO IS A LEADER......?
 One that leads or guides.
 One who is in charge or in command of
others.
 One who heads a political party or
organization.
 One who has influence or power, especially
of a political nature.
4. CHARACTERS OF LEADERSHIP
• Empathy
• Consistency
• Honesty
• Direction
• Communication
• Needs support from all
• Assume obligation
5.DIFFERENCE BETWEEN MANAGER &
LEADER

MANAGER LEADER
Oversees the current Wants to create the
process well future
Must achieve balance Needs to make change
Thinks execution Thinks ideal
Comfortable with Welcomes risks
control
Problems are just that Sees problems as
& need resolution opportunities is patient
ASAP
Procedure is King Substance thumps the
King
Instructs as to Your best college
technique & process professor
Impersonal, remote High emotional
intelligence





6.IMPORTANCE OF LEADERSHIP
 Initiates action
 Motivation
 Providing guidance
 Creating confidence
 Co-ordination
 Effective planning
 Inspiration & motivation
7.ROLE OF A LEADER
A Leader’s role is always to ensure his/her
team achieves the task in hand, but an
effective leader will also ensure they meet
more subtle requirement....... : - like
 Strong focus
 Integrity
 Good engagement with others
 Looking at the bigger picture
 Resourcefulness
 Organisational Clout
 Effective communication
8.Managerial Leadership influences the
organisation in the following ways:
• Leading affects Morale
• Leading is key to effective Communication
• Leading effectively contributes more to the
bottom line

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