2. Behavioural Issues in Strategy Implementation
•Leadership and Power
•Values and Ethics
•Managing change
3. Leadership
• Leadership success is linked to the ability of a leader to exercise the
right kind of influence at the right time,
• Autocratic Leader
• Democratic Leader
• Free-rein Leadership
4. Power
• Leaders use power to influence and implement strategy
• Types of Power
• Formal Power
• Legitimate
• Reward
• Punishment
• Coercive
• Informal power
• Referent
• Charisma
• Information
5. Values
• Values represent basic convictions that ‘a specific mode of conduct or end-
state of existence is personally or socially preferable to an opposite mode
of conduct or end-state of existence.
• We have a hierarchy of values that forms our value system. This system is
identified by the relative importance we assign to values such as freedom,
pleasure, self-respect, honesty, obedience, and equality.
6. Ethics
• Study of moral issues and choices
• Concerned with right vs. wrong, good vs. bad
• Ethics try to set the standard for the ultimate end or the highest
good to be pursued
• Normative; judgmental
• Unstructured; abstract
7. Work Ethics
• A trade-off between economic objectives and social obligations
• Management Dilemma : Choice between right and wrong (Gray areas)
Characteristics of Work Ethics:
• Differ with individuals
No unique solutions
Multitude of alternatives
• Have synchronic effects
• Involve trade-off between costs & benefits
profits and responsibility
the ethical dilemma
8. Impact on strategy implementation
• Studies show that there is high positive correlation between value
based business and success.
• Companies facing global challenges are formulating globally
consistent codes for ethical understanding and decision making at
all levels.
9. Managing Change
Forces of Change
• Internal forces
• Human Resource Factors
• Managerial Decisions
• External forces
• Technological developments
• Demographic characteristics
• Market changes
• Social and political pressure
10. Rules for Effective Change Management
• Work hard at establishing a sense of urgency
• Do not think out the change, think through it
• Form powerful coalition
• Initiate change through informal discussion to get feedback and participation
• Positively encourage objections
• Listen actively
• Plan for and create short term gains
• Institutionalise new approaches
• Monitor the change and reinforce it