David 2011 defines policy as “specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals’. Policies are directives designed to guide the thinking decisions and actions of managers and their subordinates in implementing a firm’s strategy. They increase managerial effectiveness by regulating many routine decisions and clarifying the discretion managers and subordinates can exercise in implementing functional tactics (John et.al, 2008). Policies set limits, constraints, and boundaries on the administrative actions which the organization can take to reward and sanction behavior hence tools which are necessary in strategy implementation process. This means that they are a tool that can be used to direct what can and cannot be done in the organization in order for it to achieve its strategic goals. Organizational policies help in giving solutions to the ever recurring organizational problems and act as a guide in the strategy execution.
Policies provide a basis for management control, allow coordination across organizational units, and reduce the amount of time managers spend making decisions because through them everyone clearly knows the role they ought to play in the strategy implementation (David, 2011). This means that they are designed to control decision at the same time defining allowable discretion within which operational personnel can execute business activities. Communicating specific policies helps people to act and be commitment to successful strategy implementation.
Organization structure plays an important role in the strategy implementation (Heide at el.2002) Changes in strategy often require ...
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... factors that affect an effective resource allocation in an organization include, an overprotection of resources, a great emphasis on short-run financial measures, organizational politics, unclear strategy targets, an unwillingness to take risks, and a lack of sufficient knowledge on what needs to be done. An effective resource allocation does not guarantee successful strategy implementation unless programs, personnel, controls, and commitment are well aligned to the provided resources (David, 2011). There are numerous factors at play that can prohibit effective resource allocation such as overprotection of resources, too great an emphasis on short run financial criteria, organizational policies, vague strategy targets and lack of sufficient knowledge. The way an organization handles its resource allocation is a crucial part of strategy implementation (Lynch, 2000).
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