UNIT-4

OPERATIONALIZING STRATEGY

RESOURCE ALLOCATION

Is a central management activity that allows for strategy

execution.
Resource allocation deals with procurement, collection
and distribution to different SBU and operational unit.
Consistent allocation with priorities ensures
organizational success.
All organizations have at least four types of resources
that can be used to achieve desired objectives; financial
resources, physical resources, human resources and
technological resources.
Strategic management enables resources to be
allocated according to priorities established by annual
objectives.

Methods for Resources

Allocation

Capital budgeting
BCG matrix based budgeting
Zero base budgeting
Strategic Budgeting
Program Budgeting
Product life cycle based budgeting

Factors affecting resource

allocations

Objectives
Managerial preferences
Internal politics
External influence

Management of
Conflicts

a disagreement between two or more parties

on one or more issues.
Independency of objectives and competition
for limited resources often leads to conflict.
Conflict management includes skillful
encouragement and handling of constructive
conflict on one hand and resolving or limiting
dysfunctional conflict on the other hand.
Constructive conflict is desirable but
destructive conflict must be avoided.

Strategies, techniques or
mechanisms to handling conflict

Avoidance
Defusing or Compromising
Confrontation