1 What Skills Should A Person Have For Managing A Business Unit Follo ✓ Solved

1. What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one having these skills is available internally and the company has a policy of promotion from within? A person for managing a business unit using a differentiation strategy should have high internal locus of control so that they can control themselves and influence/train others as per the requirements.

He or she should be experienced in Research and Development. He or she should be creative and innovative and should also possess the risk taking ability. A person should have these qualities or skills as the differentiation strategy calls for the development of products or services which are unique and different from that of the competitors. If no one having these skills is available internally and the company has a policy of promotion only from within, then the company should reconsider the policy. The company should go for external hiring.

If the company wants to hire internally, then the proper training should be given to that internal employee. 2. When should someone from outside a company be hired to manage the company or one of its business units? If the organization is going through a crisis situation or if the organization is planning to start a new business unit then a consultant can be hired from outside who would be specialized in such aspects and will ensure that the needful is done in order to make the decision of the organization effective and ensure better performance too. The individual hired needs to be one of those individuals who have sound business and domain knowledge who will help the organization in achieving their planned business objectives.

DH Response (. What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one is available internally and the company has a policy of promotion from within? When managing a business an individual would want to have employees that want to be present at their job and not someone who just wants to collect a pay check.

When workers are eager and happy to be at work they are more productive and better results are achieved. Companies that use the, promote from within normally have some sort of training program which means they are always grooming future leaders. If a particular location does not have someone for the position they should bring them in from another source in the chain. If this is still not an option they should look at sourcing from an outside source with similar values and ambitions. 2.

When should someone from outside a company be hired to manage the company or one of its business units? Business tend to look outside of its company when they want to introduce new concepts or ideas that can be an added which benefit the company. Another consideration is if the company does not have a qualified employee they will look outside of the organization. PB What skills should a person have for managing a business unit following a differentiation strategy? Why?

What should a company do if no one is available internally and the company has a policy of promotion from within? For managing a business unit that follows a differentiation strategy, it is important that the manager or the CEO of the concern should have very good analytical skills. Analytics and innovation are two key factors for a business unit having differentiation strategy. This strategy involves developing distinct product for different customer segments, which earns innovation has to be at its peak throughout the business cycle. Since differentiation strategy address's niche market segment, it is important for the personnel at the top level to be innovative and analytical.

People or customers will always want to expedite new products and services, hence innovative thinking is one of the important skills that a person would possess in a differentiation organization. If no one in the company has this skill then the company will have to identify the best available from the group by conducting various activities which will help them to evaluate the skills. Internal job promotions are one of the factors which help is retention of employees , hence it is important that internally available skills are first identified properly and then rewarded suitably. This will give a sense of job security to the employees which will act as a key motivational factor. When should someone from outside a company be hired to manage the company or one of its business units?

There are times when a company finds that their existing employees have become deadwood because of burn out factor. In such a scenario, the company must look for new employees with fresh ideas and fresh energy. Companies also hire people from outside, when people with the required skills, experience and attitude for a particular position are not available within the company. So hiring people from different companies or industry background helps infuse new perspectives and ideas into the business. Also external people don’t come with a baggage of perceptions about the company, unlike internal employees. Sometimes companies go for external hiring in order to poach a person who is working for a competitor and the person can bring the same competitive advantage from competition to them.

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Skills Required for Managing a Business Unit Following a Differentiation Strategy

In the context of managing a business unit that adopts a differentiation strategy, the requisite skills can be diverse and multifaceted. A differentiation strategy focuses on developing unique products or services, allowing a business to stand out in the competitive landscape. To effectively manage such a business unit, individuals should embody a unique set of skills and qualities, including but not limited to:
1. Strong Leadership Ability: Effective management requires the ability to inspire and motivate teams (Kirkpatrick & Locke, 1996). A leader must foster an environment conducive to creativity and innovation. Strong leadership also includes emotional intelligence, enabling managers to connect with their employees (Goleman, 1995).
2. Creativity and Innovation: Managers must lead their teams in generating innovative products that address customer needs distinctively (Hennessey & Amabile, 2010). They must cultivate an organizational culture that encourages experimentation and out-of-the-box thinking, ensuring the constant evolution of offerings.
3. Research and Development Skills: A practical understanding of R&D processes is essential, as differentiation strategies often hinge on innovative product development (Cooper, 2011). This includes knowledge of market trends, consumer behavior analysis, and technological advances.
4. Analytical and Strategic Thinking: Analytical skills are essential for interpreting data and market trends to make informed decisions (Simon, 1997). A strategic mindset helps managers anticipate market shifts, ensuring that the business unit remains competitive.
5. Risk Management and Tolerance: Differentiation entails risk-taking due to the uncertainty surrounding novel concepts (Morris et al., 2008). Managers must possess a calculated risk-taking ability, enabling the organization to navigate uncertainties successfully.
6. Communication and Interpersonal Skills: Effective communication fosters collaboration within teams and with stakeholders (Robinson, 2012). Managers must articulate their vision clearly and encourage open dialogue to solicit valuable input from their teams.
7. Customer-Centric Orientation: Knowledge and understanding of customer preferences enhance a manager’s ability to develop products tailored to market needs (Kotler & Keller, 2012). Managers must actively engage with customers to glean insights that inform product differentiation.
8. Project Management Proficiency: An understanding of project management principles is crucial, given that differentiation initiatives often encompass complex development processes (Baker, 2007). Managers should be adept at planning, executing, and monitoring projects to realize innovative strategies.
9. Agility and Flexibility: The dynamic nature of markets necessitates that managers adapt quickly to unforeseen changes (Teece, 2007). Agile leaders can pivot strategies as required, ensuring ongoing alignment with shifting consumer expectations.
10. Internal Locus of Control: Managers should possess a strong internal locus of control, empowering them to influence their environment positively (Rotter, 1966). This mindset fosters proactive problem-solving and encourages employees to take initiative.

Addressing Skill Gaps Internally

When a company faces the situation where no one internally possesses the requisite skills for managing a business unit under a differentiation strategy, and yet adheres to a policy of internal promotion, several strategies may be employed:
1. Revising Promotion Policies: The organization should conduct a comprehensive analysis of its promotion policy. While promoting internally fosters employee morale and loyalty, it may be detrimental to business progress if necessary skills are absent. Organizations may need to balance internal promotions with external hiring periodically.
2. Training and Development Programs: The organization can implement targeted training and development programs to upskill existing employees. Workshops, coaching, mentorship, and experiential learning initiatives can prepare employees for roles requiring advanced capabilities, especially in areas like innovation and project management (Guskey, 2003).
3. Job Rotations and Cross-Departmental Collaborations: By allowing employees to experience various business units, companies can expose them to diverse aspects of the organization. Such exposure can equip employees with the creative and analytical skills necessary for a differentiation strategy.
4. Creating Talent Pools: Organizations should cultivate a talent pool by identifying and grooming potential leaders within existing staff. Structured career development plans can assist in preparing high-potential employees for future leadership roles.
5. Mentorship Programs: Pairing less experienced employees with seasoned leaders can facilitate knowledge transfer and skill development. Mentorship initiatives can also enhance emotional intelligence and interpersonal skills, vital for managing teams effectively.

When to Seek Outside Hiring

While promoting from within has numerous benefits, there are scenarios when hiring someone from outside proves essential:
1. Crisis Management: If an organization experiences a crisis, it may require a leader with a different perspective and approach to reestablish order and prompt recovery (Palmer et al., 2007). External hires often bring fresh ideas that can effectively dissolve stagnation.
2. New Business Unit Launch: When launching a new business unit, organizations often look for individuals with specific expertise and adeptness in navigating market entry and scaling challenges. External hires with relevant experience can infuse innovative concepts and methodologies.
3. Broader Knowledge and Network: External candidates may possess a vast network and diverse experience that internal candidates lack. Access to these resources can prove advantageous, especially in industries requiring constant innovation and adaptation (Burt, 2005).
4. Diversity in Thought and Experience: New hires from varying backgrounds can bring alternative viewpoints that challenge the status quo, fostering a culture of innovation. This diversity in thought can be particularly powerful in differentiating strategies (Page, 2007).
5. Absence of Required Skills: If existing employees lack specific expertise in areas crucial to the differentiation strategy, external hiring may become a necessity to acquire the skills needed to remain competitive (Brewster et al., 2016).

Conclusion

In conclusion, managing a business unit with a differentiation strategy necessitates a diverse array of skills, ranging from creativity and analytical capabilities to emotional intelligence and project management expertise. When internal talent is insufficient, companies must explore alternative approaches, such as revising promotion policies or providing extensive training. While promoting from within encourages loyalty, there are times when external hiring is essential to ensure that the business unit adapts and thrives in a competitive market landscape.

References

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