Hornibrook, S. and Lynch, S.J. (2006) Corporate Strategy and Operational Reality: Why Managers do what they do. The Icfai Journal of Business Strategy, 111 (4). pp. 51-69. (Full text available)
This paper contributes to the management debate regarding the gap between intended corporate strategy and operational reality by examining the relationships between senior executives and line managers within the multiple store retail industry. Using a case study methodology and an Agency theory perspective, the research investigates the implementation of two operational policies designed to achieve corporate strategy - employment and supplier relationship policies. The findings reveal that the incentives offered in the principal-agent relationship drove the behaviour of line managers. Managers sought to maximise their rewards by focusing efforts on surrogate measures designed to evaluate performance. The research concludes that organisational long-run considerations are counteracted by reward systems for employees that encourage behaviour that focuses on short-run sales and earnings at the expense of long term growth and development.
|Subjects:||H Social Sciences > H Social Sciences (General)|
|Divisions:||Faculties > Social Sciences > Kent Business School|
|Depositing User:||Sue Hornibrook|
|Date Deposited:||14 Sep 2008 14:04|
|Last Modified:||06 Sep 2011 00:47|
|Resource URI:||http://kar.kent.ac.uk/id/eprint/11427 (The current URI for this page, for reference purposes)|