Strategy, Organizational Design, and Effectiveness
Download
Report
Transcript Strategy, Organizational Design, and Effectiveness
Strategy, Organizational
Design, and Effectiveness
Organizations
Efficiency Organization
Mechanistic
Vertical hierarchy
Routine tasks
Managerial authority
Learning Organization
Organic
Little hierarchy
Empowered employees
Participation and open information
Managerial Roles
Top Management
Determine goals, startegy, and desiogn
External and internal environment
Middle Management
Same role, but on a smaller scale
The Process
Consideration of Environment
Establishment of strategic direction
Formation of the organization’s design
Setting the goals and strategies
Implementing the goals and strategies
Evaluation of firm’s efforts
Have our goals and staregies been successful
Organizational Purpose
Mission Statements
Why do we exist?
Official goals
Serves as a guide
Examples:
Organizational Purpose
Operative Goals
Short-term
Actual goals
Examples:
OB Review- Why Do We Need
Goals?
Why are a company’s goals important for
its employees? Customers?
How does this affect the entire
organization?
Strategy & Design
Strategy
“A plan for interacting with the competitive
environment to achieve organizational goals.”
Goals v. Strategies
Porter’s Competitive Strategy
Competitive Advantage
Low Cost
Uniqueness
Broad
Competitive
Scope
Low-Cost
Leadership
Differentiation
Narrow
Competitive
Scope
Focused
Low-Cost
Leadership
Focused
Differentiation
Miles & Snow’s Strategy
Four Strategies
Prospector
Defender
Hold onto existing customers
Analyzer
Growing environments
Stable product, innovate around periphery
Reactor
Respond to conditions as they occur
Ramifications on Organizational
Design
Low-Cost Leadership
Focus on efficiency
Strong, centralized authority
Close supervision on routine tasks
Differentiation
Learning orientation
Research capabilities
Build customer relationships
Rewards creativity and innovation
Ramifications on Organizational
Design
Prospector
Defender
Efficiency orientation
Close supervision
Analyzer
Learning orientation
Research oriented
Combines both efficiency and creativity
Reactor
No stable direction
Other Factors
Environment
Technology
How is it used within the company?
Style/Life Cycle
Is it fast paced?
Size of company
Culture
Company’s current cultural climate
Efficiency and Effectiveness
Efficiency and Effectiveness
Effectiveness
Hard to measure
Several different approaches
Contingency Effectiveness
Approaches
Goal Approach
Resource-based Approach
Internal Process Approach
Goal Approach
Did company reach its desired output?
Operative goals
Advantage
Disadvantage
Resource-Based Approach
Focuses on inputs
Advantages
Disadvantages
Internal Process Approach
Looks at transformation process
Measures internal organizational health
and efficiency
Integrated Model
Focus
Structure
Flexible
Control
Internal
External
HR Emphasis
Open Systems
Emphasis
Internal Process
Emphasis
Rational Goal
Emphasis
Integrated Effectiveness Model
Focuses on various areas of the company
Two components
Focus
Structure