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

Setting the goals and strategies Implementing the goals and strategies Have our goals and staregies been successful

Formation of the organizations design

Evaluation of firms efforts

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 companys 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

Porters Competitive Strategy

Competitive Advantage
Low Cost Broad Competitive Scope Uniqueness

Low-Cost Leadership Focused Low-Cost Leadership

Differentiation

Narrow Competitive Scope

Focused Differentiation

Miles & Snows Strategy

Four Strategies

Prospector

Growing environments Hold onto existing customers Stable product, innovate around periphery Respond to conditions as they occur

Defender

Analyzer

Reactor

Ramifications on Organizational Design

Low-Cost Leadership

Focus on efficiency Strong, centralized authority Close supervision on routine tasks Learning orientation Research capabilities Build customer relationships Rewards creativity and innovation

Differentiation

Ramifications on Organizational Design

Prospector

Defender

Learning orientation Research oriented

Analyzer

Efficiency orientation Close supervision

Combines both efficiency and creativity No stable direction

Reactor

Other Factors

Environment

Is it fast paced?

Technology

How is it used within the company?

Size of company Companys current cultural climate

Style/Life Cycle

Culture

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

Internal

External

HR Emphasis

Open Systems Emphasis

Control

Internal Process Emphasis

Rational Goal Emphasis

Integrated Effectiveness Model

Focuses on various areas of the company Two components

Focus Structure