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