Uploaded by Bongoy Bernadette L.

LO4 - STRATEGIC MANAGEMENT - Organizational Structures and Systems

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CO2: IMPLEMENT
STRATEGY WITH
MONITORING AND
CONTROL
TOPIC:
LO4: ILLUSTRATE ORGANIZATIONAL
STRUCTURE AND SYSTEMS
LO5: MANAGE VARIOUS ASSETS EFFECTIVELY
AND EFFICIENTLY
LO6: MONITOR ORGANIZATIONAL
PERFORMANCE AND CONTROL
LO4: Illustrate
Organizational
Structure and
System
WHAT IS AN
ORGANIZATIONAL
SYSTEMS?
What is an Organizational Systems?
The starting point of
any organizational
design is a realistic
COMPANY STRUCTURE that
is based on well-thought
out strategy.
WHAT IS AN
ORGANIZATIONAL
STRUCTURE?
What is an Organizational Structure?
Organizational structure
refers to the system or
mode by which a group of
individuals can achieve
its desire goals.
TYPES OF
ORGANIZATIONAL
STRUCTURE
01
TYPES OF ORGANIZATIONAL
STRUCTURE
Functional organizational
structures
Structuring an organization
effectively requires that the
management should know the goals
of the organization, the skills
of its people, the needs and
goals of its subordinates, the
available resources, and the
time, cost, and environmental
constraints that are existing.
02
TYPES OF ORGANIZATIONAL
STRUCTURE
Territorial Organizational
Structure
As an organization begins to
serve its customers who are
spread over a growing
geographical area, a
territorial structure becomes a
viable design. In this system,
the target market is divided
into geographical units
according to certain criteria.
02
TYPES OF ORGANIZATIONAL
STRUCTURE
Territorial Organizational Structure
1.
2.
3.
4.
Personnel familiar with the history of customers in the
area, their culture, their preferences, expectations,
and habits of living can cultivate the local markets.
The company and its sales force can respond quickly to
changes in the competitive environment.
There is closer contact between managers familiar with
the territory and their subordinates.
Because management is familiar with the local
conditions, it can make quicker strategic decisions.
03
TYPES OF ORGANIZATIONAL
STRUCTURE
Product Organizational
Structure
Traditionally, organizational
divisions follow a product
structure. In some companies,
the sub businesses are
assigned to product group
managers, each of them are
given key operating and staff
functions.
04
TYPES OF ORGANIZATIONAL
STRUCTURE
SBU Organizational
Structure
This division structure the
issues of whether any
marketing functions should be
performed at the corporate
staff level. Some companies
maintain a minimum marketing
services structure at the
corporate level.
ORGANIZATIONAL
COMPONENTS
Organizational Components
An organization is an
entity composed of people
that it structured and
managed in such a way that
it is able to achieve its
set goals and objectives.
ORGANIZATIONAL COMPONENTS
MANAGEMENT
Management refers to the
administrative supervision
of an organization. It
includes leadership, the
organization’s visionmission, goals, and
objectives to attain
organizational success.
ORGANIZATIONAL COMPONENTS
LEADERSHIP
Is foremost in the
management of any
business. A good leader,
regardless of
whether he owns or works for
the organization, is
someone who inspires his
employees and
stretches them to their
optimum productivity.
ORGANIZATIONAL COMPONENTS
EMPLOYEES
Aside from the management,
employees constitute a
significant part of the
organizational melieu. They
are the very people who
work, support, and earn
profits for the
organization.
ORGANIZATIONAL COMPONENTS
EMPLOYEES
Management expects employees to experience and graduate
through three levels of relationships.
1. EMPLOYEE SATISFACTION – it is an emotional state where
employee experiences a feeling of content in the
workplace.
2. EMPLOYEE INVOLVEMENT – satisfied with his/her work
conditions, an employee may graduate to a higher level of
organizational relationship called employee involvement.
3. EMPLOYEE COMMITMENT – this degree of employee
relationship is further heightened when the employee
reaches the highest level that is employee commitment.
ORGANIZATIONAL COMPONENTS
FACILITIES AND EQUIPMENT
Another important
component of the
organizational
environment is the
facilities and
equipment.
ORGANIZATIONAL COMPONENTS
FINANCIAL RESOURCES
The financial resources
of an organization
determine the direction
the organization will
take and affect its
capability to realize
its set business goals
and objectives
ORGANIZATIONAL COMPONENTS
ORGANIZATIONAL POLICIES
The organizational
milieu includes
company policies,
which are the
lifeblood of an
organization.
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