Chapter 5
Strategy, Organization
Design and Effectiveness
The Role of Strategic Direction in
Organization Design
External Environment
Opportunities
Threats
Uncertainty
Resource availability
Organization
Design
•Structural form –
Effectiveness Outcomes
Strategic Direction
learning vs.
•Resource
efficiency
Define
Select
s
CEO、 Top
•Information
and
mission,
operationa
Efficiency
management
control
systems.
official
l goals,
Goal
team
•Production
goals
competitiv
attainmen
technology
e
t
•Human
resource
strategies
Competing
policies incentives
Internal Situation
values
•Organizational
Strengths
cultural
Weaknesses
•Interorganizational
Distinctive competence
linkages
Leader style
圖 2.1 組織方向、設計及效能的高階管理角色
Past performance
Organizational Purpose
• Mission；Official goals
• Operative goals
Organizational
Purpose
Mission or
Official goals
Operative goals
使命
圖 2.2 賀軒公司的使命
Profitability reflects the overall performance
of for-profit organization, also may be
expressed in terms of net income, earnings
per sharing, or return on investment.
Operative
Goals
Overall
performance
Overall
performance
Operative
Goals
Resources
Pertain to the acquisition of
needed material and financial
resources from the environment.
Related to the market
share or market standing
desired by the
organization
Overall
performance
Operative
Goals
Resources
Market
Employee development
pertains to the training,
promotion, safety, and
growth of employees.
Overall
performance
Employee
Development
Operative
Goals
Resources
Market
Innovation goals pertain to
internal flexibility and
readiness to adapt to
unexpected changes in the
environment.
Innovation
Overall
and change
performance
Operative
Goals
Employee
Resources
Development
Market
Productivity goals concern the
amount of output achieved
from available resources.
Productivity
Innovation
Overall
and change
performance
Operative
Goals
Employee
Resources
Development
Market
Goal Type and Purpose
Type of goal
Purpose of goals
Official goals,
Mission:
•Legitimacy
Operative goals
•Employee direction
and motivation
•Decision guidelines
•Standard of
performance
A Framework for Selecting Strategy and Design
A strategy is a plan for
interacting with the
competitive environment
Competitive Advantage
to achieve organizational
goals.
Uniqueness
Low cost
Broad
Competitive
Scope
Low-cost leadership
Differentiation
Example:
Ryanair
Example:
Starbucks Coffee
Focused low-cost
leadership
Narrow
Example:
Rent-a-Car Company
圖 2.3 Porter 競爭策略
Focused
Differentiation
Example:
Puma
Miles and Snow’s strategy typology
The prospector strategy is
to innovate, take risks, seek
out new opportunities and
grow.
Prospector
Miles and Snow’s
strategy
typology
Miles and Snow’s strategy typology
Prospector
Defender
Miles and Snow’s
strategy
The defender strategy is
typology almost the opposite of the
prospector, this strategy
seeks to hold onto current
customers, but it neither
innovates nor seeks to
grow
Miles and Snow’s strategy typology
Prospector
Defender
Miles and Snow’s
strategy
typology
Analyzer
To maintain a stable
business while innovating
on the periphery
Miles and Snow’s strategy typology
In a reactor strategy, top
Defender
Prospector
management
has not defined
a long-range plan or given
the organization an explicit
Miles
mission or goal, so
the and Snow’s
organization takes whatever
strategy
actions seem to meet typology
immediate needs.
Analyzer
reactor
策略的組織設計結果
Contingency Factors Affecting
Organization Design
Technology
Size/Life
Cycle
Culture
Organizational Structure and Design
The Right Mix of Design Characteristic Fits the Contingency Factors
Contingency Approaches to the measurement
of Organizational Effectiveness
External Environment
Organization
Resource
Input
Resource-based
approach
Internal
activities and
processes
Internal process
approach
圖 2.5 量測組織效能的權變方法
Product
and
Service
Outputs
Goal
approach
Goal Approach
Indicators
The important goals to consider are
operative goals. Efforts to measure
effectiveness have been more productive
using official goals.
usefulness
Business firms typically evaluate
performance in terms of profitability,
growth, market share, and return on
Investment.
Resource-based Approach
Indicators
Obtaining and successfully managing
resources is the criterion by which
organizational effectiveness is assessed.
usefulness
The resource-based approach is
valuable when other indicators of
performance are difficult to obtain.
Internal Process Approach
Indicators
One indicator of internal process
effectiveness is the organization’s
economic
efficiency.
There
are
seven
․Strong corporate culture and positive work climate
of an
effective organization as
․Teamindicators
spirit, group loyalty,
and teamwork
․Confidence, trust, and communication between workers and management
seen from an internal process approach:
․Decision making near sources of information, regardless, of where those
sources are on the organizational chart
․Undistorted horizontal and vertical communication; sharing of relevant
facts and feelings
․Rewards to managers for performance, growth, and development of
Subordinates and for creating an effective work group
․Interaction between the organization and its parts, with conflict that occurs
over projects resolved in the interest of the organization
Internal Process Approach
usefulness
The internal process approach is important
because the efficient use of resources and
harmonious internal functioning are ways
to asses organizational effectiveness.
An Integrated Effectiveness Model
• The model is based on the assumption that there are
disagreements and competing viewpoints about what
constitutes effectiveness.
Open systems model
A combination of external focus and flexible structure
Leads to an open system model. Primary goal:
growth and resource acquisition.
Rational goal model
Represents management values of structural
control and external focus. The primary goals are
productivity, efficiency, and profit.
An Integrated Effectiveness Model
Internal process model
Its reflects the values of internal focus and
structural control. The primary outcome is a
Stable organizational setting that maintains itself
In an orderly way.
Human relations model
Its incorporates the values of an internal focus and
Flexible structure. Management concern is for the
development of human resources.
Structure
Flexibility
Open Systems
Emphasis
Human Relations
Emphasis
Focus
Internal
Internal Process
Organizational A
Organizational B
Emphasis
External
Rational Goal
Emphasis
Control
圖 2.7 Effectiveness Values for two organizations