Implementing Strategy Through Organizational Design
Organizational Design
The process through which managers select the combination of organizational structure and control systems that they believe will enable the company to create and sustain a competitive advantage.
Into functions and divisions
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- Integration – coordinate people and functions
- To accomplish organizational goals and tasks
- Tall structure (7 – 10 levels)
- Flat structure (2 – 4 levels)
Decentralization
- Delegate decision making authority to middle and lower level managers
- Adapt to local conditions. Promotes flexibility
- Fewer managers needed
Centralization
- Facilitates coordination and planning
- Decisions fit broad organizational objectives
Management Policy
Guidelines for decision making are made at highest levels And passed down to lower levels
Horizontal Differentiation
How to group tasks and activities to meet strategies
Functional Structure
Most U. S. firms have a functional structure
Advantages
- Good place to learn
- Easy to control
- Effective and efficient
Disadvantages
- Geographical diversion causes duplication of people and costs
- Communication problems
- Measurement problems
- Location problems
- Strategic problems
Product Structure
- Group by product line.
- Product Team structure
- Matrix Management
- Concurrent Design Methodology
- Cross-functional teams
Integration and Organizational Control
Forms in Integrating Mechanisms
- Direct contact
- Interdepartmental liaison roles
- Temporary task forces – ad hoc committees
- Permanent teams – standing committees
- Integrating roles
- Differentiation and Integration
The Nature of Organizational Control
- Monitor
- Evaluate
- Compare actual to goals
- Take corrective action
Organizational Culture
- Values – beliefs and goals
- Norms – Expectations for behavior
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Implementing Strategy Through Organizational Design. (2018, Jan 18). Retrieved from https://phdessay.com/chapter-9-implementing-strategy-through-organizational-design/
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