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

Formation of the organizations design

Setting the goals and strategies

Implementing the goals and strategies

Evaluation of firms efforts

Have our goals and staregies been

successful

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
Competiti
ve Scope

Low-Cost
Leadership

Narrow
Competiti
ve Scope

Focused
Low-Cost
Leadership

Uniqueness

Differentiatio
n
Focused
Differentiatio
n

Miles & Snows Strategy

Four Strategies

Prospector

Defender

Hold onto existing customers

Analyzer

Growing environments

Stable product, innovate around periphery

Reactor

Respond to conditions as they occur

Ramifications on
Organizational Design

Low-Cost Leadership

Focus on efficiency
Strong, centralized authority
Close supervision on routine tasks

Differentiation

Learning orientation
Research capabilities
Build customer relationships
Rewards creativity and innovation

Ramifications on
Organizational Design

Prospector

Defender

Efficiency orientation
Close supervision

Analyzer

Learning orientation
Research oriented

Combines both efficiency and creativity

Reactor

No stable direction

Other Factors

Environment

Technology

How is it used within the company?

Style/Life Cycle

Is it fast paced?

Size of company

Culture

Companys current cultural climate

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
Structur
e
Flexibl
e

Control

Internal

External

HR Emphasis

Open Systems
Emphasis

Internal
Process
Emphasis

Rational Goal
Emphasis

Integrated Effectiveness
Model

Focuses on various areas of the

company
Two components

Focus
Structure