Académique Documents
Professionnel Documents
Culture Documents
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The Role Of Strategic Direction In Organization Design
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Top Management Role in Organization Direction, Design,
and Effectiveness
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02
ORGANIZATION PURPOSE
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Organizational Purpose
Strategic intent – organization’s energies and resources are
directed toward a focused, unifying, and compelling goal.
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Organizational Operating Goals
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Goals Types and Purposes
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03
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Selecting Strategy and Design
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04
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Porter’s Competitive Strategies
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EXAMPLE:
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“ Structure follows
Strategy.”
- Alfred Chandler
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DIFFERENTIATION STRATEGY
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LOW-COST LEADERSHIP STRATEGY
Routine
Operations MECHANISTIC/ Tasks
EFFICIENCY
ORIENTATION
Centralized
Process
Decision
Engineering
Making
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06
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Other Factors Affecting Organization Design
TECHNOLOGY
• Specialization Regulations
ENVIROMENT
CULTURE
• Centralized • Ad hoc Budgeting
procedure Decision Making and Performance • Horizontal
• Centralized • Tight Control System Coordination
Decision Making
Large Organization • Lenient Rules and
E-business • Extensive Division Regulations
Turbulent
Environment of Labor
• Flexible Structure
• Numerous Rules
• Flexible Structure • Informal and Regulations
• Horizontal • Standard
Coordination procedure
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07
ASSESSING ORGANIZATIONAL
EFFECTIVENESS
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Effectiveness VS Efficiency
Effectiveness is the degree to Organizational efficiency is
which an organization the amount of resources
realizes its goals. used to produce a unit of
output.
Effectiveness evaluates the It can be measured as the
extent to which multiple ratio of inputs to outputs.
goals whether official or
operative are attained.
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Sometimes efficiency leads to
effectiveness, but in other
organizations, efficiency and
effectiveness are not related.
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Organization may achieve its
profit goals but be inefficient.
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08
TRADITIONAL EFFECTIVENESS
APPROACHES
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Traditional Effectiveness Approach
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Traditional Effectiveness Approach
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09
BALANCED SCORECARD
APPROACH TO EFFECTIVENESS
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Balanced Scorecard Approach Effectiveness Criteria
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