Chapter 9: Implementing Strategy Through Organizational Design
Organizational Design – The system through which managers choice the association of formal form and moderate systems that they revere complete strengthen the union to engender and stay a competitive usage. Coordinate and motivate employees To engender valueand Obtain a competitive usage Koontz and O’Donnell The System School of Management Planning Organizing Staffing Directing Controlling Building blocks of formal form Differentiation Vertical – how abundantly pattern to appoint Horizontal – how to distribute crowd
Into functions and oppositions Integration – coordinate crowd and functions To complete formal goals and toils Tall form (7 – 10 razes) Flat form (2 – 4 razes) Tall Form Problems Coordination Notification undelineation Motivation Too numerous intermediate managers McKinsey Consulting Union Increased elevation of union form forms Presidents Office President of each opposition Centralization or Decentralization (apt inland) Decentralization 1. Appoint sentence making pattern to intermediate and inferior raze managers 2.
Adapt to persomal stipulations. Promotes flexibility 3. Fewer managers needed Centralization 1. Facilitates coordination and planning 2. Decisions fit wide formal objectives Management Policy – Guidelines for sentence making are made at first razes And passed down to inferior razes Horizontal Differentiation – How to bunch toils and activities to converge strategies Professional Form – Grouping by expertise. Most U. S. firms accept a professional form Advantages Good locate to gather Easy to moderate Effective and prolific Disadvantages
Geographical sport causes duplication of crowd and costs Communication problems Measurement problems Location problems Strategic problems Work Form – Bunch by work cord. Work Team form Matrix Management Concurrent Design Methodology Cross-professional teams Geographic Form Multidivisional Form Self-contained work cord or duty item (Operating trust) Corp headquarters staff. Financial Control. (Strategic Responsibility) Advantages of Multidivisional Form Enhanced corporate financial moderate
Strategic moderate Growth Internal pliancy Disadvantages of a Multidivisional Form Establish Division-Corporate pattern razes GM and Alfred Sloan Litton Industries Undelineation of notification Competition for resources Transfer pricing (GE development) Focus on short-term High bounteous costs All functions are in each opposition Integration and Organizational Moderate Forms in Integrating Mechanisms 1. Direct continuity 2. Interdepartmental liaison roles 3. Temporary toil forces – ad hoc committees 4. Permanent teams – lasting committees 5. Integrating roles
Differentiation and Integration The Nature of Organizational Moderate 1. Monitor 2. Evaluate 3. Compare developed to goals 4. Take regulative renewal Strategic Controls Financial moderates Stock Sales Growth ROI Profit Output Controls Set Goals Measure output act counter goals Demeanor Moderate – Rules and Procedures Common moderates 1. Bounteous budgets 2. Standardization 3. Rules and procedures 4. Organizational Culture a. Values – beliefs and goals b. Norms – Expectations for demeanor Culture and Strategic Leadership Walt Disney development