STRATEGY – STRUCTURE – SYSTEMS

Organizational Structure and Organizational processes are part of the strategy implementation. Both
these factors play a key role in ensuring that organizational performance is kept aligned towards the
achievement of desired goals.

An Organizations structure should match its strategy, implying that any change in the strategy should
be followed by a re-analysis of the fit between the structure and the strategy.

Organizational Structure
Internal Structure
 Job based structure – Focus on what people are doing and the expected outcomes
 Person based structure – Focus on skill and competency of the person

Internal

Job Based Person Based

A
Job Analysis
B
Skills Competencies
D Job Evaluation -
Compensable
factors Skill Analysis Core
Competenci
es
Factor degress
& weighing Skill Blocks Competency
sets

Job based Certification Behavioral

structure process descriptors

Person Based
Structure

1. Job Analysis - The systematic process of collecting information that identifies similarities and
differences in the work.
2. Job Evaluation - Process of systematically determining the relative worth of jobs to create a job
structure for the organization
a. The evaluation is based on a combination of:
i. Job content
ii. Skills required
iii. Value to the organization
iv. Organizational culture
v. External market
b. Job Evaluation methods
i. Ranking -
 ii. Classification -
iii. Point factor method
 Conduct job analysis
 Determine compensable factors – Skill | Effort | Responsibility |
Working Conditions
 Scale the factors (define factor degrees)
 Weight the factors according to importance (and then assign points to
degrees within factors or sub factors)
 Communicate the plan, train users, prepare manual
 Apply to non- benchmark

Performance Management Frameworks

 Performance Measurement Matrix
 Results Determinant Framework
ABD  Balance Scorecard Potential – Performance matrix

Process Oriented Framework – Porter’s value chain framework