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
 Setting the goals and strategies
 Formation of the organization’s design
 Implementing the goals and strategies
 Evaluation of firm’s 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 company’s 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
 Porter’s Competitive Strategy
Competitive Advantage
Low Cost Uniqueness

Broad Low-Cost
Competitive
Leadership Differentiation
Scope

Narrow Focused
Competitive Focused
Scope Low-Cost
Differentiation
Leadership
 Miles & Snow’s Strategy
 Four Strategies
 Prospector
 Growing environments
 Defender
 Hold onto existing customers
 Analyzer
 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
 Learning orientation
 Research oriented
 Defender
 Efficiency orientation
 Close supervision
 Analyzer
 Combines both efficiency and creativity
 Reactor
 No stable direction
 Other Factors
 Environment
 Is it fast paced?
 Technology
 How is it used within the company?
 Style/Life Cycle
 Size of company
 Culture
 Company’s 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
Internal External
Structure

Flexible HR Emphasis Open Systems

Emphasis

Control Internal Process Rational Goal

Emphasis Emphasis
 Integrated Effectiveness Model
 Focuses on various areas of the company
 Two components
 Focus
 Structure