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PRESENTED BY:-
SUMAN BHARTI ( 037)
AMIT KUMAR (038)
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: How can the organization itself (by virtue of its design
and operating capability) be a source of advantage?

Î The organization can act upon its business strategy

only if management has actually designed the ways it
can compete.

Î Strategy-structure alignment is a systematic

methodology for designing these capabilities in a fully
rational and informed way.
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Î ›hanges in strategy causing poor alignment with the original

organization design

Î Needing to restructure parts of organization due to competitive

pressures, introduction of new technology, etc.

Î Organizational growth is causing a re examination of the

organization design

Î Poor execution and organizational effectiveness

 Structural consideration
: The division of tasks for efficiency and clarity
of purpose, and coordination between the
interdependent parts of the organization to
ensure organizational effectiveness.
: Structure balances the need for specialization
with the need for integration.
: It provides a formal means of decentralizing
and centralizing consistent with the
organizational and control needs of the
strategy.
: An organization structure is the way in which the
tasks and subtasks required to implement a
strategy are arranged and it determines where
formal power and authority are located.

: If the structure is not approximately right, then it

will be difficult to align the other design elements
with the strategy.
 
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: It is the deliberate process of configuring
structures, processes, reward systems, and
people practices to create an effective
organization capable of achieving the business
strategy.
: It is simply a vehicle for accomplishing the
strategic tasks of the business.

: Different strategies require different

organizational capabilities and therefore different
organization designs
: The process of identifying the most important
organizational capabilities is the first step in
drawing the connection between the strategy
and the form of the organization.

: Once the capabilities have been identified, a set

of organizational implications can be generated
to form the basis for a discussion of alternatives

: The structure sets out the reporting

relationships, power distribution, and
communication channels.
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 Organizational Design
A process involving decisions about six key
elements:
: Work specialization
: ›hain of command
: Span of control
: centralisation and decentralisation
: Formalization
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- the lines of authority in an organization, who
reports to whom
 

: The formally-granted influence of a position to
make decisions, pursue goals and get resources
to pursue the goals

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: process of assigning a task to a subordinate
along with the commensurate responsibility and
authority to carry out the task
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: The number of employees who can be
effectively and efficiently supervised by a
manager.
: Width of span is affected by:
a) Skills and abilities of the manager
b) Employee characteristics
c) ›haracteristics of the work being done
e) Similarity of tasks
f) ›omplexity of tasks
 
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: The degree to which decision-making is
concentrated at a single point in the
organizations.
: organizations in which top managers make all
the decisions and lower-level employees
simply carry out those orders.

 
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: organizations in which decision-making is
pushed down to the managers who are closest
to the action.
: Increasing the decision-making,
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a) Environment is stable.
b) Lower-level managers are not as capable or
experienced at making decisions as upper-level
managers.
c) Lower-level managers do not want to have a
say in decisions.
d) Decisions are significant.
e) organization is facing a crisis or the risk of
company failure.
f) ›ompany is large.
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: Environment is complex, uncertain.
: Lower-level managers are capable and
experienced at making decisions.
: Lower-level managers want a voice in
decisions.
: Decisions are relatively minor.
: ›orporate culture is open to allowing
managers to have a say in what happens.
: ›ompany is geographically dispersed.
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