Chap 11 organizational structure

Traditional Organization and Strategy 1.. Role of Systems in Implementing Strategy 1.. NEED FOR ORGANIZATIONAL REDESIGN Behavioral requirements of planning as a manage-ment task are ofte

Chapter 11

Organizational Structure

A Traditional Organization and Strategy

1 Need for Organizational Redesign (TM 11-1)

B Creating a Market-Responsive Organization

1 Principles of Creating a Market-Responsive Organization (TM 11-2)

2 Procedure for Creating a Market-Responsive Organization (TM 11-3)

3 Managing a Market-Responsive Organization (TM 11-4)

C Role of Systems in Implementing Strategy

1 Three Types of Systems (TM 11-5)

2 Techniques for Systems Design (TM 11-6)

D Executive Reward System

1 Characteristics of a Good Reward System (TM 11-7)

E Learship Style

1 Characteristics of a Good Leader (TM 11-8)

2 Role of a Strategic Planner (TM 11-9)

F Measuring Strategic Performance

1 Attributes of Excellence (TM 11-10)

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NEED FOR ORGANIZATIONAL

REDESIGN

Behavioral requirements of planning as a

manage-ment task are often different from, or in conflict with,

the processes and content of management work

normally prevalent in the organization Thus, an

organization optimally geared to the pursuit of

established objectives may be less than optimally

prepared to work on the evaluation and adoption of

new objectives or strategies

PRINCIPLES OF CREATING A MARKET-RESPONSIVE

ORGANIZATION

 Organization planning is economically based,

operates under economic rules, and has

economic objectives

 Structure is only one tool in the drive to achieve

better resource integration and increase market

responsiveness

 To achieve a balance between scale and

responsiveness, organizations must compensate

for their traditional tilt toward scale

PROCEDURE FOR CREATING A

MARKET-RESPONSIVE

ORGANIZATION

 Determine corporate strategic boundaries

 Balance the demands of scale and market

responsiveness

 Organize for strategic effectiveness

MANAGING A MARKET-RESPONSIVE

ORGANIZATION

 Forge a clear link between strategy and skills

 Is specific—and selective—about core skills

 Clarify the implications for pivotal jobs

 Provide leadership from the top

 Empower the organization to learn

THREE TYPES OF SYSTEMS

 Execution systems

 Monitoring systems

 Control systems

11 -6

TECHNIQUES FOR SYSTEMS DESIGN

 Design an effective information capture

procedure

 Manage commonly used data elements for

firmwide accessibility and control

 Decide which applications are common and

which tolerate distributed processing

 Manage information, not reports

 Examine cost effectiveness

CHARACTERISTICS OF A GOOD

REWARD SYSTEM

 Optimize value to all key stakeholders (including

both shareholders and management alike)

 Properly measure and recapture value

 Integrate compensation signals with those

implicit in strategy and structure

CHARACTERISTICS OF

A GOOD LEADER

 Gains complete and willing acceptance of his or

her leadership

 Determines those business goals, objectives,

and standards of behavior that are as ambitious

as the potential abilities of the organization will

permit

 Introduces these objectives and motivates the

organization to accept them as their own

 Changes organizational relationships internally,

as necessary, to facilitate both the acceptance

and attainment of the new objectives

ROLE OF A STRATEGIC PLANNER

 Is well versed in theoretical frameworks relevant

to planning

 Is capable of making a point with conviction and

firmness, and at the same time is a practical

politician, avoiding conflict in the organization

 Maintains a working alliance with other units in

the organization

 Commands the respect of other executives and

managers

 Is a salesperson who can help managers accept

new and difficult tools and techniques

ATTRIBUTES OF EXCELLENCE

 A bias toward action

 Simple form and lean staff

 Continued contact with customers

 Productivity improvement via people

 Operational autonomy to encourage

entrepreneurship

 Stress on one key business value

 Emphasis on doing what they know best

 Simultaneous loose-tight controls