Chapter Strategy Organization Design and Effectiveness 2 Organization

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Chapter Strategy, Organization Design, and Effectiveness 2 Organization Theory and Design Twelfth Edition Richard

Chapter Strategy, Organization Design, and Effectiveness 2 Organization Theory and Design Twelfth Edition Richard L. Daft

Top Management Role in Organization Direction, Design, and Effectiveness Organizational goal - a desired

Top Management Role in Organization Direction, Design, and Effectiveness Organizational goal - a desired state of affairs that an organization attempts to reach © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

Organizational Purpose Strategic intent - organization’s energies and resources are directed toward a focused,

Organizational Purpose Strategic intent - organization’s energies and resources are directed toward a focused, unifying, and compelling goal • Mission • Competitive Advantage • Core Competence Operating Goals • Overall Performance • Resources • Market • Employee Development • Innovation and Change • Productivity © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

Mission Statement for CVS Health © 2017 Cengage Learning. All Rights Reserved. May not

Mission Statement for CVS Health © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

Organizational Operating Goals © 2017 Cengage Learning. All Rights Reserved. May not be scanned,

Organizational Operating Goals © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

Goals Types and Purposes © 2017 Cengage Learning. All Rights Reserved. May not be

Goals Types and Purposes © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

Selecting Strategy and Design • A strategy is a plan for interacting with the

Selecting Strategy and Design • A strategy is a plan for interacting with the competitive environment • Managers must select specific strategy design • Models exist to aid in formulating strategy: – Porter’s Five Forces – Miles and Snow’s Strategy Typology © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

Porter’s Competitive Strategies Differentiation strategy – to distinguish products or services from others in

Porter’s Competitive Strategies Differentiation strategy – to distinguish products or services from others in the industry Low-Cost Leadership – increase market share by keeping costs low compared to competitors Organizations may choose to focus broad or narrow in reaching multiple markets. 8 © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Porter’s Competitive Strategies © 2017 Cengage Learning. All Rights Reserved. May not be scanned,

Porter’s Competitive Strategies © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

Miles and Snow’s Strategy Typology Managers should seek to formulate strategy that matches the

Miles and Snow’s Strategy Typology Managers should seek to formulate strategy that matches the demands of the external environment • Prospector – Learning orientation; flexible, fluid, decentralized structure – Values creativity, risk-taking, and innovation • Defender – Efficiency orientation; centralized authority and tight cost control – Emphasis on production efficiency, low overhead • Analyzer – Balances efficiency and learning; tight cost control with flexibility and adaptability – Emphasis on creativity, research, risk-taking for innovation • Reactor – No clear organizational approach; design characteristics may shift abruptly depending on current needs 10 © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

How Strategy Affects Organization Design Strategy impacts internal organization characteristics Managers must design the

How Strategy Affects Organization Design Strategy impacts internal organization characteristics Managers must design the organization to support the firm’s competitive strategy 11 © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Organization Design Outcomes of Strategy © 2017 Cengage Learning. All Rights Reserved. May not

Organization Design Outcomes of Strategy © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

Contingency Factors Affecting Organization Design © 2017 Cengage Learning. All Rights Reserved. May not

Contingency Factors Affecting Organization Design © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

Assessing Organizational Effectiveness takes into consideration a range of variables at both the organizational

Assessing Organizational Effectiveness takes into consideration a range of variables at both the organizational and departmental levels. Efficiency relates to the working of the organization and amount of resources used to produce output. Measuring Effectiveness: → The Goal Approach → The Resource-Based Approach → The Internal Process Approach → The Strategic Constituents Approach © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

Indicators of Organizational Effectiveness © 2017 Cengage Learning. All Rights Reserved. May not be

Indicators of Organizational Effectiveness © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

Approaches to Measuring Organizational Effectiveness © 2017 Cengage Learning. All Rights Reserved. May not

Approaches to Measuring Organizational Effectiveness © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

An Integrated Effectiveness Model • Competing values model tries to balance concern with various

An Integrated Effectiveness Model • Competing values model tries to balance concern with various parts of the organization • The human relations emphasis incorporates the values of an internal focus and flexible structure 17 © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Four Approaches to Effectiveness Values © 2017 Cengage Learning. All Rights Reserved. May not

Four Approaches to Effectiveness Values © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

Effectiveness Values for Two Organizations © 2017 Cengage Learning. All Rights Reserved. May not

Effectiveness Values for Two Organizations © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19

Design Essentials Strategic intent includes competitive advantage and core competence Strategies may include many

Design Essentials Strategic intent includes competitive advantage and core competence Strategies may include many techniques Organizational effectiveness must be assessed © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20

Design Essentials No guaranteed measure provides an unequivocal assessment of performance No approach is

Design Essentials No guaranteed measure provides an unequivocal assessment of performance No approach is suitable for every organization © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21

Chapter 5 Strategy Organization Design and Effectiveness TheChapter 5 Strategy Organization Design and Effectiveness The
Chapter Two Strategy Organization Design and Effectiveness 1Chapter Two Strategy Organization Design and Effectiveness 1
Chapter Two Strategy Organization Design and Effectiveness 2010Chapter Two Strategy Organization Design and Effectiveness 2010
Chapter Two Strategy Organization Design and Effectiveness 2010Chapter Two Strategy Organization Design and Effectiveness 2010
Chapter Two Strategy Organization Design and Effectiveness 2000Chapter Two Strategy Organization Design and Effectiveness 2000
International Strategy Multidomestic Strategy Global Strategy Transnational StrategyInternational Strategy Multidomestic Strategy Global Strategy Transnational Strategy
Content Strategy Content Strategy Content Strategy Content StrategyContent Strategy Content Strategy Content Strategy Content Strategy
Ys strategy Strategy 1 Strategy 2 Strategy 1Ys strategy Strategy 1 Strategy 2 Strategy 1
Strategy Strategy Phases Strategy Plan l Strategy DocumentStrategy Strategy Phases Strategy Plan l Strategy Document
Organizational Design and Organization Structure Organization An organizationOrganizational Design and Organization Structure Organization An organization
Organizational Design and Organization Structure Organization An organizationOrganizational Design and Organization Structure Organization An organization
Evaluating the effectiveness and cost effectiveness of BSLEvaluating the effectiveness and cost effectiveness of BSL
Organization Structure Organization Structure Organization Design The frameworkOrganization Structure Organization Structure Organization Design The framework
International Strategy and Organization Planning and Strategy PlanningInternational Strategy and Organization Planning and Strategy Planning
Computer Design and Organization Architecture Design Organization PerformanceComputer Design and Organization Architecture Design Organization Performance
Outline Strategy and Operations Strategy p Operations strategyOutline Strategy and Operations Strategy p Operations strategy
Effectiveness Issues 6 0 ACCOUNTING EFFECTIVENESS 6 1Effectiveness Issues 6 0 ACCOUNTING EFFECTIVENESS 6 1
MANAGERIAL EFFECTIVENESS MANAGERIAL EFFECTIVENESS A CONCEPTUAL FRAMEWORK EffectiveMANAGERIAL EFFECTIVENESS MANAGERIAL EFFECTIVENESS A CONCEPTUAL FRAMEWORK Effective
Teacher Effectiveness Project The Teacher Effectiveness Action ResearchTeacher Effectiveness Project The Teacher Effectiveness Action Research
Interpersonal Effectiveness WHITEWATER HIGH SCHOOL Overview OBJECTIVE EFFECTIVENESSInterpersonal Effectiveness WHITEWATER HIGH SCHOOL Overview OBJECTIVE EFFECTIVENESS