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Chapter2: Strategy, Organization Design, and Effectiveness - Coggle Diagram
Chapter2: Strategy, Organization Design, and Effectiveness
2.2 Organizational Purpose
Strategic Intent
Mission
Competitive Advantage
Core Competence
Operating Goals
Overall Performance
Resources
Market
Employee Development
Productivity
Innovation and Change
Goal Conflict
The Importance of Goals
Numerous studies have shown that specific high goals can significantly increase employee performance.
Goals serve several specific purposes, as outlined in Exhibit 2.5.
Operating goals provide employees with a sense of direction and motivation towards specific targets and important outcomes.
Wells Fargo scandal provides a negative example of how powerful goals can be as a motivational tool.
Official goals and mission statements describe a value system for the organization and set an overall purpose and vision; operating goals represent the primary tasks of the organization.
2.1 The Role of Strategic Direction in Organization Design
Direction-setting involves assessing the external environment and internal strengths and weaknesses
After direction-setting, specific operational goals and strategies are formulated
Top management's responsibility is to determine goals, strategy, and design
Organization design includes decisions about structure, information systems, technology, human resources, culture, and linkages
Organization design is influenced by the choice of goals and strategy
Performance measurements are used to evaluate effectiveness and feed back into the internal environment
The choices top managers make have a tremendous impact on organizational effectiveness.
2.3 Two Frameworks for Selecting Strategy and Design
Porter’s Competitive Strategies
Differentiation
Low-Cost Leadership
Competitive Scope Can Be Broad or Narrow
Miles and Snow’s Strategy Typology
Prospector
Defender
Analyzer.
Reactor
How Strategies Affect Organization Design
Other Contingency Factors Affecting Organization Design
2.4 Assessing Organizational Effectiveness
Definition of Organizational Effectiveness
Who Decides
Goal Approach
Indicators
Usefulness
Resource-Based Approach
Indicators
Usefulness
Internal Process Approach
Indicators
Usefulness
Strategic Constituents Approach
Indicators
Usefulness
2.5 An Integrated Effectiveness Model
Indicators
open systems emphasis
rational goal emphasis
internal process emphasis
human relations emphasis
Usefulness