Chapter 2 - Strategy, Org Design, Effectiveness Flashcards
Role of strat direction in org design and purpose Framework for selecting strat and design Assessing org effectiveness Contingency effectiveness approaches New directions
What is the primary goal of top mngmnt
determine goals, strategy, and design = adapting org to a changing environment
External Environment
Opportunities
Threats
Uncertainty
Resource Availability
Internal Situation
Strengths
Weaknesses
Distinctive Competence
Leader Style
Past Performance
Strategic Direction
Define mission, goals
Select operational goals, competitive strategies
Organizational Design
Structural Form - learning vs. efficiency
Information and Control Systems
Production Tech
HR policies & Incentives
Org Culture
Interorganizational Linkages
Effectiveness Outcomes
Resources
Efficiency
Goal Attainment
Competing Values
Operative Goals
designate the ends sought through the actual operating procedures of the org and explain what the org is actually trying to do
Official Goals/Mission vs Operative Goals
Official Goals/Mission: describe value system for org
Operational Goals: represent primary tasks/ provide emps with a sense of direction
Strategy
a plan for interacting with the competitive enviro to achieve org goals
Porter’s Competitive Strategies (4)
Low-Cost Leadership - WALMART
Differentiation - BULLFROG POWER
Focused Low-Cost Leadership - WESTJET
Focused Differentiation - FOUR SEASONS HOTELS
Focus Strategy
Org concentrates on specific market or buyer
Differentiation Strategy
Attempt to distinguish products/services
Generally targets those who aren’t concerned w price
Requires emps to constantly be experimenting and learning
Structure is fluid/flexible with horizontal coordination
Low-Cost Leadership Strategy
Emphasize low cost compared to competitors
Associated w strong, centralized authority, tight control, standard operating procedures, and emphasis on efficient procurement and distribution systems
Miles and Snow Typology
Based on idea that mgrs seek to formulate strategies that will be congruent with the external environment
- Prospector
- Defender
- Analyzer
- Reactor
Prospector Strategy
Innovate, take risks, seek new opportunities and grow
Creativity > Efficiency