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
Defender Strategy
Stability or even retrenchment
Hold onto current customers
Internal efficiency and control to produce reliable, high-quality products
Best for declining or stable environment
Analyzer Strategy
Maintain stable business while innovating on the periphery
Balance efficient production for current product lines with creative development of new product lines
Reactor Strategy
Respond to environmental threats and opportunities
How strategies affect org design
PORTER’S COMP STRATS
Low-cost leadership = efficiency approach
Differentiation = learning approach
MILES & SNOWS STRAT TYPOLOGY
Prospector = learning approach
Defender = efficiency approach
Analyzer = balance bw efficiency and learning
Reactor = no clear org approach
Goal Approach to Organizational Effectiveness
concerned with output and whether the org achieves its goals in terms of desired levels of output
Resource-Based Approach
assesses effectiveness by observing the beginning of the process and evaluating whether the org effectively obtains resources necessary for high performance
Internal Process Approach
Assesses effectiveness of internal activities by indicators of internal heath and efficiency
Competing-Values Model
balances various parts of org vs only focusing on one part
Org Focus - Internal or External?
Org Structure - Stability or Flexibility?
Open-Systems Emphasis
Combo of external and flexible structure
Rational-Goal Emphasis
Combo of external and structural control
Internal-Process Emphasis
Combo of internal focus and structural control
Human Relations Emphasis
Combo of internal focus and flexible structure
Balanced Scorecard BSC
Comprehensive management control system
Balances traditional financial measures w operational measures relating to orgs critical success factors
Financial Performance
Customer Service
Internal Business Processes
Orgs Capacity for Learning and Growth
