Lecture 2: Strategy and Effectiveness - 1 Goals Flashcards
1. The role of strategy and its effect on organizational design (Goals)
Definition: Strategy
The organization’s strategy is a plan for interacting with the competitive environment to achieve organizational goals
Definition: Goals
Goals define where the organization wants to go and strategies define how to get there
Vision and mission of organizations
Vision
= an aspirational description of what an organization foresees in the mid-term or long-term future
Mission
= describes the organization’s reason for being
= definition of the business scope and outcomes the organization is trying to achieve
= communicates to current and prospective employees, customers, investors, suppliers, and competitors
= legitimizes the organization’s business
Value Statements/Culture
Value Statements/Culture
= distinct statements about corporate values intended to set out the guiding principles of the firm
Definition: Operating goals
= Goals for action
= Operating goals can help to motivate employees toward goal accomplishment
= Act as guidelines for employee behavior and decision-making
-> e.g. they focus attention on what is important
= They provide a standard for assessment of organizational outcomes in terms of profits, degree of employee satisfaction, …
Operating goals: Resource Goals
= Acquisition of needed material and financial resources
Operating goals: Market Goals
= Relate to the market share or market standing
Operating goals: Employee Development Goals
= Training, promotion, safety, and growth of workers
Operating goals: Productivity Goals
= Concern about the amount of output achieved from available resources
Operating Goals: Innovation and Change Goals
= Goals pertain to internal flexibility and readiness to adapt to unexpected changes in the environment
Strategy Implementation: Strategic Direction
= Define mission, official goals
= Select operational goals, competitive strategies
