Strategy-Organization Link

Question 1

What are the organizational levers to support strategy and what do they do?

Answer 1

1. Organizational structure
2. Management processes
3. Leadership behaviour
   Each influences organizational behaviour and culture

Question 2

What is included under the management processes organizational lever?

Answer 2

1. Decision making processes
2. Operating processes
3. Performance assessment and reward processes

Question 3

What is structure in terms of organizational levers?

Answer 3

Determines how information and influence flow through the hierarchy

Question 4

What are some ways in which an organization can be structured?

Answer 4

1. Functional
2. Product
3. Geographic
4. Cellular
5. Matrix

Question 5

What are the pros and cons of a functional structure?

Answer 5

Pros: Standard product efficiencies
Cons: Limited sensitivity to local markets, slow decision making

Question 6

What are the pros and cons of a product structure?

Answer 6

Pros: Focus on each product line
Cons: Lose efficiencies, multiple contact points with customers

Question 7

What are the pros and cons of geographical structure?

Answer 7

Pros: Good at tailoring to local markets
Cons: Lose efficiencies

Question 8

What structure suits a low cost strategy and why?

Answer 8

Suits a functional structure because of efficiency, economies of scale and scope, standardization, and lack of duplication of resources

Question 9

What structure suits a differentiation strategy and why?

Answer 9

Suits a product structure because there can be more focus put on the products, minimum centralized stadd

Question 10

What is the X theory of motivation?

Answer 10

Organizational objectives can be reached best by control, coercion, direction, threat, and financial reward

Question 11

What is the projection of humans created by the X theory of motivation?

Answer 11

1. People dislike work and prefer to avoid it
2. Humans prefer to be directed over having responsibility
3. Striving for security as an overarching goal

Question 12

What is the Y theory of motivation?

Answer 12

Putting in work is as natural as playing or resting

Question 13

What is the projection of humans created by the Y theory of motivation?

Answer 13

1. People will direct themsrlves when committed to the objective of an organization
2. Satisfaction with a job will result in commitment to the organization
3. People strive for responsibility and personal achievements

Question 14

What is the difference between behaviour and culture?

Answer 14

Behaviour is observable. It is how muc energy put into the job, how they manage subordinates, and how they relate to each other

Culture is the shared valules, beliefs, and core basic assumptions of an organization. They are widely shared and strongly felt

Question 15

What are the steps of the strategy-organization link analysis?

Answer 15

1. Complete the strategy triangle analysis
2. Identify organizational elements required to implement strategy
3. Determine current organization elements and identify gaps
4. Determine how to bridge gaps and assess the feasibility
5. Move to next step in diamond-e

Question 16

What are the two options for outcomes of the diamond-e?

Answer 16

1. Organizational elements are modified to support the chosen strategy
2. Generic and business strategy are chosen to match the organization;s characteristics and environment requirements

Question 17

What is a feasible strategy?

Answer 17

A strategy that fits what you are able to do determined by resources and capabilities as well as fits what you would like to do given the environmental conditions

Question 18

What is a matrix structure?

Answer 18

One that mashes together product/functional/geographic such that each group has 2 managers. One functional and one product/geographic or some other combo

Question 19

What are the pros and cons of the matric structure?

Answer 19

Pros: Efficient and effective
Cons: Complex and slow moving