Topic 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION

Question 1

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 1 -

Discuss the role that organisational structure plays in strategy implementation.(5)

Answer 1

• Struct = framework within which the strategic process must operate
• Struct follows strategy. They must form a reciprocal relationship.
  -Struct = should not be carried out in isolation.
  -Struct = plays role in identifying the tasks necessary for the strategy implementation,
  -Struct = groups them together and
  -Struct = ensures coordination of these tasks across the organisation.
  -Struct =main function provides:
  Formal allocation of works rules,
  *channels for effective collaboration,
  * boundaries of authority,
  * line of communication
  As well as means of allocating power and responsibility
  It prescribes levels of formality and complexity.

Question 2

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 2 -

Comment on the statement that “structure follows strategy”.(5)

Answer 2

1. A tight fit is required between an organisation’s structure and chosen strategy and changes to its structure may be required to facilitate implementation thereof.
2. Failure to create alignment between the strategy and structure may result in various difficulties in implementation and possible failure.
3. Structure is therefore a determinant of strategy and not the other way round - i.e. structure follows strategy.
4. It is important to note however that a reciprocal relationship exists between structure and strategy though. The strategy, which is selected, should be implementable.
5. Where the existing organisational will be difficult to change, it may be necessary to adjust to strategy to be a better fit with the structure in question. The organisational structure must however never dictate the strategy to be followed.

Question 3

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 3 -

Discuss the five basic parts of an organisation.(10) [B2.2-Nov13 + B2.3-Jun12 + A3-Nov11]

Answer 3

1. Strategic apex – where the top management and strategic leadership are to be found.
   Responsible for determining a vision and goals for the organization as well as the strategic direction.
   They provide strategic leadership.

2.The middle-line – direct line management positions between the strategic apex and the operating core.
They act as relays of the strategic vision, goals and desires of the top management by translating the long term strategic goals into more manageable and doable short-term ones, operational tactics and other day to day operational requirements.

3.The operating core – this is where the organization’s production tasks are undertaken resulting in products and services being made available to customers.
All the staff members who do not hold a managerial or leadership position are fond in this part of the organization.

4. Techno structure – in this section are all the staff analysts who are tasked with designing the systems in which the work processes and outputs of others are designed.
5. Support staff – the members in this section support the organization outside its normal work-flow processes and include, IT staff, specialists in legal, tax, press and public relations and so on.

Question 4

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 4 -

Discuss the six basic coordinating mechanisms of organisational design.(12) [B2.4-Jun12]

Answer 4

1) Mutual Adjustment:
2) Direct Supervision:
3) Standardisation of work processes:
4) Standardisation of outputs:
5) Standardisation of skills and knowledge:
6) Standardisation of norms:

1) Mutual Adjustment:
a. This is the informal communication used to coordinate work and achieve tasks.
b. Simple, entrepreneurial organisations use a high level of mutual adjustment.

2) Direct Supervision:
a. This is where one person is responsible for coordinating the work of others and for giving others orders and instructions.
b. Direct supervision typically flows from the top, down the organisational hierarchy.

3) Standardisation of work processes:
a. This refers to the specifications or processes governing how the content of the work should be carried out.
b. These could include standard operating procedures and policies

4) Standardisation of outputs:
a. This focuses on the results to be achieved.
b. The extent of the standardisation can be viewed in terms of the range of products the company produces.

5) Standardisation of skills and knowledge:
a. This is also a coordination mechanism but it is less formal.
b. In this instance, the employee possesses a certain set of skills and knowledge, and over time different employees know what to expect from one another, ensuring coordination.

6) Standardisation of norms:
a. This refers to the organisational culture and the shared beliefs and values of the employees.
b. For example, if one of the organisational values is frugality, it serves as a coordination mechanism in that all employees who share this value will collaborate and work towards frugality

Question 5

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 5 -

Discuss the importance of human resources in strategy implementation.(5) [B2.2-Jun14 + B2.3-Jun13 + B3.2-Jun09]

Answer 5

1. = key resource
   2=allocated the most useful tasks
   3=heart of the strategy
   4=longer generate profits without
2. Human resources - not financial resources - are the key resource in organisations today, due to the fact that we live in a knowledge era.
3. As a result, it is crucial for successful strategy implementation that people be allocated the most useful tasks in implementing the strategy.
4. People are the heart of the strategy - no longer technology or finance as these two are easy to obtain these days.
5. Organisations can no longer generate profits without the ideas, skills and talent of knowledge workers

Question 6

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 6 –

Discuss the role of resource allocation in strategy implementation.(5) [B2.1-Jun14 + B2.3-Nov13 + Q4-Nov12 + B3.2-Jun09 + SG-p99]

Answer 6

1= allocated in such a way that they support
2=resource barrier, so change resource allocation
3 criteria when allocating:
3a.= contribution
3b.=support
3c..=level of risk

1. To achieve successful strategy implementation, the scarce resources must be allocated in such a way that they support the organisation long-term goals, chosen strategy, structure and short-term objectives.
2. One of the barriers to successful strategy implementation is the resource barrier, therefore a change in strategy requires a change in the resource allocation plan of the organisation.
3. There are 3 criteria to be used when allocating resources
   a. The contribution of the proposal resource towards the fulfillment of the organisation’ mission and objectives. b.Its support ok key strategies.
   c. The level of risk association with the specific proposal

Question 7

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 7 -

Explain the role of the master budget in strategy implementation.(3) [SG-p99]

Answer 7

1. The master budget of an organisation includes all those activities whose monitoring is judged to be important for the survival of the organisation.
2. Among these activities are sales, manufacturing, administrative activities, investment and cash management. Projected sales are the foundation of budgeting.
3. Forecasting sales is critical because all other budgeted activities depend on these forecasts.
4. A change in strategy often necessitates a change in the way resources are allocated.

Question 8

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 8 -

Explain what organisational architecture entails.(5) [B2.1-Nov13]

Answer 8

1. Organisational architecture provides a useful tool for meshing the internal organisation by combining key dimensions in a cohesive and concerted effort to ensure productive strategy implementation.
2. Is an integrated strategic response that draws together key dimensions of the organisation (such as organisational structure, leadership, organisational culture, policies and strategies) to guide strategic planning and implementation.
3. It provides a blueprint of the internal and largely invisible workings of the organisation.
4. It is a formal document that clarifies the key strategic drivers.
5. It is unique to a specific organisation.

Question 9

TOPIC 3 – STRUCTURAL DRIVERS OF STRATEGY IMPLEMENTATION - Question 9 -

Describe the components of organisational architecture.(7)

Answer 9

1.Capabilities are distributed to the various stakeholders through the different organisational processes.
2.The structure/system, KSA’s (knowledge, skills and abilities) and technology specific to each organisation shape these
processes, which are all in turn underscored by the organisational culture.
3.The integrated organizational architecture is a strategic response that draws together key dimensions of the organization (such include items as organizational structure, leadership, organizational culture, policies and strategies, etc.) to guide strategic planning and implementation.
4.It provides a blueprint of the internal and largely invisible workings of the integrated organization. Attached diagram of organisation architecture must be read from right to left.