EPANDING THE CONTENT OF AN OUTLINE using notes.pptx
The role of strategic direction in organisational design
1. THE ROLE OF STRATEGIC DIRECTION
IN ORGANISATIONAL DESIGN
AISHWARYA.P
RA1952001020027
2. STRATEGY
• Strategy generally involves setting goals, determining actions to achieve the goals, and
mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be
achieved by the means (resources). ... It involves activities such as strategic planning
and strategic thinking.
• a plan of action designed to achieve a long-term or overall aim.
"time to develop a coherent economic strategy“.
4. THE ROLE OF STRATEGIC DIRECTION IN
ORGANISATIONAL DESIGN
5. • The role of Strategic Direction in Organization Design: the primary responsibility of top
management is to determine an organization’s goals, strategy, and design, therein adapting the
organization to a changing environment. Organizational design is used to implement goals
and strategy and also determines organization success.
• Organizational purpose:Major distinction between the officially stated goals, or mission, of
the organization and the operative goals the organization actually pursues.
• Mission = official goals = mission statement, the organization’s reason for existence. It
describes the organization’s vision, it’s shared values and beliefs and its reason for being.
Refers to the formally stated definition of business scope and outcomes the organization is
trying to achieve. One of the primary reasons is to serve as a communication tool
• Briefcase 1:Establish and communicate organizational mission and goals. Communicate
official goals to provide a statement of the organization’s mission to external constituents.
Communicate operational goals to provide internal direction, guidelines and standards of
performance for employees.
6. • Operative goals =designate the ends sought through the actual operating procedures of the
organization and explain what the organization is actually trying to do. These goals concern
overall performance, boundary spanning, maintenance, adaptation and production activities.
They provide direction for the day-to-day decisions and activities within departments.
Operative goals: a. Overall performance: reflected in profitability (net income, return on
investment etc), growth in sales or profits over time and the volume of sales. b.
Resources:acquisition of needed material and financial resources. c. Market:market share or
market standing desired by the organization. d. Employee development:training, promotion,
safety and growth of employees. e. Innovation and change:internal flexibility, readiness to
adapt f. Productivity:amount of output achieved from available resources.
7. KEYS TO DEVELOP AN EFFECTIVE STRATEGY
• Gather the facts. To know where you're heading, you have to know where you are
right now. ...
• Develop a vision statement. ...
• Develop a mission statement. ...
• Identify strategic objectives. ...
• Tactical Plans. ...
• Performance Management.
