Roles of strategic direction in organizational design

1. ROLES OF STRATEGIC DIRECTION
IN ORGANIZATIONAL DESIGN
ARUN KUMAR .R
RA1952001020075

2. INTRODUCTION
• An organizational goal is a desired state of affairs that the
organization attempts to reach. Top managers give direction to
organizations; this direction alters how organizations should
be designed.
• The primary responsibility of top management is to determine
an organization’s goals, strategy, and design, therein adapting
the organization to a changing environment.

3. • Middle managers do much the same thing for major
departments within the guidelines provided by top
management. First line managers usually focus on execution of
strategies made by top and middle managers.
• Top management’s primary responsibility: determine an
organizations goals, strategy, and design, thereby adapting the
organization to a changing environment.

4. Direction (Goal setting Process)
1) Assessment of Opportunities and Threats (Both internal and external
environments).
2) Define Strategic Intent: Overall mission/goals fit to the previous
environmental assessments.
A. Formulate Specific Operational Goals: How to accomplish
overall mission.
3) Organizational Design: Design the Organization to achieve these
specific goals.
4) Effectiveness / Outcomes : Measure results and feed back into the
international situation analysis.

6. Organizational Purpose:
-Organizations exist for a purpose.
Strategic Intent: Means that all the organizations energies and
resources and directed towards a focused, unifying, and
compelling overall goals. [Microsoft’s early goal: “Put a
computer on every desk in every home”]
• Mission: The overall goal for an organization, the reason for
its existence. Also called official goals, the purpose is to
communicate to both internal and external stakeholders, what
the organization is trying to achieve. Also provides legitimacy
to any potential stakeholders

7. • Competitive Advantage: Refers to what sets the organization
apart from other and provides it with a distinctive edge for
meeting customer or client needs in the marketplace. Apple’s
Competitive advantage is its brand recognition and simplicity.
• Core Competence: Something the organization does
especially well in comparison to its competitors. Examples
include: superior RD, excellent customer service, or
manufacturing efficiency. [Amazon’s CC is fast shipping]

8. Operating Goals: Designate the ends sought through the actual
operating procedures of the organization and explain what the
organization is actually trying to do. They describe specific
measurable outcomes and are often concerned with the short run.
[Performance goals, resource goals, market goals, employee
development goals, market goals, etc.
• Resource Goals: Pertain to the acquisition of needed material and
financial resources from the environment. [Wal-Mart wants to hire
every veteran who wants a job. Starbucks partnered with India’s
Tata group to acquire Arabica coffee beans].
• Market: The market share of market standing desired by the
organization. Primarily the responsibility of marketing and sales.

9. Assessing Organization Effectiveness
.
• Effectiveness is the degree to which an organization realizes its goals.
• Efficiency is the amount of resources used to produce a unit of output.
Sometimes these can be jointly linked, sometimes they are mutually
exclusive
Four Possible Measurement Approaches:
◆ The Goal Approach
◆ The Resource-Based Approach
◆ The Internal Process Approach
◆ The Strategic Constituents Approach
•

10. An Integrated Effectiveness Model
✧ Competing values model tries to balance a concern with various
parts of the organization rather than focusing on one part. It takes
into considering that organizations do many things and have many
outcomes. [Nasa's Challenger Explosion / BP Deepwater Horizon,
different viewpoints cause issues, this model wants to take these into
consideration.]
Indicators (Seven Value Dimensions)
Usefulness: Brings two contributions

11. Thank you