Assignment 2 Balaji S RA1952001020060

1. BALAJI S
MBA I - A
MB18208/ORGANIZATIONAL DESIGN
RA1952001020060
THE ROLE OF STRATEGIC DIRECTION
OF ORGANISATION DESIGN

2.  Choice of goals and strategy influences how an organization should be designed.
 Organizational goal- a desired state of affairs that the org attempts to reach.
 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.
The Role of Strategic Direction in
Organization Design

4. Organizational purpose:
 Major distinction between the officially stated goals, or mission, of the organization and
the operative goals the organization actually pursues.
 Organizational purpose- may be referred to as the overall goal, or mission. Different parts
of org has different goals and objectives to help meet the overall goal/ mission.
Strategic Intent:
 All the organization energies and resources are directed toward a focused, unifying, and
compelling overall goal.
Microsoft goal:
 To put a computer on every desk in every home.

5. Three aspects related to strategic intent:
1)Mission = official goals = mission statement:
 Mission - overall goal of org. orgs reason for exsistance.
 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.
2)Competitive Advantage: overall aim of strategic intent.
3)Core Competence: something the org does especially well in comparisonto its
competitors.

6.  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.
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.
 Designate the ends sought through the actual operating procedures of the org and explain what
the org is actually trying to do.

7. Typical operating goals that define what an org is trying to accomplish:
Overall Performance
 Other overall performance goals: growth and output volume for both profit and non for
profit.
 Overall performance: reflected in profitability (net income, return on investment etc),
growth in sales or profits over time and the volume of sales.
Resource goals
 Pertain to the acquisition of needed material and financial resources from the environment.
 Acquisition of needed material and financial resources.

8. Market goals
 Relate to the market share or market standing desired by the org.
 Market share or market standing desired by the organization.
Employee Development
 Pertains to the training, promotion, safety, and growth of employees.
 Training, promotion, safety and growth of employees.
Innovation and change
 Internal flexibility, readiness to adapt.
 Innovation goals pertain to internal flexibility and readiness to adapt to
unexpected changes in the environment.

9. Productivity
 Goals concern amnt of output achieved frm available resources.
 Describe the amnt of resource inputs required to reach desired outputs.
 Units produced per employee, resource cost per employee.
 Amount of output achieved from available resources.