This ppt is all about the strategic direction tat plays a vital role in the organization design

1. THE ROLE OF STRATEGIC
DIRECTION IN ORGANIZATION
DESIGN
NIVETHITHA MEENAKSHI.U
RA1952001020088
MBA - B

2. INTRODUCTION
 Strategic Direction is a path set out for
your organization based on vision, mission, core values
and the strategies identified to achieve the goals you
and your team determine for your organization.
 As organization move down that path, it provides
guidelines for decision making, allows adaptability and
enables everyone to be on the same page if
communicated well.

3. ROLE OF STRATEGIC DIRECTION
 The primary responsibility of top management is to
determine an organization’s goals, strategy, and design,
therein adapting the organization to a changing
environment.
 Middle managers do much the same thing for major
departments within the guidelines provided by the top
management.

4. ROLE OF STRATEGIC DIRECTION-
Contd..
 First line managers usually focus on execution of
strategies made by the top management.
 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.

5. VARYING PERFORMANCE MEASURES
BY ORGANIZATIONAL LEVEL
ORGANIZATIONAL
LEVEL
BASIS FOR ANNUAL
BONUS/MERIT PAY
Corporate
75% on long term objectives
25% on annual objectives
Division
50% on long term objectives
50% on annual objectives
Function
25% on long term objectives
75% on annual objectives

6. THE TRADITIONAL VIEW OF TOP
MANAGEMENT’S ROLE

7. 3 KEY STEPS
 Choosing the right framework- A key part of choosing the right
framework is self reflection about your own organization.What are you
trying to achieve?What are your main strengths and weaknesses? All
these factors will play heavily into your selection of the best strategy
framework.
 Applying the framework to your goals - This process will force you into
thinking deeply about alignment between your goals, strategic framework and
overarching vision.
 Reviewing your plan against your framework- This will help you determine
the amount of focus you're giving each element in your strategic framework.

8. TOP MANAGEMENT’S PRIMARY
RESPONSIBILITY
 Determine an organizations goals, strategy, and design,
thereby adapting the organization to a changing environment.
 Direction (Goal setting Process)
 Assessment of Opportunities and Threats (Both internal and external
environments).
 Define Strategic Intent: Overall mission/goals fit to the previous
environmental assessments.
 Organizational Design: Design the Organization to achieve these specific
goals.
 Effectiveness / Outcomes : Measure results and feed back into the
international situation analysis.

10. THANK YOU