The role of strategic direction in organisation design

1. THE ROLE OF STRATEGIC
DIRECTION IN ORGANIZATION
DESIGN
PALANI SELVAM B
RA1952001020026
MBA - A

2. INTRODUCTION -:
THE ROLE OF STRATEGIC DIRECTION IN ORGANIZATIONAL 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.

3. DEFINITION:-
• THE PRIMARY RESPONSIBILITY OF TOP MANAGEMENT IS TO DETERMINE AN ORGANIZATION’S GOALS, STRATEGY, AND
DESIGN, THEREIN ADAPTING THE ORGANIZATION TO A CHANGING ENVIRONMENT.
• DIRECTION SETTING BEGINS WITH AN ASSESSMENT OF OPPORTUNITIES AND THREATS IN THE ENVIRONMENT AND AN
EVALUATION OF INTERNAL STRENGTHS AND WEAKNESSES.
• THEN THE COMPANY CAN DETERMINE ITS MISSION, GOALS AND STRATEGIES.
• ORGANIZATIONAL DESIGN REFLECTS THE WAY GOALS AND STRATEGIES ARE IMPLEMENTED.
• THIS IS THE ROLE OF ORGANIZATION THEORY.
• CONSIDER HOW ORGANIZATION DESIGN IS AFFECTED BY THE CHOICE OF GOALS AND STRATEGY. NEW GOALS AND
STRATEGY ARE OFTEN SELECTED BASED UPON ENVIRONMENTAL NEEDS, AND THEN TOP MANAGEMENT ATTEMPTS TO
REDESIGN THE ORGANIZATION TO ACHIEVE THOSE ENDS.
• PERFORMANCE MEASUREMENTS FEED BACK INTO THE INTERNAL ENVIRONMENT, SO THAT PAST PERFORMANCE OF THE
ORGANIZATION ASSESSED BY TOP MANAGEMENT IN SETTING NEW GOALS AND STRATEGIES FOR THE FUTURE.
• CHOICES THAT TOP MANAGEMENT MAKE ABOUT GOALS, STRATEGY AND ORGANIZATIONAL DESIGN HAVE A HUGE
IMPACT ON ORGANIZATIONAL EFFECTIVENESS.

4. THE ROLE OF STRATEGIC DIRECTION IN
ORGANIZATIONAL DESIGN

5. EXTERNAL ENVIRONMENT :-
• THE EXTERNAL ENVIRONMENT CONSISTS OF EVERYTHING OUTSIDE
OF ORGANIZATIONS THAT CAN AFFECT THEIR PERFORMANCE AND OUTCOMES.
AVAILABILITY AND NEED FOR RAW MATERIALS, HUMAN RESOURCES, AND
FINANCIAL RESOURCES ARE ELEMENTS OF THE ENVIRONMENT.

6. STRATEGIC INTENT :-
• STRATEGIC INTENT IS A HIGH-LEVEL STATEMENT OF THE MEANS BY WHICH
YOUR ORGANIZATION WILL ACHIEVE ITS VISION. IT IS A STATEMENT
OF DESIGN FOR CREATING A DESIRABLE FUTURE (STATED IN PRESENT
TERMS). SIMPLY PUT, A STRATEGIC INTENT IS YOUR COMPANY'S VISION OF
WHAT IT WANTS TO ACHIEVE IN THE LONG TERM

7. ORGANIZATION DESIGN :-
• ORGANIZATIONAL DESIGN IS A STEP-
BY-STEP METHODOLOGY WHICH
IDENTIFIES DYSFUNCTIONAL ASPECTS
OF WORK FLOW, PROCEDURES,
STRUCTURES AND SYSTEMS, REALIGNS
THEM TO FIT CURRENT BUSINESS
REALITIES/GOALS AND THEN
DEVELOPS PLANS TO IMPLEMENT THE
NEW CHANGES. ... A CLEAR STRATEGY
FOR MANAGING AND GROWING YOUR
BUSINESS.

8. ORGANIZATIONAL PURPOSE :-
• PURPOSE MAY BE REFERRED TO AS THE OVERALL GOAL OR MISSION.
• DIFFERENT PARTS OF THE ORGANIZATION ESTABLISH THEIR OWN GOALS TO HELP THE
ORGANIZATION ACHIEVE ITS OVERALL PURPOSE.
• PURPOSE REFERS TO WHY YOU DO WHAT YOU DO, NOT WHAT YOU DO OR HOW
YOU DO IT BUT WHY YOU DO IT.
• PURPOSE HAS BEEN SHOWN TO POSITIVELY IMPACT EMPLOYEE ENGAGEMENT AND
COMMITMENT TO AN ORGANIZATION THEREBY IMPACTING ORGANIZATIONAL
EFFECTIVENESS.

9. MISSION :-
• THE OFFICIAL OVERALL GOAL FOR AN ORGANIZATION IS ITS MISSION.
• THE MISSION DESCRIBES THE ORGANIZATION'S VISION, ITS SHARED VALUES
AND ASPIRATIONS, AND ITS REASON FOR EXISTENCE.
CONTRASTED WITH OPERATIONAL LEADERS, WHOSE PRIMARY ROLE IS TO
MANAGE DAY-TO-DAY BUSINESS OPERATIONS, LEADERS WHO TRANSITION
FROM OPERATIONAL TO STRATEGIC LEADERSHIP MUST ASSUME A VARIETY
OF KEY ROLES TO ACHIEVE LONGERTERM STRATEGIC BUSINESS RESULTS
IN PURSUIT OF PROFITABLE SALES GROWTH, INCREASED MARKET SHARE,
...
STRATEGIC ROLES :-

10. STRATEGIC DIRECTION IMPORTANCE :-
• A STRATEGIC DIRECTION WITHIN A DEPARTMENT OR BUSINESS AS A
WHOLE ALLOWS YOU AS A BUSINESS OWNER OR MANAGER TO FOCUS
YOUR EMPLOYEES ON SPECIFIC GOALS. ... EMPLOYEES SHOULD
UNDERSTAND HOW EACH TASK FITS INTO THE LARGER BUSINESS GOAL
TO GAIN A GREATER SENSE OF IMPORTANCE IN THE LARGER PROJECT.

11. THANK YOU...
-BY
PALANI SELVAM B