This PowerPoint helps students to consider the concept of infinity.
The Role of Strategic Direction in Organization Design
1. THE ROLE OF STRATEGIC DIRECTION IN
ORGANIZATIONAL DESIGN
J. VIJAY IMMANUEL RAJ
RA1952001020052
MBA “A”
2. ORGANIZATIONAL DESIGN
• Organization Design is a process for shaping the way organizations are structured and run.
• It involves many different aspects of life at work, including team formations, shift patterns,
lines of reporting, decision-making procedures, communication channels, and more.
• Organization Design – and redesign – can help any type of organization to achieve its goals.
Sometimes, a large-scale reorganization is necessary. At other points, more subtle shifts in
structures and systems can ensure that an organization continues to thrive.
3. STRATEGIC DIRECTION
• Strategic direction is a set of actions to achieve set goals in an organization's strategy. It's a
management issue.
• “Strategic direction” refers to the actions you are taking to achieve the goals of your
organizational strategy. Some companies use a “vision statement” or “mission statement” to
define where the company wants to be, but in short, this statement is a way for the company
to set the direction that the company wants to go, and define what it wants to be in the
future. Your strategic direction includes the plans and actions you have put in place to work
toward this vision of the future for your company.
4. THE ROLE OF STRATEGIC DIRECTION IN
ORGANIZATIONAL DESIGN
5. ROLES:
• The primary responsibility of top management is to determine an organisation’s goals, strategy
and design, therein adapting the organization to a changing environment.
• Direction settings 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.
• Organisational design reflects the way goals and strategies are implemented
• Performance measurements feed back into the 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 organisational design have a
huge impact on organisational effectiveness.
6. HOW STRATEGIES AFFECT ORGANIZATIONAL DESIGN
• Design must support the firm’s competitive approach. For example, if the
organization uses the low-cost leadership or defender strategy, the design
should be focused on efficiency, whereas if the organization uses the
differentiation or prospector strategy, the design calls for a learning
organizational structure with strong horizontal coordination mechanisms to
increase collaboration and teamwork
