The role of strategic direction in organization design
1. The role of strategic
direction in
organization design
2. 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.
3. Strategic direction
Strategic Direction is a path set out for your
organization based on your vision, mission, core
values and the strategies identified to achieve the
goals you and your team determine for your
organization.
4. Benefits of strategic direction
A company's strategic direction is created through the
development of a strategic plan. The direction a company
chooses to take to achieve its goals is an important part of
the strategic planning process. The benefits of a clear
strategic direction are felt all over the company — from
ground-level employees, who work more efficiently with
clear goals, all the way up to shareholders, who remain
confident in the company's potential for continued success
and financial prosperity.
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 Role of Strategic Direction in Organization
Design
1.The primary responsibility of top management
is to determine an organization’s goals, strategy,
and design, therein adapting the organization to
a changing environment.
2.Middle managers do much the same thing for
major departments within the guidelines
provided by top management.
7. 3.First line managers usually focus on
execution of strategies made by top and
middle managers.
