1. ROLE OF STRATEGY DIRECTION
IN ORGANIZATION DESIGN
BY:
KHAYAN SINGH E
RA1952001020120
2. The Role of Strategic Direction in
Organization Design
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.
3. Organizational Goals
◦ 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
Three aspects related to strategic intent:
Mission - overall goal of org. orgs reason for exsistance
Competitive Advantage - overall aim of strategic intent
Core Competence - something the org does especially well in comparison to its competitors.
4. Operating Goals
◦ Operating goals - designate the ends sought through the actual operating procedures of the org and
explain what the org is actually trying to do.
◦ 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
Resource goals - pertain to the acquisition of needed material and financial resources from the
environment
Market goals - relate to the market share or market standing desired by the organization
Employee Development - Pertains to the training, promotion, safety, and growth of employees
Productivity - Goals concern amount of output achieved from available resources
Innovation and change - Innovation goals pertain to internal flexibility and readiness to adapt to
unexpected changes in the environment.
5. Goal Conflict and the Hybrid
Organization
Organization often have multiple simultaneous goals. Sometimes these goals conflict with
each other.
◦ Hybrid Organization: An organization that mixes value systems and behaviors that represent two
different sectors of society, which leads to tensions or conflicts. These goals can be mutually exclusive,
so managers have to negotiate on direction
◦ Goal Importance: Goals help define the appropriate decision concerning organization structure,
innovation, employee welfare, or growth.
◦ Official Goals : describe a value system, and set an overall purpose and vision for the organization.
They also legitimize the organization
◦ Operating Goals : serve several specific purposes.
◦ Provide a sense of direction for employees.
◦ Motivate employees toward specific outcomes.
