Role of strategic direction in organization design

1. ORGANIZATIONAL DESIGN
BY,
SIDDHESH.S
RA1952001020058

2. THE ROLE OF STRATEGIC DIRECTION IN
ORGANIZATION DESIGN

3. WHAT IS STRATEGY?
• The word “strategy” is derived from the Greek word
“stratçgos”; stratus (meaning army) and “ago” (meaning
leading/moving).
• Strategy is an action that managers take to attain one or more
of the organization’s goals. Strategy can also be defined as “A
general direction set for the company and its various
components to achieve a desired state in the future. Strategy
results from the detailed strategic planning process”.

4. STRATEGIC DIRECTION
• “Strategic direction” refers to the actions taken to
achieve the goals of an organizational strategy. Some
companies use a “vision statement” or “mission
statement” to define where the organization wants to be,
but in short, this statement is a way for the organization
to set the direction that the organization wants to go,
and define what it wants to be in the future.
• Strategic direction includes the plans and actions that
needs to be put in place to work toward this vision of the
future for the organization.

5. TYPES OF STRATEGIC DIRECTION
• Mission
• A mission defines your purpose as an organization. If your
mission is to provide the highest quality bicycles on the
market then this provides long term strategic direction that
calls for prioritizing quality over other goals such as cost
savings.
• Vision
• A vision statement paints a picture of the future of a society,
city or organization. This is a basic way to provide strategic
direction alongside a mission statement. For example, a city
with a vision of a high quality of life, zero pollution and
expansive green spaces can use this vision to prioritize current
planning and spending.

6. • Culture
• Culture is the set of behaviors, expectations and norms that
evolve in a society, city or organization as a result of the
shared experiences of its members. Culture is difficult to
change but acts as a strong form of strategic direction
• Principles
• Principles are foundational guidelines or rules that provide
direction to future strategy and decision making.
• Values
• Values are principles that relate to matters of right and wrong.
For example, a technology company that establishes the
sustainability principle that energy be procured from the most
sustainable source available and used as efficiently as
possible.

7. • Grand Strategy
• Grand strategy is a long term strategy that considers every
possible approach and tool at your disposal. In some cases, an
organization's current strategy may appear to be irrational but
makes sense when you have a view of its grand strategy. A
grand strategy provides strategic direction over time and
represents a long term optimization of strategy over short
term considerations.

8. ROLE OF STRATEGIC DIRECTIONIN
ORGANIZATION DESIGN.
• The role of Strategic Direction in Organization 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. Organizational
design is used to implement goals and strategy and also
determines organization success.

9. • 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. Organizational Purpose.
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: 1)Mission (official
goals)- overall goal of org. orgs reason for existence.
2)Competitive Advantage- overall aim of strategic
intent3)Core Competence- something the org does especially
well in comparison to its competitor.

11. PRINCIPLES OF ORGANIZATION DESIGN

12. CONCLUSION
• To execute strategy effectively, managers also depend on the
skillful use of organizational control systems that involve
output, behavioral , and clan controls. Although introducing
more efficient business practices to improve organizational
functioning is desirable, executives should avoid letting their
firms become “out of control” by being skeptical of
management fads. Finally, the legal form a business takes is an
important decision with implications for a firm’s
organizational structure.