The strategic direction of an organization influences its design. An organization's goals and strategy determine how it should be structured. The top management's primary responsibility is to define the organization's goals, strategy, and design to adapt to a changing environment. This ensures organizational design supports the goals and strategy, and leads to success. Goals can be official, stated missions or operative goals that guide daily operations. Microsoft's stated goal was to put a computer in every home, directing all efforts towards this strategic intent. Organizational design must align with both stated missions and operative goals around performance, resources, markets, employees, innovation, and productivity.

1. THE ROLE OF STRATEGIC
DIRECTION OF
ORGANISATION DESIGN
SHALINI R
MBA I - A
MB18208/ORGANIZATIONAL DESIGN
RA195200102007

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.
 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.

4. Organizational purpose:
 Major distinction between the officially stated goals, or mission, of the organization
and the operative goals the organization actually pursues.
 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.
Microsoft goal:
 To put a computer on every desk in every home.

5. Three aspects related to strategic intent:
1)Mission = official goals = mission statement:
 Mission - overall goal of org. orgs reason for exsistance.
 The organization’s reason for existence: It describes the organization’s vision, it’s
shared values and beliefs and its reason for being. Refers to the formally stated
definition of business scope and outcomes the organization is trying to achieve. One
of the primary reasons is to serve as A communication tool.
2)Competitive Advantage: overall aim of strategic intent.
3)Core Competence: something the org does especially well in comparisonto its
competitors.

6.  Establish and communicate organizational mission and goals. Communicate official
goals to provide a statement of the organization’s mission to external constituents.
Communicate operational goals to provide internal direction, guidelines and
standards of performance for employees.
Operative goals
 Designate the ends sought through the actual operating procedures of the
organization and explain what the organization is actually trying to do. These goals
concern overall performance, boundary spanning, maintenance, adaptation and
production activities. They provide direction for the day-to-day decisions and
activities within departments.
 Designate the ends sought through the actual operating procedures of the org and
explain what the org is actually trying to do.

7. 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.
 Overall performance: reflected in profitability (net income, return on investment etc),
growth in sales or profits over time and the volume of sales.
Resource goals
 Pertain to the acquisition of needed material and financial resources from the
environment.
 Acquisition of needed material and financial resources.

8. Market goals
 Relate to the market share or market standing desired by the org.
 Market share or market standing desired by the organization.
Employee Development
 Pertains to the training, promotion, safety, and growth of employees.
 Training, promotion, safety and growth of employees.
Innovation and change
 Internal flexibility, readiness to adapt.
 Innovation goals pertain to internal flexibility and readiness to adapt to unexpected
changes in the environment.

9. Productivity
 Goals concern amnt of output achieved frm available resources.
 Describe the amnt of resource inputs required to reach desired outputs.
 Units produced per employee, resource cost per employee.
 Amount of output achieved from available resources.