This document discusses various aspects of organizational strategy and effectiveness. It begins by defining strategy and the different levels of strategy - corporate, business, and functional. It then covers organizational design elements like work specialization, departmentalization, chain of command and Miles and Snow's strategic types. Finally, it discusses approaches to measuring organizational effectiveness like the goal, internal process, system resource and strategic approaches.

1. Submitted To: Prof. Alpha Lokhande

3.  NISHA SALIAN 014122
 PRIYANKA SHAH 014128
 NAZNEEN SHEIKH 014137
 ANIES VARGHESE 014164

4.  Strategy can be defined as the determination
of the basic long-term goals and objectives
of an enterprise, and the adoption of courses
of action and the allocation of resources
necessary for carrying out these goals.
 The term is derived from the Greek word for
generalship or leading an army.
 A method or plan chosen to bring about a
desired future, such as achievement of
a goal or solution to a problem.

5. Corporate-
level
Strategy
Business-level
Strategy
Functional-level
Strategy

6.  If an organization is in more
than one business, it will
need a “Corporate-level
strategy”
 In What set of Business
should we be?
 It determines the roles that
each business plays in the
organization.

7.  This level of strategy seeks to
answer the question, How
should we compete in each of
our Business?
 Same as that of Corporate-level.
 Strategy as organization in
multiple business, each division
will have its own strategy that
defines the product and services
that they will offer.

8.  It is in support of Business
level Strategy.
 Looks its management
decisions as specific to a
functional area of the
organization.
 It sees people and resources
as an end and not means to
an end.

9. INNOVATION STRATEGY
Marketing Differentiation
Strategy

10. BREADTH STRATEGY COST CONTROL STRATEGY

12. Miles and Snow’s Four Strategic
Types
 Raymond Miles & Charles Snow classified the
organization into four strategic types: Prospectors,
Defenders, Analyzers and Reactors
 Managers seek to formulate strategies that are congruent
with the external environment
1) Prospector: innovate, take risks, seek out new
opportunities and grow
 Finding and exploiting new product
and market opportunities.
 Creativity over efficiency
Examples: FedEx, Microsoft, Google

13. 2) Defender: stability or even retrenchment
(opposite to prospector)
 Offer products to a narrow domain
 Strategy is concerned with stability and seeks hold
onto customers.
 They strive aggressively to prevent the competitors
to enter into their “turf”
Example: Manufacturer of Soft-soap

14. 3) Analyzer: try to maintain a stable business while
innovating on the periphery
In between the prospector and the defender
Examples: Microsoft (e.g., Win 8), IBM
4) Reactor: not really a strategy… ad-hoc response
to threats and opportunities in the market
No long-term plan
Examples: Xerox and Kodak, which struggled to keep
up recently

15.  Organizational design is the way an organization is
to be structured and operated by its members.
 It is both a plan and process.

16. A process involving decisions about six key
elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization

17.  Divides work to be done into specific jobs and departments
 Assigns tasks and responsibilities associated with
individual jobs
 Coordinates diverse organizational tasks
 Establishes relationships among individuals, groups, and
departments
 Establishes formal lines of authority
 Allocates organizational resources
 Cluster jobs in to units

18.  Work Specialization
◦ The degree to which tasks in the organization are
divided into separate jobs with each step
completed by a different person

19.  Functional
◦ Grouping jobs by
functions performed
 Product
◦ Grouping jobs by
product line
 Geographical
◦ Grouping jobs on the
basis of territory or
geography
 Process
◦ Grouping jobs on the
basis of product or
customer flow
 Customer
◦ Grouping jobs by type of
customer and needs

20. Functional Departmentalization
+ Efficiencies from putting together similar specialties and people with
common skills, knowledge, and orientations
+ Coordination within functional area
+ In-depth specialization
– Poor communication across functional areas
– Limited view of organizational goals
Plant Manager
Manager,
Engineering
Manager,
Accounting
Manager,
Manufacturing
Manager,
Human Resources
Manager.
Purchasing

21. Geographical Departmentalization
+ More effective and efficient handling of specific regional
issues that arise
+ Serve needs of unique geographic markets better
– Duplication of functions
– Can feel isolated from other organizational areas
Vice President of
Sales
Sales Director
Western Region
Sales Director
Southern Region
Sales Director
Central Region
Sales Director
Eastern Region

22. Product Departmentalization
+ Allows specialization in particular products and
services
+ Managers can become experts in their industry
+ Closer to customers
– Duplication of functions
– Limited view of organizational goals Source: Bombardier Annual Report.
CEO.
Truck
Division
Bus
Division
Car
Division

23. Process Departmentalization
+ More efficient flow of work activities
– Can only be used with certain types of
products
Plant
Manager
FinishingWeavingDyeingSpinning

24. Customer Departmentalization
+ Customers’ needs and problems can be met by
specialists
– Duplication of functions
– Limited view of organizational goals
Manager
Retail Accounts
Manager
Wholesale Accounts
Manager
Government Accounts
Director Of
Sales

26.  The degree to which objectives
are achieved and the extent to
which targeted problems are solved
Effectiveness means "doing the
right thing”

27. “Organizational effectiveness is the concept of
how effective an organization is in achieving
the outcomes the organization intends to produce.

28. A. Goal Approach;
B. Internal Process
Approach;
C. System Resource
Approach;
D. Strategic Approach

29. Approach Definition When Used
An organization is effective Preferred when:
to the extent that:
Goal Approach it accomplishes its stated goals goals are clear,
time
bound and
measurable
System Resource it acquires needed resources a clear
connection exists
between inputs
and outputs
Strategic Approach all strategic constituencies constituencies
have powerful
are at least minimally influence on the
organization,
satisfied and the
organization must

30. Improved:
• profitability
• competitiveness
• customer satisfaction
• management-employee
relation
• communications
• teamwork
• employee morale
• company image
• revenue
• work environment
Reduced:
• customer complaints
• warranty claims
• cost
• Rework
Greater:
• market share
• adaptability
Increased:
• Employee involvement
• Employee satisfaction
• Ability to attract new customers

31.  Organizational effectiveness
is the degree of achievements
of an organizational
objectives.