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The role of strategic direction in organisation design
1. THE ROLE OF STRATEGIC DIRECTION IN
ORGANISATION DESIGN
RA.RAMNARESH
RA1952001020015
MBA
I
A
2. ORGANISATION DESIGN
• Organization Design is a process for shaping the way
organizations are structured and run.
• It involves many different aspects of life at work, including team
formations, shift patterns, lines of reporting, decision-making
procedures, communication channels, and more.
3. The Impact of Organization Design
• An organization's design must be right for it to operate efficiently and effectively, and its structures
and systems need to be aligned with its core strategies.
• There are many potential benefits to having a design that suits the business and its people, and the
environment in which it operates. For example:
• Increased efficiency.
• Faster and more effective decision making.
• Improved quality of goods and services.
• Higher profits.
• Better customer relations.
4. Strategic Direction
• The importance of strategic direction lies in its capacity to orient your company's overall
purpose. Consider your vision, or your big-picture reason for wanting to be in business.
This can be as ethereal as wanting to make the world a better place or as practical as
wanting to earn as much money as possible while making the least possible effort.
• Your mission statement will likely include some specifics about your products and
services. For example, an auto mechanic might articulate a mission to keep its customers'
cars safe and mechanically sound, and a fair-trade importer might adopt a mission to
improve the quality
5. Setting Periodic Goals
• Long-termgoal : By thinking through where you want to be far down the line, you'll be able to make
shorter-term plans aimed at taking you in the direction you've defined.
• MEDIUMTERMGOAL: These are objectives that cover a time frame of approximately two to three
years, long enough to be broad and meaningful
• SHORTTERMGOAL : The process of setting short-term goals breaks your longer-term
planning into achievable, manageable steps.
6. ROLES
• 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.
• 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.