The role of strategic direction in organization design
1. The Role of Strategic Direction in
Organization Design
Submitted By
Ramaswamy Kailash
RA1952001020030
2. Strategy
• 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.
4. Corporate level strategy
• 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.
• 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.
5. Business level strategy
• 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.
6. Functional level strategy
• 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.
7.
8. Organizational design
• Organizational design is the way an organization is to be structured and operated by its members.
• It is both a plan and process.
9. Organisational design
• A process involving decisions about six key elements:
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
10. Purpose of organising
• 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
