Lec 4 _ Chapter 13
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Transcript of Lec 4 _ Chapter 13
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Strategy in Action 4: Organising for Success EXPLORING STRATEGY
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Learning OutcomesIdentify key challenges in organising for successAnalyse structural types of organisations in terms of strengths and weaknesses Recognise how important organisational processes need to be designed to fit their circumstances Appreciate how internal and external relationships can integrate knowledge and resources
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*1. What is Configuration?An organisations configuration consists of the structures, processes and relationships through which the organisation operates.
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Organisational Configurations
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Key Challenges for OrganisationsThe speed of change and the increased levels of uncertainty in the business environmentThe importance of knowledge creation and knowledge sharingThe rise of internationalisation
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*2. Structural TypesFunctionalMultidivisionalMatrixTransnationalProject-based
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*2.1. Functional StructureIs based on the primary activities that have to be undertaken by an organisation such as production, finance and accounting, marketing, human resources and research development
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*2.1. Functional Structure
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Functional StructuresAdvantagesCEO in touch with all operationsReduces/simplifies control mechanismsClear definition of responsibilitiesSpecialists at senior and middle managementDisadvantagesOverburdened with routine issuesNeglect strategic issuesDifficulty coping with diversityCoordination between functionsFailure to adapt
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*2.2.Multidivisional StructuresIs built up of separate divisions on the basis of products, services or geographic areas
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Exploring Corporate Strategy 8e, Pearson Education 2008
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A Multidivisional Structure
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Multidivisional StructuresAdvantagesFlexibleControl from distance by monitoring performanceOwnership of strategySpecialisation of competences Training in strategic view
DisadvantagesDuplication the functions and cost of centralFragmentation and non-cooperationDanger of loss of central control
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*2.3. Matrix StructureIs a combination of structures which could take the form of product and geographical divisions or functional and divisional structure
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*A Matrix Structure
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Matrix StructuresAdvantagesIntegrated knowledgeFlexibleAllows for dual dimensions
DisadvantagesLength of time required for decision makingUnclear job and task responsibilitiesUnclear cost and profit responsibilitiesHigh degrees of conflict
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*2.4. Transnational StructuresCombines the local responsiveness of the international subsidiary with the coordination advantages found in global product companies
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Transnational Structures
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*2.5. Project-Based StructureA project-based structure is one where teams are created, undertake the work, and then are dissolved.
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Exploring Corporate Strategy 8e, Pearson Education 2008
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Comparison of Structures
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Design Tests for Checking Structural SolutionsMarket-AdvantageParenting Advantage People FeasibilitySpecialised CulturesDifficult LinksRedundant HierarchyAccountabilityFlexibility
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*3.5 Types of Control Processes
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*What is a Balanced Scorecard?Balanced scorecards combine both qualitative and quantitative measures, acknowledge the expectations of different stakeholders and relate an assessment of performance to choice of strategy.
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*An Example of the Balanced Scorecard
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*4. Relationship Relating Internally and Externally
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*4.1. Relating internally4.1.1. Relating to centre
Devolution concerns the extent to which the centre of an organisation delegates decision making to units and managers lower down in the hierarchy.
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Strategy Styles for Division of Responsibility Strategic planning styleFinancial control styleStrategic control style
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Strategic Planning Style
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Financial Control
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Strategic Control
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*4.1.2. Methods of Relating ExternallyOutsourcingStrategic AlliancesNetworksVirtual organisations
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Chapter Summary (1)Organising for success is about an organisations configuration, built on three related strands: structures, processes, and relationshipsSuccessful organising means responding to the key challenges facing the organisation: control, change, knowledge and internationalisationThere are many structural types, each with its own strengths and weaknesses
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Chapter Summary (2)There are a range of different organisational processes, direct or indirect and focused on input or outputs, to facilitate strategyRelationships are important for successSeparate organisational strands should come together to form a coherent reinforcing cycle
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Case Example: Hurricane Katrina
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Exploring Corporate Strategy 8e, Pearson Education 2008
12-*Case Example: Hurricane KatrinaWhat was the strategy of the Department of Homeland Security in the period immediately before Hurricane Katrina?In the light of this strategy, what if any changes should be made to the Departments organisational structure?Who was responsible for the organisational failures surrounding the response to Katrina?
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******************************Use Amazon. Begin at 3:40 and stop at 4:13. This is section on infrastructure and physical versus virtual space.****