Chap 11 organizational structure

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Chap 11 organizational structure

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Chapter 11 Organizational Structure A Traditional Organization and Strategy Need for Organizational Redesign (TM 11-1) B Creating a Market-Responsive Organization Principles of Creating a Market-Responsive Organization (TM 11-2) Procedure for Creating a Market-Responsive Organization (TM 11-3) Managing a Market-Responsive Organization (TM 11-4) C Role of Systems in Implementing Strategy Three Types of Systems (TM 11-5) Techniques for Systems Design (TM 11-6) D Executive Reward System Characteristics of a Good Reward System (TM 11-7) E Learship Style Characteristics of a Good Leader (TM 11-8) Role of a Strategic Planner (TM 11-9) F Measuring Strategic Performance Attributes of Excellence (TM 11-10) 50 51 CHAPTER 11: Organizational Structure 11-1 NEED FOR ORGANIZATIONAL REDESIGN Behavioral requirements of planning as a management task are often different from, or in conflict with, the processes and content of management work normally prevalent in the organization Thus, an organization optimally geared to the pursuit of established objectives may be less than optimally prepared to work on the evaluation and adoption of new objectives or strategies CHAPTER 11: Organizational Structure 52 11-2 PRINCIPLES OF CREATING A MARKET-RESPONSIVE ORGANIZATION • Organization planning is economically based, operates under economic rules, and has economic objectives • Structure is only one tool in the drive to achieve better resource integration and increase market responsiveness • To achieve a balance between scale and responsiveness, organizations must compensate for their traditional tilt toward scale 53 CHAPTER 11: Organizational Structure 11-3 PROCEDURE FOR CREATING A MARKET-RESPONSIVE ORGANIZATION • Determine corporate strategic boundaries • Balance the demands of scale and market responsiveness • Organize for strategic effectiveness CHAPTER 11: Organizational Structure 54 11-4 MANAGING A MARKET-RESPONSIVE ORGANIZATION • Forge a clear link between strategy and skills • Is specific—and selective—about core skills • Clarify the implications for pivotal jobs • Provide leadership from the top • Empower the organization to learn 55 CHAPTER 11: Organizational Structure 11-5 THREE TYPES OF SYSTEMS • Execution systems • Monitoring systems • Control systems CHAPTER 11: Organizational Structure 56 11 -6 TECHNIQUES FOR SYSTEMS DESIGN • Design an effective information capture procedure • Manage commonly used data elements for firmwide accessibility and control • Decide which applications are common and which tolerate distributed processing • Manage information, not reports • Examine cost effectiveness 57 CHAPTER 11: Organizational Structure 11-7 CHARACTERISTICS OF A GOOD REWARD SYSTEM • Optimize value to all key stakeholders (including both shareholders and management alike) • Properly measure and recapture value • Integrate compensation signals with those implicit in strategy and structure CHAPTER 11: Organizational Structure 58 11-8 CHARACTERISTICS OF A GOOD LEADER • Gains complete and willing acceptance of his or her leadership • Determines those business goals, objectives, and standards of behavior that are as ambitious as the potential abilities of the organization will permit • Introduces these objectives and motivates the organization to accept them as their own • Changes organizational relationships internally, as necessary, to facilitate both the acceptance and attainment of the new objectives 59 CHAPTER 11: Organizational Structure 11-9 ROLE OF A STRATEGIC PLANNER • Is well versed in theoretical frameworks relevant to planning • Is capable of making a point with conviction and firmness, and at the same time is a practical politician, avoiding conflict in the organization • Maintains a working alliance with other units in the organization • Commands the respect of other executives and managers • Is a salesperson who can help managers accept new and difficult tools and techniques CHAPTER 11: Organizational Structure 60 11-10 ATTRIBUTES OF EXCELLENCE • A bias toward action • Simple form and lean staff • Continued contact with customers • Productivity improvement via people • Operational autonomy to encourage entrepreneurship • Stress on one key business value • Emphasis on doing what they know best • Simultaneous loose-tight controls [...]...CHAPTER 11: Organizational Structure 60 11- 10 ATTRIBUTES OF EXCELLENCE • A bias toward action • Simple form and lean staff • Continued contact with customers • Productivity improvement via people • Operational autonomy to ... to learn 55 CHAPTER 11: Organizational Structure 11- 5 THREE TYPES OF SYSTEMS • Execution systems • Monitoring systems • Control systems CHAPTER 11: Organizational Structure 56 11 -6 TECHNIQUES...51 CHAPTER 11: Organizational Structure 11- 1 NEED FOR ORGANIZATIONAL REDESIGN Behavioral requirements of planning as a management... value • Integrate compensation signals with those implicit in strategy and structure CHAPTER 11: Organizational Structure 58 11- 8 CHARACTERISTICS OF A GOOD LEADER • Gains complete and willing acceptance

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