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Strategic Management : Organizational Structures

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organizational structures | strategic management

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Slide 1 - Organizational structures (Strategic Management)
Slide 2 - Organizational structures Organizations are social entities that are goals-directed are designed as deliberately structured and coordinated activity systems, and are linked to the external environment. The macro-design process involves the simultaneous selection and development of a variety of managerial tools. These are usually grouped into three categories: Structure Systems and processes Behavior
Slide 3 - Evolutionary Patterns of strategy and structure implementation Simple structure: A small firm following a single business strategy requires a simple-structure, defined as an organizational form in which the owner-manager makes all major decisions directly and monitors activities. This structure involves little specialization of tasks, few rules, and limited formalization. Information systems are unsophisticated, and owner-managers are directly involved in all phases of day-to-day operations. Examples: fast food restaurants, repair businesses and other specialized enterprises that have limited complexity.
Slide 4 - Functional structure : A company organized with a functional structure groups people together into functional departments such as purchasing, accounts, production, sales, marketing. These departments would normally have functional heads that may be called managers or directors depending on whether the function is represented at board level.
Slide 5 - Multidivisional structure Multidivisional Structure: The multidivisional structure is composed of operating divisions where each division represents a separate business and the top corporate officer delegates responsibilities for day-to-day operations and business-unit strategy to the division manager. The multidivisional structure was organized around functions and not businesses and thus costs were not allocated to each product.
Slide 6 - Matrix Organization Matrix Organization: The matrix structure groups employees by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms.
Slide 7 - Project management structure Project management structure: A project management structure is set up to handle a one-time undertaking with a specified period for completion. Example: Project organizations are advantageous for handling such special assignments as developing new product, constructing a new building or factory, handling a government contract, or consummating a merger.
Slide 8 - Network structure Network structure: The network structure is series of independent firms or business units linked together by computers in an information system that designs, produces and market a product or service. This structure provides an organization with increased flexibility and adaptability to cope with rapid technological change and shifting patterns of international trade and competition.
Slide 9 - How can organizations put in order itself? Committee Organization: A committee is a group of people formally appointed and organized to consider or decide certain matters. Permanent or standing: have a function in a purely advisory capacity to particular organizational units or managers. Committees Temporary or ad hoc: are generally appointed to deal with a specific problem or problems where there is a need for a pooling of talent
Slide 10 - How can organizations put in order itself? Boards of directors: Is a type of committee that ideally is responsible for formulating, changing, and evaluating an organization’s strategy. Corporate board of directors: They passively approved proposals from top management and hired and fired their CEO’s.
Slide 11 - How can organizations put in order itself? Responsibilities of the boards: Oversee the management of the corporation’s assets. Establish and approve the company mission, objectives, strategy and policies. Review management’s actions in light of the financial performances of the corporation Hire or fire the principal operating officers of the corporation. Role of the board in strategic management: To monitor To evaluate and influence To initiate and determine
Slide 12 - Advantages of committee structures Better solutions to problems Group decisions can be better than individual decisions Better communication and coordination Disadvantages of committee structures: Committees can be costly and time consuming Compromises often result when committees have difficulty in reaching decisions Committees can result in divided responsibility with no one feeling responsible.
Slide 13 - Hybrid structures: Is the combination of different organizational structure options.
Slide 14 - Thank You