(c) Macmillan & Tampoe Strategic Management Macmillan and Tampoe OUP

(c) Macmillan & Tampoe Implementing Strategy Managing Structural Change

(c) Macmillan & Tampoe Organizational Structures Define the lines of control Define power flows Channel the forces that play on the organization Facilitate the forms the organization should take to create effective organizational capability

(c) Macmillan & Tampoe Organizational Forces The strategic drivers that dictate how an organization has to behave to achieve its strategic intent 7 forces identified by Mintzberg (1991) Direction – vision or intent of the organization Proficiency – ability to achieve results Innovation – implementation of new ideas Concentration – focused energy Efficiency – optimising use of resources and skills Co-operation – working together within and across corporate boundaries Competition – constructive conflict. Also speed of change and knowledge attrition

(c) Macmillan & Tampoe Organizational Forms The shape the organization needs to take to respond optimally to the forces 7 forms listed by Mintzberg (1991) Entrepreneurial – power in one individual Professional – centred on knowledge owners Adhocracy – project form Machine – process-driven, bureaucratic Ideological – belief centred Political – centred around conflicting aims Lateral – loosely linked around common aims Networked – hardwired around common aims

(c) Macmillan & Tampoe Organizational Structure – The Options Entrepreneurial Functional Divisionalized Matrix

(c) Macmillan & Tampoe Optimising the organizational structure Figure 21.1 here

(c) Macmillan & Tampoe People and Structure Structures organise people into groups to harness collective effort, skill and capability Forms of people Groups – people but acting singly but harnessed by process, ideology etc. Teams – co-located interdependent people acting in concert within normal organizational setting Project Teams - co-located interdependent people acting in concert to achieve new aims Distributed Teams – loosely knit by need but not co- located

(c) Macmillan & Tampoe Structure and Leadership Style Some style options Paternalistic – high emotional content Scientific – high rational, logical content Participative – high democratic style Dictatorial – strongly authoritative Regal – aloof and distant Involved – ‘walking the floor’ Interfering – ‘meddling’ unproductively Structures may influence leadership styles

(c) Macmillan & Tampoe Organizational Capability 7 elements of organizational capability (Pascale and Athos 1983) Strategy Style Systems Shared Values Staff Skills Structure

(c) Macmillan & Tampoe Five steps to determine Organizational Structure Determine the change in strategic intent Determine the new organizational capability Determine the predominant forces and forms best suited the organization Determine leadership style and culture Define the formal structure