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Organization as Strategic Design
• View of the organization: input-throughput-output system • Key concepts: information, systems (information systems, human resource management systems, etc,) • Key processes: grouping (differentiation), linking (integration), and alignment • View of the environment: opportunities & threats, resources • Role of the leader: “organizational architect”, strategist • Stimuli for change: lack of internal alignment, lack of “fit” between organization & environment • Barriers to change: inadequate analysis, inadequate information
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Strategic Design - KEY CONCEPTS
• Grouping • Linking • Alignment (internal) • Fit (external - with environment)
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Key Grouping Criteria • Activity (function) • Product •
Market/customer (geography, segment) • Process (business processes - especially in support functions) • Matrix
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Key Linking Mechanisms
• Formal reporting structures • Liaison roles • Integrator roles • Permanent cross-unit groups • Temporary cross-unit groups • Info. technology systems • Planning processes
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Key Alignment Mechanisms
• Performance metrics • Rewards and incentives • Resource allocation • Human Resource Development (recruitment, training, tracking, planning) • Informal systems and processes
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