SlideShare una empresa de Scribd logo
1 de 21
Descargar para leer sin conexión
CHAPTER 12
IMPLEMENTING STRATEGY IN COMPANIES THAT COMPETE
IN A SINGLE INDUSTRY
LEARNING OBJECTIVES
▪ Understand how organizational design requires
managers to select the right combination of
organizational structure, control, and culture
▪ Discuss how effective organizational design enables
a company to increase product differentiation,
reduce its cost structure, and build competitive
advantage
2
ORGANIZATIONAL DESIGN
▪ Process of deciding how a company should
create, use, and combine organizational
structure, control systems, and culture
▪ To pursue a business model successfully
▪ Organizational structure: Means through which
a company assigns employees to specific tasks
and roles that are to be linked together to
increase:
▪ Efficiency, quality, and innovation
▪ Responsiveness to customers
3
ORGANIZATIONAL DESIGN
▪ Control system: Provides managers with
incentives for employees as well as feedback on
how the company performs
▪ Organizational culture: Specific collection of
values, norms, beliefs, and attitudes that:
▪ Are shared by people and groups in an organization
▪ Control the way people interact with each other and
with stakeholders outside the organization
4
IMPLEMENTING STRATEGY THROUGH
ORGANIZATIONAL DESIGN
5
GROUPING TASKS, FUNCTIONS, AND
DIVISIONS
▪ Function - Collection of people who work
together and perform the same types of tasks
▪ Amount and complexity of handoffs increase
with growth of the organization
▪ Handoffs - Transfers among people, functions, and
subunits
▪ Division - Way of grouping functions to allow an
organization to better produce and transfer its
goods and services to customers
6
ALLOCATING AUTHORITY AND
RESPONSIBILITY
• Clear and unambiguous chain of
command that defines each
manager’s relative authority
Hierarchy of authority
• Number of subordinates reporting
directly to a particular manager
Span of control
7
TALL AND FLAT STRUCTURES
8
TALL ORGANIZATIONS
• Communication problems
• Long time taken in decision making and
adherence
• Distortion of commands and orders
• Increases expenses
Limitations
• Principle of the minimum chain of command:
Company should design its hierarchy with the
fewest levels of authority necessary to use
organizational resources effectively
Solution
9
INTEGRATING MECHANISMS
▪ Ways to increase communication and
coordination among functions and divisions
▪ Direct contact
▪ Liaison roles
▪ Teams: Formation of a group that represents each
division or department:
▪ Facing a common problem
▪ With a goal of finding a solution to the problem
10
STRATEGIC CONTROL
▪ Design a system that sets ambitious goals and
targets for all managers and employees
▪ Management by objectives: Employees are
encouraged to help set their own goals
▪ Managers manage by exception, intervening only when
they sense something is not going right
11
1. Setting of organization’s goals.
2. Setting of departmental goals.
3. Discussion of departmental goals.
4. Defining expected results (setting individual goals).
5. Conducting periodic performance reviews.
6. Providing performance feedback.
STRATEGIC CONTROL SYSTEMS
▪ Mechanism that allows managers to monitor and
evaluate:
▪ Whether their business model is working as intended
▪ How their business model could be improved
▪ Basic structure of competitive advantage
▪ Control and efficiency
▪ Control and quality
▪ Control and innovation
▪ Control and responsiveness to customers
12
STEPS IN DESIGNING AN EFFECTIVE
STRATEGIC CONTROL SYSTEM
13
0
0
2
0
3
0
4
Scorecard
Balanced
A performance measurement tool
that looks at more than just the
financial perspective
It evaluates the company’s
performance from four
perspectives:
1.Financial
2.Customer
3.Internal processes
4.People/innovation/growth
Managers will focus on areas that
drive their organization’s success
and use scorecards that reflect
those strategies.
LEVELS OF ORGANIZATIONAL
CONTROL
15
TYPES OF STRATEGIC CONTROL
SYSTEMS
• Way one manager shapes and influences the behavior of another in
a face-to-face interaction in the pursuit of a company’s goals
Personal control
• Establishes performance goals and then measures performance
relative to these goals
Output control
• Establishes comprehensive system of rules that specify the
appropriate behavior through:
• Operating budget
• Standardization
• Rules and procedures
Behavior control
16
ORGANIZATIONAL CULTURE
▪ Specific collection of values and norms shared by
people and groups in an organization
▪ Organizational socialization - Describes how
people learn organizational culture
▪ Culture and strategic leadership
▪ Organization’s founder and top managers help create
its organizational culture and provide strategic
leadership
▪ Shared values and common culture increase integration
and improve coordination among members
17
ADAPTIVE CORPORATE CULTURES
▪ Innovative culture that encourages and rewards
middle- and lower-level managers for taking the
initiative to achieve organizational goals
▪ Common value sets
▪ Values promoting a bias for action
▪ Values stem from nature of the organization’s mission
▪ Values determine how to operate the organization
18
DEVELOPING CULTURE AT THE
FUNCTIONAL LEVEL
• Functional strategy improves efficiency and quality
Production
• Develops distinctive competencies in innovation, quality,
and excellence that result in products that fit customers’
needs
R&D
• Monitor sales behavior
• Encourage high responsiveness to customers to
develop sophisticated output and behavior controls
Sales
19
HOW ORGANIZATIONAL DESIGN
INCREASES PROFITABILITY
20
IMPLEMENTING COST LEADERSHIP
AND DIFFERENTIATION
• Choosing a combination compatible with lowering
cost structure while preserving ability to attract
customers
Implementing cost leadership
• Company must design its structure, control, and
culture around the particular source of its
competitive advantage
• Makes it difficult to standardize activities and
increases the bureaucratic costs
Implementing differentiation
21
Quazi Tafsirul Islam.
Find more at www.quazitafsir.com

Más contenido relacionado

Similar a hill___jones_ch_12.pptx

2.3.4-Theories of planned change, Or - Copy.pptx
2.3.4-Theories of planned change, Or - Copy.pptx2.3.4-Theories of planned change, Or - Copy.pptx
2.3.4-Theories of planned change, Or - Copy.pptxdasankita1306
 
Understanding Business Excellence
Understanding Business ExcellenceUnderstanding Business Excellence
Understanding Business ExcellenceSeta Wicaksana
 
Organizational effectiveness
Organizational effectivenessOrganizational effectiveness
Organizational effectivenessRAMANISANTHAKUMAR
 
Leadership/Organization Assessment
Leadership/Organization AssessmentLeadership/Organization Assessment
Leadership/Organization Assessmentmjbrice
 
RBL Omnia - Detailed Deck
RBL Omnia - Detailed DeckRBL Omnia - Detailed Deck
RBL Omnia - Detailed DeckThe RBL Group
 
RBL Omnia, a world-class offering
RBL Omnia, a world-class offeringRBL Omnia, a world-class offering
RBL Omnia, a world-class offeringThe RBL Group
 
RBL Omnia, a world-class offering
RBL Omnia, a world-class offeringRBL Omnia, a world-class offering
RBL Omnia, a world-class offeringThe RBL Group
 
Organisation_Development[1] - Read-Only.pptx
Organisation_Development[1]  -  Read-Only.pptxOrganisation_Development[1]  -  Read-Only.pptx
Organisation_Development[1] - Read-Only.pptxsajaikrishna
 
Week 1 - Introductions Basics & Principles of Performance Management.pdf
Week 1 - Introductions Basics & Principles of  Performance Management.pdfWeek 1 - Introductions Basics & Principles of  Performance Management.pdf
Week 1 - Introductions Basics & Principles of Performance Management.pdfIfzalAhmad2
 
Unit 1 Performance Management Overview.ppt
Unit 1 Performance Management Overview.pptUnit 1 Performance Management Overview.ppt
Unit 1 Performance Management Overview.pptCityComputers3
 
Management process3 and types
Management process3 and typesManagement process3 and types
Management process3 and typesSujith Bhaskar .R
 
Getting The Best Out Of Your People - webinar
Getting The Best Out Of Your People - webinarGetting The Best Out Of Your People - webinar
Getting The Best Out Of Your People - webinarG&A Partners
 
Performance management – Best Practice Process and Principles
Performance management – Best Practice Process and Principles Performance management – Best Practice Process and Principles
Performance management – Best Practice Process and Principles Charles Cotter, PhD
 
Role of strategic direction
Role of strategic directionRole of strategic direction
Role of strategic directionMass Purshoth
 

Similar a hill___jones_ch_12.pptx (20)

2.3.4-Theories of planned change, Or - Copy.pptx
2.3.4-Theories of planned change, Or - Copy.pptx2.3.4-Theories of planned change, Or - Copy.pptx
2.3.4-Theories of planned change, Or - Copy.pptx
 
Understanding Business Excellence
Understanding Business ExcellenceUnderstanding Business Excellence
Understanding Business Excellence
 
Unit v
Unit vUnit v
Unit v
 
Organizational effectiveness
Organizational effectivenessOrganizational effectiveness
Organizational effectiveness
 
Leadership/Organization Assessment
Leadership/Organization AssessmentLeadership/Organization Assessment
Leadership/Organization Assessment
 
FunctionalOverview
FunctionalOverviewFunctionalOverview
FunctionalOverview
 
RBL Omnia - Detailed Deck
RBL Omnia - Detailed DeckRBL Omnia - Detailed Deck
RBL Omnia - Detailed Deck
 
RBL Omnia, a world-class offering
RBL Omnia, a world-class offeringRBL Omnia, a world-class offering
RBL Omnia, a world-class offering
 
RBL Omnia, a world-class offering
RBL Omnia, a world-class offeringRBL Omnia, a world-class offering
RBL Omnia, a world-class offering
 
Unit 5 sm
Unit 5 smUnit 5 sm
Unit 5 sm
 
Organisation_Development[1] - Read-Only.pptx
Organisation_Development[1]  -  Read-Only.pptxOrganisation_Development[1]  -  Read-Only.pptx
Organisation_Development[1] - Read-Only.pptx
 
Week 1 - Introductions Basics & Principles of Performance Management.pdf
Week 1 - Introductions Basics & Principles of  Performance Management.pdfWeek 1 - Introductions Basics & Principles of  Performance Management.pdf
Week 1 - Introductions Basics & Principles of Performance Management.pdf
 
Unit 1 Performance Management Overview.ppt
Unit 1 Performance Management Overview.pptUnit 1 Performance Management Overview.ppt
Unit 1 Performance Management Overview.ppt
 
Organization
Organization Organization
Organization
 
Management process3 and types
Management process3 and typesManagement process3 and types
Management process3 and types
 
Getting The Best Out Of Your People - webinar
Getting The Best Out Of Your People - webinarGetting The Best Out Of Your People - webinar
Getting The Best Out Of Your People - webinar
 
Strategic intent
Strategic intentStrategic intent
Strategic intent
 
Performance management – Best Practice Process and Principles
Performance management – Best Practice Process and Principles Performance management – Best Practice Process and Principles
Performance management – Best Practice Process and Principles
 
Organising unit ppt.ppt
Organising unit ppt.pptOrganising unit ppt.ppt
Organising unit ppt.ppt
 
Role of strategic direction
Role of strategic directionRole of strategic direction
Role of strategic direction
 

Más de ssuserbea996

BUS251_Topic 2.pptx
BUS251_Topic 2.pptxBUS251_Topic 2.pptx
BUS251_Topic 2.pptxssuserbea996
 
Resume Cover Letter PPT.pptx
Resume Cover Letter PPT.pptxResume Cover Letter PPT.pptx
Resume Cover Letter PPT.pptxssuserbea996
 
Guffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptx
Guffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptxGuffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptx
Guffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptxssuserbea996
 
paragraphwriting-150627134634-lva1-app6891.pptx
paragraphwriting-150627134634-lva1-app6891.pptxparagraphwriting-150627134634-lva1-app6891.pptx
paragraphwriting-150627134634-lva1-app6891.pptxssuserbea996
 
12_Business_Letters_ppt.ppt
12_Business_Letters_ppt.ppt12_Business_Letters_ppt.ppt
12_Business_Letters_ppt.pptssuserbea996
 
-9---------------effective verbal.pptx
-9---------------effective verbal.pptx-9---------------effective verbal.pptx
-9---------------effective verbal.pptxssuserbea996
 
6---newsletter.ppt
6---newsletter.ppt6---newsletter.ppt
6---newsletter.pptssuserbea996
 
4----------------makingcomplaintsandrespondingtothem.pptx
4----------------makingcomplaintsandrespondingtothem.pptx4----------------makingcomplaintsandrespondingtothem.pptx
4----------------makingcomplaintsandrespondingtothem.pptxssuserbea996
 
hrm_450_actors_of_labor_management_relations_mli.pptx
hrm_450_actors_of_labor_management_relations_mli.pptxhrm_450_actors_of_labor_management_relations_mli.pptx
hrm_450_actors_of_labor_management_relations_mli.pptxssuserbea996
 
Minimalist Aesthetic Slideshow by Slidesgo.pptx
Minimalist Aesthetic Slideshow by Slidesgo.pptxMinimalist Aesthetic Slideshow by Slidesgo.pptx
Minimalist Aesthetic Slideshow by Slidesgo.pptxssuserbea996
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptxssuserbea996
 

Más de ssuserbea996 (20)

BUS251_Topic 2.pptx
BUS251_Topic 2.pptxBUS251_Topic 2.pptx
BUS251_Topic 2.pptx
 
Week 1.pptx
Week 1.pptxWeek 1.pptx
Week 1.pptx
 
Week 1.pptx
Week 1.pptxWeek 1.pptx
Week 1.pptx
 
9385552.ppt
9385552.ppt9385552.ppt
9385552.ppt
 
Resume Cover Letter PPT.pptx
Resume Cover Letter PPT.pptxResume Cover Letter PPT.pptx
Resume Cover Letter PPT.pptx
 
8152206.ppt
8152206.ppt8152206.ppt
8152206.ppt
 
Guffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptx
Guffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptxGuffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptx
Guffey and Loewy_EBC_12e_PPT_ch4_Final-Revising Business Messages.pptx
 
chapter5.ppt
chapter5.pptchapter5.ppt
chapter5.ppt
 
paragraphwriting-150627134634-lva1-app6891.pptx
paragraphwriting-150627134634-lva1-app6891.pptxparagraphwriting-150627134634-lva1-app6891.pptx
paragraphwriting-150627134634-lva1-app6891.pptx
 
12_Business_Letters_ppt.ppt
12_Business_Letters_ppt.ppt12_Business_Letters_ppt.ppt
12_Business_Letters_ppt.ppt
 
-9---------------effective verbal.pptx
-9---------------effective verbal.pptx-9---------------effective verbal.pptx
-9---------------effective verbal.pptx
 
6---newsletter.ppt
6---newsletter.ppt6---newsletter.ppt
6---newsletter.ppt
 
6--.ppt
6--.ppt6--.ppt
6--.ppt
 
4----------------makingcomplaintsandrespondingtothem.pptx
4----------------makingcomplaintsandrespondingtothem.pptx4----------------makingcomplaintsandrespondingtothem.pptx
4----------------makingcomplaintsandrespondingtothem.pptx
 
hrm_450_actors_of_labor_management_relations_mli.pptx
hrm_450_actors_of_labor_management_relations_mli.pptxhrm_450_actors_of_labor_management_relations_mli.pptx
hrm_450_actors_of_labor_management_relations_mli.pptx
 
Minimalist Aesthetic Slideshow by Slidesgo.pptx
Minimalist Aesthetic Slideshow by Slidesgo.pptxMinimalist Aesthetic Slideshow by Slidesgo.pptx
Minimalist Aesthetic Slideshow by Slidesgo.pptx
 
Presentation1.pptx
Presentation1.pptxPresentation1.pptx
Presentation1.pptx
 
FIN Chapter 9.ppt
FIN  Chapter 9.pptFIN  Chapter 9.ppt
FIN Chapter 9.ppt
 
9.pptx
9.pptx9.pptx
9.pptx
 
10.pptx
10.pptx10.pptx
10.pptx
 

Último

Mist Cooling & Fogging System Company in Egypt
Mist Cooling & Fogging System Company in EgyptMist Cooling & Fogging System Company in Egypt
Mist Cooling & Fogging System Company in Egyptopstechsanjanasingh
 
L-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan WritersL-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan WritersPlan Writers
 
10 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 202410 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 2024Nate Evans
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfLouis Malaybalay
 
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxA Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxShainaMaheshwari1
 
Digital Marketing Training Program skills s
Digital Marketing Training Program skills sDigital Marketing Training Program skills s
Digital Marketing Training Program skills sgodxzyrox
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loansujat8807
 
NVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptxNVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptxKrutik Rakade
 
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAYLouis Malaybalay
 
Optimize Your CRM Customization and Beyond
Optimize Your CRM Customization and BeyondOptimize Your CRM Customization and Beyond
Optimize Your CRM Customization and BeyondBoundify
 
Presented by Sabri international .......
Presented by Sabri international .......Presented by Sabri international .......
Presented by Sabri international .......SABRI INTERNATIONAL
 
A Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfA Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfmeftaul987
 
Shopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business ModelShopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business ModelBhaviniSharma12
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxBonano Insurance
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"Adharsh45
 
Unleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan BusinessUnleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan Businesstompeter3736
 
EPC Contractors aspects Presentation.pdf
EPC Contractors  aspects Presentation.pdfEPC Contractors  aspects Presentation.pdf
EPC Contractors aspects Presentation.pdfGiuseppe Tommasone
 
Dashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesDashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesLPI ONG
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi Tube
 

Último (20)

Mist Cooling & Fogging System Company in Egypt
Mist Cooling & Fogging System Company in EgyptMist Cooling & Fogging System Company in Egypt
Mist Cooling & Fogging System Company in Egypt
 
L-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan WritersL-1 VISA Business (Plan Sample) - Plan Writers
L-1 VISA Business (Plan Sample) - Plan Writers
 
10 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 202410 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 2024
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
 
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxA Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
 
Digital Marketing Training Program skills s
Digital Marketing Training Program skills sDigital Marketing Training Program skills s
Digital Marketing Training Program skills s
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loan
 
NVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptxNVIDIA's overall business overview Presentation.pptx
NVIDIA's overall business overview Presentation.pptx
 
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
 
Optimize Your CRM Customization and Beyond
Optimize Your CRM Customization and BeyondOptimize Your CRM Customization and Beyond
Optimize Your CRM Customization and Beyond
 
WAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdfWAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdf
 
Presented by Sabri international .......
Presented by Sabri international .......Presented by Sabri international .......
Presented by Sabri international .......
 
A Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdfA Case Study On SQUARE GROUP Bangladesh.pdf
A Case Study On SQUARE GROUP Bangladesh.pdf
 
Shopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business ModelShopclues: Failure & Solutions in Business Model
Shopclues: Failure & Solutions in Business Model
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptx
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"
 
Unleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan BusinessUnleashing the Power of Fandom: A Short Guide to Fan Business
Unleashing the Power of Fandom: A Short Guide to Fan Business
 
EPC Contractors aspects Presentation.pdf
EPC Contractors  aspects Presentation.pdfEPC Contractors  aspects Presentation.pdf
EPC Contractors aspects Presentation.pdf
 
Dashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de OperacionesDashboards y paneles - CP Home - Area de Operaciones
Dashboards y paneles - CP Home - Area de Operaciones
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
 

hill___jones_ch_12.pptx

  • 1. CHAPTER 12 IMPLEMENTING STRATEGY IN COMPANIES THAT COMPETE IN A SINGLE INDUSTRY
  • 2. LEARNING OBJECTIVES ▪ Understand how organizational design requires managers to select the right combination of organizational structure, control, and culture ▪ Discuss how effective organizational design enables a company to increase product differentiation, reduce its cost structure, and build competitive advantage 2
  • 3. ORGANIZATIONAL DESIGN ▪ Process of deciding how a company should create, use, and combine organizational structure, control systems, and culture ▪ To pursue a business model successfully ▪ Organizational structure: Means through which a company assigns employees to specific tasks and roles that are to be linked together to increase: ▪ Efficiency, quality, and innovation ▪ Responsiveness to customers 3
  • 4. ORGANIZATIONAL DESIGN ▪ Control system: Provides managers with incentives for employees as well as feedback on how the company performs ▪ Organizational culture: Specific collection of values, norms, beliefs, and attitudes that: ▪ Are shared by people and groups in an organization ▪ Control the way people interact with each other and with stakeholders outside the organization 4
  • 6. GROUPING TASKS, FUNCTIONS, AND DIVISIONS ▪ Function - Collection of people who work together and perform the same types of tasks ▪ Amount and complexity of handoffs increase with growth of the organization ▪ Handoffs - Transfers among people, functions, and subunits ▪ Division - Way of grouping functions to allow an organization to better produce and transfer its goods and services to customers 6
  • 7. ALLOCATING AUTHORITY AND RESPONSIBILITY • Clear and unambiguous chain of command that defines each manager’s relative authority Hierarchy of authority • Number of subordinates reporting directly to a particular manager Span of control 7
  • 8. TALL AND FLAT STRUCTURES 8
  • 9. TALL ORGANIZATIONS • Communication problems • Long time taken in decision making and adherence • Distortion of commands and orders • Increases expenses Limitations • Principle of the minimum chain of command: Company should design its hierarchy with the fewest levels of authority necessary to use organizational resources effectively Solution 9
  • 10. INTEGRATING MECHANISMS ▪ Ways to increase communication and coordination among functions and divisions ▪ Direct contact ▪ Liaison roles ▪ Teams: Formation of a group that represents each division or department: ▪ Facing a common problem ▪ With a goal of finding a solution to the problem 10
  • 11. STRATEGIC CONTROL ▪ Design a system that sets ambitious goals and targets for all managers and employees ▪ Management by objectives: Employees are encouraged to help set their own goals ▪ Managers manage by exception, intervening only when they sense something is not going right 11 1. Setting of organization’s goals. 2. Setting of departmental goals. 3. Discussion of departmental goals. 4. Defining expected results (setting individual goals). 5. Conducting periodic performance reviews. 6. Providing performance feedback.
  • 12. STRATEGIC CONTROL SYSTEMS ▪ Mechanism that allows managers to monitor and evaluate: ▪ Whether their business model is working as intended ▪ How their business model could be improved ▪ Basic structure of competitive advantage ▪ Control and efficiency ▪ Control and quality ▪ Control and innovation ▪ Control and responsiveness to customers 12
  • 13. STEPS IN DESIGNING AN EFFECTIVE STRATEGIC CONTROL SYSTEM 13
  • 14. 0 0 2 0 3 0 4 Scorecard Balanced A performance measurement tool that looks at more than just the financial perspective It evaluates the company’s performance from four perspectives: 1.Financial 2.Customer 3.Internal processes 4.People/innovation/growth Managers will focus on areas that drive their organization’s success and use scorecards that reflect those strategies.
  • 16. TYPES OF STRATEGIC CONTROL SYSTEMS • Way one manager shapes and influences the behavior of another in a face-to-face interaction in the pursuit of a company’s goals Personal control • Establishes performance goals and then measures performance relative to these goals Output control • Establishes comprehensive system of rules that specify the appropriate behavior through: • Operating budget • Standardization • Rules and procedures Behavior control 16
  • 17. ORGANIZATIONAL CULTURE ▪ Specific collection of values and norms shared by people and groups in an organization ▪ Organizational socialization - Describes how people learn organizational culture ▪ Culture and strategic leadership ▪ Organization’s founder and top managers help create its organizational culture and provide strategic leadership ▪ Shared values and common culture increase integration and improve coordination among members 17
  • 18. ADAPTIVE CORPORATE CULTURES ▪ Innovative culture that encourages and rewards middle- and lower-level managers for taking the initiative to achieve organizational goals ▪ Common value sets ▪ Values promoting a bias for action ▪ Values stem from nature of the organization’s mission ▪ Values determine how to operate the organization 18
  • 19. DEVELOPING CULTURE AT THE FUNCTIONAL LEVEL • Functional strategy improves efficiency and quality Production • Develops distinctive competencies in innovation, quality, and excellence that result in products that fit customers’ needs R&D • Monitor sales behavior • Encourage high responsiveness to customers to develop sophisticated output and behavior controls Sales 19
  • 21. IMPLEMENTING COST LEADERSHIP AND DIFFERENTIATION • Choosing a combination compatible with lowering cost structure while preserving ability to attract customers Implementing cost leadership • Company must design its structure, control, and culture around the particular source of its competitive advantage • Makes it difficult to standardize activities and increases the bureaucratic costs Implementing differentiation 21 Quazi Tafsirul Islam. Find more at www.quazitafsir.com