صفحه 1:
1 Chapter Two
Strategy, Organization
Design,
and Effectiveness
Thomson Learning
صفحه 2:
Top Management Role in
Organization Direction, Design,
and Effectiveness
eee
‘Opportunities
Threats
Uncertainty
و مه انوم
eae
(Stistegie Direction) aticency
Information and
Define Select Be outs
control systems
mission, » operational Production’ uae
ese ek Goal attainment
goals, technology Competing values
‘goals competitiv Human resource ۳۹9
e
policies,
strategies incentives Vv
Organizational
culture
Interorganizational
linkages
< ~~, —
eRe ELISE مس _ Thomson Learning
Sey ert POE hn 8
Cal Sopa“ Ar
Ses.
صفحه 3:
4 Goal Type and Purpose
Type of Goals Purpose of Goals
Official Goals, mission: Legitimacy
Operative goals: Employee direction and motiva'
Decision guidelines
Standard of performance
Thomson Learning
© 2004
صفحه 4:
Porter’s Competitive
Strategies
Competiti | Competitive
ve Scope | Advantage Strategy Example
Low-Cost
Broad Low Cost Leadership Dell
Computer
Starbucks
Broad Uniqueness | Differentiation Coffee Co.
Focused Low- Enterprise
Narrow Low Cost Cost Rent-a- Car
Leadership
Focused Edward
Narrow Uniquatresgaj¢pirerentiation Jones ,
:[ یت ون سر مت وت تون
صفحه 5:
Miles and Snow’s
Strategy Typology
= Prospector
= Learning orientation; flexible, fluid, decentralized
structure
= Strong capability in research
= Values creativity, risk-taking, and innovation
=" Defender
= Efficiency orientation; centralized authority and
tight cost control
= Emphasis on production efficiency, low overhead
= Close supervision; little employee empowerment
omson Learning
© 2004 25
صفحه 6:
Miles and Snow’s
4 Strategy Typology (cont'd)
= Analyzer
= Balances efficiency and learning; tight cost
control with flexibility and adaptability
= Efficient production for stable product lines;
emphasis on creativity, research, risk-
taking for innovation
=" Reactor
= No clear organizational approach; design
characteristics may shift abruptly
an@epending.on current needs
omson Learning
© 2004 26
صفحه 7:
۱2۸(۲ ۱۱۱۱۱۱۹۲2۲۱۰: 1 00101 د
Affecting Organization
Design
Organizational Structure and
Design
The Right Mix of Design Characteristics Fits the Contingency Fa
Thomson Learning
© 2004 27
صفحه 8:
Contingency Approaches to the
Measurement of Organizational
[ Effectiveness
Organization
Resource Internal ۳ تس
Inputs. activities ervice
and
processes
Thomson Learning
© 2004 2-8
صفحه 9:
29
Reported Goals
of U.S. Corporations
Goal % Corporations
Profitability 89
Growth 82
Market Share 66
Social Responsibility 65
Employee welfare 62
39
Product quality and service 60
Research and development 54
Diversification 51
Efficiency 50
Financial stability 49
Resource conservation
Management development 35
sree Bhgmson Learning
© 2004
صفحه 10:
Four Models of
Effectiveness Values
STRUCTURE
Flexibility
Human Relations Emphag| Open Systems Emphasis
Primary Goal: human resource |} Primary Goal: growth,
development Fesoures acqu|sition
F | sungats: cohescee toe supgoals. exit, readiness
0 external evaluatidn
internal external
0 Internal Process Emphasif Rational Goal Emphasis
5 Primary Goal: stability, equilibriu|} Primary Goal: productivity, effici¢n:y,
profit
Subgoals: information managen|| Subgoals: planning, goal setting
communication
00101011111101 Control
“Masagesont Sconce’ 28 1983). 96277; and Rober من
] Efecivensss Some relmnaryEvdexees "THOMSON Learning
‘Management Sciace 29 (1903) 3351 © 2004 2-10
صفحه 11:
Effectiveness Values
for Two Organizations
STRUCTURE
FLEXIBILITY
Open Systems
Human Relations
Emphasis
Emphasis
Thomson Learning
© 2004 211
صفحه 12:
Identifying Company
Goals and Strategies
Strategies
from Porter
Goals from
Exhibit 2.8
Thomson Learning
© 2004
Company
#1
Company
#2
Company
#3
Workbo
۳
of
Activity
صفحه 13:
RUTTIVEUIIYQ ValUes alla
Organizational
Effectiveness
سداق دتولا
Thomson Learning
© 2004
Workshop
Activity
Chapter Two
Strategy, Organization
Design,
and Effectiveness
Thomson Learning
© 2004
2-1
Top Management Role in
Organization Direction, Design,
and Effectiveness
External Environment
Organizatio
n
Design
Structural
Form –
Opportunities
Threats
Uncertainty
Resource Availability
Strategic Direction
CEO, Top
Management
Team
Define
mission,
official
goals
Select
operational
goals,
competitiv
e
strategies
Internal Situation
Strengths
Weaknesses
Distinctive Competence
Leadership Style
Past Performance
Source: Adapted from Arie Y. Lewin and Carroll U. Stephens,
Thomson Learning
© 2004
“Individual Properties of the CEO as Determinants of Organization
Design,” unpublished manuscript, Duke University, 1990; and Arie Y. Lewin
and Carroll U. Stephens, “CEO Attributes as Determinants of Organization Design:
An integrated Model,” Organization Studies 15, no. 2 (1994): 183-212
learning vs.
efficiency
Information and
control systems
Production
technology
Human resource
policies,
incentives
Organizational
culture
Interorganizational
linkages
Effectiveness
Outcomes
Resources
Efficiency
Goal attainment
Competing values
2-2
Goal Type and Purpose
Type of Goals Purpose of Goals
Official Goals, mission:
Operative goals:
Legitimacy
Employee direction and motivat
Decision guidelines
Standard of performance
Thomson Learning
© 2004
2-3
Porter’s Competitive
Strategies
Competiti Competitive
ve Scope Advantage
Broad
Broad
Narrow
Narrow
Strategy
Low-Cost
Leadership
Low Cost
Example
Dell
Computer
Starbucks
Coffee Co.
Uniqueness
Differentiation
Low Cost
Focused LowCost
Leadership
Enterprise
Rent-a- Car
Focused
Thomson Learning
Uniqueness
Differentiation
Edward
Jones
2-4
Investments
© 2004
Miles and Snow’s
Strategy Typology
Prospector
Learning orientation; flexible, fluid,
decentralized structure
Strong capability in research
Values creativity, risk-taking, and innovation
Defender
Efficiency orientation; centralized authority and
tight cost control
Emphasis on production efficiency, low overhead
Close supervision; little employee empowerment
Source: Based on Michael Treacy and Fred Wiersema,
“How Market Leaders Keep Their Edge,” Fortune February 6,
1995, 88-98; Michael Hitt, R. Duane Ireland, and Robert E. Hoskisson,
Strategic Management (St. Paul, Minn.: West, 1995), 100-113; and
Raymond E. Miles, Charles c. Snow, Alan D. Meyer, and Henry L.
Coleman, Jr., “Organizational Strategy, Structure, and Process,”
Academy of Management Review 3 (1978), 546-562
Thomson Learning
© 2004
2-5
Miles and Snow’s
Strategy Typology (cont’d)
Analyzer
Balances efficiency and learning; tight cost
control with flexibility and adaptability
Efficient production for stable product lines;
emphasis on creativity, research, risk-taking
for innovation
Reactor
No clear organizational approach; design
characteristics may shift abruptly depending
on current needs
Source: Based on Michael Treacy and Fred Wiersema,
“How Market Leaders Keep Their Edge,” Fortune February 6,
1995, 88-98; Michael Hitt, R. Duane Ireland, and Robert E. Hoskisson,
Strategic Management (St. Paul, Minn.: West, 1995), 100-113; and
Raymond E. Miles, Charles c. Snow, Alan D. Meyer, and Henry L.
Coleman, Jr., “Organizational Strategy, Structure, and Process,”
Academy of Management Review 3 (1978), 546-562
Thomson Learning
© 2004
2-6
Contingency Factors
Affecting Organization
Design
Envi
ronm
ent
y
eg
t
ra
St
Technolog
y
Siz
Life e/
Cycl
e
Cu
ltu
re
Organizational Structure and
Design
The Right Mix of Design Characteristics Fits the Contingency Fa
Thomson Learning
© 2004
2-7
Contingency Approaches to the
Measurement of Organizational
Effectiveness
External Environment
Organization
Resource
Inputs
Resource-based
approach
Internal
activities
and
processes
Internal
process
approach
Thomson Learning
© 2004
Product and
Service
Outputs
Goal
approach
2-8
Reported Goals
of U.S. Corporations
Goal
% Corporations
Profitability
Growth
Market Share
Social Responsibility
Employee welfare
Product quality and service
Research and development
Diversification
Efficiency
Financial stability
Resource conservation
Management development
Thomson Learning
© 2004
Source: Adapted from Y. K. Shetty, “New Look at Corporate Goals,”
California Management Review 22, no. 2 (1979), pp. 71-19.
89
82
66
65
62
60
54
51
50
49
39
35
2-9
Four Models of
Effectiveness Values
STRUCTURE
Flexibility
Human Relations EmphasisOpen Systems Emphasis
F
OInternal
C
U
S
Primary Goal: growth,
Primary Goal: human resource
resource acquisition
development
Subgoals:
flexibility,
readiness,
Subgoals: cohesion, morale, training
external evaluation
External
Internal Process Emphasis Rational Goal Emphasis
Primary Goal: stability, equilibriumPrimary Goal: productivity, efficiency,
profit
Subgoals: planning, goal setting
Subgoals: information management,
communication
Adapted from Robert E. Quinn and John Rohrbaugh,
“A Spatial Model of Effectiveness Criteria: Toward a
Competing Values Approach to Organizational Analysis,”
Management Science 29 (1983): 363-377; and Robert E. Quinn
and Kim Cameron, “Organizational Life Cycles and Shifting
Criteria of Effectiveness: Some Preliminary Evidence,”
Management Science 29 (1983): 33-51.
Control
Thomson Learning
© 2004
2-10
Effectiveness Values
for Two Organizations
STRUCTURE
FLEXIBILITY
Human Relations
Emphasis
F
O
C INTERNAL
U
S
Open Systems
Emphasis
ORGANIZATION
A
Internal Process
Emphasis
EXTERNAL
ORGANIZATION
B
Rational Goal
Emphasis
CONTROL
Thomson Learning
© 2004
2-11
Workbo
ok
Activity
Identifying Company
Goals and Strategies
Goals from
Exhibit 2.8
Strategies
from Porter
Company
#1
Company
#2
Company
#3
Thomson Learning
© 2004
2-12
Workshop
Activity
Competing Values and
Organizational
Effectiveness
Go a l o r
subgoal
Pe rfo rma n c e
Ga u g e
(Ex a mp l e )
Eq u i l i b ri u m
Tu rn o ve r
ra t e s
Ho w t o
me a s u re
Co mp a re
p e rc e n t a g e s
o f wo rk e rs
wh o l e ft
So u rc e o f
dat a
W hat do you
consi der
e ffe c t i ve ?
HRM fil e s
25%
re d u c t i o n i n
firs t y e a r
1
Op e n
Sy s t e m
2
3
Hu ma n
Re l a t i o n s
4
5
In t e rn a l
Pro c e s s
6
7
Ra t i o n a l
Go a l
8
Thomson Learning
© 2004
2-13
