1. Chapter 5 Strategy, Organization Design and Effectiveness

2. The Role of Strategic Direction in Organization Design
圖 組織方向、設計及效能的高階管理角色
CEO、 Top
management
team
External Environment
Opportunities
Threats
Uncertainty
Resource availability
Internal Situation
Strengths
Weaknesses
Distinctive competence
Leader style
Past performance
Strategic Direction
Organization Design
Define mission,
official goals
Select operational goals, competitive strategies
Structural form –learning vs. efficiency
Information and control systems.
Production technology
Human resource policies incentives
Organizational cultural
Interorganizational linkages
Effectiveness Outcomes
Resources
Efficiency
Goal attainment
Competing values

3. Organizational Purpose
Mission；Official goals
Operative goals
Mission or Official goals
Operative goals
Organizational
Purpose

4. 使命
圖 賀軒公司的使命

5. Overall performance Operative Goals
Profitability reflects the overall performance of for-profit organization, also may be expressed in terms of net income, earnings per sharing, or return on investment.
Overall
performance
Operative
Goals

6. Overall performance Resources
Operative
Goals
Resources
Pertain to the acquisition of needed material and financial resources from the environment.

7. Overall performance Resources Market
Related to the market share or market standing desired by the organization
Overall
performance
Operative
Goals
Resources
Market

8. Overall performance Resources Market
Employee development pertains to the training, promotion, safety, and growth of employees.
Overall
performance
Operative
Goals
Employee
Development
Resources
Market

9. Innovation and change Overall performance Resources Market
Innovation goals pertain to internal flexibility and readiness to adapt to unexpected changes in the environment.
Innovation
and change
Overall
performance
Operative
Goals
Employee
Development
Resources
Market

10. Productivity Innovation and change Overall performance Operative Goals
Productivity goals concern the amount of output achieved from available resources.
Productivity
Innovation
and change
Overall
performance
Operative
Goals
Employee
Development
Resources
Market

11. Goal Type and Purpose Type of goal Purpose of goals Official goals,
Mission:
Legitimacy
Operative goals
Employee direction
and motivation
Decision guidelines
Standard of
performance

12. A Framework for Selecting Strategy and Design
A strategy is a plan for interacting with the competitive environment to achieve organizational goals.
Low-cost leadership
Example:
Ryanair
Focused low-cost
leadership
Rent-a-Car Company
Focused
Differentiation
Puma
Starbucks Coffee
Broad
Narrow
Competitive
Scope
Low cost
Uniqueness
Competitive Advantage
圖 Porter 競爭策略

13. Miles and Snow’s strategy typology
The prospector strategy is to innovate, take risks, seek out new opportunities and grow.
Prospector
Miles and Snow’s
strategy
typology

14. Miles and Snow’s strategy typology
Prospector
Defender
Miles and Snow’s
strategy
typology
The defender strategy is almost the opposite of the prospector, this strategy seeks to hold onto current customers, but it neither innovates nor seeks to grow

15. Miles and Snow’s strategy typology
Prospector
Defender
Miles and Snow’s
strategy
typology
Analyzer
To maintain a stable business while innovating on the periphery

16. Miles and Snow’s strategy typology
Prospector
Defender
In a reactor strategy, top management has not defined a long-range plan or given the organization an explicit mission or goal, so the organization takes whatever actions seem to meet immediate needs.
Miles and Snow’s
strategy
typology
Analyzer
reactor

17. 策略的組織設計結果

18. Contingency Factors Affecting Organization Design
Strategy
Environment
Organizational Structure and Design
Technology
Size/Life Cycle
Culture
The Right Mix of Design Characteristic Fits the Contingency Factors

19. Contingency Approaches to the measurement of Organizational Effectiveness
Resource
Input
Product
and
Service
Outputs
Organization
Internal
activities and
processes
External Environment
Resource-based approach
Internal process approach
Goal approach
圖 量測組織效能的權變方法

20. Goal Approach Indicators Business firms typically evaluate
The important goals to consider are
operative goals. Efforts to measure
effectiveness have been more productive
using official goals.
Indicators
Business firms typically evaluate
performance in terms of profitability,
growth, market share, and return on
Investment.
usefulness

21. Resource-based Approach
Obtaining and successfully managing
resources is the criterion by which
organizational effectiveness is assessed.
Indicators
The resource-based approach is
valuable when other indicators of
performance are difficult to obtain.
usefulness

22. Internal Process Approach
Indicators
One indicator of internal process effectiveness is the organization’s economic efficiency. There are seven indicators of an effective organization as seen from an internal process approach:
․Strong corporate culture and positive work climate
․Team spirit, group loyalty, and teamwork
․Confidence, trust, and communication between workers and management
․Decision making near sources of information, regardless, of where those
sources are on the organizational chart
․Undistorted horizontal and vertical communication; sharing of relevant
facts and feelings
․Rewards to managers for performance, growth, and development of
Subordinates and for creating an effective work group
․Interaction between the organization and its parts, with conflict that occurs
over projects resolved in the interest of the organization

23. Internal Process Approach
usefulness
The internal process approach is important because the efficient use of resources and harmonious internal functioning are ways to asses organizational effectiveness.

24. An Integrated Effectiveness Model
The model is based on the assumption that there are disagreements and competing viewpoints about what constitutes effectiveness.
A combination of external focus and flexible structure
Leads to an open system model. Primary goal:
growth and resource acquisition.
Open systems model
Represents management values of structural
control and external focus. The primary goals are productivity, efficiency, and profit.
Rational goal model

25. An Integrated Effectiveness Model
Its reflects the values of internal focus and
structural control. The primary outcome is a
Stable organizational setting that maintains itself
In an orderly way.
Internal process model
Its incorporates the values of an internal focus and
Flexible structure. Management concern is for the
development of human resources.
Human relations model

26. Structure Flexibility Organizational A Focus Control Organizational B
Open Systems Emphasis
Human Relations Emphasis
Internal
Organizational A
External
Focus
Organizational B
Internal Process
Emphasis
Rational Goal Emphasis
Control
圖 2.7 Effectiveness Values for two organizations