1. 11Dr. Samta Rai1 London Centre of Marketing ( LCM) Level: Postgraduate Diploma in Business Management & Marketing Module – Corporate and Business Management Lecturer : Dr. SAMTA RAI Dated – 7 th Feb, 2011

2. 22Dr. Samta Rai2 LO3: Explain and assess the managerial processes needed to transform strategy into action and to evaluate strategy effectiveness Topic ORGANISING FOR SUCCESS Organisational configurations: structure, processes and relationships

3. 33Dr. Samta Rai3 Topic Organisational configurations: structure, processes and relationships Configuration Structure Relating Processes

4. Dr. Samta Rai4 An Organisation’s Configuration consists of the structures, processes and relationships through which the organisation operates.

5. Dr. Samta Rai5 1. STRUCTURAL TYPES THE FUNCTIONAL STRUCTURE THE MULTIDIVISIONAL STRUCTURE THE MATRIX STRUCTURE CHOOSING STRUCUTURES?

6. Dr. Samta Rai6 Functional structure Chief Executive

7. Functional Departments Chief Executive

8. 8 A FUNCTIONAL STRUCTURE It is based on the primary activities that have to be undertaken by an organisation such as production, finance and accounting, marketing, human resources and research & development. AdvantagesDisadvantages Chief executive in touch Senior managers with all operations overburdened with routine matters Clear definition of Coordination between Responsibilities functions difficult & failure to adapt

9. Dr. Samta Rai9 A DIVISIONAL STRUCTURE Head Office

10. Dr. Samta Rai10 A DIVISIONAL STRUCTURE It is built up of separate divisions on the basis of products, services or geographical areas. Advantages Disadvantages Flexible ( add or Duplication of divest divisions) functions Control by performance Danger or loss of central control

11. Dr. Samta Rai11 MATRIX STRUCTURE

12. Dr. Samta Rai12 MATRIX STRUCTURE

13. Dr. Samta Rai13 A Matrix structure It is a combination of structures which could take the form of product and geographical divisions or functional and divisional structures operating in tandem. Advantages Disadvantages Integrate knowledgelength of time to take decisions Flexible High degrees of conflict

14. Dr. Samta Rai14 Comparison of structures Challenge FunctionalMultidivisionalMatrix Control * * * * * * Change * * * * * * Knowledge * * * * * * Internationalisation * * * * * *

15. Dr. Samta Rai15 PROCESSES Structure is a key ingredient of organising for success. However, processes are equally important. Processes can be thought of as controls on the organisation’s operations And can therefore HELP or HINDER the translation of strategy into action.

16. Dr. Samta Rai16 2. PROCESSES Type of control processes InputOutput DirectDirect SupervisionPerformance targeting Indirect Cultural Processes Internal markets

17. Dr. Samta Rai17 Some of the important terms Direct supervision is the direct control of strategic decisions by one or a few individuals. Performance targets relate to the outputs of an organisation ( or part of an organisation), such as product quality, prices or profit. Cultural processes are concerned with organisational culture and the standardisation of norms. Internal markets processes typically involve some formalised system of contracting for resources or inputs from other parts of an organisation and for supplying outputs to other parts of an organisation.

18. Dr. Samta Rai18 Some examples of work place culture

19. Dr. Samta Rai19 Multi-cultural team building

20. Dr. Samta Rai20 Work place bullying

21. Dr. Samta Rai21 3. RELATING Internally & externally RELATING INTERNALLY, especially with regard to where responsibility and authority for operational and strategic decisions should be vested inside an organisation RELATING EXTERNALLY, for example through outsourcing, alliances, networks and virtuality..

22. Dr. Samta Rai22 SOME IMPORTANT TERMS Outsourcing - it occurs where organisations decide to buy in services or products that were previously produced in-house. For example, pay roll, component manufacture, IT services and training are all common examples of out-sources activities.

23. Dr. Samta Rai23

24. Dr. Samta Rai24 The logical extension of networking, outsourcing and alliances would be an organisation where in-house ( owned) resources and activities are minimised and nearly all resources and activities reside outside the organisation. These are called as - VIRTUAL ORGANISATIONS which are held together not through formal structure and physical proximity of people, but by partnership, collaboration and networking.

25. Dr. Samta Rai25 LECTURE CONCLUSION So, we can summarise by saying that successful organising requires fitting structures, processes and relationships to each other, all aligned to the key strategic challenges in a mutually reinforcing way.