Chap 11 organizational structure

Chapter 11
Organizational Structure

A. Traditional Organization and Strategy
1. Need for Organizational Redesign (TM 11-1)
B. Creating a Market-Responsive Organization
1. Principles of Creating a Market-Responsive Organization (TM 11-2)
2. Procedure for Creating a Market-Responsive Organization (TM 11-3)
3. Managing a Market-Responsive Organization (TM 11-4)
C. Role of Systems in Implementing Strategy
1. Three Types of Systems (TM 11-5)
2. Techniques for Systems Design (TM 11-6)
D. Executive Reward System
1. Characteristics of a Good Reward System (TM 11-7)
E. Learship Style
1. Characteristics of a Good Leader (TM 11-8)
2. Role of a Strategic Planner (TM 11-9)
F. Measuring Strategic Performance
1. Attributes of Excellence (TM 11-10)

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51 CHAPTER 11: Organizational Structure

11-1

NEED FOR ORGANIZATIONAL
REDESIGN
Behavioral requirements of planning as a management task are often different from, or in conflict with,
the processes and content of management work

normally prevalent in the organization. Thus, an
organization optimally geared to the pursuit of
established objectives may be less than optimally
prepared to work on the evaluation and adoption of
new objectives or strategies.


CHAPTER 11: Organizational Structure 52

11-2

PRINCIPLES OF CREATING A
MARKET-RESPONSIVE
ORGANIZATION
• Organization planning is economically based,
operates under economic rules, and has
economic objectives.
• Structure is only one tool in the drive to achieve
better resource integration and increase market
responsiveness.
• To achieve a balance between scale and
responsiveness, organizations must compensate
for their traditional tilt toward scale.


53 CHAPTER 11: Organizational Structure

11-3

PROCEDURE FOR CREATING A

MARKET-RESPONSIVE
ORGANIZATION
• Determine corporate strategic boundaries.
• Balance the demands of scale and market
responsiveness.
• Organize for strategic effectiveness.


CHAPTER 11: Organizational Structure 54

11-4

MANAGING A MARKET-RESPONSIVE
ORGANIZATION
• Forge a clear link between strategy and skills.
• Is specific—and selective—about core skills.
• Clarify the implications for pivotal jobs.
• Provide leadership from the top.
• Empower the organization to learn.


55 CHAPTER 11: Organizational Structure

11-5

THREE TYPES OF SYSTEMS
• Execution systems
• Monitoring systems
• Control systems

CHAPTER 11: Organizational Structure 56

11 -6

TECHNIQUES FOR SYSTEMS DESIGN
• Design an effective information capture
procedure.
• Manage commonly used data elements for
firmwide accessibility and control.
• Decide which applications are common and
which tolerate distributed processing.
• Manage information, not reports.
• Examine cost effectiveness.


57 CHAPTER 11: Organizational Structure

11-7

CHARACTERISTICS OF A GOOD
REWARD SYSTEM
• Optimize value to all key stakeholders (including
both shareholders and management alike).
• Properly measure and recapture value.
• Integrate compensation signals with those
implicit in strategy and structure.


CHAPTER 11: Organizational Structure 58

11-8

CHARACTERISTICS OF
A GOOD LEADER
• Gains complete and willing acceptance of his or
her leadership.
• Determines those business goals, objectives,
and standards of behavior that are as ambitious
as the potential abilities of the organization will
permit.
• Introduces these objectives and motivates the
organization to accept them as their own.
• Changes organizational relationships internally,
as necessary, to facilitate both the acceptance
and attainment of the new objectives.


59 CHAPTER 11: Organizational Structure

11-9

ROLE OF A STRATEGIC PLANNER
• Is well versed in theoretical frameworks relevant
to planning.
• Is capable of making a point with conviction and
firmness, and at the same time is a practical
politician, avoiding conflict in the organization.
• Maintains a working alliance with other units in
the organization.

• Commands the respect of other executives and
managers.
• Is a salesperson who can help managers accept
new and difficult tools and techniques.


CHAPTER 11: Organizational Structure 60

11-10

ATTRIBUTES OF EXCELLENCE
• A bias toward action.
• Simple form and lean staff.
• Continued contact with customers.
• Productivity improvement via people.
• Operational autonomy to encourage
entrepreneurship.
• Stress on one key business value.
• Emphasis on doing what they know best.
• Simultaneous loose-tight controls.