Essay About Organization Designorganizational Goal And Org’S Goals

The Role of Strategic Decision in Organization Design
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Intro to Orgs Week 2The Role of Strategic Decision in Organization DesignOrganizational goal: desired state of affairs that organization attempts to reach  (represents result/end point which efforts are directed)Purpose and direction shapes how org is designed and managed Primary responsibility of top management: determine org’s goals, strategy and deisgn, thereby adapting organization to changing environment [pic 1]Direction-setting process begins with assessment of opportunities and threats in external environment, and assess internal strengths and weaknesses to define company’s distinctive competencies with other firms Next step: define and articulate organizations’ strategic intent – includes defining overall mission and golas based on correct fit between external opportunities and internal strengths, then formulate specific operational goals and strategies that define how org accomplishes missionOrg design. = administration and execution of strategic plan → designed for learning and innovation (organic approach) v mechanistic approach (achieve efficiency), choices about info and control systems, type of production, HR policies, etc.Performance measurements feed back into internal environment, so past performance is assessed by top managers in setting new goals and strategic direction for the future Essence of strat mgmt.: setting goals, defining strategies for achieving goals, measuring effectiveness of efforts Organizational purpose Strategic Intent Many types of goals exist in orgs, each performs a different functionOrg goals and strategies are focused with strategic intent: all the org’s energies and resources are directed towards a focused, unifying and compelling overall goalStrategic intent provides focus for management action Three aspects related to strategic intent: mission, core competence, competitive advantageMissionOverall goal for the organization, the organization’s reason for existenceDescribes the org’s shared values and beliefs, and its reason for beingMission sometimes = official goals, formally stated definition of business scope and outcomes the business is trying to achievePrimary purposes: communication tool Communicates to current and prospective employees, customers, investors, (stakeholders)Competitive AdvantageOverall aim for strategic intent – org to achieve sustainable competitive advantageDistinctive edge for meeting customer or client needs in the marketplaceManagers analyze competitors and int/ext environment to find potential competitive openings and learn new capabilitiesSmart managers steer orgs towards blue oceans, uncontested market spaces with less competition Core Competencecompany’s core competence: something the org does especially well in comparison to its competitors Operating Goalsorg’s mission and overall goals provide basis for developing more specific operating goalsoperating goals designate the ends sought through actual operating procedures of the orgdescribe specific measurable outcomes that are often concerned with the short runpertain to primary tasks, specific goals for each pri task provide direction to daily decisions and activitiese.g. performance goals, resource goals, etc.Overall Performance Goals profitability reflects overall performance of for-profit orgsnet income, earnings per share, return on investment nonprofit: no goals of profitability, but those that attempt to specify delivery of services to clients/members within specified expense levelse.g. providing accurate response to 85% of taxpayer questions about new tax lawsResource Goals pertain to acquisition of needed material and financial resources from the environmentinvolve obtaining financing for the construction of new plants, less expensive sources for raw materials, hiring top-quality technology graduatese.g. Starbucks form alliance with tata group to obtain Indian premium arabica coffeenonprofit org resource goals: recruiting dedicated volunteers, and expanding the org’s funding baseMarket goalsrelate to market share or market standing desired by orglargely the responsibility of marketing, sales, advertisingalso apply to nonprofit orgs, Cincinnati Children’s hospital – gain share of national market by developing expertise in niche of treating rare and complex conditions and relentlessly focusing on qualityEmployee Development goalspertains to training, promotion, sales and growth of employeesrelated to higher levels of performancedevelopment of core skills is an important factor Productivityconcern the amount of output achieved from available resourcestypically57 Goal conflict and Hybrid Organization