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Organisation Structure & Design
- 1. Indian Business Academy, Greater 4/11/2009 Noida ORGANISATIONAL STRATEGIES - STRUCTURE Siva Naman Vivek Shweta Vikas Sonam TEAM 6 Sudip Surabhi Sthitija Vakul Tueny 1
- 2. Indian Business Academy, Greater 4/11/2009 Noida WHAT IS STRATEGY The specific patterns of decision and action that managers take to sue core competency to achieve a competitive advantage The long term action plan The game plan Company or organization direction What we’re doing The plan to achieve competitive advantage 2
- 3. Indian Business Academy, Greater 4/11/2009 Noida “HOW’S” OF STRATEGY How to please customers How to respond to changing market Conditions How to outcompete rivals How to grow the business How to manage each functional piece of the business and develop needed organizational capabilities How to achieve strategic and financial objectives How to balance short term and long term 3
- 4. Indian Business Academy, Greater 4/11/2009 Noida TYPES OF STRATEGIES Functional level Business level Corporate level Global expansion 4
- 5. Indian Business Academy, Greater 4/11/2009 Noida Functional Level Strategy Plan of action to strengthen an organization’s functional & resources, as well as its coordination abilities in order to create core competences. Low cost and differentiation advantages VALUE CREATING SOURCE OF LOW SOURCE OF FUNCTION COST ADVANTAGE DIFFERENTIATION ADVANTAGE MANUFACTURING Develop skills in flexible Increase in product quality manufacturing technology & reliability HRM Reduction turnover and Hiring of highly skills absenteeism personal Material Management Use JIT Long term relation with suppliers & customers Improved of efficiency of •Creation of new product R& D manufacturing Technology •Improvement of existing 5
- 6. Indian Business Academy, Greater 4/11/2009 FUNCTIONAL LEVEL STRATEGY AND Noida STRUCTURE More emphasis on manufacturing Tall hierarchy, centralized ,Mechanistic structure 6
- 7. Indian Business Academy, Greater 4/11/2009 FUNCTIONAL LEVEL STRATEGY AND Noida STRUCTURE More emphasis on sales manu sales R&D factur ing Flat decentralized , mutual adjustment 7
- 8. Indian Business Academy, Greater 4/11/2009 FUNCTIONAL LEVEL STRATEGY AND Noida STRUCTURE More emphasis on R&D Man R&D ufac Sales turin g Flat, decentralized, coordination between human and technical resources 8
- 9. Indian Business Academy, Greater 4/11/2009 Noida BUSINESS LEVEL STRATEGY • Plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain. Matrix ,Product team Product market geographic, functional Differentiation Low cost Complex SIMPLE Centralized Decentralized Low differentiation High differentiation 9
- 10. Indian Business Academy, Greater 4/11/2009 Noida CORPORATE LEVEL STRATEGY CEO Corporate HQ A division B division C division 10
- 11. Indian Business Academy, Greater 4/11/2009 Noida GLOBAL STRATEGY International strategy adopts a different route to global expansion Plan involves choosing the best strategy to expand into overseas markets to obtain scarce resources & develop core competences Global strategy can play a crucial role in strengthening a company’s control over its environment 11
- 12. Indian Business Academy, Greater 4/11/2009 Noida GLOBAL STRATEGY - STRUCTURE Global Geographic Strategy Global Matrix Strategy Global Product Group Strategy 12
- 13. Indian Business Academy, Greater 4/11/2009 Noida GLOBAL GEOGRAPHIC STRUCTURE • Each region of a country or area of the world is served by a self-contained division • Managers locate different divisions in each of the world regions where the organization operates •Generally, occurs when managers are pursuing a multi-domestic strategy 13
- 14. Indian Business Academy, Greater 4/11/2009 Noida GLOBAL MATRIX STRUCTURE An organizational structure that simultaneously groups people and resources by function and product - The structure is very flexible and can respond rapidly to the need for change - Each employee has two bosses (functional manager and product manager) and possibly cannot satisfy both 14
- 15. Indian Business Academy, Greater 4/11/2009 Noida GLOBAL PRODUCT GROUP STRUCTURE • Each product division, not the country or regional managers, takes responsibility for deciding where to manufacture its products and how to market them in foreign countries 15
- 16. Indian Business Academy, Greater 4/11/2009 Noida PRODUCT TEAM STRUCTURE Members are permanently assigned to a cross-functional team and report only to the product team manager or to one of his subordinates Cross-functional team – group of managers brought together from different departments to perform organizational tasks 16
- 17. Indian Business Academy, Greater 4/11/2009 FACTORS AFFECTING Noida ORGANIZATIONAL STRUCTURE 17
- 18. Indian Business Academy, Greater 4/11/2009 Noida THE ORGANIZATIONAL ENVIRONMENT Human Resources Managers must take into account all four factors (environment, strategy, technology and human resources) when designing the structure of the organization. 18
- 19. Indian Business Academy, Greater 4/11/2009 Noida ENVIRONMENT The quicker the environmental changes, the more problems face managers Structure must be more flexible when the environmental change is rapid Different strategies require the use of different structures A differentiation strategy needs a flexible structure, low cost may need a more formal structure Increased vertical integration or diversification also requires a more flexible structure 19
- 20. Indian Business Academy, Greater 4/11/2009 Noida TECHNOLOGY Technology The combination of skills, knowledge, tools, equipment, computers and machines used in the organization More complex technology makes it harder for managers to regulate the organization 20
- 21. Indian Business Academy, Greater Noida 4/11/2009 THANK YOU 21