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ORGS 2010 2.docx

5 Pages

Organization Studies
Course Code
ORGS 2010
Eleanor Westney

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Week 2 Organization as a Strategic Design Strategic Design Sees an organization as a system that has been deliberately constructed to achieve strategic goals Fundamental concept Maximization of organizational efficiency and effectivenesso Efficiency Accomplishing strategic goals with the least possible expenditure of resourceso Effectiveness Ensuring goals are accomplished to the standard necessary for the organization to succeed Managers can make organizations successful byo Understanding basic principles of organization design o Aligning the organizations design with its strategyo Making sure strategy and design fit the environment in which the organization is operating o Value proposition and Distinctive competitive advantage establishes what activities the organization must carry out to achieve success in its strategies ie Strong RDo Key strategic questions whose answers shape organization design Which activities should be inside the boundaries of the organization and which outside How to organize strategiesKey Elements of Organization Design Strategic Design sees information as the key resource to the organizationInformation Processing and Enhancing System o To achieve strategic goals people need to share information create it through cooperation and direct it to those who can use it Task Basic element of organization design o ComplexityHow complex the task is can vary o RoutinizationExtent to which the activity can be specified and programmed Task Interdependenceo Sequential Interdependence When one task is completed and then handed off for the next task o Pooled Interdependence When interdependent task are undertaken at the same time and then put togethero Reciprocal Interdependence When tasks are conducted in repeated interaction with each otherOrganizational Design Strategic Grouping differentiation of clusters of activities positions and individuals into work units Linking Units must be linked according to the nature and level of interdependence in their tasks to ensure that information and other needed resources flow effectively and efficiently between the activities or groups separated Alignment Mechanisms The design must use this to ensure that people have the resources and the inventives to carry out the tasks assigned to them by the grouping structureslinkingOrganizations are effective when the components are aligned with strategy and with eachStrategic Grouping Gathers together some tasks functions or disciplines and separates them from others
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