BU398 Chapter Notes - Chapter 2: Decision-Making, Organizational Chart, Organizational Culture
Document Summary
The role of strategic direction in organizational design. An organization is created to achieve some purpose, which is decided by the ceo and top management team. The primary responsibility of top management is to determine an organization"s goals, strategy, and design,, therein adapting the organization to a changing environment. The direction setting process typically begins with an assessment of the opportunities and threats in the external environment, including the amount of change uncertainty, and resource availability, Top managers also assess internal strengths and weaknesses to define the company"s distinctive competence compared with other firms in the industry. The assessment of internal environment often includes an evaluation of each department and is shaped by past performance and the leadership style of the ceo and top management team. The next step is to define the overall mission and official goals based on the correct fit between external opportunities and internal strengths. Organizational design reflects the way goals and strategies are implemented.
