BU398 Chapter Notes - Chapter 2: Organizational Effectiveness, Organizational Culture, Organizational Architecture
Document Summary
The role of strategic direction in organizational design. Primary responsibility of top management is to determine organization"s goals, strategy, and design, therein adapting the organization to a changing environment. Direction setting process begins with assessment of opportunities and threats in external environment, including degree of change, uncertainty, and resource availability. Organizational design: administration and execution of strategic plan. Organization direction implemented through decisions about structural form, choices about information and control systems, type of production technology, hr policies, culture, and linkage to other organizations. Arrow from organization design to strategic direction = strategies made within current structure b/c current design constraints/puts limits on goals and strategy. New goals and strategies selected based on environmental needs = top management redesigns organization to achieve those ends. Evaluate effectiveness of organizational efforts extent to which organization realizes its goals. Effectiveness outcomes feed back into internal environment so past performance is assessed by top management in setting new goals and strategic direction.
