OB16_4.pptx - Part 5 Structures of Organisation Chapter 13...

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Part 5 Structures of Organisation Chapter 13 Organisation Strategy and Structure
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The importance of strategy ‘Strategic management is the pattern of major objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is to be’. Andrews
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People and strategy Johnson et al. consider that the people dimension of strategy is concerned with: people as a resource – personal and organisational competences, and performance management; people and behaviour – personal behaviours and collective behaviours; organising people – HR function, line managers, structures and processes.
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Corporate approach in the public sector Strategic management considerations: Policy and politics Monopoly suppliers Bureaucracy Battle for resources
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Opportunities and risks: Drucker The right opportunities will not be selected unless: focus is on maximising opportunities rather than on minimising risks; major opportunities are scrutinised collectively rather than singly in isolation; opportunities and risks are understood in terms of their fit to a particular business; balance is struck between immediate and long-range opportunities.
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SWOT analysis Strengths Positive or distinctive competencies which provide an organisational advantage. Weaknesses Deficiencies in present competencies or resources. Opportunities Favourable conditions to which the organisation can respond. Threats Unfavourable situations that may endanger the operation or effectiveness of the organisation.
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Organisational goals The goals of an organisation are the reason for its existence. A goal is a future expectation, some desired future state. The goals of an organisation determine the nature of its inputs and outputs, the series of activities through which outputs are achieved and interactions with its external environment The extent to which an organisation achieves its goals is a measure of its performance.
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Effective goals To be effective, goals need to: be understandable; contain a time element; be carefully drawn; be subject to alignment.
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Formal and informal goals Formal goals Formal goals are officially stated They encompass the reasons and purpose of the organisation Informal goals Informal goals are individual, and based on both perception and personal motivation They may be inferred from the actual decisions made and actions taken within the organisation
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Compatibility of goals Figure 13.1 Compatibility of goals within an organisation
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Objectives and policy Organisational goals are generally translated into objectives and policy: Objectives set out more specifically the goals of the organisation, the aims to be achieved and the desired end- results.
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