02 - OBIIMidterm...

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OB II Midterm Chapter 2: Strategy, Organization Design, and Effectiveness T HE  R OLE   OF  S TRATEGIC  D IRECTION   IN  O RGANIZATION  D ESIGN Primary responsibility of top management is to determine an organization’s goals,  strategy, and design adapting to an organizations changing environment Middle management is responsible to direct major departments with the guidelines set  out by top management CEO’s and top management analyze both the external environment (opportunities,  threats, uncertainty and resource availability) and the internal situations (strengths,  weaknesses, distinctive competence, leader style, past performance) Next they must figure out a strategic direction: 1) define mission, official goals; 2) select  operational goals, competitive strategies Next is the organizational design (the administration and execution of the strategic plan):  1) structural form; 2) information & control systems; 3) production technology; 4) hr  policies, incentives; 5) organizational culture; 6) interorganizational linkages Finally, managers must evaluate the effectiveness outcomes, meaning the overall  realization of its set out goals through looking at: 1) resources; 2) efficiency; 3) goal  attainment; 4) competing values Organization design is used to implement goals and strategy by management to ensure  success O RGANIZATIONAL  P URPOSE Mission It is the organizations reason for existence- the overall vision, values and beliefs Official goals- formally stated definition of business scope and outcomes the  markets or customers)
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OB II Midterm Chapter 2: Strategy, Organization Design, and Effectiveness Mission communication- communicates current and prospective employees, customers,  investors, suppliers and competitors what the organization stands for and what it is trying  to achieve Operative Goals Designate the ends sought through the actual operating procedures of the organization  and explain what the organization is actually trying to do Represent the actual vs. stated goals (in official goals) and are more specific to primary 
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02 - OBIIMidterm...

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