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Unformatted text preview: the totality of a firm’s organization (formal organizational structure, control systems and incentives, organizational culture, processes, and people). 11 of 40 Organization: The Implementation of Strategy
Organizational structure refers to
• the formal division of the organization into subunits.
• the location of decision‐making responsibilities within that structure.
• the establishment of integrating mechanisms to coordinate the activities of subunits including cross functional teams and or pan‐regional committees. 12 of 40 Organization: The Implementation of Strategy
Organization Architecture 13 of 40 Organization: The Implementation of Strategy
Controls are the metrics used to measure the performance of subunits and make judgments about how well the subunits are run.
• Incentives are the devices used to reward appropriate managerial behavior.
• Processes are the manner in which decisions are made and work is performed.
• Organizational culture is the norms and value systems that are shared among the employees.
• People refers to employees and the strategy used to recruit, compensate, and retain those individuals. 14 of 40 In Sum: Strategic Fit
So, to attain superior performance and earn a high return on capital, a firm’s strategy must make sense given...
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This document was uploaded on 03/05/2014.
- Spring '14