...Strategy Process 10 Organizational Structure and Control Prof. Dr. Bernd Venohr Berlin, June 2007 © 2007 Prof. Dr. Bernd Venohr Agenda Introduction to Strategy 1 2 3 4 5 6 7 8 9 Course Overview and Strategy Concept Economics of Strategy Shareholder Value External Environment Internal Environment Competitive Positioning Diversification Mergers & Acquisitions Global Strategy Business Strategy Corporate Strategy Strategy Process 10 Organizational Structure and Control 11 Strategic Leadership © 2007 Prof. Dr. Bernd Venohr 2 Overview “Structure follows strategy“ Basics of structuring organizations Example: managing the multibusiness organization © 2007 Prof. Dr. Bernd Venohr 3 Alfred Chandler: Structure follows strategy Alfred Chandler (business history professor at Harvard Business School) examined in Strategy and Structure: Chapters in the History of the Industrial Enterprise (1962) the organizational changes of several large US companies: Organization developed in response to changes in the corporation's business strategy An organization begins with a single product or line of business. Over time the organization begins to grow in size and complexity (more products ). Ultimately the structure of the organization has to change from functional to divisional organization as a result of the strategy change: „unless structure follows strategy, inefficiency results“ This research has been a source of controversial discussion...
Words: 3349 - Pages: 14
...organization objectives are being achieved. Quality control, infection control, performance improvement, risk management, cost control, utilization review, narcotics control, budgets, position control for staffing levels, and credentials review are all control or control-like activities. Chapter 5 describes the controlling function as gathering infonnation about and monitonng activities and performance, comparing actual results with expected re ults and, as appropnatc, taking corrective action by changing inputs or proces es. Control and planning are closely hnkcd; the standards and desired results used in control are derived from the HSO's H 's strategic and operational plans. 434 Managing Health Services Organizations and Systems Monitoring (Control) and Intervention Points Control systems are mfonnation based. The genenc control...
Words: 740 - Pages: 3
...organization’s structure, it’s employees strive to achieve these goals. Our society depends on the goods and services provided by different types of organizations that individuals manage. All organizations are guided and directed by the decisions of one or more individuals who are commonly known as managers. We can categorize organizational members in two ways which commonly known as Operatives and Managers. Operatives work directly on a job or task and have no responsibility for overseeing the work of others. Managers, direct the activities of other people in the organization. Managers usually classified as top, middle or first-line manager. These managers will supervise both operative and lower-level managers. First-line managers task is to supervise the day-to-day activities of operatives employees. The middle managers, represent the level of management between first-line managers and top management. These managers translate the gials of top management into specific details that lower-level managers can perform. As for the top managers, they make decisions about the direction of the organization and set policies that affect all organizational members. The term management refers to the process of getting things done through other people in an efficient and effective manner. The process refers to the primary functions that managers perform. Referring to inputs and outputs, by doing the task right, it is called being efficient and effective. Thus, managers are concerned...
Words: 774 - Pages: 4
...adequately handled for group needs. Within this approach the leader is effective to the degree that he/she ensures that all functions critical to task and team maintenance are completed. Team leadership = dynamic process of social problem solving through generic responses, categorized as (Fleischman): 1. Information search and structuring (to inform leader, used to decide upon course of action during 2.) 2. Information use in problem solving 3. Managing personnel resources 4. Managing material resources Hackman: not on leadership functions, but on identifying condition that leaders can create to facilitate team effectiveness. * teams must be real (team task, boundaries, specified authority) * have compelling direction (challenging, clear and consequential) gained from first two leadership functions above * an enabling structure (core conditions) Leaders manage personnel resources by creating an enabling structure, so can be linked to 3. Above. Example: designing work such that members identify with the task, or manner in which the team is composed can serve to provide an enabling structure * a supportive organizational context (reward systems, info systems, training) * expert coaching (enabling conditions) be related to 4. Het komt er dus op neer dat...
Words: 1475 - Pages: 6
...Chapter 10 Organizational Structure and Design |ANNOTATED OUTLINE | | 1. INTRODUCTION Designing organizational structure involves the process of organizing (the second management function) and plays an important role in the success of a company. 2. DEFINING ORGANIZATIONAL STRUCTURE Managers need to establish structural designs that will best support and allow employees to do their work effectively and efficiently. A. Several important terms must be defined in order to understand the elements of organizational structure and design: 1. Organizing is arranging and structuring work to accomplish the organization’s goals. This process has several purposes, as shown in Exhibit 10-1 and PowerPoint slide 10-6. 2. Organizational structure is the formal arrangement of jobs within an organization. 3. Organizational design is developing or changing an organization’s structure. This process involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/ decentralization, and formalization. Chapter Ten examines each of these structural elements. B. Work specialization is dividing work activities into separate job tasks. Most of today’s managers regard work specialization as an important organizing mechanism, but not as a source of ever-increasing...
Words: 1777 - Pages: 8
...decreased * Tastes changed * Increasing competition * Products were misaligned (조정불량) with emerging taste so their rigid products no longer fit Strategic renewal process must be avoided and fix strategic drift (gets far from environment rather than changing its system) * Areas (Where does change need to take place, the business and organizational system) * The Business System (how a firm makes money): The specific configuration (구성) of resources, value-adding activities and product/service offerings directed at creating value for customers * Organizational System (how a firm is organized): How a firm gets its people to work together * Organizational structure: the clustering of tasks and people into smaller groups (what criteria used to differentiate tasks and cluster? – depending on span of control… many layers of management) Business system is supported by the organization system What are structuring criteria? * Output-based * Market segment structure – different groups of clients served * Account-based structure – different major client served * Business unit structure – different product-market combinations being focused on * Product group structure – different products being focused on * Brand-based structure – different brands being used * Channel-based structure – different distribution channel being used * Throughput-based * Functional structure –...
Words: 2233 - Pages: 9
...Organizational Behaviour Introduction: However, there are some critiques of the human relations Manager plays an important role in the business management such as controlling, leading, organizing and planning. (Mullins, 2007) Planning is a process that includes defining goals, establishing strategy, and developing plans to coordinate activities. Organizing is to determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. Leading is a function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. Controlling is monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. (Sukamal, 2008) While organizational behavior is a systematic study of what people do in an organization (social system) and how that behavior affects the performance of the organization (its effectiveness and efficiency). (Mullins, 2007) Systematic study is looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. Not based on intuition. Intuition is a feeling not necessarily supported by research. (Mullins, 2007) So OB helps a manager do well in an organization and its effectiveness and efficiency of most organization. (Sukamal, 2008) Moreover, OB is a multidiscipline study. There are 3 main disciplines: psychology, sociology...
Words: 2028 - Pages: 9
...Management Plan The risk management tool that I would like to discuss is the cost management plan. The definition according to PMBOK is “a document that sets out the format and establishes the activities and criteria for planning, structuring, and controlling the project costs”. The cost management plan is often packaged inside of a larger project management plan which will demonstrate how to effectively control and execute the overall strategy. The cost management plan may be formal or informal, extremely detailed or loosely framed depending on what the project needs. An effective cost management plan can establish the following: 1. Level of accuracy- Activity cost estimates need to be consistent and uniform based on the scope and size of the project. This is where you could add risk contingency categories as well. 2. Units of measure- Each unit shown must be measured and labeled while also easy to locate 3. Organizational links- These can be shown as part of the WBS and its framework. Consistency is key in regards to estimates, budgets, cost controls, and projected overages. Often codes or account numbers are used to link an accounting system to an individual control account (CA). 4. Control thresholds- Variance thresholds for monitoring cost performance can be included and will help determine how much variation is allowed before something needs to be done. PMBOK mentions that thresholds are typically expressed as a percentage of deviations from the baseline plan...
Words: 902 - Pages: 4
...Organizational Structure Essay Jim Sota Organizational Theory July 16, 2015 Background This project will be looking at the organizational structure of Lime Jamaica (Montego Bay Head Office). Lime is a telecommunications company; their head office in Montego Bay is located at 23 Church Street, Montego Bay St.James. Lime is a public limited company. It is owned by Phil Bently. Lime specializes in phone and internet industry. Organizational structure is very important to a business because it is the framework of the business. Without an organizational structure there would be no order in the business depleting is efficiency. Organizational varies from business to business it depends on various factors. For example: If the business it big or small or if the business is specializing in just one area such as production. It should have a good framework to support its production. I chose this topic because the organizational structure of a business is imperative if a business is to survive and make a profit. Literature Review “An organizational structure can be viewed from different perspectives, Sociology, Economics and Psychology.” (Peter Stimpson, 2007) “An organizational structure is an arrangement of lines of authority, communications, rights and duties of an organization.” (Baligh, 2006).The Organizational structure of a business decides how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different...
Words: 1274 - Pages: 6
...Case Study – The Virgin Group: Structure, leadership and motivation This essay analyses organizational structuring of the Virgin Group, with a view to understanding the dynamics that have helped create a global conglomerate. A critical assessment is undertaken on three areas: the hierarchical form of the company, the style of leadership exhibited by Sir Richard Branson, and the approach adopted by management to motivate employees. Firstly, a comparative argument is made on whether the Virgin Group can be classified as a centralised or decentralised organization. These terms refer to division of power, capital, technical procedures and control in various units of a business. A centralised organization allows for minimal delegation to managers, with the chief executive retaining power over majority of the decisions. On the other end, a decentralised organization makes it possible for managers to exercise control without ownership oversight at each stage, provided goals and targets are met (Buchanan & Huczynski, 2007). Secondly, the essay aims to determine the leadership style practiced by Sir Richard Branson, Virgin Group’s chief executive officer (CEO). Two styles of leadership are used as reference point: transactional and transformational. According to Bass & Bass (2009), transactional leaders work within the organizational culture as it exists, with an awareness of the link between effort and reward. They motivate their employees by setting goals, and enforce control through...
Words: 2556 - Pages: 11
...ORGANIZATIONAL BEHAVIOR UNIT-I: Introduction - Organizational Behavior – Nature – Management Functions – Management Roles – Management Skills – Systematic Study; Foundations of Individual Behavior-Attitudes – Types of Attitudes. Introduction: Definition: Organization Behavior: • A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. • OB is a field of study, meaning that it is a distinct area of expertise with a common body of knowledge. • What does it study? ▪ It studies three determinants of behavior in organizations: individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively. • To sum up our definition, OB is concerned with the study of what people do in an organization and how their behavior affects the organization’s performance. Nature Of Organizational Behavior (OB) • Organizational behavior is an applied behavioral science that is built on contributions from a number of behavioral disciplines such as psychology, sociology, social psychology, anthropology and economics. • So now students let’s see how these disciplines are related to organizational behavior, • Psychology. Psychology is the study of human behavior which tries to identify the characteristics of individuals and provides an understanding why...
Words: 2095 - Pages: 9
...Decision-Making of Health Care Information Systems HCI/500 Concepts of Health Care Informatics December 5th 2011 Decision-Making of Health Care Information Systems Today’s health care delivery model is undergoing an unprecedented evolution driven by industry-wide initiatives to improve patient safety, quality of care, and efficiency of delivery. At the heart of this evolution is Health care Information Technology. This paper discuss about the two types of health care information system are that includes an electronic medical record, known as the Veterans Health Information Systems and Technology Architecture (VistA) and PACS (picture archiving and communication systems): filmless radiology “A patient record system is a type of clinical information system, which is dedicated to collecting, storing, manipulating, and making available clinical information important to the delivery of patient care. The central focus of such systems is clinical data and not financial or billing information. Such systems may be limited in their scope to a single area of clinical information (e.g., dedicated to laboratory data), or they may be comprehensive and cover virtually every facet of clinical information pertinent to patient care for example it is computer-based patient record systems” (Institute of Medicine, 1997). As medical care gets more and more complex and new information is already overwhelming physician‘s capacity to treat patients with the latest information, physicians need...
Words: 1498 - Pages: 6
...think and consider what new options can help them improve their effectiveness at work. Effective trainings convey relevant and useful information that inform participants and develop skills and behaviors that can be transferred back to the workplace. Development Development describes the growth of humans throughout the lifespan, from conception to death. The scientific study of human development seeks to understand and explain how and why people change throughout life. This includes all aspects of human growth, including physical, emotional, intellectual, social, perceptual, and personality development. Human Resource Development Human Resource Development (HRD) is the framework for helping employees to develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. 2. What is the difference between training and development? Training generally refers to teaching of new skill in professional field of the employee. Like an employee being taught to operate another machine, or to perform a new operation in the same machine. Development refers to enhancement of personal qualities of the employee which do not have a one to one relationship with his current job. It may be to help an employee to grow. Like...
Words: 2040 - Pages: 9
...SITUATIONAL SUMMARY 1 FINANCIAL MONITORING ISSUES AND OBJECTIVES 2 INEXPERIENCED PROJECT MANAGERS 2 WORK BREAKDOWN STRUCTURE DECOMPOSITION 4 LEVEL OF EFFORT ESTIMATES 6 INDIRECT COSTS 8 EARLY PROJECT MONITORING 9 WHY NOT EARNED VALUE MANAGEMENT 10 CONCLUSION 12 REFERENCES 13 Company Information Type of Company Enterprise Communications is a department within Consolidated Services Inc., a federal government agency that provides a variety of communication services. Their mission is to facilitate the timely and cost effective delivery of high quality information and ensuring that this information is readily available to citizens via the internet and social media. They are also responsible for researching, testing and implementation of improved electronic communication across the department and other federal agencies. It is comprised of various federal agencies across the United States and abroad that depend on their services to function. Company Strategic Goals Ensure a 90% accuracy rate as it relates to up-to-date information Reduce information redundancy among federal agencies Research and implement new avenues of communication Provide timely and cost-effective ways to meet previously stated objectives Situational Summary The three targets of any project are scope, time, and cost. Currently many projects are over budget and behind schedule causing frustration among the employees, contractors, and stakeholders. Other agencies and outside...
Words: 3691 - Pages: 15
...ORGANIZATIONAL BEHAVIOR 9th edition by Stephen P. Robbins San Diego State University Prentice Hall International, Inc. "... the number-one-selling organizational behavior (OB) textbook in the United States and worldwide. More than 700.000 students around the globe have studied OB from this text" (preface, XXIII). Part One – Introduction Chapter 1 What is Organizational Behavior? Part Two – The Individual Chapter 2 Foundations of Individual Behavior Chapter 3 Values, Attitudes, and Job Satisfaction Chapter 4 Personality and Emotions Chapter 5 Perception and Individual Decision Making Chapter 6 Basic Motivation Concepts Chapter 7 Motivation: From Concept to Applications Part Three – The Group Chapter 8 Foundations of Group Behavior Chapter 9 Understanding Work Teams Chapter 10 Communication Chapter 11 Leadership and Trust Chapter 12 Power and Politics Chapter 13 Conflict and Negotiation Part Four – The Organization System Chapter 14 Foundations of Organization Structure Chapter 15 Work Design and Technology Chapter 16 Human Resource Policies and Practices Chapter 17 Organizational Culture Part Five – Organizational Dynamics Chapter 18 Organizational Change and Stress Management CHAPTER 1 WHAT IS ORGANIZATIONAL BEHAVIOR "We have come to understand that technical skills are necessary but insufficient for succeeding in management. In today's increasingly competitive and demanding workplace, managers can't succeed on their technical skills alone. They also have to have...
Words: 2066 - Pages: 9
