MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Welcome to the session on The Effect of Strategies on Organizational Design.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

In this session, we will understand about the effect of strategies on organizational design.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

How strategies affect organizational design? That is the key question to be answered.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Organization design characteristics need to support the firm's competitive approach.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

For example, a company wanting to grow and invent new products looks and feels different

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

from a company that is focused on maintaining market share for long-established products

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

in a stable industry. Strategy and organizational structure are closely intertwined, as the choice

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

of organizational structure often reflects and supports the strategy goals and objectives

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

of an organization. Here is how strategy affects organizational structure.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

The Impact of Strategy on Organizational Structure

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

The strategy that an organization adapts must be aligned with its organizational structure

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

to be effective. If an organization adapts a strategy that involves decentralization and

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

delegation of decision-making power, it must also have a flatter organizational structure

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

with fewer levels of management. Similarly, if an organization adapts a strategy of centralization

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

and a tight control, it must have a more hierarchical organizational structure with more levels of management.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Second, Resource Allocation. The strategy that an organization adapts can also impact the allocation

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

of resources within the organization. If an organization adapts a strategy of diversification,

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

it may need to create new departments or business units to allocate resources effectively.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Alternatively, alternatively, if an organization adapts a strategy of cost leadership, it may need to

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

consolidate departments or eliminate positions to reduce cost. Third, Culture. The strategy that an

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

organization adapts can also impact its culture. If an organization adapts a strategy of innovation,

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

it may need to create a more flexible and creative culture that encourages experimentation and risk-taking.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Alternatively, if an organization adapts a strategy of stability, it may need to create a more structured and task-averse culture

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

that focuses on efficiency and productivity.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

One, alignment of goals. The organizational structure should align with the strategy goals and objectives of the organization.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

For example, if the strategy emphasizes innovation and quick decision-making, a flat or team-based structure may be more suitable.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Conversely, if the strategy focuses on cost leadership and operational efficiency, a functional hierarchical structure may be preferred.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Two, resource allocation. Strategy influences how resources are allocated within the organization.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

The organizational structure should support efficient resource allocation to areas critical for executing the strategic plan.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

For instance, if the strategy emphasizes expansion into new markets, the organizational structure may prioritize resources for sales and marketing functions in those regions.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Three, coordination and integration. The complexity of the strategic activities and the need for coordination and integration across different functions or business units influence the choice of organizational structure.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

A matrix structure may be adapted if the strategy involves managing complex projects or servicing diverse customer segments as it facilitates collaboration across functional boundaries.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Four, adapt flexibility and adaptability.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Strategy often requires organizations to be flexible and adaptable to changing market conditions and customer needs.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

The organizational structure should be designed to accommodate changes quickly and efficiently.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

For example, organizations pursuing a strategy of rapid innovation may adopt a decentralized structure that empowers employees to make decisions and respond swiftly to market changes.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Five, culture and leadership. Strategy influences the organizational culture and leadership style which in turn shape the organizational structure.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

For example, a strategy focused on fostering a culture of collaboration and empowerment may lead to a flatter structure with decentralized decision-making authority.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

See customer focus. Six, customer focus.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

If the strategy emphasizes a customer-centric approach, the organizational structure may be designed to ensure seamless customer interactions and responsiveness.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

This might involve organizing the structure around customer segments or creating dedicated customer service teams.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Conclusion. Overall, strategy and organizational structure are interdependent with each influencing and shaping other.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Organizations need to carefully assess their strategic objectives and choose an organizational structure that enables effective execution of their strategy

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

while remaining flexible enough to adapt to changing circumstances.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Break for questions.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Question number one.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

The impact of strategies on the general direction and the basic character of a company is short range, A short range, B medium range, C long range, D minimal.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

The correct answer is long range because any strategic decision is a long term or long range plan.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Question number one.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Question number two.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Question number two.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

In describing relationship between structure and strategy, it can be said that

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

A. Structure follows strategy.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Structure and strategy are equally handled.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

C. Strategy follows structure.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

D. Strategy follows structure in smaller organization.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

So the correct answer is

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

A. Structure follows strategy.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Structure and strategy are interdependent.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

strategy comes first and organizational structure follows the strategy.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

In this session, we have understood about the effect of strategies on organizational design.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Happy learning.

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

Thank you.

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S… Speaker 2 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

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S… Speaker 1 (MBA_OB_unit 5_week 14_seq7_Effect of Strategeies _pandian)

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