MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian
Apr 03, 2026 11:31
· 7:49
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Welcome to the session on Integrating Strategy with Organizational Design.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
In this session, we will understand about the Integrating Strategy with Organizational Design.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Let us discuss the relationship between Strategy and Organizational Design.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Peter Drucker wrote,
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Structure is a means for attaining the objectives and goals of institutions.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Any work on structure must therefore start with objectives and strategy.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
The notion of structure is an important element of organizational design.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Following strategy has been embraced by many others and it is clear that strategy and organizational design
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
are widely recognized as co-equal determinants of organizational success.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Companies must adapt organizational design practices that increase the productivity and motivation of workers
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
and enable them to create sources of significant new wealth.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
The design of organizations is a relatively low risk way to undertake dramatic shifts in competitive advantage.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
It is time for executives to recognize the strategic need to develop organizational capabilities
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
that help companies thrive no matter what conditions they meet.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Both organizational strategy and organizational design fall squarely into the duties and responsibilities of top management.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Jones has described organizational strategy as the plan of action that a company designs and executes
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
in order to create value for its stakeholders.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
A company's strategy includes the decisions made, the actions taken by its management in order to effectively use its existing core competencies
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
and develop new core competencies so that the company can achieve a competitive advantage.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Core Competencies
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
A company's core competencies include its skills and abilities in specific value creation activities.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
For example given, example given, research and development, manufacturing or marketing.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Hill and Jones have observed that for companies, the strength of its core competencies is a product of the specialized resources
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
and coordinated abilities that it possesses and other organizations lack.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Jones has broken down specialized resources into two categories.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
One, functional resources which include the skills of the company's functional personnel in value creation activities and managing new technology and assets that the company has invested in developing and exploiting those skills.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Two, organizational resources which include the skills and talents of the company's senior management team, the vision of the company's founders or CEO.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Valuable and unique, tangible and intangible assets include land, capital, plant and equipment, patents and other forms of intellectual property, brand names and the good reputation of the company.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
In order to create value from their functional and organizational resources and maintain the ability to continuously access new resources, companies must ensure that all the elements of their organizational design are properly aligned and this includes alignment between their business strategies and their organizational structure and culture.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Brion and Joyce suggest that an organization's ability to align all of its organizational design elements and coordinate its functional organizational resources can become still another important core competency when done well.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
So this diagram clearly explains the relationship among strategy, organizational design and effectiveness.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
We see we have both internal and external environment, CEO and the top management team.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
External environment includes opportunities, threats, uncertainty, resource availability.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Internal environmental situation refers to strengths, weaknesses, distinctive competence, leader style, fast performance.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Then they lead to strategic direction.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Strategic direction means first you have to define mission and the official goals of the organization, select operation goals and the competitive strategies.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
And organization design which is structural form, learning versus efficiency, information and control system, production technology, human resource policies, incentives, organizational culture, inter-organizational linkages and effectiveness outcomes.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
The effectiveness outcomes include resources, efficiency, goal attainment and competing values.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
So this diagram also explains the role of strategic direction in organizational design.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
You see here also we have external environment, internal environment, strategic intent, organization design and effectiveness outcomes.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Break for questions.
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Speaker 3 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Question number one.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
What is the term for an autonomous business entity within an overall corporate enterprise which is set apart from other areas of the business?
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
A. Subsidium.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
B. Strategic partnership.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
C. Strategic Alliance.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
D. Strategic Business Unit.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
The correct answer is strategic business unit because strategic business unit is also called product line and each product line or strategic business unit is considered as an autonomous business unit within the overall organization.
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Speaker 3 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Question number two.
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
Competitive advantage can be best described as A. Increased efficiency.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
B.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
B.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
B.
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
of an organization the intangible resources the correct answer is competitive advantage can be
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
described as increased efficiency because competitive advantage means gaining competitive
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
advantage and sustaining it over the competitive so it is measured in terms of increased efficiency
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Speaker 2 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
in this session we have understood about the integrating strategy and organizational design
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Speaker 1 (MBA_OB_unit 5_week 14_seq 5_Integrity strategy_Pandian)
happy learning thank you
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