(c) Macmillan & Tampoe 2001 1 Strategic Management Macmillan and Tampoe OUP.

(c) Macmillan & Tampoe 20011

Strategic Management

Macmillan and Tampoe

OUP


Implementing Strategy

Managing Structural Change


Organizational Structures

Define the lines of control Define power flows Channel the forces that play on the

organization Facilitate the forms the organization

should take to create effective organizational capability


Organizational Forces

The strategic drivers that dictate how an organization has to behave to achieve its strategic intent

7 forces identified by Mintzberg (1991) Direction – vision or intent of the organization Proficiency – ability to achieve results Innovation – implementation of new ideas Concentration – focused energy Efficiency – optimising use of resources and skills Co-operation – working together within and across corporate

boundaries Competition – constructive conflict.

Also speed of change and knowledge attrition


Organizational Forms

The shape the organization needs to take to respond optimally to the forces

7 forms listed by Mintzberg (1991) Entrepreneurial – power in one individual Professional – centred on knowledge owners Adhocracy – project form Machine – process-driven, bureaucratic Ideological – belief centred Political – centred around conflicting aims

Lateral – loosely linked around common aims Networked – hardwired around common aims


Organizational Structure – The Options

Entrepreneurial Functional Divisionalized Matrix


Optimising the organizational structure

Figure 21.1 here


People and Structure

Structures organise people into groups to harness collective effort, skill and capability

Forms of people Groups – people but acting singly but harnessed by

process, ideology etc. Teams – co-located interdependent people acting in

concert within normal organizational setting Project Teams - co-located interdependent people

acting in concert to achieve new aims Distributed Teams – loosely knit by need but not co-

located


Structure and Leadership Style

Some style options Paternalistic – high emotional content Scientific – high rational, logical content Participative – high democratic style Dictatorial – strongly authoritative Regal – aloof and distant Involved – ‘walking the floor’ Interfering – ‘meddling’ unproductively

Structures may influence leadership styles


Organizational Capability

7 elements of organizational capability (Pascale and Athos 1983) Strategy Style Systems Shared Values Staff Skills Structure


Five steps to determine Organizational Structure

Determine the change in strategic intent Determine the new organizational

capability Determine the predominant forces and

forms best suited the organization Determine leadership style and culture Define the formal structure

(c) Macmillan & Tampoe 2001 1 Strategic Management Macmillan and Tampoe OUP.

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