Ch 2 Goals Strategies Structure Control

8/14/2019 Ch 2 Goals Strategies Structure Control

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GOALS, STRATEGIESGOALS, STRATEGIESSTRUCTURES &STRUCTURES &

CONTROLCONTROL


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Goal :- It is defined as a broad statements of what an

organization wants to achieve in the long run, or on apermanent basis.

It is a time less statement.

Objectives :- More specific statements of what an

organization wants to achieve within a specified timeperiod.

Time specific and Activity specific.

Strategy :- It is route with alternatives for reaching

objectives and goal. Policies :- Rules of decision making.

Structure :- Design of the organizations management

control system.

Goal, Strategy, Structure & Control


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CEO

Purchase

Manager

Production

Manager

Personal

Manager

Marketing

Manager

Plant

Manager

1

Plant

Manager

2

Branch

Manager

1

Branch

Manager

2

Manager

1

Manager

2

Staff

or

Controller

Plant

Manager

3

Functional Structure



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Functional Structure:- Centralized in nature.

Each manager is responsible for a specified function.

Advantages :-High Efficiency.

Disadvantages :-No way to determine the effective ness.

Inadequate for a firm with diversified products.Dispute between managers of different functions resolves only at top.



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CEO

DivisionalManager

1

DivisionalManager

1

DivisionalManager

1

DivisionalManager

1

Purchase

Manager

Production

Manager

Corporate

Controller

Staff

Personal

Manager

Divisional Structure

Controller

Staff

Marketing

Manager


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Divisional Structure:- Decentralized in nature. Each manager is responsible for a specified function.

Advantages :- Provide training ground in general management.

Decision for product & market can be better than the head quarter. Easy assignment of profit responsibility.

Disadvantages :- Duplication of work.



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CEO

Function - A Project - 1

Function - B

Controller

Staff

Matrix Structure

Project - 2

Function - C Project - 3


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Matrix Structure:- Hybrid in nature.

Functional unit has dual responsibilities.

Advantages :- Higher coordination.

Disadvantages :- Problem of managing delicate human relationship



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Network Structure

Central coordinating unit

ST

FT FT

ST

FT FT

ST second tier organization

FT first tier organization


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Choice of structure :-

The important parameters to choice the structure are. Efficiency and effectiveness. Problem of coordination. Assignment of profit responsibility. Conflict and Cooperation. Time orientation. Task differentiation. People involved. Managerial style. Technical system. Market pressure

Importance:- Structure refers to the way totaltask is performed with

delegation of authority. It gives the hierarchy.



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Importance:-Structure refers to the way total task is performed with

delegation of authority. It gives the hierarchy.



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Requirements of Strategy :- Evaluation of strategy.

Consistency with external environment.

Consistency with internal environment.

Appropriate to available resources.

Acceptable Risk.

Time horizon.

Policy :-Policy formulation helps management to coordinate the strategy

each business unit, to ensure their work in harmony to achievethe goals.



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Types of Strategies

Corporate Level Strategy

Business Unit Strategy


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Managerial Behaviour & Control

Process


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Perception

Co-operation

Inter Unit Conflict

Goal Congruence

Motivation

Attitudes & Beliefs

Managerial Styles

Socio-cultural influ

Compr -Sacrifice

Entrapment

Force Field Analy.

Resistance To Chg

Key

Behavioural

Aspects


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Management By Objectives

The manager should be directed and

controlled by the objectives of

performanceMBO Process:

Spell

Review

Evaluate

Ch 2 Goals Strategies Structure Control

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