organisation structure & design
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04/09/2023Indian Business Academy, Greater Noida
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ORGANISATIONAL STRATEGIES - STRUCTURE
TEAM 6
Siva Naman
Shweta
Sonam
Surabhi
VakulTueny
Sthitija
Sudip
Vikas
Vivek
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WHAT IS STRATEGY The specific patterns of decision and action that managers take to sue core
competency to achieve a competitive advantage
The long term action plan
The game plan
Company or organization direction
What we’re doing
The plan to achieve competitive advantage
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“HOW’S” OF STRATEGY How to please customers
How to respond to changing market Conditions
How to outcompete rivals
How to grow the business
How to manage each functional piece of the business and develop needed organizational capabilities
How to achieve strategic and financial objectives How to balance short term and long term
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TYPES OF STRATEGIES
Functional level Business level Corporate level Global expansion
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Functional Level Strategy
Plan of action to strengthen an organization’s functional & resources, as well as its coordination abilities in order to create core competences.
Low cost and differentiation advantages VALUE CREATING FUNCTION
SOURCE OF LOW COST ADVANTAGE
SOURCE OF DIFFERENTIATION ADVANTAGE
MANUFACTURING Develop skills in flexible manufacturing technology
Increase in product quality & reliability
HRM Reduction turnover and absenteeism
Hiring of highly skills personal
Material Management Use JIT Long term relation with suppliers & customers
R& D Improved of efficiency of manufacturing Technology
•Creation of new product•Improvement of existing
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FUNCTIONAL LEVEL STRATEGY AND STRUCTURE
More emphasis on manufacturing
Manufacturing Sales R&D
Tall hierarchy, centralized ,Mechanistic structure
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FUNCTIONAL LEVEL STRATEGY AND STRUCTURE
More emphasis on sales
manufacturing sales R&D
Flat decentralized , mutual adjustment
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FUNCTIONAL LEVEL STRATEGY AND STRUCTURE
More emphasis on R&D
Manufacturing
Sales R&D
Flat, decentralized, coordination between human and technical resources
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BUSINESS LEVEL STRATEGY
Matrix ,Product team
Product market
geographic,
functional
Differentiation
Complex
Decentralized
High differentiation
Low cost
SIMPLE
Centralized
Low differentiation
• Plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain.
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CORPORATE LEVEL STRATEGY
CEO
CorporateHQ
A division B division C division
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GLOBAL STRATEGY
International strategy adopts a different route to global expansion
Plan involves choosing the best strategy to expand into overseas markets to obtain scarce resources & develop core competences
Global strategy can play a crucial role in strengthening a company’s control over its environment
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GLOBAL STRATEGY - STRUCTURE
Global Geographic Strategy Global Matrix Strategy Global Product Group Strategy
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GLOBAL GEOGRAPHIC STRUCTURE• Each region of a country or area of the world is served by a self-contained division
• Managers locate different divisions in each of the world regions where the organization operates
•Generally, occurs when managers are pursuing a multi-domestic strategy
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GLOBAL MATRIX STRUCTURE An organizational structure that simultaneously groups people and resources
by function and product - The structure is very flexible and can respond rapidly to the need for
change - Each employee has two bosses (functional manager and product
manager) and possibly cannot satisfy both
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GLOBAL PRODUCT GROUP STRUCTURE
• Each product division, not the country or regional managers, takes responsibility for deciding where to manufacture its products and how to market them in foreign countries
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PRODUCT TEAM STRUCTURE Members are permanently assigned to a cross-functional team and report
only to the product team manager or to one of his subordinates
Cross-functional team – group of managers brought together from different departments to perform organizational tasks
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FACTORS AFFECTING ORGANIZATIONAL STRUCTURE
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Human Resources Managers must take into account all four factors (environment,
strategy, technology and human resources) when designing the structure of the organization.
THE ORGANIZATIONAL ENVIRONMENT
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ENVIRONMENT
The quicker the environmental changes, the more problems face managers
Structure must be more flexible when the environmental change is rapid
Different strategies require the use of different structures
A differentiation strategy needs a flexible structure, low cost may need a more formal structure
Increased vertical integration or diversification also requires a more flexible structure
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TECHNOLOGY
Technology The combination of skills, knowledge, tools, equipment,
computers and machines used in the organization
More complex technology makes it harder for managers to regulate the organization
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THANK YOU