Strategy Implementation

1
Strategy Implementation

• Organizational Structure as well as Leadership,
  Power, and Organizational Culture

2
Strategy Implementation

• Organizational Structure the manner in which
  tasks responsibilities are grouped together
  into offices, depts, and divisions.

3
Vertical Growth
Refers to the length of the organizations hierarch
ical chain of command. Everyone is a
specialist Authority is centralized at the top
of the hierarchy.
4
Vertical Growth
In relatively flat organizations, span of
control is broad, authority is decentralized and
employees are less specialized.
5
Horizontal Growth

• Firms also grow horizontally as the structure of
  an organization increases its breadth or scope.

6
Functional Structure
PRES.
VP ENG
VP MKTG
VP MFG
VP FIN
7
Product Divisional Structure
CEO
Finance
Washers Dryers
Dish- Washers
Refrigerators Ranges
Mfg
Mktg
8
Geographical Divisional Structure
CEO
Finance
SE Region
Western Region
NE Mid- West Region
Mfg
Mktg
9
Multi-Divisional Structure
General Motors CEO
Buick Division
Chevrolet Division
Pontiac Division
Saturn Division
Autos
Trucks
10
Strategic Business Unit Structure
Dover Corp CEO
Dover Diversified
Dover Industries
Dover Resources
Dover Technologies
Marathon
Rotary Lift
11
Matrix Structure
PRES
Purchase
RD
Prod
Mrktg
Finance
Proj A Mgr
Purchase Staff
RD Staff
Prod Staff
Finance Staff
Mrktg Staff
Proj B Mgr
Purchase Staff
RD Staff
Prod Staff
Mrktg Staff
Finance Staff
12
Network Structure - The Virtual Organization
CEO
Data Process
MRKTG
RD
PURCH
Contract Mfr
13
Cellular or Horizontal Structure
CF Team
PRES
CF Team
CF Team
CF Team
14
Appropriateness of an Organizations Structure

• Is the structure compatible w/ corp profile and
  corp strategy?
• At the corp level, is the structure compatible
  with the outputs of the bus units?
• Are there too many or too few hierarchical levels?

15
Appropriateness of an Organizations Structure

• Does the structure promote coordination amongst
  its parts?
• Does the structure allow for appropriate
  centralization or decentralization of authority?
• Does the structure permit the appropriate
  grouping of activities?

16
Appropriate Use of Leadership in Strategy
Implementation

• All leaders are managers, but not all managers
  are leaders!
• Managers are resource allocators, monitors and
  disseminators of information.
• Leaders are those who secures the cooperation of
  others in accomplishing a goal or those who use
  non-coercive types of influence to motivate
  individuals to accomplish goals

17
The Office of the Leader Requires the Use of Power

• Legitimate Power
• Reward Power
• Coercive Power
• Expert Power
• Referent Power

18
Leadership Style

• Transactional Leaders use the authority of their
  office to exchange rewards such as pay and status
  for employees work efforts.
• Transformational Leaders inspire involvement in
  a dream or vision that, in effect, motivates
  followers to do more than previously thought
  possible by stretching their abilities building
  their self confidence.

19
Organizational Culture

• Refers to the values and patterns of belief and
  behavior that are accepted and practiced by
  members of a particular organization.

20
How Do Leaders Shape Culture?

1. Systematically paying attention to certain areas
   of the business
2. Leader reactions to critical incidents orgn
   crises
3. Serve as a deliberate role model
4. The way mgmt allocates rewards
5. Procedures w/which the orgn recruits, selects,
   promotes and/or dismisses employees.