• Efficient performance versus Learning

organization

• Strategy & Organization design

• Organizational Purpose and Structural design

• Organizational effectiveness/Balanced
effectiveness approach
 Changing Paradigm of Org Design
Mechanical System Paradigm Natural System Paradigm

Vertical Structure
Horizontal Structure
Rigid Culture
Adaptive Culture
Competitive
Collaboration
strategy
Strategy
Formal systems
Shared information
Routine tasks
Empowered roles

Stable Environment Efficient Performance Turbulent Environment Learning Organization

 Internal Envr
External Envr
• Strengths
• Weaknesses
• Opportunities Top • Distinctive
• Threats Mgt Team Competence
• Resources
• Past Perf
• Uncertainty
• Leader style

Strategic Management

Define Mission, Goals
Operational Goals and Strategy Selection

Org Design.
Structure, Technology, Information & Control Systems,

HR policies, Org Culture, Inter-organizational Linkage

Outcomes
Resources, Efficiency, Goal Attainment, Stakeholders, competing Values

• Operative goals
• Primary task a dept/ section / individual is to perform
• Overall Performance
• Net income
• Volume – Net sales or numbers
• Profitability
• Resources
• Material
• Finance
• People
• Market Goals
• Employee Development
• Innovation & Change
• Productivity
Importance of Goals
• Mission / Official Goals provide
• Legitimacy

• Operative Goals provide

• Employee motivation and Direction

• Decision Guidelines
• Standards of Performance
 Competitive Advantage

Low Cost Uniqueness

Low Cost Differentiation

Broad Relationship

Competitive Air Deccan Mocha, Barista

Scope

Narrow Focused Focused

Low Cost Differentiation
Palace of Wheel
Relationship
Amby Valley
Call a Cool Cab

Spectra Interventions
 Porter’s Competitive Strategies
Differentiation
Learning orientation acts in a flexible loosely knit way with strong
horizontal coordination
Strong capability in research
Values and builds mechanism for customer intimacy
Rewards employee creativity, risk taking and innovation

Low cost Leadership

Strong central authority
Efficiency orientation
Detailed control reporting, SOPs
Highly efficient SCM Logistics
Close supervision routine tasks and limited employee involvement
 Mile’s & Snow’s Strategy Typology
Prospector: Learning Orientation Flexible Fluid decentralized
structure, Strong capability in research

Defender: efficiency orientation, centralized authority and

tight control, low overhead, little empowerment

Analyzer: balance efficiency and learning, tight cost control

with flexibility and adaptability, efficient process
and risk taking for innovation

Reactor no clear organizational approach Org design may

change abruptly based on current needs

Spectra Interventions
 Contingency Effectiveness Approach

Organization

Activities Product
Resource Input
And Service Output
processes

Resource Based Internal Process Goal

Approach Approach Approach
Goal Approach
Indicators – Mostly organizations use multiple indicators
• Market Share
• Profitability
• Growth
• Employee welfare
• Product quality and Service
• Efficiency
• Resource conservation
• Social responsibility
• Management development

Although this approach looks logical actual measure of

effectiveness is a complex process
Resource Based Approach
Ability of the organization is either absolute or relative terms
to obtain scarce and valued resources and successfully
integrate and manage them
Dimensions
• Bargaining position
• Ability of org decision makers to accurately predict external
environment
• Ability of organization to respond to change in the
environment

Useful when goal approach is difficult to apply as in NGO or

social sector. Also only when the output is connected to the
customer needs
Internal Process Approach

• Strong corporate culture and positive work climate

• Team spirit, group loyalty and team work
• Confidence, trust and communication between workers and
management
• Decision making near the source of information, regardless
where the source is on chart
• Undistorted horizontal and vertical communication, sharing of
relevant feelings and facts
• Rewards to manager who perform and fuel growth with
development of employees
• Conflict amongst various parts resolved in the interest of the
organization
Limitation as total output and relationship to external
environment is not measured and many indicators will be
subjective as some internal processes are not measurable.
Balanced Effectiveness Approach

• Stakeholder approach

• Competing value approach

 Stakeholder (constituency) Approach

Stakeholder Effectiveness Criteria

Promoters Financial return

Employees Work satisfaction, pay, supervision

Customers Quality of goods and services
Creditors Creditworthiness
Community Contribution to society/community
Suppliers Satisfactory transactions
Government Compliance to regulations
 Competing Value Approach
Structure
Flexibility

Human Relations Model Open Systems Model

Goal Values :HRD Goal Values: Growth
Sub-goals: Cohesion, Resource Acquisitions
Morale, training Sub-goals: Readiness.
External Evaluation
Focus Internal External
Internal Process Model Rational Goal Model

Goals Values: Stability Goal Values: efficiency

Equilibrium Productivity, Profit
Sub-goals: Sub Goals: Planning
Information Mgt., commn Goal setting

Control
 Flexibility
Human Relations Open Systems
Model Model

Organization A
Focus Internal External

Organization B

Internal Process Rational Goals

Model Model

Stability Control

STRUCTURE