Re: Organization Structure - CiteHR
Leolingham2000
Management Consultant
Nthariani
Trainee - Student
Pretty
Student
+1 Other

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Hi, I am an MBA-HR Student. I would like to understand what impact does business strategy have on organizational structure. Thanks, NT
to understand the impact of business strategy on org sturcture u need to ist understand wat a business strategy is and wat is an org structure. Basically Business strategy is a course of action that organisation plans to achiev its objective.. the course of action is classified into task which need to be accomlished by employees in the org. An org structure helps in placing individuals in the level of hierarchy in the organisation. The org structure also helps in indicating the span of control (how many employees can be supervised by an individual employee), degree of formalisation (how much emphaisied to be laid on rules and regulation) and degree of centralisation (how much authority should individuals and departments have in taking decisions). The org. structure should be designed keeping your business stratgey in mind.. your business strategy will help you understand what are the kind of people you need and how much authority can you give these ppl, how much supervision will be required by these ppl etc..

This is a very vast topic.. if u nees further clarifications pls give me ur email id and i can send you more details

Regards

Sonal

Hi Sonal.....
Thanks for the information. I definitely need more info on this....Could we get anything like the repercussions and benefits of the org structure in alignment with the biz stratgey or some examples on how & why orgs change their structure with the change in their biz strategy......if you could please share with me the info you hold..I shall be grateful...
My email Id:
Thanks a ton!!
NT

STRATEGIC APPROACH BUSINESS MANAGEMENT

Strategy determines the direction in which the organization is going in relation to its environment. It is the process of defining intentions (strategic intent) and allocating or matching resources to opportunities and needs (resource‑based strategy), thus achieving strategic fit between them. Business strategy is concerned with achieving competitive advantage. The effective development and implementation of strategy depend on the strategic capability of the organization, which will include the ability not only to formulate strategic goals, but also to develop and implement strategic plans through the process of strategic management. Strategy is about implementation, which includes the management of change, as well as planning.

Concerns of strategic business MANAGEMENT

Strategic BUSINESS MANAGEMENT is concerned with the relationship between resource management and strategic management in the firm. Strategic MANAGEMENT refers to the overall direction the organization wishes to pursue in order to achieve its goals . It is argued that, because intellectual capital is a major source of competitive advantage, and in the last analysis it is people who implement the strategic plan, top management must take these key considerations fully into account in developing its corporate strategies.

Strategic MANAGEMENT addresses broad organizational issues relating to organizational effectiveness and performance, changes in structure and culture, matching resources to future requirements, the development of distinctive capabilities, knowledgemanagement and the management of change. It is concerned with both meeting human/ capital requirements and the development of process capabilities, that is, the ability to get things done effectively. Overall, it will consider any major people issues that affect or are affected by the strategic plan of the organization.

The focus of strategic BUSINESS MANAGEMENT

Strategic MANAGEMENT focuses on actions that differentiate the firm from its competitors . It develops declarations of intent which define means to achieve ends, and it is concerned with the long term allocation of significant company resources, and with matching those resources and capabilities to the external environment. Strategy is a perspective on the way in which critical issues or success factors can be addressed, and strategic decisions aim to make a major and long term impact on the behaviour and success of the organization.

STRATEGIC BUSINESS MANAGEMENT MODELS

There are three models: high performance management (high performance working), high commitment management and high involvement management. Within the framework of the concept of strategic MANAGEMENT , these describe various approaches to its development and implementation.

High performance STRATEGIC BUSINESS management

High performance working involves the development of a number of interrelated processes that together make an impact on the performance of the firm through its people in such areas as productivity, quality, levels of customer service, growth, profits, and ultimately the delivery of increased shareholder value. This is achieved by 'enhancing the skills and engaging the enthusiasm of employees' . The starting point is leadership, vision and benchmarking to create a sense of momentum and direction. Progress must be measured constantly. He suggests that the main drivers, support systems and culture are:

*decentralized, devolved decision making made by those closest to the customer so as constantly to renew and improve the offer to customers;

*development of people capacities through learning at all levels, with particular emphasis on self‑management and team capabilities ‑ to enable and support performance improvement and organizational potential;

*performance, operational and people management processes aligned to organizational objectives ‑ to build trust, enthusiasm and commitment to the direction taken by the organization;

* fair treatment for those who leave the organization as it changes, and engagement with the needs of the community outside the organization ‑ this is an important component of trust and commitment‑based relationships both within and outside the organization.

High‑performance management practices include rigorous recruitment and selection procedures, extensive and relevant training and management development activities, incentive pay systems and performance management processes.

The strategy may be expressed as a drive to develop a performance culture in an organization, and the following is an example of the performance strategy formulated recently by a large local authority:



High commitment STRATEGIC BUSINESS management

One of the defining characteristics of STRATEGIC MANAGEMENT is its emphasis on the importance of enhancing mutual commitment . High commitment management has been described as 'A form of management which is aimed at eliciting a commitment so that behaviour is primarily self‑regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust!

High involvement STRATEGIC BUSINESS management

This approach involves treating employees as partners in the enterprise whose interests are respected and who have a voice on matters that concern them. It is concerned with communication and involvement. The aim is to create a climate in which there is a continuing dialogue between managers and the members of their teams in order to define expectations and share information on the organization's mission, values and objectives. This establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved.

THE CHOICE OF ANYONE OF THE STRATEGIC BUSINESS MANAGEMENT

WOULD HAVE AN IMPACT ON

• Basis:

‑ business needs in terms of the key elements of the business strategy;

‑ environmental factors and analysis (SWOT/PESTLE);

‑ cultural factors ‑ possible helps or hindrances to implementation.

• Content

-DETAILS OF PRODUCT STRATEGY

-DETAILS OF PRODUCTION/ MANUFACTURING STRATEGY

-DETAILS OF MARKETING MANAGEMENT STRATEGY

-DETAILS OF SALES MANAGEMENT STRATEGY

-DETAILS OF DISTRIBUTION MANAGEMENT STRATEGY

-DETAILS OF CUSTOMER SERVICE MANAGEMENT STRATEGY

-DETAILS OF HUMAN RESOURCE MANAGEMENT STRATEGY

which means the impact will be felt on

THESE ELEMENTS, WHICH INCLUDES

**ORGANIZATION DESIGNING

**ORGANIZATION STRUCTURING

-HR BUDGETING

-Strategic HRM Planning

-HR Strategies and Policies.

-Competency-based HR

-Knowledge management

=============================

JOB DEVELOPMENT

-Job Description.

-Job specifications

=========================

RECRUITMENT/ SELECTION

-recruitment

-selection

-induction

-orientation

===========================

ORGANIZATIONAL BEHAVIOR PROGRAMS

-employee engagement

-motivation

-organization culture

-organization development

==============================

ORGANIZATION

-org. designing

-org. structuring

-org. development

-job / role structuring

=====================================

HUMAN RESOURCING

-HR planning

-manpower planning

-succession planning

-talent management

=============================

PERFORMANCE MANAGEMENT

-performance appraisals

-performance managing the processes.

================================

HR DEVELOPMENT

-org. learning

-training

-education

-development

-Training evaluation

-e learning

-management development

-career planning /development.

=============================

REWARD MANAGEMENT

-job evaluation

-managing reward process

-administration of rewards

-benefits

==============================

EMPLOYEE RELATIONS

=================================

HEALTH AND SAFETY.

-OHS

=================================

HUMAN RESOURCE INFORMATION SYSTEM.

======================================

REGARDS

LEO LINGHAM

Could anybody list the management hiearchy in a pharmaceutical organization. Starting from md.... Regards, priya
dear friend,
this is mahesh from bangalore, i am duing MBA, i am a blind student i need MBA material in souft copy, if you have please send me
this is my E mail
i am awighting for your replycourse of action is classified into task which need to be accomlished by employees in the org. An org structure helps in placing individuals in the level of hierarchy in the organisation. The org structure also helps in indicating the span of control (how many employees can be supervised by an individual employee), degree of formalisation (how much emphaisied to be laid on rules and regulation) and degree of centralisation (how much authority should individuals and departments have in taking decisions). The org. structure should be designed keeping your business stratgey in mind.. your business strategy will help you understand what are the kind of people you need and how much authority can you give these ppl, how much supervision will be required by these ppl etc..

This is a very vast topic.. if u nees further clarifications pls give me ur email id and i can send you more details

Regards
Sonal[/QUOTE]

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