Chapter 10
Strategy implementation (3) -Project implementation - Procedural implementation
-Resource Allocation
- Organization Structure
- Matching structure and strategy
Project implementation : Project is a highly specific programme for which the time schedule and specific costs are
determined in advance.
Projects creates all necessary conditions and facilities for the strategy implementation.
Procedural implementation : Strategy implementation requires executing the strategy based on rules, regulations and
procedures formulated by government.
Ex.: Licensing procedures, Foreign collaboration procedures, Foreign exchange and regulation Act , Imports and exports requirements, Incentives and benefits, Labour law and other legislations.
Organization Structure :
Organizational Structure means to an end of achieving
mission and objectives. Organizational Structure represents the relationships between people and functions as designated by
management and conveyed in organization chart.
It also defines the number of levels in the organizational
hierarchy
It is made up of 3 component parts : - Complexity - Formalization - Centralization Complexity refers horizontal, vertical, locational differentiation.
Formalization refers to the degree of jobs standardization.
High standardization of jobs results in less freedom and discretion. Centralization refers to the degree of decision making at single point.
Approaches to organization structure :
There are six approaches of organization structure.
1) Functional Organization Structure : Each functional department consists of those jobs in which employees performs similar jobs at different levels. Ex.: HR, Marketing, Manufacturing etc. 2) Product Organization Structure : Activities are divided on the basis of individual products,
services and grouped into departments. All functions
like marketing, HR, Finance are there for each department.
3)
Geographical Organization Structure :
The functions are grouped into departments based on
activities performed in the geographical areas/regions. Each geographical unit includes all functions related to produce and market the product in a particular geographical area. 4) Matrix Organization Structure : The personnel in this structure have two superiors
(Project Manager and the manager of the functional
department). Cont ..
Ex. : HR Manager
Finance Manager
Marketing Manager
Project A Manager
Project B Manager Project C Manager
HR Specialist
Finance Specialist
Finance Specialist
Marketing Specialist
Marketing Specialist Marketing Specialist
HR Specialist
HR Specialist
Finance Specialist
5) Virtual Organization Structure :
It is a social network in which all the horizontal and
vertical boundaries are removed. It may consist, individual working from mobile and not tied to any particular workspace.
Ex.:
* There is a footwear company. But does not produce footwear. Small industries are producing footwear for this
company as per the shoe design and quality prescribed
by the companys executives.
* Same company does not sell the shoes to the customers
but shoe retailing shops throughout the country sell this
companys shoes. * Transport corporation of India transports the shoes from manufacturing point to retailing outlets for this company.
i.e. design, production, logistics and marketing of sales
which are connected through social network which operate in physically dispersed locations by different
electronic devices like mobile phones, internet etc. and so
this company is called as virtual memory.
6) Team Organization Structure : Strategies of an organization are not always static. They go on changing depending upon internal & external environmental factors.
Hence single type of organization structure is not
suitable for all situations.
Solution for this is team organization structure which
has three forms:
- Project Team : Project teams are created to handle special kind of situations. Project teams are self sufficient work groups.
- Task Force Team : It consists of top level executives &
specialist in different areas from the organization. - Venture Team : Purpose of this team is bring a specific product or business into being.
Matching structure and strategy :
The suitability of structure to strategy is dependent on a
number of situational factors. Absence of fit between strategy and structure leads to inefficient functioning of the company. The stages of organization development is an important factor that influence the match between strategy
and structure.
Stages are as follows : - Increase in financial resources.
- Increase in resource needs.
- Increase in number of products and markets. - Increase in operating and managerial specialization
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