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Strategy & Structure

Strategy & Structure. Aligning administrative, responsibility, and account structures to accomplish organizational purpose in big organizations. POSDCORB. Strategic PLANNING ORGANIZING STAFFING Organizational DEVELOPMENT CONTROLLING OPERATING REPORTING BUDGETING. The Rise of Bureaucracy.

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Strategy & Structure

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  1. Strategy & Structure Aligning administrative, responsibility, and account structures to accomplish organizational purpose in big organizations

  2. POSDCORB • Strategic PLANNING • ORGANIZING • STAFFING • Organizational DEVELOPMENT • CONTROLLING • OPERATING • REPORTING • BUDGETING

  3. The Rise of Bureaucracy Perfected by Prussians during 19th Century • detailed centralized materials requirements and logistical planning (input budgets), • control by rules, standard operating procedures, and the merit principle, • functional administrative design, distinction between staff and line • decomposition of tasks to their simplest components, • Sequential processing.

  4. Bureaucracy • made large, complex organizations possible; also made them inevitable • POSDCORB functions were all treated as separate concerns, performed by staff specialists and coordinated by top mgmt. • substantial staff resources needed to gather and process data for top mgmt. to coordinate activities and allocate resources

  5. The MarketingInformation System Marketing managers Analysis Planning Implemen- tation Control Marketing environment Test markets Marketing channels Competitors Publics Macro- environment forces Marketing Information System Developing information Assessing information needs Internal records Marketing intelligence Marketing decision support analysis Marketing research Distributing information Marketing decisions andcommunication

  6. Managing at Arms Length • Multi-product, or M-form, organizational structure • each major operating division serves a distinct product market • Decentralized control • by the numbers, using the DuPont system of financial controls, return-on-assets target • Coordination • short run via transfer prices • Long run via modern capital budgeting system

  7. Nobody but the front-line worker adds value, Front-line workers can perform most functions better than specialists (lean manufacturing), Every step of the fabrication process should be done perfectly (TQM) This reduces the need for buffer stocks (JIT) and produces a higher quality end-product. Flexible Production

  8. Modern IT: reduced economies of scale and scope • Multidisciplinary teams, members work together from start of job to completion • push exercise of judgment down to teams that do an organization's work • more equal distribution of knowledge, authority, and responsibility • average firm size falling for the last twenty years

  9. The Balanced Scorecard Four perspectives …………………………………. • Financial • Customer • Internal Business Processes • Learning and Growth Perspective

  10. Think Again.

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