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Organizational Structure and Strategic Leadership The business firm is no longer just a place where people come to work. For most of the employees, the firm confers on them that sense of belonging and identity—the firm has become their “village”, their community. The business firm of the twenty-first century is not just a hierarchy, which ensures maximum efficiency and profit; it is also the community where people belong to and grow together—where their affective and innovative needs are met (Lim, Griffiths, & Sambrook, 2010).
Reference: Lim, M., Griffiths G., & Sambrook, S. (2010). Organizational structure. Mind Map Route. Retrieved from http://www.mindmap.0rg.pl/?mindmap= Organizational_structure
Discuss the following questions in relation to organizational structure and strategic leadership:
•How important it is to be able to identify and distinguish between the organizational structures used to implement business-level, corporate-level, and international strategies? Give examples of various organizational structures and how they are used to develop strategies.
•What is the relationship between organizational structure and organizational controls? Are they always interrelated? What will happen to a company’s competitive advantage if one or the other isn’t in place?
•What are the attributes of an effective strategic leader? Discuss the value that person brings to the strategic management process.
Expert Answer
1)Corporate -level strategies:A firms continuing sucess that leads to:
- Product diversification
- Marketing diversification
- Both product and market diversification
increasing diversification creates control problems that the functional structure cant handle.
- Information processing,coordination
- Control
Diversification stargey requires firm to change from functional structure to a multi divisional structure.Different levels of diversification create the needs for implementation of a unique from of the multidivisional structure.
Business-level:1.cost leadership and the functional structure
- Simple reporting relationships
- Centralized corporate staff
- Few decision-making and authority layers
- Strong operational focus on process improvement
- Low cost culture
- Job specialisation
2.Differentation and functional structure
- Complex and flexible reporting relationships
- Cross functional product development teams
- Strong focus on marketing and product R&D
- Development oriented culture
- Information rules and procedures
International level:There primary international strategies
- Worldwide geographic area structure to implement the Multidomestic strategy
- worldwide product divisional structure to implement global strategy
- combination structure to implement the transnational strategy
organisational structure specifies the firms formal reporting relationship s,procedures,controls and authority and decision-marketing processes.organisation structure types are:
- Traditional organisational structure
- Matrix organisational structure
2) Organisational structure specifies the firms formal relationship,procedures,controls and authority and decision-marking process.
Organisational control guides the use of strategy.indicate how to compare actual results with expected results.suggests corrective actions to take when the difference between actual and expected results is unacceptable.
Organisational structure and organisational control have reciprocal relationship.and are interrelated.
3)Attributes of affective strategic leaders:
- Relalistic
- Credible
- Attractive
- Future
- The strategic plan
- That vision thingkey performance indicator
- Targets
- Tactics
