Description
Module 05: Introduction
Attached Files:
Chapter 6 PowerPoint slides (700.861 KB)
In this module, we explore strategy execution and learn that strategy formulation and strategy implementation cannot be separated. Strategy implementation considers broad organizational concepts such as organizational design and behavior as well as human resource management. We will also utilize a strategic viewpoint to focus on strategy implementation from a front-line perspective, particularly considering organizational structure and management systems. We will continue to learn about organizational resources and capabilities because they form the foundation from which strategy can be implemented.
Learning Outcomes
Understand the processes of strategy execution.
Reconcile specialization with coordination and cooperation.
Identify organizational capabilities needed to implement strategy.
Examine types of structures and systems and how they are suited to particular contexts.
Readings Required:
Chapter 6 Organization Structure and Management Systems: The Fundamentals of Strategy Implementation in Contemporary Strategy Analysis
Chapter 6 PowerPoint slides in Contemporary Strategy Analysis
R. Daft and A. Lewin, “Where Are the Theories for the New Organizational Forms?” Organization Science 3 (1993): 1–6. (seminal)https://www.insead.edu/sites/default/files/assets/faculty-personal-site/quy-huy/documents/AMR%20new%20theories%20of%20organizations%20Intro%20april%202011%20(7).pdf
Wade, J. (2014). Reinventing Organizations: A guide to creating organizations inspired by the next stage of human consciousness. Journal of Transpersonal Psychology, 46(2), 255–256. https://search.ebscohost.com/login.aspx?direct=true&db=asn&AN=101391078&site=eds-live (seminal)
Recommended:
Di Muro, P., Lecoeuvre, L., & Turner, R. (2021). Ambidextrous strategy and execution in entrepreneurial project-oriented organizations: The case of Pagani supercars. International Journal of Project Management, 39(1), 45. https://doi.org/10.1016/j.ijproman.2020.09.006
Module 05: Discussion
Read Case 6: BP: Organizational Structure and Management Systems (R.M. Grant, Contemporary Strategy Analysis, 11th ed. Wiley, 2022).Remember that a case study is a puzzle to be solved, so before reading and discussing the specific case questions below, develop your proposed solution by following these steps:
Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course module which apply to the situation described in the case study.
Record the facts from the case study which are relevant to the principles and concepts of the module. The case may have extraneous information not relevant to the current course module. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
Describe in some detail the actions that would address or correct the situation.
Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.
The disastrous explosions at BP’s Texas City refinery and its Macondo oil well in the Gulf of Mexico have drawn attention to the organizational structure and management system created at BP by former CEO John Browne.
Discuss the role that specialization with coordination and cooperation played in the BP disaster? Provide examples of organizational capabilities that could have facilitated this process.
What structure is used in your organization and is this model appropriate to the industry in which you work? Why or Why not?
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 500 word limit.
Reply to at least two discussion posts with comments that further and advance the discussion topic.
Unformatted Attachment Preview
Contemporary Strategy Analysis
Eleventh Edition
Robert M. Grant
Chapter 6
Organizational Structure and Management Systems: The
Fundamentals of Strategy Implementation
Organization Structure and Management Systems: The
Fundamentals of Strategy Implementation
Outline
• Strategy Formulation and Strategy Implementation.
• The Fundamentals of Organizing.
• Developing Organizational Capability.
• Organizational Design.
6-2
Learning Objectives
Learning Objectives
• To understand the relationship between strategy formulation and strategy
implementation and the role of strategic planning systems in linking the
two.
• To recognize the role of cooperation and coordination within
organizations.
• To appreciate the role of resources, processes, motivation, and structure in
developing organizational capabilities.
• To select organizational structures best suited to particular business
contexts.
6-3
Strategy Formulation and Strategy Implementation (1 of 2)
Strategy Formulation and Strategy Implementation
• Strategic management cannot be segmented into self-contained
formulation and implementation stages.
• Intended strategy is always incomplete—it is during implementation that
strategy becomes fully specified.
• Equally, strategy formulation has to take account of the circumstances of
implementation.
• However, action needs to be preceded by intention: hence, the starting
point for most strategy is the cognitive processes of managers.
6-4
Strategy Formulation and Strategy Implementation (2 of 2)
The Strategic Planning Cycle
6-5
The Fundamentals of Organizing (1 of 3)
Basic Tasks of Organizing: Cooperation and Coordination
6-6
The Fundamentals of Organizing (2 of 3)
Key drivers:
1. Technological and economic developments.
o
o
2.
Developments in transportation (e.g. railroads) enabled firms to serve wider markets.
Developments in communication (e.g. telegraph, telephone) allowed firms to organize across a wider geographical area.
Legal developments
o
o
The corporation as a legal entity.
Limited liability.
3. Organizational innovations
o
o
o
Line and staff structure—the creation of corporate headquarters that administered multiple operating units
The holding company—financial group of companies linked by parent-subsidiary relationships
The multidivisional structure—integrated companies with corporate headquarters responsible for financial and strategic control
and divisions operating the individual businesses.
6-7
The Fundamentals of Organizing (3 of 3)
Hierarchy as Coordination: [2] Loosely-Coupled Modular Systems Allow Decentralized
Adaptation
Tightly-coupled, integrated system:
Change in any part of the system requires
system-wide adaptation.
Loose-coupled, modular hierarchy:
partially-autonomous modules linked by
standardized interfaces permits
decentralized adaptation and innovation.
6-8
Developing Organizational Capability (1 of 3)
Integrating Resources to Create Organizational Capability
6-9
Developing Organizational Capability (2 of 3)
Resources & capabilities in professional soccer
6-10
Developing Organizational Capability (3 of 3)
Reorganizing for Capability Development: Booz Allen Hamilton (Worldwide Commercial
Business), 1992-1998
6-11
Organizational Design (1 of 8)
Hierarchy as Control: Weber’s Principles of Bureaucracy
• Rational-legal authority.
• Specialization of labor.
• Hierarchical structure.
• Coordination and control through rules and standard operating procedures.
• Standardization of employment practices.
• Separation of positions and people: authority assigned to a position, not a
person.
• Formalization of administrative acts, decisions, and rules.
6-12
Organizational Design (2 of 8)
Hierarchy as Coordination: [1] Hierarchy Economizes on Coordination Costs
But what about effectiveness of coordination?
–Depends upon the organization’s task
6-13
Organizational Design (3 of 8)
Ryanair Holdings plc: Organizational structure
6-14
Organizational Design (4 of 8)
General Electric: Organizational Structure, January 2018
6-15
Organizational Design (5 of 8)
Sony Group: Organizational Structure, April 2020
6-16
Organizational Design (6 of 8)
Royal Dutch/Shell Group, 1994: A Matrix Structure
6-17
Organizational Design (7 of 8)
Mechanistic versus Organic Organizational Forms
Feature
Mechanistic forms
Organic forms
Task definition
Rigid and highly specialized
Flexible and broadly defined
Coordination and control
Rules and directives vertically imposed
Mutual adjustment, common culture
Communication
Vertical
Vertical and horizontal
Knowledge
Centralized
Dispersed
Commitment and loyalty
To immediate superior
To the organization and its goals
Environmental context
Stable with low technological uncertainty Dynamic with significant technological
uncertainty and ambiguity
6-18
Organizational Design (8 of 8)
New Approaches to Business Organization
• Adhocracy—team-based organization where shared values, employee participation,
flexible communication, and spontaneous coordination substitute for hierarchy,
authority, and control.
• Project-based organizations—dynamic structures with time-limited project teams.
• Network structures—organizations where coordination is based upon informal social
linkages rather than by hierarchy. Effective in creating and disseminating knowledge.
• Humanistic organization—dedicated to the dignity, liberty, integrity, and well-being of
members. To promote the flourishing of its people commitment to ethics and selfdetermination is essential.
6-19
7/5/23, 11:31 AM
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Criteria
Exceeds
Expectations
Meets
Expectation
Some
Expectations
Unsatisfactory
Quantity
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Initial post and
two other posts
of substance.
Initial post and
one other post
of substance.
Initial post only.
Did not
participate.
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Demonstrates
excellent
knowledge of
concepts, skills,
and theories
relevant to the
topic.
Demonstrates
knowledge of
concepts, skills,
and theories.
Demonstrates
satisfactory
knowledge of
concepts, skills,
and theories.
Did not
participate.
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Discussion
post(s) exceed
expectations in
terms of support
provided and
extend the
discussion.
Discussion
post(s) meet
expectations in
terms of
support
provided.
Statements are
satisfactory in
terms of
support
provided.
Did not
participate.
6 to 7 points
4 to 5 points
1 to 2 points
0 to 0 points
Writing is well
organized, clear,
concise, and
focused; no
errors.
Some significant
but not major
errors or
omissions in
writing
organization,
focus, and
clarity.
Numerous
significant
errors or
omissions in
writing
organization,
focus, and
clarity.
Did not
participate.
Content
Support
Writing
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