Saturday, December 7, 2013

~Building Organization Capable of Good Strategy Execution:~
People, Capabilities, and Structure

NUR FILZAH BT SULAIMAN
TMA 2
1110820

Before we start this chapter, we do some revision about previous chapter we have learned before.
''If we have an bombastic idea, but we don't have an efficient employees, thus, we can't apply that ideas.'' 

The 10 basic tasks of the strategy execution process:



Paramount Actions are :

  • Staffing the organization
  • Acquiring, developing, and strengthening key resources and capabilities.
  • - develop capabilities internally : first, strengthen the firm's skills, knowledge, and intellect. Second,  coordinate and integrated the efforts of work groups and departments.
  • - acquire capabilities through mergers and acquisitions
  • - access capabilities via collaborative partnerships : First, outsource the function requiring the capabilities to a key supplier or another provider. Second, collaborate with a firm that has complementary resources and capabilities. Lastly, engage in a collaborative partnership for the purpose of learning hoe the partner does things.
  • Structuring the organization and work effort.
  • - decide which value chain activities to perform internally and which ones to outsource.
  • - align the organizational structure with the strategy.
  • - decide how much authority to centralize at the top and how much to delegate to down-the-line managers and employees.
  • - facilitate collaboration with external partners and strategic allies.

Matching Type Of Organizational Structure To Strategy Execution Requirements.
  • Simple structure ( line-and-staff ) 
  • Functional structure ( departmental or unitary ) - chosen strategy
  • Multidivisional structure ( divisional M-form ) - capabilities and competencies
  • Matrix structure ( composite or combination ) - centralized or decentralized control

  1. A simple structure consists of a central execution who handles all major decisions and oversees all operations all operations with the help of a small staff.
  2. A functional structure is a organized into functional departments, with departmental managers who report to the CEO and small corporate staff.
  3. A multidivisional structure is a decentralized structure consisting of a set of operating divisions organized along business, product, customer group, or geographic lines, and a central corporate headquarters that allocates resources, provide a support functions, and monitors divisional activities.
  4. A matrix structure combines two or more organizational forms, with multiple reporting relationships. It is used to foster cross-unit collaboration.



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