Structural implementation & strategic control

STRUCTURAL IMPLEMENTATION & STRATEGIC CONTROL

STRUCTURAL IMPLEMENTATION

• Arrangement of tasks and sub tasks required to implement a strategy

• Diagrammatic representation could be organizational chart but administrative mechanism provides flesh and blood to the organization

STRUCTURE

KINDS OF STRUCTURE

• Vertical • Horizontal

1. VERTICAL STRUCTURE

• Process of differentiation• Involves division of labour and specialization

DOMINATES:• Specialized tasks• Hierarchy of authority• Rules and regulations• Vertical communication• Centralized decision making• Emphasis on efficiency

2. HORIZONTAL STRUCTURE

Process of integration among members in an organization, cross functional systems and teamwork

Dominates:• Shared tasks• Flexible rules and regulations• Horizontal communication• Decentralization decision making• Emphasis on learning

STRUCTURE&

STRATEGY

• Structure follows strategy for economic efficiency

• Strategy determines how the organization structure has to be formed

• Structure influences present strategy implemented and in future.

TYPES OF ORGANIZATIONALSTRUCTURE

1. Entrepreneurial Structure

• Elementary form of structure• Organization owned and managed by one person• Serving single business, product or serve local markets• Owner looks after all decisions, day to day operations of strategic nature.

2. Functional Structure

• Functional Structure seeks to distribute decision making and operational authority towards each.

3. Divisional Structure

• Work is divided on the basis of product lines, types of customers served and geographical area covered

• Each separate divisions are created and placed under divisional-level management under which functional structure may still operate.

4. SBU Structure• Any part of a business organization which is treated separately for strategic

management purpose.

• SBU is created due to difficulty in top management to exercise strategic control over a division.

5. Matrix Structure• In large organizations,there will be handling of more than one project.• It is created by assigning functional specialists to special projects/ new product/

service• During the duration of project, specialists from different areas form different groups

reporting to a team leader.• These specialists will be working under their project and in their parent department

simultaneously.

• The process used by organizations to control the formation and execution of strategic plans.

• It is a specialized form of management control, and differs from other forms of management control in respects of its need to handle uncertainty and ambiguity at various points in the control process.

Strategic Control

Types of Strategic Control

1. Premise Control

• It involves checking of environmental conditions like technology, demographic changes, inflation rate, recession, interest rates etc.

• Premises are assumptions or predictions.

• Designed to check systematically and continuously whether the premises on which the strategy is based are still valid.

• A special alert control is the rigorous and rapid reassessment of an organization's strategy because of the occurrence of an immediate, unforeseen event.

• Such an event will trigger an immediate and intense reassessment of the firm's strategy.

• For e.g. natural disasters, chemical spills, hostile takeovers, plane crashes, product defects etc.

2. Special Alert Control

3. Implementing Control

• Implementing a strategy that takes place as a series of steps, activities, investments and acts that occur over a lengthy period.

• Implementation control is the type of strategic control that must be carried out as events unfold.

4. Strategic Surveillance

• Strategic surveillance is designed to observe a wide range of events within and outside your organization that are likely to affect the track of your organization's strategy.

• It's based on the idea that you can uncover important yet unanticipated information by monitoring multiple information sources.

• Such sources include trade magazines, journals, trade conferences, conversations and observations.

1. Determine what to control.2. Set control standards. 3. Measure and compare performance.4. Determine the reasons for the deviations.5. Take corrective action.

Strategic Control Process

THANK YOU!

SREYASHI SHASHANKBBA SEM 6