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London Centre of Marketing ( LCM) Level: Postgraduate Diploma in Business Management & Marketing

London Centre of Marketing ( LCM) Level: Postgraduate Diploma in Business Management & Marketing Module – Corporate and Business Management Lecturer : Dr. SAMTA RAI Dated – 7 th Feb, 2011. 1. 1.

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London Centre of Marketing ( LCM) Level: Postgraduate Diploma in Business Management & Marketing

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  1. London Centre of Marketing ( LCM) Level: Postgraduate Diploma in Business Management & Marketing Module – Corporate and Business Management Lecturer : Dr. SAMTA RAI Dated – 7th Feb, 2011 Dr. Samta Rai 1 1

  2. LO3: Explain and assess the managerial processes needed to transform strategy into action and to evaluate strategy effectiveness • Topic • ORGANISING FOR SUCCESS • Organisational configurations: structure, processes and relationships Dr. Samta Rai 2 2

  3. Topic • Organisational configurations: structure, processes and relationships Structure Configuration Processes Relating Dr. Samta Rai 3 3

  4. An Organisation’s Configuration consists of the structures, processes and relationships through which the organisation operates. Dr. Samta Rai

  5. 1. STRUCTURAL TYPES • THE FUNCTIONAL STRUCTURE • THE MULTIDIVISIONAL STRUCTURE • THE MATRIX STRUCTURE • CHOOSING STRUCUTURES? Dr. Samta Rai

  6. Functional structure Chief Executive Dr. Samta Rai

  7. Functional Departments Chief Executive

  8. A FUNCTIONAL STRUCTURE It is based on the primary activities that have to be undertaken by an organisation such as production, finance and accounting , marketing, human resources and research & development. Advantages Disadvantages Chief executive in touch Senior managers with all operations overburdened with routine matters Clear definition of Coordination between Responsibilities functions difficult & failure to adapt

  9. A DIVISIONAL STRUCTURE Head Office Dr. Samta Rai

  10. A DIVISIONAL STRUCTURE It is built up of separate divisions on the basis of products, services or geographical areas. Advantages Disadvantages Flexible ( add or Duplication of divest divisions) functions Control by performance Danger or loss of central control Dr. Samta Rai

  11. MATRIX STRUCTURE Dr. Samta Rai

  12. MATRIX STRUCTURE Dr. Samta Rai

  13. A Matrix structure It is a combination of structures which could take the form of product and geographical divisions or functional and divisional structures operating in tandem. Advantages Disadvantages Integrate knowledge length of time to take decisions Flexible High degrees of conflict Dr. Samta Rai

  14. Comparison of structures Dr. Samta Rai

  15. PROCESSES Structure is a key ingredient of organising for success. However, processes are equally important. Processes can be thought of as controls on the organisation’s operations And can therefore HELP or HINDER the translation of strategy into action. Dr. Samta Rai

  16. 2. PROCESSES Type of control processes Dr. Samta Rai

  17. Some of the important terms Direct supervision is the direct control of strategic decisions by one or a few individuals. Performance targets relate to the outputs of an organisation ( or part of an organisation), such as product quality, prices or profit. Cultural processes are concerned with organisational culture and the standardisation of norms. Internal markets processes typically involve some formalised system of contracting for resources or inputs from other parts of an organisation and for supplying outputs to other parts of an organisation. Dr. Samta Rai

  18. Some examples of work place culture Dr. Samta Rai

  19. Multi-cultural team building Dr. Samta Rai

  20. Work place bullying Dr. Samta Rai

  21. 3. RELATING Internally & externally RELATING INTERNALLY, especially with regard to where responsibility and authority for operational and strategic decisions should be vested inside an organisation RELATING EXTERNALLY, for example through outsourcing, alliances, networks and virtuality. . Dr. Samta Rai

  22. SOME IMPORTANT TERMS Outsourcing - it occurs where organisations decide to buy in services or products that were previously produced in-house. For example, pay roll, component manufacture, IT services and training are all common examples of out-sources activities. Dr. Samta Rai

  23. Dr. Samta Rai

  24. The logical extension of networking, outsourcing and alliances would be an organisation where in-house ( owned) resources and activities are minimised and nearly all resources and activities reside outside the organisation. These are called as - VIRTUAL ORGANISATIONS which are held together not through formal structure and physical proximity of people, but by partnership, collaboration and networking. Dr. Samta Rai

  25. LECTURE CONCLUSION So, we can summarise by saying that successful organising requires fitting structures, processes and relationships to each other, all aligned to the key strategic challenges in a mutually reinforcing way. Dr. Samta Rai

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