review o rg a n iz a tio n a l g o a ls & t a s k s s tru...

1

Review

Principles of Business/ slide no 2

Organization model

Environment

Environment

Organizational

Goals & Tasks

People

Technology

Organizational

Structure

Management

2


Model of organization: people

• The most important resource of organization

• Individual and team work

• Know – how knowledge management

• Organizational culture – individual beliefs, motives, behaviour


Model of organization: organizational structure

Relationships:

reporting, consulting,

functionalStructural components:

divisions, departments,

positions

3


Model of organization: technology

Technology - the information, equipment, techniques and processes required to transform inputs into outputs.

Main technology is usually defined by:• physical objects like products and equipment used to

produce them;• processes involved in production methods;• specific knowledge required to develop and use

equipment and methods for the production of a product (know-how)


Model of organization: organizational goals

• Organizational goals are interrelated set of ambitions, aspirations and desired effects of varying degrees of concreteness.

• Organizational goals

are hierarchical system:

– Strategic goals

– Tactical goals

– Operational goals

4


Model of organization: environment

• Organizational environment - the set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources, and achieve goals.

• General environment – conditions that potentially have an impact on the organisation.

• Specific environment - the part of the environment that is directly relevant to the organisation in achieving its goals.

• Domain refers to the claim that the organisation stakes out for itself with respect to the range of products or services offered and markets served.


Organizational environment – key elements

· OWNERS

· BOARD OF DIRECTORS

· EMPLOYEES

· CULTURE

· PHYSICAL ENV.

SO

CIO

CU

LT

UR

AL

DIM

EN

SIO

N

ECOLOGICAL

DIMENSIO

N

POLITICAL-LEGAL

DIMENSION

TE

CH

NO

LO

GIC

AL

DIM

EN

SIO

N

ECONOMIC

DIMENSIO

N GLOBAL

DIMENSION

CUSTOMERSSUBSTITUTES

REGULATORS

STRATEGIC

PARTNERS SUPPLIERS

COMPETITORS

&

PROSPECTIVE

COMPETITORS

The general

(external)

environment

The task (specific)

environment

The internal

environment

5


H.J. Leavitt model of organization

Goals,

objectives &

Tasks

People

Technology Organizational

structure

· Mission

· Organizational goals

and objectives

· Goals hierarchy

· Tasks

· Individual values,

beliefs, attitudes,

motives,

competencies

· Group behaviour

· Teams

· Organizational culture

· Organizational chart

· Levels of hierarchy,

span of authority

· Formalization

· Centralization

· Specialization

· Complexity of

technology

· Technology routineness

· Information,

· equipment,

· techniques,

· processes,

· know-how

Environment


Efficiency vs. Effectiveness

• Effectiveness: doing those tasks that help an organization reach its goals (= doing the right things)

• Efficiency: concerned with the means, efficient use of resources like people, money, and equipment

(= doing the things right)

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Key Steps of Planning

DETERMINING THE ORGANIZATION’S MISSION AND GOALS

Define the business

Establish major goals

FORMULATING STRATEGY

Analyze situation and develop strategies

IMPLEMENTING STRATEGY

Allocate resources and responsibilities to achieve strategies


Strategic Management Process

Strategic PlanningExternal

Analysis:

Opportunities &

Threats

Internal

Analysis:

Strengths &

Weaknesses

Reassess the

organization’s

goals (or even

mission)

Formulate

Strategies

Define

Strategic

Programmes

Strategic Control

Implement

Strategies

Identify the

organization’s

mission, current

goals and

strategies

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Strategic planning

• To do the right things

• Tools:

– SWOT analysis,

– 5 Porter’s Force analysis

– BCG matrix


Michael Porter’s five forces model

1. The relative number of buyers to suppliers and threats from substitutes and new entrants affect the buyer-supplier relationship

2. The ease or difficulty with which new competitors can enter an industry

3. The extent to which switching costs and brand loyalty affect the likelihood of customers adopting substitute products and services

4. The degree to which buyers have the market strength to hold sway over and influence competitors in an industry

5. Intensity among rivals increases when industry growth rates slow, demand falls, and product prices descend

Industry

Competitors

Intensity of

Rivalry

New

Entrants

Customers

Substitutes

Suppliers

Threat of New

Entrants

Bargaining

Power of

Customers

Bargaining

Power of

Suppliers

Threat of

Substitutes

8


SWOT Analysis

• SWOT Analysis

The combined external and internal analyses to identify a strategic niche that the organization can exploit

• Strengths

– Any activities the organization does well or any unique resources that it has

• Weaknesses

– Activities the organization doesn’t do well or resources it needs but doesn’t possess

• Opportunities

– Positive trends in the external environment

• Threats

– Negative trends in the external environment

IDENTIFY

ENVIRONMENTAL

IDENTIFY

ORGANIZATIONAL Strengths

Weaknesses

Opportunities

Threats

INTERNAL ANALYSIS

EXTERNAL ANALYSIS


Formulating Corporate-level Strategies:SWOT Analysis and Grand Strategies

Good strategies are those that support the mission and:

• exploit opportunities & strengths,

• neutralize threats,

• avoid weaknesses.

There are three main types of corporate strategies: growth, stability, and retrenchment

Corporate Stability

Strategies

EnvironmentCritical

Threats

Abundant

Opportunities

Org

an

iza

tio

nV

alu

ba

le

Str

en

gth

sC

ritica

l

We

akn

esse

ss

Corporate Growth

Strategies

Corporate Stability

Strategies

Corporate

Retrenchment

Strategies

9


The BCG Matrix

BCG Matrix – strategy tool to guide resource allocation decisions (between different SBUs) on the basis of market share and growth of SBUs– Stars: Heavily invest

– Question Marks: Sell off or turn into stars

– Cash Cows: sustain and Milk for cash

– Dogs: Sell off or liquidateCash Cows

Stars Question Marks

Dogs

High Market Share Low

Lo

w A

nti

cia

ted

Gro

wth

Ra

teH

igh


Strategic planning

• To do the things right

• Tools:

– PERT network

– Gantt chart

10


PERT Network

• A B = activity B cannot begin until activity Ahas been completed


Gantt chart

11

Homework


12


The Changing OrganizationTraditional Organization New Organization

Stable Dynamic

Inflexible Flexible

Job-focused Skills-focused

Work is defined by job positions Work is defined in terms of tasks to be done

Individual-oriented Team-oriented

Permanent jobs Temporary jobs

Command-oriented Involvement-oriented

Managers always make decisions Employees participate in decision making

Rule-oriented Customer-oriented

Relatively homogeneous workforce Diverse workforce

Workdays defined as 8 to 5 Workdays have no time boundaries (24/7)

Hierarchical relationships Lateral and networked relationshipsWork at organizational facility during specific hours Work anywhere, anytime


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Your homework

• Your goal: train the most needed job skills• Show an example or your own or someone’s business idea

of 4.0 industrial revolution in context of chemistry as a science or industry

• Deadline: 2.01.2018• Prepare in groups (~4 people):

1. a short presentation of the idea – max 5-7 slides, 5 min for presentation

2. a report about your team work (2 pages max.): 1. plan of work with time needed estimation (visualization), 2. reality vs plan, 3. used tools,4. your remarks and self assessment.

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