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Organizational Strategy, Structure and Process
Transcript of Organizational Strategy, Structure and Process
Charles C. Snow
Alan D. Meyer
Henry J. Coleman, Jr.
Academy of Management Review, 1978 Organizational Strategy, Structure and Process Introduction Organizations engage their purposes in interaction with their environments
Efficient organizations establish mechanisms that complement their market strategy
Article presents a theoretical framework that takes into account the interrelationships among strategy, structure and process.
Two major elements of the framework:
Three strategic types of organizations It describes organizations major issues, such as:
Also, contains entrepreneurial activities like identification of new opportunities Prospectors Respond to their chosen environment almost opposite manners than the Defenders → high degree of consistency among its solutions related to the three problems of adaptation
Enact an environment more dynamic than the other types of organizations
The main capability is finding and exploiting new product and market opportunities
Innovators in product and market development Defenders Intentionally enact and maintain an environment for which a stable form of organization is appropriate
The goal is to create a stable domain by producing only a limited set of products for a only a narrow segment of the total market
Within this domain, the Defender attempts aggressively to prevent competitors from entering
Ignore developments and trends outside of their domain How do organizations move through the Adaptive cycle? In order to solve entrepreneurial, engineering and administrative problems of their adaptive cycle, each organization exploit different types of strategies
The three defined strategic types of organizations are:
Each type has its own unique strategy and a particular configuration of technology, structure and process that is consistent with its market strategy
There is also a fourth type of organization, Reactor → The Reactor is a form of strategic ”failure”, where inconsistencies exist in strategy, technology, structure and process By: Paula Simonen, Veera Leppänen,
Juho Tikkanen & Riikka Pakarinen Thank You for your attention! Management Theory Linkages to
Organizational Strategy & Structure Although the research is only in its preliminary stage, it has found some tentative patterns in the relationship between traditional management theories (Traditional Model, Human Relations Model & Human Resource Model) and organizational strategy and structure
“In general, Traditional and Human Relations managerial beliefs are more likely to be found in Defender and Reactor organizations, while Human Resource beliefs are more often associated with Analyzer and Prospector organizations.”
It must be noted that universal generalizations or plain correlations shouldn’t be concluded based on this study and the topic needs more research Conclusions Organizational Adaptation In other words: adaptive process
Organizations remodel their strategy so that their strategy meets the current environment
General model of the adaptive process conducted by the managers of the organizations is called the adaptive cycle
There are three problems in the organizations adapting process
The entrepreneurial problem
The engineering problem
The administrative problem --> Management must solve each of these problems at the same time The Entrepreneurial Problem The Engineering Problem Involves management's operative solutions to the entrepreneurial problem
Contains activities such as
selecting the proper technologies
organizational communication The Administrative Problem Smooths out and makes organizations problem solving activities more efficient
Problem solving activities means those very problems which are faced during The Entrepreneurial Problem and The Engineering problem phases.
Its aim is to reduce uncertainty within the organization
For example, it may be an administrative system that smoothly directs and monitors the organization activities
It is important that the administrative system doesn't make negative effect for innovation ability Reactors Point out a pattern of adjustment to its environment that is both inconsistent and unstable
In it's ”adaptive cycle” the Reactor is usually incapable of responding to environmental change and uncertainty → as a result, the Reactor becomes reluctant to act aggressively in the future
The Reactor is a ”residual” strategy emerging when one of the other three strategies are improperly pursued by organizations Analyzers The unique combination of the Prospector and Defender types that represents a viable alternative to these other two strategies
Attempt to minimize risk while maximizing the opportunity for profit → combines the strengths of both the Prospector and the Defender
Adaptive approach is described “balance” In order to success organizations need to consider interaction within their environment as a part of strategy
Article presents a theoretical framework consisting of a model of the adaptive process, the Adaptive Cycle, and four empirically determined ways of moving through this process
This theoretical framework is also related to available theories of management such as Traditional, Human Relations and Human resources