MODUL PERKULIAHAN
Strategic
Management
Pokok Bahasan:
Implementing and Administrating Strategy :
Organizational Structure and Resource
Allocation, Commitment, Culture , and
Politics
Fakultas
Program Studi
Tatap Muka
Pasca Sarjana
Magister Teknik
Elektro
06
Abstract
A general Framework for strategy Implementation.
Building Capable Organization :Matching
organization Structure to Strategy.;How structure
Evolves as strategy evolves;The stages Model;
The Strategy Related Pros and Cons of lternative
Organization Forms;Perspectives on Matching
strategy and Structure;Building a distinctive
Competitive;Assembling Management Team
Allocating and Focusing Resources on Strategic
Objectives:Allocating resources;Budgets and
Programs;Focusing Work Efforts on strategic
Objectives
.
Kode MK
Disusun Oleh
P541700006
DR Ir Iwan krisnadi MBA
Kompetensi
—
Understanding the
Implementating and Administrating
Strategy
— Mastery in Implementating and
Administrating Strategy
Abstract
•
A general Framework for strategy Implementation.
•
Building Capable Organization :
•
2012
–
Matching organization Structure to Strategy.
–
How structure Evolves as strategy evolves
–
The stages Model
–
The Strategy Related Pros and Cons of Alternative Organization Forms
–
Perspectives on Matching strategy and Structure
–
Building a distinctive Competitive
–
Assembling Management Team
Allocating and Focusing Resources on Strategic Objectives:
2
–
Allocating resources
–
Budgets and Programs
–
Focusing Work Efforts on strategic Objectives
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
Pembahasan
6. Implementing and Administering Strategy: Organizational
Structure and Resource Allocation
A general framework for strategy implementation
To implementing strategy is the number of variable which shape:
1.
what needs to be done to implement the strategy
2.
How fast to push implementation alon
3. What managerial approach to take to put the strategy in place
Figure 6.1 What Strategy Implementation Involves : A Framework and Overview
Figure 6.1 illustrates the wide ranging adminitrative concerns that shape a general
manager’s action agenda for implementing strategy.
2012
3
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
Four broad areas syand out :
Which administrative tasks are central to the strategy implementation process
How to create “fits” between strategy and various internal organizational processes
so as to align the whole organization behind strategy accomplishment
How to match “what to do” with the organization’s overall situation and the context of
the setting in which implementation must take place
What managerial approach and leadership style to adopt in including the needed
organizational changes.
6.1. The General Manager’s role in the implementation process
The general manager is the person most responsible for leading and keynoting the tone,
pace, and style of strategy implementation.
Figure 6.2 The Administrative Aspects of Strategy Implementation
Moreover , the GM selects which of the central administrative task (figure 6.2) to
concedntrate on and why, which of the several administrative fits to work on first, and what
steps to take to create the fits.
2012
4
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
6.2. Building A capable Organization
From the standpoint of implementing and administrating strategy, three organizational issues
stand out as dominant:
1. How to match the internal organization structure to the needs of strategy
2. How to build and nurture the distinctive competence in which the strategy may be
grounded and to see, generally, that the organization has the managerial talents,
technical skills, and competitive capabilities if needs
3. What kind of core executive group to assemble and who to put in the key positions.
6.3. Organization Structure
There are essentially five strategy related approach to organization :
1.
2.
3.
4.
5.
Functional Organization
Geographic Organization
Decentralized business / product divisions
Strategic business units
Matrix structure featuring dual lines of authorithy and strategic priority.
6.3.1 Functional Organization
A functional organization structure tends to be effective in a single – business units where
key activities resolve around well-defined skills and areas of specialization,
Two types of functional organizational approaches are diagrammed in figure 6.3
2012
5
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
Figure 6.3 Functional Organization Structure
2012
6
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
6.3.2 Geographic Forms of Organization
Organizing according to geographic areas or territories is a rather common structural form
for large scale enterprises whose strategies need to be tailored to fit the particular needs and
features of different geographical areas. As indicated in Figure 6.4, geographic organization
has its advantages and disadvantages, but the chief reason for its popularity is that, for one
reason or another, it promotes improved performance.
Figure 6.4, geographic organization
2012
7
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
6.3.3 Decentralized Business Units
From a business strategy implementation standpoint, it is far more logical to group all the
different activities that belong to the same business under one organizational roof, thereby
creating line0of-business units.
Figure . 6.5 A Decentralized Business / Division Type of Organization Structure
A typical line-of –business organizational structure is shown in figure 6.5, along with
the strategy-related pros and cons of this type of organizational form.
2012
8
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
6.3.4 An SBU Type of Organization Structure.
A strategic business unit (SBU) is a grouping of business units based on some
important strategic element common to each; the possible elements of commonality
include an overlapping set of competitors, acommon business mission, a common
need to compete globally, an ability to accomplish integrated strategic planning,
common key succes factors, and technologically related growth opportunities.
Figure 6.6 An SBU Type of Organization Structure
Figure 6.6 illustrates the SBU form of organization, along with its strategy related pros and
cons
2012
9
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
6.3.5 Matrix forms of organization
A matrix form of organization is a structure with two (or more) channelsssss of command,
two lines of budget authorithy, two sources of performance and reward, and so forth.
The key feature of the matrix is that product (or business) and functional lines of authorithy
are overlaid, and managerial authority over the activities in each unit/ cell of the matrix is
shared between the product mamager and the functional manager – as shown in figure 6.7.
.
Figure 6.7 A matrix Organization Structure
2012
10
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
6.4 Allocating and focusing resources on strategi objectives
Keeping an organization squarely on the strategy implementation path requires that the
general manager assume a central role in directing the resource allocation process.
Two issues tus stand out :
1. What budgets and programs are needed by each organizational unit to carry out its
part of the strategic plan
2. How to focus the energies of people on achieving organizationwide objectives as
opposed to just carrying out their assigned duties.
6.5 Creating all the Administrative fits: The McKinsey 7-S
Framework.
Figure 6.8 Creating a Full Complement of Adminsitrative Fits: The McKinsey 7-S
Framework.
McKinsey & Co.., a leading consulting firm with wide ranging experiences in
strategies analysis, proposes that the need for administrative fits extends accross
seven broad areas:
2012
11
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
(1) Strategy,
(2) Structure
(3) Shared values and spirit among organizational members regarding “who we are
and where we are headed” – that is, the values, attitudes, and philosophy that
comprise an organization’s culture bonds
(4) Approach to staffing the oragnization and its overall “people orientation”
(5) Administrative systems, practices, and procedures used to run the organization
on day to day basis, including the reward structure, formal and informal policies,
budgeting and programs, training, cost accounting, and finacial controls
(6) The organization’s skill, capabilities, and distinctive competences,
(7) Style of top management (how they allocate their time and attention, symbolic
actions, their leadership skills, the way the top management team comes across
to the rest of the Organization.
McKinsey has diagrammed these seven elements into what it calla the McKinsey 7-S
Framework ( the seven S’s are strategy , structure, shared values, staff, systems, skills, and
style- so labeled to promote recall), shown in Figure 6.8
2012
12
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id
Daftar Pustaka
Chandler, Alfred D. Strategy and Structure. Cambridge, Mas: MIT Press , 1962
Davis, Stanley M, and Paul R Lawrence. “Problems of Matrix Organizations. “ Harvard
Business Review 56, no 3 (May – June 1978), pp 131 -42,
Rumelt, Richard, Strategy, Structure, and Economic Performance, Cambridge, Mass.:
Harvard University Press, 1974
Thompson, Arthur A, Jr and Strickland III, Strategic Management:Concepts and cases,
Business Publications Inc, 1984, chap 6 and 7
2012
13
Strategic Management
Dosen Penyusun: DR Ir Iwan Krisnadi MBA
Pusat Bahan Ajar dan eLearning
http://www.mercubuana.ac.id