CHAPTER 10: BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION

Assalamualaikum..
This chapter explores about the three higlighted task which is :

• Staffing the organization : recruiting and retained a powerful employee (experience, technical skill and intelectual capital ) with a strong management team.
• Acquiring, developing, and strengthening key resources and capabilities : allocating the resources that will be used to the current strategy and updating the company capabilities to meet the market conditions and customers expectations.
• Structuring the organization and work effort : organizing value chain and business process, establishing line of authority and reporting relationships and decide to delegate it.

Matching type of organizational structure to strategy execution requirement can be classified into a limited number of standard types.
the four basic type are: Simple structure, functional structure, multidivisional structure and the last but not least matrix structure.

1) SIMPLE STRUCTURE (also called line and staff structure and flat structure)
consist of a central executive (often the owner-manager) who handles all major decisions and oversees all operations with the help of small staff.


2) FUNTIONAL STRUCTURE (called departmental structure, unitary structure, or U-forms)
Organized into funtional departments, with departmental managers who report to the CEO and small corporate staff.

3) MULTIDIVISIONAL STRUCTURE (called divisional structure or M-forms)
Decentralized structure consisting of a set of operating divisions organized along business, product, customer group, and geographic lines, and a central corporate headquarters that allocates resources, provides support funtions, and monitors divisional activities.



4) MATRIX STRUCTURE (composite or combination structure)
Combines two or more organizational forms, with multiple reporting relationship. It's used to foster cross-unit collaboration.