Managements role in direction

1. Top Management Role in Organization Direction, Design, and Effectiveness Source: Adapted from Arie Y. Lewin and Carroll U. Stephens, “ Individual Properties of the CEO as Determinants of Organization Design,” unpublished manuscript, Duke University, 1990; and Arie Y. Lewin and Carroll U. Stephens, “CEO Attributes as Determinants of Organization Design: An integrated Model,” Organization Studies 15, no. 2 (1994): 183-212 CEO, Top Management Team External Environment Opportunities Threats Uncertainty Resource Availability Internal Environment Strengths Weaknesses Distinctive competence Leadership Style Past Performance Strategic Management Organization Design Effectiveness Outcomes Define mission, official goals Select operational goals, collaborative strategies Resources Efficiency Goal attainment Stakeholders Competing values Structural Form – learning vs. efficiency Information and control systems Production technology Human resource policies, incentives Organizational culture Interorganizational linkages

2. Porter’s Competitive Strategies Competitive Scope Competitive Emphasis Strategy Example Broad Low Cost Low-Cost Leadership GoFly Ltd. Broad Uniqueness Differentiation Starbucks Coffee Co. Narrow Low Cost Focused Low-Cost Leadership Enterprise Rent-a- Car Narrow Uniqueness Focused Differentiation Edward Jones Investments