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Management - Vikhansky OS

3.2. Areas of strategic changes

Strategic changes, if they are carried out properly, are systemic in nature. Because of this, they affect all aspects of the organization. However, there are two cut-off organizations that are major in conducting strategic changes. The first slice - this organizational structure, the second - the organizational culture.

Analysis of the organizational structure from the standpoint of the process of implementation of the strategy is aimed at obtaining the following two questions answered. The first is the extent to which the existing organizational structure can facilitate or hinder the implementation of the chosen strategy? Second, on what levels in the organizational structure should be entrusted with certain tasks in the process of implementation of the strategy?

The choice of a particular organizational structure depends on a number of factors (for details, select the questions and build organizational structures are considered in Ch. 7 of this tutorial). The most significant and largest extent are the following factors: the size and degree of diversity of activities inherent in the organization; the geographical location of the organization; technology; related to the organization on the part of managers and employees; the dynamism of the environment; the strategy pursued by the organization (Fig. 5.2).

Fig. 5.2. Factors influencing the choice of organizational structure

The organizational structure should match the size of the organization and not be more complicated than it needs with the available size of the organization. Typically, the effect size of the organization in its organizational structure is shown in the form of increasing the number of levels of management of the organization hierarchy. If your organization is small and one manager can manage staff performance, then applies simple organizational structure. If the number of employees increased to such an extent that they have difficult to control one head, or having certain specialized activities, the organization appears an intermediate level in the management and begins to apply the functional management structure. The further growth of the organization can lead to new levels in the management hierarchy. The result can be applied such organizational structures as divisional, or a structure that reflects the creation of strategic business units. The emergence of the organization need to implement complex projects leads to the fact that the matrix structure becomes applicable.

Geographic location of the organization if the regions are isolated enough leads to delegation affiliates certain rights in decision-making and therefore to the appearance of the organizational structure of regional units. If the rights are not very great, it leads to increase in the number of cells in the functional organization structure. If the territorial division assigned the status of relative independence, then there is a transition to a divisional organizational structure,

Impact of technology on organizational structure is shown in the following. First, the organizational structure is tied to the technology that is used in the organization. The number of structural units and their relative positions are strongly dependent on which technique is used in the organization. Second, the organizational structure should be designed in such a way that it is possible to carry out technological upgrading. In particular, the organizational structure should contribute to the emergence and dissemination of technological development and implementation processes of technological renewal.

The organizational structure is largely dependent on how its managers are choosing what type of structure they prefer and how much they are willing to go to the introduction of non-traditional forms of building the organization. Often managers are prone to a variety of traditional, functional form of the organizational structure: is it more clear and familiar. Also, at what organizational structure is formed in the organization, influence the location and attitude to work, which are specific to the organization of workers. Highly skilled employees and workers, whose labor has a creative focus, choose the organizational structures, giving them more freedom and independence. Workers also performing routine tasks, are more focused on simple and traditional organizational structure.

The dynamism of the environment is a very strong factor in determining what kind of organizational structure is to choose the organization. If the external environment is stable, there has been a slight change, the organization can successfully apply the mechanistic organizational structures with little flexibility and require a lot of effort to change them. In the same case, if the external environment is very dynamic organizational structure should be organic, having flexibility and the ability to react quickly to external changes. In particular, such a structure should assume a high level of decentralization, the presence of big rights in the structural units in the decision-making process.

The strategy has a significant influence on the choice of the organizational structure. It is not necessary to change the organizational structure of each time when the organization moves to implement the new strategy. However, it is necessary to establish the extent to which the existing organizational structure corresponded to the strategy, and only then, if necessary, to carry out the appropriate changes.

If the organizational structure, establishing the boundaries of departments and asking formal links between them, acts as if the skeleton, "skeleton" of the organization, the kind of "soul" of the organization, establishing an invisible levers, guides the action of members of the organization, is the organizational culture (questions of organizational culture in detail considered in Sec. 10 of the textbook). Typically, the organization culture manifests itself in the form of shared values ​​of members of the organization, they have adopted beliefs, norms of behavior, etc. It is believed that the organizational culture consists of the following components:

• philosophy that defines the meaning of the existence of the organization and its relation to employees and customers;

• prevailing values on which the organization is based, and which relate to the objectives of its existence as a means to achieve these goals;

• standards of behavior shared by members of the organization and defining the principles of mutual relations in the organization;

• rules that carried out the "game" in the organization;

• climate that exists in the organization, and is manifested in the fact that exists in the atmosphere of the organization and as members of the organization interact with external entities;

• behavioral rituals expressed in carrying out the organization of certain ceremonies, the use of certain expressions, signs, etc.

Organizational culture is formed as a reaction to two groups of problems faced by the organization. The first group consists of the problems of integration of internal resources and efforts. These include issues such as: 1) the creation of a common language and a single, comprehensible to all the terminology; 2) the establishment of group boundaries and the principles of inclusion and exclusion from the group; 3) creation of a mechanism granting authority and deprivation of rights, as well as securing a certain status of the individual members of the organization; 4) establish the rules governing informal relations between people of different sexes; 5) development of assessments of the fact that the behavior of employees, it is desirable and what is not. The second group includes those problems that must be solved in the process of organization of interaction with the environment. This wide range of problems associated with the development of the mission, goals and means of achieving them.

Formation and change in organizational culture is influenced by many factors. One of the acknowledged experts in the field of organizational culture of E. Schein believes that there are five primary and five secondary factors that determine the formation of organizational culture [3]. In accordance with its concept to the primary factors are the following:

• the point of concentration of senior management attention;

• management response to critical situations that arise in the organization;

• relevance to the work and style of managerial behavior;

• criterion-base staff incentives;

• the criterion of selection framework, purpose, promotion and dismissal from the organization.

The group of secondary factors in accordance with the concept, E. Schein include:

• structure of the organization;

• data transmission system and organizational procedures;

• external and internal design and layout of the room in which the organization is located;

• Myths and stories about important events and people that have played a key role in the life of the organization;

• formal position on the philosophy and the meaning of existence> tence organization.

Each of these ten factors of formation of organizational culture requires the use of certain techniques that will ensure success in the conscious shaping and changing the organizational culture. At the stage of implementation of the strategy directed considerable efforts to ensure that lead organizational culture in line with the chosen strategy. However, if the organizational structure is relatively easily be subjected to changes, they are very difficult and sometimes impossible task. Therefore, at the stage of determining the strategy should, if possible, as much as possible take into account the difficulties with the change of organizational culture may occur if the strategy and try, if possible, choose a strategy that does not require carrying out deliberately unrealistic action to change the organizational culture.