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MANAGEMENT
Organizational Design-7-S
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
McKinsey 7-S Model
Strategy The Hard Ss
Structure The hard elements are factual
Systems and easy to identify. They can be
found in strategy statements,
Style corporate plans, organization
Staff charts, and other documentation
Skills
Superordinate goals
McKinsey 7-S Model
Strategy
Structure
Systems The Soft Ss
Style The soft elements
are difficult to
Staff describe since they
Skills are continuously
developing and
Superordinate goals
changing. They are
highly determined by
the people at work in
the organization.
Strategy
Strategy
Actions a company plans in response to or in anticipation of
changes in its external environment
Structure
Basis for specialization and coordination, influenced
primarily by strategy and by organization size and diversity
Systems
Formal and informal procedures that support the strategy
and structure (Systems are more powerful than they are
given credit)
Strategy
Structure
Organizational Structure
Systems
Style
Staff
Skills
Superordinate goals
Organization Chart
formal reporting relationships
levels in hierarchy
spans of control
departmentalization
Systems to facilitate:
coordination
communication
integration
Strategy
Structural Designs
Structure
Systems
Style
Staff
Functional Structure
Skills
Superordinate goals
Licensing agreements
Strategic Alliances
Consortia
Virtual organizations
Global (transnational) Work Teams
Strategy
Virtual Teams
Structure
Systems
Style
Staff
Skills
Information Linkages
Structure
Systems
Style
Staff
Skills
Hierarchy
Rules and plans (i.e. budget)
Horizontal Information Linkages
Information systems
Liaison role
Task force
Integrator role (i.e. Project manager)
Cross-functional teams
Ladder of Mechanisms for
Horizontal Linkage and Coordination
H IGH Teams
Coordination Required
Full-time Integrators
Amount of Horizontal
Task Forces
Direct Contact
LOW HIGH
Cost of Coordination in
Time and Human Resources
Strategy
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Strategy
Staff
The people/human resource management ways of shaping
basic management values, processes used to develop
managers, ways of introducing new employees and
managing careers, socialization processes
Skills
Distinctive competencies what the company does best,
ways of developing or shifting competencies
Shared values / Superordinate goals
Guiding concepts, fundamental ideas around which a
business is built simple, usually stated at abstract level,
have great meaning inside the organization, although
outsiders may not see or understand them
Strategy
Structure
Organizational Culture
Systems
Style
Staff
Skills
personality is to individuals
All companies have cultures
Culture by default
Culture by design thoughtful choices
based on values and core beliefs
How does a company consciously create
its culture?
From Gray & Larson Project Management:
The Managerial Process
Types of Organizational Cultures
Strategy
Control cultures
Structure
Systems
Competence cultures
Pursue excellence and innovation
Cultivation cultures
Pursue life enrichment for customers and employees
Strategy
Organizational Culture
Structure
Systems
Style
Staff
Skills
Observable Evidence: Superordinate goals
Symbols
Ceremonies
Stories
Behaviors
Language
Dress
Underlying Roots:
Values, Assumptions, Beliefs, Attitudes, Feelings
Strategy
Structure
Culture in practice
Systems
Style
Staff
Conflict management
Skills
Superordinate goals
Strategy
Interrelated
Structure
Equilibrium
Systems
Foundation of
Style corporate culture
Staff Levers available to
Skills management
Superordinate goals