GOALS, STRATEGIES

STRUCTURES &
CONTROL
 Goal, Strategy, Structure & Control
• Goal :- It is defined as a broad statements of what an
organization wants to achieve in the long run, or on a
permanent basis.
It is a time less statement.
• Objectives :- More specific statements of what an
organization wants to achieve within a specified time
period.
Time specific and Activity specific.
• Strategy :- It is route with alternatives for reaching
objectives and goal.
• Policies :- Rules of decision making.
• Structure :- Design of the organization’s management
control system.
 Goal, Strategy, Structure & Control
Functional Structure
CEO

Staff
or
Controller

Purchase Production Personal Marketing

Manager Manager Manager Manager

Plant Plant Plant Branch Branch

Manager Manager
Manager Manager Manager Manager Manager
1 2
1 2 3 1 2
Goal, Strategy, Structure & Control

Functional Structure:-
 Centralized in nature.
 Each manager is responsible for a specified function.

Advantages :-
 High Efficiency.

Disadvantages :-
 No way to determine the effective ness.
 Inadequate for a firm with diversified products.
 Dispute between managers of different functions resolves only at top.
 Goal, Strategy, Structure & Control
Divisional Structure CEO

Corporate
Controller
Staff

Divisional Divisional Divisional Divisional

Manager Manager Manager Manager
1 1 1 1

Controller
Staff

Purchase Production Personal Marketing

Manager Manager Manager Manager
Goal, Strategy, Structure & Control
 Divisional Structure:-
 Decentralized in nature.
 Each manager is responsible for a specified function.
 Advantages :-
 Provide training ground in general management.
 Decision for product & market can be better than the head quarter.
 Easy assignment of profit responsibility.
 Disadvantages :-
 Duplication of work.
Goal, Strategy, Structure & Control

Matrix Structure CEO

Controller
Staff

Function - A Project - 1

Function - B Project - 2

Function - C Project - 3
Goal, Strategy, Structure & Control

 Matrix Structure:-
 Hybrid in nature.
 Functional unit has dual responsibilities.
 Advantages :-
 Higher coordination.
 Disadvantages :-
 Problem of managing delicate human relationship
Goal, Strategy, Structure & Control
Network Structure

Central coordinating unit

ST ST

FT FT FT FT

ST – second tier organization

FT – first tier organization
Goal, Strategy, Structure & Control
 Choice of structure :-
 The important parameters to choice the structure are.
 Efficiency and effectiveness.
 Problem of coordination.
 Assignment of profit responsibility.
 Conflict and Cooperation.
 Time orientation.
 Task differentiation.
 People involved.
 Managerial style.
 Technical system.
 Market pressure
 Importance :- Structure refers to the way total
task is performed with
 delegation of authority.
 It gives the hierarchy.
Goal, Strategy, Structure & Control
 Importance :-
Structure refers to the way total task is performed with
 delegation of authority.
 It gives the hierarchy.
Goal, Strategy, Structure & Control
 Requirements of Strategy :-
 Evaluation of strategy.
 Consistency with external environment.
 Consistency with internal environment.
 Appropriate to available resources.
 Acceptable Risk.
 Time horizon.

 Policy :-
Policy formulation helps management to coordinate the strategy
each business unit, to ensure their work in harmony to achieve
the goals.
Types of Strategies
 Corporate Level Strategy
 Business Unit Strategy
Managerial Behaviour & Control
Process
 Perception Managerial Styles

Attitudes & Beliefs Resistance To Chg

Key
Motivation Force Field Analy.
Behavioural
Goal Congruence Aspects Entrapment

Inter Unit Conflict Compr -Sacrifice

Co-operation Socio-cultural influ

Management By Objectives
 “The manager should be directed and
controlled by the objectives of
performance”
 MBO Process:
 Spell
 Review
 Evaluate