Question 1

Identify and briefly discuss the four types of organizational structures that can be aligned with strategy execution.

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Question 2

A centralized organization structure is more likely to further the cause of good strategy execution than is a decentralized organization structure. True or false? Explain.

Accepted Answer

It depends. Both structures have drawbacks. Pushing decision-making authority deep down into the organization structure and empowering employees in a decentralized organization presents its own organizing challenge: how to exercise adequate control over the actions of empowered employees so that the business is not put at risk at the same time that the benefits of empowerment are realized. In contrast, hierarchical command-and-control structures typical of centralized or authoritarian organizations may make an organization sluggish in responding to changing conditions because of the time it takes for the review/approval process to run up all the layers of the management bureaucracy. Also, centralized decision-making is often impractical-the larger the company and the more scattered its operations, the more that decision-making authority has to be delegated to managers closer to the action.

Question 3

How do companies like Alphabet and Salesforce.com go about developing employee talent and a building a top-caliber management team?

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Question 4

Imagine that you have been retained as a consultant to REI, a diversified U.S. retailer of outdoor adventure outerwear, gear, and travel expeditions. What might be some common approaches that you would recommend to REI for improving its core competencies and competitive capabilities?

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Question 5

In choosing between a centralized and a decentralized organizational structure, which of the two is more likely to further the cause of good strategy execution? Why?

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Question 6

What business case could you make to Costco to empower its employees?

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Question 7

Which recommended practices has Deloitte used to recruit and retain the best employees to make its rank-and-file employees a genuine competitive asset?

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Question 8

Explain what is involved in building capabilities internally. What steps are required? How much time does it take? How hard is it? Support your answer.

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Question 9

A decentralized organizational structure is more likely to further the cause of good strategy execution than is a centralized organization structure. True or false? Justify your answer.

Accepted Answer

Decentralized organizational structures have much to commend them. Delegating authority to subordinate managers and rank-and-file employees encourages them to take responsibility and exercise initiative. It shortens organizational response times to market changes and spurs new ideas, creative thinking, innovation, and greater involvement on the part of all company personnel. In worker-empowered structures, jobs can be defined more broadly, several tasks can be integrated into a single job, and people can direct their own work. Fewer managers are needed because deciding how to do things becomes part of each person's or team's job. Further, today's online communication systems and smart-phones make it easy and relatively inexpensive for people at all organizational levels to have direct access to data, other employees, managers, suppliers, and customers. They can access information quickly (via the Internet or company network), readily check with superiors or whomever else as needed, and take responsible action. Typically, there are genuine gains in morale and productivity when people are provided with the tools and information they need to operate in a self-directed way.

Question 10

What is meant by empowerment of employees? How does it differ from delegation of authority? In what ways can empowerment of employees aid the cause of good strategy execution?

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Question 11

Identify and discuss the basic tenets, the chief advantages, and the chief disadvantages of centralized organizational structures.

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Question 12

Identify and discuss the basic tenets, the chief advantages, and the chief disadvantages of decentralized organizational structures.

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