BU398 Chapter Notes - Chapter 2: Westjet, Human Capital, Multivibrator
Document Summary
The role of strategic direction in organizational design: An organization is created to achieve some purpose, which is often decided by the chief executive officer (ceo) and the top management team. The direction-setting process typically begins with an assessment of the opportunities and threats in the external environment, including the degree of change, uncertainty and resource availability. Managers assess internal strengths and weaknesses to define the company"s distinctive competence compared with other firms in the industry. Top and middle managers must select goals for their own units and the ability to make such choices largely determines organizational success. Communicates to current and prospective employees, customers, investors, suppliers and competitors what the organization stands for and what it is trying to achieve. Operative goals: these goals describe specific measurable outcomes and are often concerned with the short run, operative goals typically pertain to the primary tasks an organization must perform, similar to the subsystem activities, performance:
