Ot PPT Chapter 2
Ot PPT Chapter 2
Ot PPT Chapter 2
1. Strategic Intent
Strategic intent means that all the organization’s energies and resources
are directed toward a focused, unifying, and compelling overall goal.
It provides a clear direction for the organization and helps everyone
work together to achieve a common goal.
Strategic intent provides a focus for management action.
and change.
They provide direction for the day-to-day decisions and activities
within departments.
A) Performance goals – Includes Profit, Revenue
Growth and Volume
Profitability reflects the overall performance of for-profit
organizations. E.g Net income or Return on investment.
Growth pertains to increases in sales or profits over
time.
Volume pertains to total sales or the amount of products
or services delivered.
B) Resources Goals- refer to to the acquisition of needed material
and financial resources from the environment.
Resource goals for Addis Ababa University include attracting
top-notch professors and students.
Toyota Motor Corporation have resource goals of obtaining high-
quality auto parts at low cost.
For nonprofit organizations it could be recruiting dedicated
volunteers and expanding the organization’s funding base.
C)Employee Development goals- Employee development
pertains to the training, promotion, safety, and growth of
employees. It includes both managers and workers.
D)Productivity goals- concern the amount of output
achieved from available resources(input).
They typically describe the amount of resource inputs
required to reach desired outputs
They are stated terms of “cost for a unit of production,”
“units produced per employee,” or “resource cost per
employee.”
D) Innovation and Change Goals
• To support and accomplish the organization’s strategic intent managers have to select
specific strategy.
organizational goals.
• Goals define where the organization wants to go and strategies define how it will get
there. Strategies can include any number of techniques to achieve the goal.
• Two models for formulating strategies are the Porter model of competitive strategies
• Porter suggested that knowing the five forces in the market can help managers create a
unique. This strategy usually targets customers who are not particularly
fight off the threat of substitute products because customers are loyal
organizational effectiveness.
operative—are attained.
A. Goal Indicators
•In many nonprofit and social welfare organizations, for example, it is hard
In a broad sense, resource indicators of effectiveness encompass the
following dimensions:
E.G Employees are happy and satisfied. Department activities mesh with one
another to ensure high productivity.
This approach does not consider the external environment.
CONTEMPORARY ORGANIZATIONAL
EFFECTIVENESS
• The balanced scorecard (BSC) is a strategic
performance management framework that
helps organizations translate their mission and
strategy into action.
• It provides a comprehensive view of an
organization's performance by tracking
progress across four key perspectives:
Balance score card
A. Financial perspective: Measures how
well the organization is achieving its
financial goals, such as profitability, revenue
growth, and return on investment.
B. Customer perspective: measure such
things as how customers view the
organization, as well as customer retention
and satisfaction.
Cont’d…
C. Internal process perspective(Business Process
Indicator): Measures the effectiveness of the
organization's internal processes, such as product
development, operations, and customer service.
• It focuses on production and operating statistics,
such as speed of order fulfillment and cost per
order.
D. Learning and growth perspective: Measures the
organization's ability to innovate and improve, such
as employee training, employee satisfaction, and
employee engagement.