ORGANIZATIONAL STRATEGY AND DESIGN

Phuoc D. Nguyen

Ackermann (2014) indicates “Using designs that support both a social process and good analysis when making strategy is fundamental to achieving a politically feasible strategy – one that stands a good chance of being implemented. The process must acknowledge that it is a social affair where the nature of social relationships within the group will influence the nature and outcomes of negotiation.” (p. 14). Organizational strategy and design develop a social process to follow the strategic intent and organizational structure and during strategy implementation, this means the strategy unifies and impacts social communities inside and outside the organization. When an organizational strategy is deployed, it affects all people in an organization, all of whom work to achieve strategic goals. Any person who works not to achieve a strategic goal is not a person of that organization and there is no reason to exist in that organization. A strategic leader unites all people in the organization, communities surrounding the organization, and stakeholders to achieve strategic goals. They also aim to build a community of the organization to create an organizational culture and core values. Based on a strategy the organization will apply the appropriate business model, management systems, management tools, and business processes. Organizational structure, business model, and management systems will be changed to follow the strategy’s changes. Business processes have also will be changed and improved to follow the strategy’s changes. All people who work for the organization are organizational community members and communities outside the organization who have an indirect influence on achieving strategic goals and all of them are unified by organizational strategists.

Pozzebon (2004) suggests interpreting the effects of structurationist insights: a move to integration of strategic management to explain structural influence which is “Structurationist arguments decrease the tendency to subsume environmental constraints into mere subjective constructions and help to explain the link between micro and macro levels” (p. 265). Contra, when structural influence is high, it increases the tendency to subsume environmental constraints into mere subjective constructions and helps to explain the link closely between micro and macro levels, this means an appropriate organizational structure contributes to unifying and building communities at the micro level which combine the strong influence from the macro level.