During The Process Of Formulating An Effective Business Model Effective Jethro Differentiation and Optimal Organizational Strategy: Pondering Policy Implications

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Effective Jethro Differentiation and Optimal Organizational Strategy: Pondering Policy Implications

How do organizations allocate power and authority? How do organizations assign jobs and tasks? How do organizations allocate resources and staff? What is the relationship between organizational structure and strategy? Does the structure determine the plan or does the plan define the structure? The answers to these strategic questions are important for the formulation of an effective organizational strategy and the perfect horizontal and vertical differentiation that allows organizations to create and maintain a competitive advantage in the global market.

In this study, we review the relevant and existing academic literature on effective organizational strategy and organizational differentiation that facilitates and sustains competitive advantage in the global marketplace. As noted in the relevant academic literature, an organization’s strategy is its overall business plan that shows how the organization will use mobile and non-mobile resources to achieve the stated goals and objectives while the organizational structure is how the organization’s components are integrated. inside. Organizational structure also defines interactions with the external environment, as well as planned outcomes. For an organization to implement its plans effectively and efficiently, strategy and structure must be internally consistent and seamlessly integrated.

Furthermore, organizational design is the formal process of connecting people, resources, operational intelligence, and technology across an organization while organizational structure answers the questions: Who does what and who reports to whom? Indeed, organizational structure is the formal distribution of power, authority, and roles in an organization designed to achieve goals effectively and efficiently while organizational behavior is the study of how people interact within groups. The study of organizational behavior is designed to create efficient and effective organizations. The main idea of ​​the study of organizational behavior is that the scientific method can be applied to the management of power, authority, tasks, processes, personnel and responsibilities.

In the existing academic literature, differentiation is a set of processes used by an organization to provide power, authority, tangible and intangible resources and employees to achieve their strategic and operational goals. Separation systems determine the relationship between management and employees. Horizontal differentiation occurs as managers and employees receive their assignments in different jobs and vertical differentiation describes the distribution of power and authority within the organization.

As first described in Exodus, the division of Jethro: Vertical division is the process of distribution of power and authority while horizontal division is the process of distribution of duties and responsibilities within an organization. The process of horizontal division begins with the delegation of specific tasks to employees. This type of division prevents an organization from having only one employee or a few employees assigned to perform multiple tasks. The program also allows the organization’s managers and employees to become professionals and remain within the professions related to their professional field.

A vertical division system involves the establishment of a “chain of command” between employees and managers. Horizontal division divides management into strategic, administrative and transactional while horizontal division divides employees into functional areas: Operations; research and development; accounting and finance; sales and marketing; and personnel management.

Other Operating Instructions

In fact, while organizational structure focuses on the organization as a whole, strategy formulation and implementation involves assigning individuals to tasks and timelines that will help the organization reach defined goals and objectives. A well-designed organizational structure can simplify operations, improve decision-making, facilitate employee collaboration, cooperation and performance. Formulating an effective and efficient strategy requires a proper balance between organizational strategy and structure.

Difference and Unity

In general, organizations use separation methods to assign employees to different jobs and tasks while integration method is used to coordinate different units and employees to ensure that everyone works for the effective and efficient achievement of the goals and objectives of the organization.

When an organization effectively integrates its various units under a leader with a vision or coordinated strategic direction, the organization is said to be well integrated. Unity leads to a unified and cohesive organizational structure. A successful organization chooses between a decentralized and an integrated organizational structure depending on the nature of the business – the level of competition, the stage of the business life cycle, its competitive position, leadership and resources – tangible and intangible.

There is empirical and accumulating evidence in the relevant academic literature suggesting that successful organizations tend to be more diverse and integrated than less successful organizations. As organizations grow, they expand and diversify into multiple functional areas: Operations; research and development; accounting and finance; sales and marketing; and personnel management.

Structure and Strategy

Organizational structure improves efficiency and effectiveness by providing information to employees at all levels of the organization. An efficient and effective organizational structure encourages collaboration and facilitates the functioning of the functional areas of the organization by focusing time and energy on productive activities. Additionally, a well-designed organizational structure plays an important role in strategy formulation and implementation. Therefore, organizational structure is critical to organizational success, addressing the who, what, when, where, why, and how to achieve desired goals and objectives. Moreover, the institutional structure determines how power, authority, resources, roles and responsibilities are planned, coordinated, controlled, and assigned, and how information flows between the different levels of organizational management: Technical, administrative and transactional.

Finally, successful organizations implement strategic alignment between their various units to support the collaborative opportunities available in any strategy. Indeed, to outperform their competitors, successful organizations must design the right structure and create the right strategy to maximize their profit or profit generation capacity while simultaneously reducing operating costs.

Overall, a well-designed structure that is properly aligned with the organization’s strategy is required to create and maintain a competitive advantage in the global market. Whether the organizational plan is shaped by the business environment as set by the architects or the business structure is reconstructed through the organizational plan as defined by the reconstructionists, the most important requirement is the effective coordination of the organizational strategy and the structure, ceteris paribus.

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