MGT499- W7 Post and Response

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MGT499week7Responses.docx

MGT499 week 7 Responses

Jenna Adam

1) It is important for an organization to have alignment between it's strategy and structure because together they can lead to a competitive advantage. According to the textbook, the organization's strategy follows its structure. This means that in order for the strategy to be successful, the organization's structure has to allow for it. There are multiple structures that a firm may use, depending on the size and other factors. An organization needs to be sure the structure allows for the strategy, and is flexible to change in order to adapt. 

2) If the CEO and Chairman position are held by the same person, there are conflicts that can arise. For starters, the two roles are very different. Both positions are responsible for different responsibilities for the firm, and the two positions do not really align. Second of all, there can be a conflict of interest. As the textbook said, the job of the Board of Directors is to oversee the CEO. If the CEO is also on the board, it can be hard to be sure rules are really being followed. 

Disadvantages of stakeholder management can include selfishness, where the stakeholders put their interest above the firms. As a stakeholder, you want a good return. However, the interest of the firm is supposed to be the most important. Stakeholders can also reject changes, which can make it hard for the firm to adapt and change. It could be advantageous to have one person in both positions because decisions can be made quickly, and valuable inside information. 

Brian Rehmann

Chapter 11  For a company to be successful, well-run, and organized it’s crucial for an organization to have proper alignment between its strategy and structure. The reason for this is because if these elements are out of synch, it could be very hard for a company to maximize its profits. For example, let’s say a firm has a great, solid-foundation of a strategy but doesn’t match its top-down structure. This is going to cause confusion among employees, leadership and even customers. They won’t be able to reach their full potential, and they have a likelihood of going out of business. On the other hand if these two elements are lined up well, a company is able to easily run, know whose in power, and have better delegation of tasks.  Chapter 12  One major disadvantage of having the same person in control of two higher up positions is the fact that things can happen. What I mean by this is that if anything were to happen to that person in power, there would be a mad dash of trying to fill that position and regain control of not only one huge seat, but two. For this tactic to be useful the one major thing that comes out of it is the fact that there is one less person helping make a decision, this can be beneficial because it can save time and sometimes improper input from there being ‘too many chefs in the kitchen’ so to speak.