MNG3702 -2

MNG3702 -2

1. Organisational Architecture.

   • others describe organisational architecture as the totality of the internal organisation and its external relationships – this is the view of the textbook
   • the cultural web is also a depiction of an organisational architecture.
   • TheMcKinsey7-Sframework
     • 120At the heart of the McKinsey framework is the idea that there are seven key sub-systems in the organisation that all have to be in balance and consistent with each other.
   • 2.4.2 The Lee, Venter and Bates framework of organisational architecture
     • 121Whereas the McKinsey 7-S framework depicts organisational architecture as a set of interrelated and interdependent sub-systems, Lee, Venter and Bates (2004:13–22) depict it as a flow diagram or process (fig 2.4).
       • The architecture is shaped by the needs of internal and external stakeholders. For example, organisations exist to serve customers, so customers play an essential role in shaping the organisational architecture.
       • The organisation’s capabilities, described as the important outcomes provided by the organisation, are distributed to the stakeholders.
       • The organisational processes lead to the outcomes (capabilities), and are underpinned by the structures and systems of the organisation, the competencies of individuals (knowledge, skills and abilities) and the technologies employed by the organisation. Organisational culture underscores the organisational architecture.

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