What Is the Meaning of Organizational Strategy?

The meaning of Organizational Strategy often presents problems and misunderstanding for managers. There are the concerns of developing an overall organizational strategy as well as what managers need to consider in a successful strategy. And, there are the advantages and benefits of a collaborative organizational strategy that provides the best approach for management to resolve the major concerns of structure and flexibility.

  1. Misconceptions

    • There is often a misunderstanding of the real meaning of Organizational Strategy related to the overall plan for the structure of an organization and the plan for the organization of people and the use of human resources in an organization. From a management point of view this presents a considerable dilemma regarding how to approach both the stability and the performance of a business organization. Too much focus on the structure of an organization can lead to stagnation while a dynamic approach to people performance may lead to instability as employees change positions or move on to other jobs.


    • Essentially, a good organizational strategy must consider both the structure and the overall approach to the performance of an organization. In the past the traditional approach to organizational structure meant a strict adherence to the hierarchy and a top-down approach to organizational strategy. This approach has led to considerable bureaucracy as all communications were passed down from the top with little feedback and involvement of the employees or line management in the decision making process. Over time this strategy promoted stagnation in the organization and miscommunication as ideas, reports and meaning were often lost through the chain of command without the more direct collaborative involvement of employees.

    Best Strategy

    • The best organizational strategy is built on a collaborative approach to the organization. In other words, managers who are the best collaborative leaders and team builders are able to create a structure that has the flexibility to facilitate openness and group involvement of the line management and employees. However, this approach requires management with the understanding of the special roles and abilities of employees and the ability to request feedback and input from employees as necessary and appropriate.


    • Nevertheless, this approach has the greatest advantage over the hierarchical approach to organizational strategy because it takes into consideration both the performance of the organization from a people point of view as well as the stability of the organization from a structural or positional point of view. This will help to prevent managers from falling back on the bureaucratic top-down approach to organizational strategy, and keep the performance of the employees and organization from declining as there are very few new ideas that arise from employees who are not regularly consulted for their input.

    Overall Benefits

    • So, with the collaborative approach to organizational strategy better communication with groups of employees creates increased involvement, feedback and new ideas that keep organizations stimulated and growing while maintaining a level of stability. And, as managers learn to be better team builders, collaborative leaders and facilitators of new ideas, problems are more easily solved and workers become more motivated and connected to the mission and purpose of the organization. These connected employees also become better learners and their performance increases as well as they learn from each other and help to make each other more effective in each of their jobs. Managers who know how to implement a collaborative approach to organizational strategy create the most effective, flexible and adaptive organizations of motivated employees. This is the real meaning of an organizational strategy as it creates a high performing and effective organization of employees who make themselves and the organization better.

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  • Photo Credit teamwork image by Yvonne Bogdanski from Fotolia.com

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