Strategic management planning for domestic and global competition 14th ed pearce robinson chapter 11

Learning Objectivesopen, agile organizational structure structures 2... Functional Organizational Structuretechnologies necessary to do the work of the business are divided into separate

Organization Structure

Chapter 11

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Learning Objectives

open, agile organizational structure

structures

2

Learning Objectives (contd.)

cons

3

Organizational Structure

between and responsibility for the tasks, people, and resources in an

organization

4

Simple Organizational Structure

where the arrangement of tasks, responsibilities, and communication is highly informal and accomplished through direct supervision

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Functional Organizational Structure

technologies necessary to do the work of the business are divided into separate

“functional” groups (such as marketing, operations, and finance) with increasingly formal procedures for coordinating and integrating their activities to provide the business’s products and services

6

Ex 11.3 Functional Organization Structures

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Divisional Structure

divisions, are governed by a central corporate office but where each operating division has its own functional specialists who provide products or services different from those of other divisions

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Divisional Structure (contd.)

environments

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Ex 11.4 Divisional Organization Structure

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Strategic Business Unit

whereby various divisions or parts of divisions are grouped together based on some common strategic elements, usually linked to distinct product/market differences

identified for divisional structures

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Holding Company Structure

the corporate entity is a broad collection of often unrelated businesses and divisions such that it (the corporate entity) acts as financial overseer “holding” the ownership interest in the various parts of the company but has little direct managerial

involvement

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Matrix Organizational Structure

personnel are assigned to both a basic functional area and to a project or product manager

a firm by combining the advantages of functional specialization and

product-project specialization

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Ex 11.5 Matrix Organizational Structure

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Ex 11.5 (adapted) Matrix Organizational Structure (contd.)

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Product-Team Structure

a narrow but strategically important product, project, market, customer, or

innovation

product, project, or process team that is empowered to make major decisions about their product

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Ex 11.7 The Product-Team Structure

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Trends Affecting Organizations in the 21st Century

• Globalization

• The Internet

• Speed

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Ex 11.9 What a Difference a Century can Make

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Efforts to Improve Traditional Structures

coordination

coordination/integration

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Restructure to Emphasize and Support Strategically Critical Activities

• Restructuring: Redesigning an organizational structure with the intent of

emphasizing and enabling activities most critical to a firm’s strategy to function

at maximum effectiveness.

• Business Process Reengineering: A customer-centric restructuring approach It

involves fundamental rethinking and radical redesigning of a business process so that a company can best create value for the customer by eliminating barriers that create distance between employees and customers.

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Restructure to Emphasize and Support Strategically Critical Activities (contd.)

• Downsizing: Eliminating the number of employees, particularly middle

management, in a company.

• Self-management: Allowing work groups or work teams to supervise and

administer their work as a group or team without a direct supervisor exercising the supervisory role These teams set parameters of their work, make decisions about work-related matters, and perform most of the managerial functions

previously done by their direct supervisor.

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Creating Agile, Virtual Organizations

customers, subcontractors, even competitors—linked primarily by information

technology to share skills, access to markets, and costs

high-profitability operations and then builds a virtual organization around those capabilities

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Outsourcing—Creating

a Modular Organization

companies from sources outside the company

specialists or companies brought together—outsourced—to contribute their primary or support activity to result in a successful outcome

outsourcing services industry worldwide

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Strategic Alliances

the alliance to focus on what they do best, farm out everything else, and quickly provide value to the customer

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Types of Boundaries

management, between “corporate” and “division”

countries or regions of the world and between cultures

partners, regulators, and competitors

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Becoming Boundaryless

restructuring—all are ways to move toward boundaryless organization

boundaryless organization

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Ex 11.14 From Traditional Structure to B-Web Structure

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Ambidextrous Learning Organization

managers use has brought with it recognition of the central role knowledge plays in implementation

organizational structures that enable a learning organization to allow global companies

the chance to build competitive advantage

flexibility

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Key Terms

• Downsizing

• External interface boundaries

• Functional organizational structure

• Geographic boundaries

• Holding company structure

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Key Terms (contd.)

Key Terms (contd.)