10 Creating Effective Organizational Designs Simple Structure

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10 Creating Effective Organizational Designs Simple Structure

Taylor, Lance, Midday Host has reference to this Academic Journal, PHwiki organized this Journal Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Strategic Management: Text in addition to Cases, 4e 10 Creating Effective Organizational Designs Traditional Forms of Organizational Structure Organizational structure refers to as long as malized patterns of linking interactions Structure provides a means of balancing two conflicting as long as ces Need as long as the division of tasks into meaningful groupings Need to integrate the groupings as long as efficiency in addition to effectiveness Simple Structure Simple structure is the oldest in addition to most common organizational as long as m Direct supervision of all tasks Decision making is highly centralized

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Functional Structure Functional Structure is found where there is a single or closely related product or service, high production volume, in addition to some vertical integration Adapted from Exhibit 10.2 Functional Organizational Structure Advantages Disadvantages Dominant Growth Patterns of Large Corporations Adapted from Exhibit 10.1 Dominant Growth Patterns of Large Corporations Source: Adapted from J. R. Galbraith in addition to R. K. Kazanjian, Strategy Implementation: The Role of Structure in addition to Process, 2nd ed. (St. Paul, MN: West Publishing Company, 1986), p. 139. Divisional Structure Adapted from Exhibit 10.3 Divisional Organizational Structure Organized around products, projects, or markets Divisions are relatively autonomous in addition to consist of products in addition to services that are different from those of other divisions

Divisional Structure What are some advantages of the divisional structure What are some disadvantages of the divisional structure Divisional Structure Strategic business unit (SBU) structure Divisions with similar products, markets, in addition to /or technologies are grouped into homogenous SBUs Appropriate when the businesses in a corporation’s portfolio do not have much in common Matrix Structure Adapted from Exhibit 10.4 Matrix Organizational Structure

Matrix Structure A combination of the functional in addition to divisional structures Individuals who work in a matrix organization become responsible to two managers Some advantages in addition to disadvantages of matrix structure Boundaryless Organizational Designs Boundaries that place limits on organizations Permeable internal boundaries Pros in addition to Cons of Barrier-Free Structures Adapted from Exhibit 10.7 Pros in addition to Cons of Barrier-Free Structures

Boundaryless Organizational Designs Boundaries that place limits on organizations Permeable internal boundaries Outsources non-vital functions Pros in addition to Cons of Modular Structures Adapted from Exhibit 10.8 Pros in addition to Cons of Modular Structures Boundaryless Organizational Designs Boundaries that place limits on organizations Permeable internal boundaries Outsources non-vital functions Continually evolving network of independent companies linked together

Pros in addition to Cons of Virtual Structures Source: R. E. Miles in addition to C. C. Snow, “Organizations: New Concepts as long as New Forms,” Cali as long as nia Management Review,” Spring 1986, pp. 62-73; R. E. Miles in addition to C. C. Snow, “Causes of Failure in Network Organizations,” Cali as long as nia Management Review, Summer 1999, pp. 53-72; in addition to H. Bahrami, “The Emerging Flexible Organization: Perspectives from Silicon Valley,” Cali as long as nia Management Review, Summer 1991, pp. 33-52. Adapted from Exhibit 10.9 Pros in addition to Cons of Virtual Structures Boundaryless Organizations: Making Them Work What are some factors facilitating effective coordination in addition to integration of boundaryless structures Other Two contradictory challenges faced by firms Adaptability Alignment International Organizations Strategy Product Diversity % Foreign Sales

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