1 / 24

Major Concerns in Organizing

Major Concerns in Organizing. Division of Labor (Differentiation) Coordination (Integration). Organizing Involves:. VERTICAL STRUCTURE - Coordination from Top to Bottom Who reports to whom? Vertical linkages Chain of Command Rules and Plans Information Systems. Organizing Involves:.

sinjin
Download Presentation

Major Concerns in Organizing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Major Concerns in Organizing • Division of Labor (Differentiation) • Coordination (Integration)

  2. Organizing Involves: VERTICAL STRUCTURE - Coordination from Top to Bottom • Who reports to whom? • Vertical linkages • Chain of Command • Rules and Plans • Information Systems

  3. Organizing Involves: HORIZONTAL STRUCTURE - Departmentalization • Who works together? • Horizontal linkages (for cross-functional communication) • Information systems • Direct contact (liaisons, etc.) • Task forces • Full time integrators • Teams

  4. Internal Operations Oriented Functional Network (Virtual) Output Oriented Divisional Product Geographic Customer Team (Cluster) Combinations Hybrid different types at different places in an org. Matrix (Multi-focused) different types simultaneously at the same places in an org. Departmentalization Types

  5. Functional Approach Departments based on similar activities, skills and resource use. President Vice President Vice President Vice President CEO Marketing Manufacturing Finance Production Control VP Finance VP Production VP Marketing

  6. Divisional Approach Departments based on working on similar output (product/geography/customer). Functions (e.g., marketing) are split among the divisions. President Vice President Vice President Vice President CEO Marketing Manufacturing Finance Production Control VP Beer VP Computers VP Lawnmowers

  7. Departmentalization by Division (Product) • Functions (e.g., marketing) are split among the divisions.

  8. Geographic divisions • All functional skills in each region

  9. Departmentalization by Customer

  10. Functional Approach • Advantages: • Efficient use of resources • Economies of Scale • In-depth skill specialization • Disadvantages: • Poor communication among departments • Slow response to external changes • Loyalty more to function than customer or the whole organization

  11. Divisional Approach • Advantages: • Quicker changes in an unstable environment • More in touch with customers • Disadvantages: • Duplication of resources needed across divisions (i.e., Costs) • Competition for resources among divisions • More managers needed • Less professional specialization

  12. Engineering Manager Marketing Manager Software Manager Matrix Structure e.g., Functional and Product structures combined. Employees are assigned to a specific project team and have a permanent functional unit President Project A Manager Project B Manager Project C Manager

  13. Global Matrix Structure North American Area European Area Pacific Area Mexican United French T Taiwan Canadian British Japanese Division States Division Division Division Division Division Division Chemicals product group Consumer goods product group Automobile product group Individual business division 8 -

  14. Matrix Structure: General Motors’ IT

  15. Matrix Approach • Two chains of command simultaneously (e.g., functional and product or product and geog.) • To get the advantages of both structures. For example: Functional (efficiency, high specialization) and Divisional Structures (decentralized decision making) • Often used with sophisticated technology, fast-changing environment and/or multinational firms

  16. Disadvantages of Matrix • Violates the unity of command concept • Many meetings to coordinate activities • High conflict between two sides of matrix • Need for extensive human relations training

  17. Team Approach • Cross-functional teams (Clusters) consist of employees from various functional departments • Teams typically have more decision making power than previously held by workers at their levels.

  18. Team Structure CEO = Product Team Manager Functional Managers = Team member Sales Design Production Product A Team Product B Team Product C Team

  19. Team Approach • Advantages • More ideas and skills available • Quicker response time (than centralized) • Better morale • Reduced administrative overhead • Disadvantages • Conflict • Time and resources spent on meetings

  20. Network Approach • Organization (Virtual) divides major functions among separate companies brokered by a small headquarters organization • Somewhat like a functional organization.

  21. Network Organizational Structure MarketingFirm(U.K.) ProductDevelopmentFirm(France) CoreFirm(U.S.A.) CustomerServiceFirm(U.S.A.) ProductionFirm(China) AccountingFirm(U.S.A.)

  22. Network Approach • Advantages • Global competitiveness, especially by small firms • Flexibility • Reduced Costs • Disadvantages • No hands-on control • Limited loyalty among member firms

  23. Designs for Global Operations • Basic Global Structures • Global Product Division Structure • Meganational Strategy • Diverse products each sold in many countries • Global Geographic Division Structure • Multidomestic Strategy • Products/services tailored to specific countries/regions • Global Matrix Structure • Transnational Strategy • Global Integration with Local Responsiveness • Global Functional Structure • Goal: Tight, centralized control (Rare)

More Related