Fundamentals of Organization Structure
اسلاید 1: Thomson Learning© 20043-1Chapter ThreeFundamentals ofOrganization Structure
اسلاید 2: Thomson Learning© 20043-2A Sample Organization Chart
اسلاید 3: Thomson Learning© 20043-3The Relationship of Organization Design to Efficiency vs. Learning OutcomesHorizontal OrganizationDesigned for LearningVertical OrganizationDesigned for EfficiencyDominantStructuralApproachHorizontal structure is dominant Shared tasks, empowerment Relaxed hierarchy, few rules Horizontal, face-to-face communication Many teams and task forces Decentralized decision makingVertical structure is dominant Specialized tasks Strict hierarchy, many rules Vertical communication and reporting systems Few teams, task forces or integrators Centralized decision making
اسلاید 4: Thomson Learning© 20043-4Ladder of Mechanisms for Horizontal Linkage and CoordinationHIGHLOWLOWInformation SystemsDirect ContactTask ForcesFull-time IntegratorsTeamsAmount of HorizontalCoordination RequiredCost of Coordination in Time and Human ResourcesH IGH
اسلاید 5: Thomson Learning© 20043-5Project Manager Location in the StructurePresidentFinanceDepartmentFinancialAccountantBudgetAnalystManagementAccountantEngineeringDepartmentProductDesignerDraftspersonElectricalDesignerMarketingDepartmentMarketResearcherAdvertisingSpecialistMarketPlannerPurchasingDepartmentBuyerBuyerBuyerProject ManagerNewProduct BProject ManagerNewProduct AProject ManagerNewProduct C
اسلاید 6: Thomson Learning© 20043-6Teams Used for Horizontal Coordination at Wizard Software CompanyVideogamesChief EngineerProgramming Vice PresCustomer ServiceManagerVideogames Basic Research SupervisorResearch Vice PresApplications and Testing SupervisorProcurementSupervisorVideogames Sales ManagerMarketing Vice Pres.Memory Products International ManagerAdvertising ManagerMemory Products Chief ProgrammerMemory ProductsResearch SupervisorMemory Products Sales ManagerPresident Videogames Product Team Memory Products Team
اسلاید 7: Thomson Learning© 20043-7Structural Design Options for Grouping Employees into DepartmentsEngineeringMarketingManufacturingCEOFunctionalGroupingDivisionalGroupingSource: Adapted from David Nadler and Michael Tushman,Strategic Organization Design (Glenview, Ill.: Scott Foresman, 1988), 68.
اسلاید 8: Thomson Learning© 20043-8Strengths and Weaknesses of Functional Organization StructureSTRENGTHS:Allows economies of scale within functional departmentsEnables in-depth knowledge and skill developmentEnables organization to accomplish functional goalsIs best with only one or a few productsWEAKNESSES:Slow response time to environmental changesMay cause decisions to pile on top, hierarchy overloadLeads to poor horizontal coordination among departmentsResults in less innovationInvolves restricted view of organizational goalsSource: Adapted from Robert Duncan, “What Is the Right Organization Structure? Decision Tree Analysis Provides the Answer,” Organizational Dynamics (Winter 1979): 429.
اسلاید 9: Thomson Learning© 20043-9Strengths and Weaknesses of Divisional Organization StructureSTRENGTHS:Suited to fast change in unstable environmentLeads to client satisfaction because product responsibility and contact points are clearInvolves high coordination across functionsAllows units to adapt to differences in products, regions, clientsBest in large organizations with several productsDecentralizes decision-makingWEAKNESSES:Eliminates economies of scale in functional departmentsLeads to poor coordination across product linesEliminates in-depth competence and technical specializationMakes integration and standardization across product lines difficultSource: Adapted from Robert Duncan, “What Is theRight Organization Structure? Decision Tree AnalysisProvides the Answer,” Organizational Dynamics(Winter 1979): 431.
اسلاید 10: Thomson Learning© 20043-10Reorganization from Functional Structure to Divisional Structure at Info-TechR&DManufacturingAccountingMarketingInfo-TechPresidentFunctionalStructureDivisionalStructure
اسلاید 11: Thomson Learning© 20043-11Structural Design Options for Grouping Employees (Continued)MultifocusedGroupingCEOManufacturingMarketingProductDivision 2ProductDivision 1Source: Adapted from David Nadler and Michael Tushman, Strategic Organization Design (Glenview, Ill.: Scott Foresman, 1988), 68.
اسلاید 12: Thomson Learning© 20043-12Structural Design Options for Grouping Employees (Continued)HorizontalGroupingCEOFinanceHuman ResourcesCoreProcess 2CoreProcess 1Source: Adapted from David Nadler and Michael Tushman,Strategic Organization Design (Glenview, Ill.: Scott Foresman, 1988), 68.
اسلاید 13: Thomson Learning© 20043-13Geographical Structure for Apple ComputerCEOSteve JobsAppleEuropeApplePacificFranceAppleProductsAsiaJapanAustraliaAppleAmericasCanadaLatin America/CaribbeanSalesService andMarketingto RegionsSource: www.apple.com
اسلاید 14: Thomson Learning© 20043-14ProductManager AProductManager BProductManager CProductManager DDirectorof ProductOperationsDesignVice PresidentMfgVicePresidentMarketingVice PresidentControllerProcure-mentManagerPresidentDual-Authority Structure in a Matrix Organization
اسلاید 15: Thomson Learning© 20043-15STRENGTHS:Achieves coordination necessary to meet dual demands from customersFlexible sharing of human resources across productsSuited to complex decisions and frequent changes in unstable environmentProvides opportunity for both functional and product skill developmentBest in medium-sized organizations with multiple productsWEAKNESSES:Causes participants to experience dual authority, which can be frustrating and confusingMeans participants need good interpersonal skills and extensive trainingIs time consuming; involves frequent meetings and conflict resolution sessionsWill not work unless participants understand it and adopt collegial rather than vertical-type relationshipsRequires great effort to maintain power balanceStrengths and Weaknesses of Matrix Organization StructureSource: Adapted from Robert Duncan, “What Is the RightOrganization Structure? Decision Tree Analysis Provides theAnswer,”Organizational Dynamics (Winter 1979): 429.
اسلاید 16: Thomson Learning© 20043-16Matrix Structure for Worldwide Steel CompanyPresidentIndustrialRelationsVice PresidentMfg.ServicesVice PresidentFinanceVice PresidentMarketingVice President Mfg.Vice President MetallurgyVice President Field SalesVice President Open DieBusiness Mgr. Ring ProductsBusiness Mgr. Wheels & AxlesBusiness Mgr. SteelmakingBusiness Mgr.Vertical FunctionsHorizontal Product Lines
اسلاید 17: Thomson Learning© 20043-17A Horizontal StructureTeam3Team2Team1TopManagementTeamTeam3Team2Team1CustomerCustomerProcessOwnerProcessOwner Testing Product Planning Research Market AnalysisNew Product Development Process Distrib. Material Flow Purchasing AnalysisProcurement and Logistics ProcessSources: Based on Frank Ostroff,The Horizontal Organization, (New York:Oxford University Press, 1999); John A. Byrne,“The Horizontal Corporation,” Business Week, December 20, 1993, 76-81; and Thomas A. Stewart,“The Search for the Organization of Tomorrow,”Fortune, May 19, 1992, 92-98.
اسلاید 18: Thomson Learning© 20043-18Strengths and Weaknesses of Horizontal StructureSTRENGTHS:Flexibility and rapid response to changes in customer needsDirects the attention of everyone toward the production and delivery of value to the customerEach employee has a broader view of organizational goalsPromotes a focus on teamwork and collaboration—common commitment to meeting objectivesImproves quality of life for employees by offering them the opportunity to share responsibility, make decisions, and be accountable for outcomes WEAKNESSES:Determining core processes to organize around is difficult and time-consumingRequires changes in culture, job design, management philosophy, and information and reward systemsTraditional managers may balk when they have to give up power and authorityRequires significant training of employees to work effectively in a horizontal team environmentCan limit in-depth skill developmentSources: Based on Frank Ostroff, The Horizontal Organization: What the Organization of the Future Looks Like and How It Delivers Value to Customers, (New York: Oxford University Press, 1999);and Richard L. Daft, Organization Theory and Design, 6th ed.,(Cincinnati, Ohio: South-Western College Publishing, 1998) 253.
اسلاید 19: Thomson Learning© 20043-19FunctionalStructureHybrid Structure Part 1. Sun Petrochemical ProductsPresidentTechnologyVicePresidentFinancialServicesVice Pres.HumanResourcesDirectorChiefCounselChemicalsVicePresidentLubricantsVicePresidentFuelsVicePresidentProductStructureSources: Based on Linda S. Ackerman, “Transition Management: An In-Depth Look at Managing Complex Change,” Organizational Dynamics (Summer 1982): 46-66;and Frank Ostroff, The Horizontal Organization, (New York: Oxford University Press, 1999), Fig. 2.1, 34.
اسلاید 20: Thomson Learning© 20043-20Hybrid Structure Part 2. Ford Customer Service DivisionDirector andProcess OwnerDirector andProcess OwnerSources: Based on Linda S. Ackerman, “Transition Management:An In-Depth Look at Managing Complex Change,” Organizational Dynamics(Summer 1982): 46-66; and Frank Ostroff, The Horizontal Organization, (New York: Oxford University Press, 1999), Fig. 2.1, 34.HumanResourcesStrategy andCommunicationFinanceVice President andGeneral ManagerTeamsTeamsDirector andProcess OwnerTeamsTechnical Support GroupVehicle Service GroupParts Supply / Logistics GroupFunctionalStructureHorizontal StructureTeamsTeams
اسلاید 21: Thomson Learning© 20043-21Organization Contextual Variables that Influence StructureStructure(learning vs. efficiency)EnvironmentChapters 4, 6CultureChapter 10SizeChapter 9Strategy,GoalsChapter 2TechnologyChapters 7,8Sources: Adapted from Jay R. Galbraith,Competing with Flexible Lateral Organizations, 2nd ed. (Reading, Mass.: Addison-Wesley, 1994), Ch.1; Jay R. Galbraith, Organization Design (Reading, Mass.: Addison-Wesley, 1977), Ch. 1.
اسلاید 22: Thomson Learning© 20043-22The Relationship of Structure to Organization’s Need for Efficiency vs. LearningHorizontalStructureDominantStructuralApproachHorizontal: Coordination Learning Innovation FlexibilityVertical: Control Efficiency Stability ReliabilityMatrixStructureDivisionalStructureFunctional withcross-functionalteams, integratorsFunctionalStructureModular Structure
اسلاید 23: Thomson Learning© 20043-23Symptoms of Structural DeficiencyDecision making is delayed or lacking in qualityThe organization does not respond innovatively to a changing environmentToo much conflict is evident
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