chapter 12 lecture 1 organizational structure
Post on 06-Apr-2018
221 Views
Preview:
TRANSCRIPT
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
1/27
ORGANIZATIONALSTRUCTURE
Chapter 12 Lecture 1
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
2/27
Every Organization has a
StructureBut structures can differ
Due to choice
Due to national laws
The words used to describe them also can
differ
Organization chart, design, structureThe way they are drawn can differ
pyramid, sideways pyramid, circle
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
3/27
The Structural Configuration
is the skeleton of the organization
reflects corporate governance
is intended to meet organizationalobjectives
arises out of strategic directions
and causes managers to ask:what structure will best aid us in meeting
our strategy and objectives?
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
4/27
Restructuring Occurs for Many
Reasons
Turnover in top management
Competitive positioning
Mergers and/or acquisitions
Cost-savings
Even the illusion of managerial control
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
5/27
The Illusion of Managerial
ControlWe trained hardbut it seemed that every time we
were beginning to form up into teams, we would
be reorganized. I was to learn later in life that wetend to meet any new situation by reorganizing;
and a wonderful method it can be for creating the
illusion of progress while producing confusion,
inefficiency, and demoralization.Petronius Arbiter, 210 B.C.
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
6/27
Structural Choice is Important
Because it focuses attention on particular areas
shapes how resources will be used
directs communication flows
defines control and other processes
illustrates peoples roles relative to others
roles
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
7/27
Your Job
Understand organizational objectives
(articulated in the varied levels of
strategy)
Analyze the structure
Assess the match betweenorganizational strategies and structures
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
8/27
Power Greater than
Themselves God or conscience in a wholly owned private firm The family in a family owned firm
The Board in a publicly owned firm:
U.S. boards often are chaired by the CEO Boards in U.K. usually are chaired by a non
executive
European companies often have a two-tier
board In Germany, duties are split between
supervisory and management boards
Spain and France often use an executivecommittee
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
9/27
Beneath the Board are
Several Structural Types Intra and interorganizational networks
Special cases
Functional, divisional, hybrids
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
10/27
Networks
Intraorganizational networks
internal networks
shamrockspiderwebs
Interorganizational networks
strategic alliances
joint ventures
partial acquisitions/mergers
cross-sector partnerships
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
11/27
Special Cases
Family structure
Holding companies
Virtual structure
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
12/27
Except for born globals, Most
Companies Grow intoExpansion
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
13/27
Most Common StructuralTypes
Among Global Firms are: Functional structure
Divisional structure
Hybrid structures
Combined functional/divisional structure
Matrix structure
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
14/27
Global Functional Structure
VP Marketing VP Finance
Country A Country B
Product 1 Product 2 Product 3
VP Operations VP R&D VP Legal issues
CEO
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
15/27
Divisional Structure Can Take
Different Forms Product
Geographic
Customer group served
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
16/27
Global Geographic Division
Structure
Admin/Finance
VP for the Americas VP Europe VP E. Asia
Marketing Operations
Australia/NZ Indonesia Islands
VP Australasia
CEO
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
17/27
Global Product Structure
DIVISIONAL STRUCTURE (BY PRODUCT LINES)
FRAGRANCES SKIN CARE PRODUCTS HAIR CARE PRODUCTS OTHER PRODUCTS
COSMETICS CORPORATION
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
18/27
Hybrids Often Emerge to Deal
with Problems of Functional and
Divisional Forms
Matrix forms are hybrids
Some hybrids combine a mostly functional
structure with one or more important
products or markets, e.g., North America
Some hybrids combine a mostly divisional
structure with one or more important
functions, e.g., marketing
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
19/27
We Use a Matrix to
Organize Roles andRelationships in Business
Education
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
20/27
Global Matrix Structure
Management
financing
parts
sports utilities
light trucks
autos
Strategic Business units N. America Latin America Europe Asia
Executive Committee
Chairman of the Board
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
21/27
Combined Functional andDivisional Structure
Danone Group, 2003
Chair and CEO Vice Chair and COO
General
SecretaryExec VP,
Finance
Exec VP,
Fresh Dairy
Exec VP,
Water
Exec VP,
Biscuits and
Cereal Snacks
Exec VP,
Asia-PacificExec VP,
Intl Strategy
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
22/27
Intraorganizational Structures
spiderwebs
internal networks
shamrocks
horizontal keiretsu
chaebol
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
23/27
Mitsubishi Group Network
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
24/27
Mitsubishi Village
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
25/27
Interorganizational Structures
Strategic alliances
Joint ventures
Partial acquisitions
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
26/27
Special Cases
Family structuresusually hierarchical with a
patriarch/matriarch or a set of family members
who divide tasks according to skill or obligation Structures that arise out of national tradition
German firms always have union representation
and two levels of boards
Holding companies
Virtual organizations
-
8/2/2019 Chapter 12 Lecture 1 Organizational Structure
27/27
top related