Unit 2: Managing a business People in business Improving organisational structures Chapter 19.
Five Organisational Structures
-
Upload
dr-greg-waddell -
Category
Leadership & Management
-
view
220 -
download
1
description
Transcript of Five Organisational Structures
![Page 1: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/1.jpg)
Organizational Structure
LE 303
Organizational BehaviorLecture 6
Photo by Kevin Dooley. Available to http://www.flickr.com/photos/12836528@N00/2201791390
![Page 2: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/2.jpg)
Definition
![Page 3: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/3.jpg)
Definition
“The placement of power
and authority
in an organization.”
- Galbraith, J. R., 2002, Designing Organizations
![Page 4: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/4.jpg)
Definition
“The manner in which
the parts of an organization are related to one another.”
- Richard Daft
![Page 5: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/5.jpg)
Definition
A series of channels through which
information flows.
- Nadler & Tushman (1997)
![Page 6: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/6.jpg)
Related Questions
• How does information flow throughout the organization?
• Who reports to whom?
• Who has authorization to make decisions and at what
levels?
• For each organizational function (or region or product line),
who is responsible for making sure objectives are achieved?
![Page 7: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/7.jpg)
Principles
![Page 8: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/8.jpg)
CoordinationC
on
tro
l
![Page 9: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/9.jpg)
9
Concerns of Organization
coordination
control autonomy
Keidel, Robert W. Seeing Organizational Patterns: A New Theory & Language of Organizational Design. San Francisco: Berrett-Koehler, 1995. ISBN: 1-881052-65-6
![Page 10: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/10.jpg)
10
Concerns of Organization
coordination
control autonomy
![Page 11: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/11.jpg)
11
Concerns of Organization
coordination
control autonomy
(the team)
(the individual)
(the organization)
![Page 12: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/12.jpg)
12
The Goal
Indirect Influence
coordination
control autonomy
![Page 13: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/13.jpg)
13
Indirect Influence
coordination
control autonomy
The Goal
![Page 14: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/14.jpg)
14
Indirect Influence
coordination
control autonomy
The Goal
![Page 15: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/15.jpg)
Structural Options
![Page 16: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/16.jpg)
Five Organizational Structures
Functional
Products
MarketGeographical
Matrix
![Page 17: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/17.jpg)
Functional Structure• People grouped by function (marketing,
sales, R&D, support, etc.)
• Small, single product line
• Undifferentiated market
• Expertise within the function
• Long product development and life cycles
![Page 18: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/18.jpg)
CEO
Research & Development
SalesManufacturingAccounting & Finance
Functional Structure
www.macuniversity.edu
![Page 19: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/19.jpg)
Product Structure
• People grouped by product• Product focus• Healthy team competition• Flexibility• Rapid decision-making• Common with retail
companies
Advantage: product focus, flexibility
Disadvantage: Duplication of effort
![Page 20: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/20.jpg)
CEO
Bolts Division
NutsDivision
SalesManufacturingManufacturing Sales
Product Structure
www.macuniversity.edu
![Page 21: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/21.jpg)
Market Structure• People grouped by market segments (E.g.
Teens, Adults, Elderly)• Each product or service is unique for one
segment• Customer focus• Rapid customer service and product cycles• minimum efficient scale in functions
![Page 22: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/22.jpg)
CEO
IndividualCustomers
CorporateCustomers
CustomerService
SalesSalesCustomerService
Market Structure
www.macuniversity.edu
![Page 23: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/23.jpg)
Geographical Structure
• People grouped by geographic location.• Low value items with high transport cost• Closeness to customer for delivery or support • Perception of the organization as local• Geographical market segments needed
![Page 24: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/24.jpg)
CEO
EastWest
CustomerService
SalesSalesCustomerService
Geographic Structure
www.macuniversity.edu
![Page 25: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/25.jpg)
Matrix Structure• An alternative to the functional structure• Organization organized by both Function and
Product• Heavy use of Autonomous Work Teams (ATWs)• Potential for new processes and radical change
to processes• Reduced working capital (lower inventory and
faster collection of invoices)• Can cause confusion when horizontal managers
are not aligned with vertical managers.
![Page 26: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/26.jpg)
CEO
ManufacturingResearch
Matrix Structure
www.macuniversity.edu
Engineering
Product A
Product B
Product C
![Page 27: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/27.jpg)
Images of Structure
![Page 28: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/28.jpg)
28
The Architecture Metaphor
![Page 29: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/29.jpg)
29
Organic Structure
![Page 30: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/30.jpg)
The Human Body“A company is a living being. It is an entity or persona, in and of itself, separate from the individuals within it. As a living persona, the company is goal-oriented, conscious of its own identity and open to the outside world.”
-- Aire De Geus
![Page 31: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/31.jpg)
Can you think of other images for how an organization might be structured?
![Page 32: Five Organisational Structures](https://reader033.fdocuments.net/reader033/viewer/2022051609/54796e075806b562048b46ae/html5/thumbnails/32.jpg)
Thank You!www.macuniversity.edu