Ch 12: Organizational Structure

Question 1

Organization Structure

Answer 1

How overall work in the organization is divided into subunits and how these subunits are coordinated for task completion

Basically how work is i=divided and how we will coordinate ourselves to complete tasks

Question 2

What are the 4 contingencies affecting Org structure?

Answer 2

Org. size
Environment (stability and uncertainty)
Technology
Organization strategy

Question 3

What are the 3 traditional structures?

Answer 3

Functional
Division
Matrix

Question 4

What is the functional structure? Also state its advantages, disadvantages and contingencies

Answer 4

Structure in which work is divided into functions and specialised individuals are assigned to those functions

Adv:
Promotes and develops technical specialization

Enhances career development for specialists within large departments

Dis:
Tend to promote routine task behaviours with limited orientation
Narrow-mindedness of departments

Contingencies:
* Stable and certain environment
* Small- to medium-size- could not be sustain in large scale; which would be better in Divisional structures
* Routine technology, interdependence within functions
* Goals of efficiency and technical quality

Question 5

What is the Divisional structure? Also state its advantages, dis, and contingencies

Answer 5

Structure in which org activities are grouped based on product, services, customers, and geography

Aka- product or self-contained-unit structure

Adv:
Coordinates resources toward an overall outcome

Provides opportunities for employees to learn new skills and expand knowledge as workers can more easily move between specialities

Dis:
Puts multiple demands on people so increases stress

Limits career advancement by specialists moving out of department

Contingencies:

• Unstable and uncertain environments
• Large-size
• Technological interdependence across functions
• Goals of product specialization and innovation

Question 6

What is the Matrix structure(come back to this)? Also state its advantages, dis, and contingencies

Answer 6

Maixmises strengths and limits weaknesses of previous structures.
Managers have dual roles- Matrix bosses

Places lateral structure that focuses on product or project coordination on a vertical functional structure

Adv
* Emphasizes cross-functional product or program focus and integration of functional excellence
* Uses people flexibly, because departments maintain reservoirs of specialists
* Can adapt to environmental changes by shifting emphasis between project and functional aspects

Dis
* Can be very difficult to introduce without a preexisting supportive management climate
* Increases role ambiguity, stress, and anxiety by assigning people to more than one department
* May reward political skills as opposed to technical skills

Contingencies:
* Dual focus on unique product demands and technical specialization
* Pressure for high information-processing capacity
* Pressure for shared resources

Question 7

Non traditional structures

Answer 7

Process Structure, Customer-Centric, Network

Question 8

Process Structure

Answer 8

Forming multidisciplinary teams
around core processes, such as product development, order fulfilment, sales generation,
and customer support

Features: Process drives structure, work adds value, teams are fundamental, customers define performance, teams are rewarded for performance

Adv
* Strong cross-functional collaboration and integration
Enhances employee involvement
Lowers costs because of less overhead structure

Dis
* Changing to this structure can threaten middle managers and staff specialists

• Duplicates scarce resources, sharing learnings can be difficult
• Can be ineffective if wrong processes are identified

Contingencies:
* Uncertain and changing environments
* Moderate- to large-size
* Nonroutine and highly interdependent technologies
* Customer-oriented goals

Question 9

The Customer-Centric Structure

Answer 9

the customer-centric structure focuses sub-units on the creation of solutions and the satisfaction of key customers or customer
groups

Adv
* Presents one integrated face to the customer
* Generates a deep understanding of customer requirements
* Enables organization to customize and tailor solutions for customers

Dis
* Developing common processes in the front and back is problematic(remember QSM- culture differences)
* Customer teams can be too inwardly focused
* Sharing learnings and developing functional skills is difficult

Contingencies
* Highly complex and uncertain environments
* Large organizations
* Goals of customer focus and solutions orientation
* Highly uncertain technologies

Question 10

Network Structure

Answer 10

A network structure manages the diverse, complex, and dynamic relationships among
multiple organizations or units, each specializing in a particular business function or
task.

Types:
Internal Market, vertical market, Intermarket, opportunity network

Characteristics:
Vertical Disaggregation
Brokers
Coordinating mechanisms

Adv
* Enables highly flexible and adaptive response to dynamic environments
* Permits rapid global expansion
* Can produce synergistic results

Dis
* Motivating members to relinquish autonomy to join the network is troublesome
* Motivating members to relinquish autonomy to join the network is troublesome

Contingencies

• Highly complex and uncertain environments
• Organizations of all sizes
• Goals of organizational specialization and innovation
• Highly uncertain technologies

Question 11

Downsizing

Answer 11

refers to interventions aimed at reducing the size of the organization. Done through layoffs, early retirement, redeployment etc

Application Steps:
1. Clarify Org strategy
2. Assess downsizing options and make relevant choices
3. Implement the changes
4. Address the needs of the survivors and those who leave
5. Follow through with growth plans

Results: Mostly negative- affects those who leave and those who remain

Question 12

Tactics for downsizing

Answer 12

Workforce reduction
Org redesign
Systematic redesign

Question 13

Reengineering

Answer 13

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance.

Application stages

1. Prepare org
2. Fundamentally rethink the way work gets done
3. Restructure the organization around new business processes

Results: Vary- some industry journals report dramatic results, other best selling book show that 70% of efforts failed.

Other reports show that 497 companies in the United States and 1,245 companies in Europe, and found
that 60% of U.S. firms and 75% of European firms had engaged in at least one reengineering project. 85% of the firms reported little or no gain from the
efforts.
Despite its popularity, reengineering is only beginning to be evaluated systematically, and there is little research to help unravel the disparate results