Ch 8 Flashcards
Structure should bring
Efficiency Effectiveness faster more-streamlined performance driven customer focused
Organizational Structure should determine Strategy?
No; False
Strategy Comes First
What factors would determine a firm’s choice of organizational structure?
- companies strategy
- enviornment
Functional Structure
CISCO 1984 doing everything themselves in beginning divide on base of functions ex. Business functions: marketing; HR; Finance ex. Product Development (Routers)
Functional and Divisional Structure
CISCO 1987
- require own infrastructure
- -Intelligent Network Services(Architecture, financial support, engineering, operations)
- -Data Center Services and Support(operating system validation, tool development, linux engineering and operations, storage engineering and operations)
- -Marketing
- -HR
Divisional Customer Structure
CISCO 1997 ADVANTAGE -better fit; understand needs of customers; satisfaction of customer needs -exponential growth -divide customers --R&D; Enterprise Division; Small/Medium Business, Service Provider (similar sub sections under the last three LIMITATIONS -technology changing -costly (duplication) -overlapping
Team Structure
CISCO 2001
centralized functions
-1 stop shop for all technology solutions
–Executive team–>centralized marketing, customer service,operations, centralized engineering, and R&D–> centralized engineering has more
Hybrid “Technology” Organization
CISCO 2007
- Hybrid: more than 2 types together
- -Executive team–> access networking and services, customer and small business, data center, switching & services, service provider, software group, and emerging technologies–> first four have more shared
- Elements and divisions
- product and customer divisions
- networking and data–most important today
Factors determining organizational Structure
- size
- environment
- need for flexibility
- technology
- human resource
- strategy
Size
- small (Traditional and work towards hybrid)
- Large
Environment
- dynamic
- stable
Need for flexibility
- high
- low
Technology
- Routine: traditional
- Non-routine: Team
Human Resource
Skilled: modern
Unskilled: Traditional
Strategy
- Cost: Team and Functional
- Differentiation: Team
Traditional
hierarchical
functional
divisonal
Modern
Team
Flexible
Type of Structures
(Traditional) -functional -divisional (Modern) -Matrix -Team -Hybrid
Functional
cost efficient
- -Limitations: no cross-department communication
- conflicting goals
- communication takes long time–not flexible
Divisional: Product
Limitations
- duplication
- cost
- communication among departments ex. CD in own printer didn’t work for HP
Divisional: Geographic
mcD’s
Divisional: Market or Customer
Dell
CEO
categories by market
Matrix
CEO functional on top teams on bottom -Team based structure -Limitations --violates unity of command (report to functional and project head) --teams temporary --less committment
Team Structure
more loyalty and team commitment
- teams are permanent
- most used in dynamic environment ex Zappos
- Limitations
- -size too big–> 10-15 teams might not be enough
Hybrid
Sony; Nokia
3 types or more
Characteristics of Modern Organizational Structures
- Organic vs mechanistic structure
- flatter vs taller structure
- decentralized vs centralized structure
- wide vs narrow span of control
Organic
flexible; evolving; creativity
Mechanistic
rigid; standardization; cost effective