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
Decentralized
authority distributed among employees
Span of Control
number of employees working under you
Tall Structures
unskilled labor–need close supervision
Levels: 5
Span of Control: 2, 3
Total Employees: 42
Flat Structures
Level: 3
Span of Control: 7
Total Employees: 57
Competitive Advantage
when you organize when properly aligned with organizations mission and goals, and its internal and external enviornment
Organizational design
can create employee motivation and commitment, but can also lead to efficiency and effectiveness
Always one best way
No
Important span of control
yes
Functional advantage economies of scale due to standardization
yes
org size and strategy important
yes
Organic– Google
yes
Similar skills and knowledge
functional
skilled work force
decentralized; wide authority
Functional structure book
groups together people with similar skills who perform similar tasks
Advantages of Functional structure
economies of scale make efficient use of human resources
functional experts are good at solving technical problems
training within functions promotes skill development
career paths are available within each function
Divisional Structure book
groups together people working on the same product, in the same area, or with similar customers
product structures
groups together people and jobs working on a single product or service
Geographical Structures
brings together people and jobs performed in the same location
customer structure
groups together people and jobs that serve the same customers or clients
Advantages of Divisional Structures
- expertise is focused on special products, customers, or regions
- better coordination exists across functions within divisions
- there is better accountability for product or service delivery
- it is easier to grow or shrink in size as conditions change
Matrix structure
combines functional and divisional approaches to emphasize project r program teams
Cross-functional team
brings together members from different functional departments
Advantages of Matrix Structure
- performance accountability rests with program, product, or project managers
- better communication exists across functions
- teams solve problems at their levels
- top managers spend more time on strategy
Team structure
uses permanent and temporary cross-functional teams to improve lateral relations
Advantages of Team Structures
- team assignments improve communication, cooperation and decision making
- team members get to know each other as persons, not just job titles
- team memberships boost morale and increase enthusiasm and task involvement
Tall organizations
many levels of management and narrow span of control
Flatter organizatins
fewer levels of management have wider spans of control
Centralization
top management keeps the power to make most decisions
decentralization
top management allows lower levels to help make many decisions
the main purpose of organizing as a management function is to___
arrange people and resources to accomplish work
An organization chart is most useful for ___
showing designated supervisory relationships
Rumors and resistance to change are potential disadvantages often associated with ___
informal structures
when an organization chart shows that vice presidents oof marketing, finance, manufacturing and purchasing all report to the president, top management is using a ___ structure
functional
The “two boss” system of repotting relationship is both a potential source of problems and one of the key aspects of ___ structures
matrix
A manufacturing business with a functional structure has recently acquired two other businesses with very different product lines. The president of the combined company might consider using ___ structure to allow a better focus on the unique needs of each product area
divisional
An organization using a ___ structure should expect that more problems will be solved at lower levels and that top managers will have more time free to engage in strategic thinking
matrix
The fucntional chimneys problem occurs when people in different functions___
fail to communicate with one another
An organization that employs just a few “core” or essential full-time employees and outsources a lot of the remaining work shows signs of using __ structure
network
A “tall” organization will likely have ___ spans of control than a flat organization with the same number of members
narrower
If a student in one of your course groups volunteers to gather information for a case analysis and the other members tell him to go ahead and choose the information sources he believes are most important, the group is giving this student ___ to fulfill the agreed-upon task
authority
The bureacratic organization described by Max Weber is similar to the ___ organization described by Burns and Stalker
mechanistic
Which organization design would likely be a good fit for a dynamic and changing external environment?
organic
Workers following a compressed workweek schedule often work 40 hours in __ days
4
Which alternative work schedule is identified by Working Mother magazine as being used by all companies on its list of “100 best employers for working moms?”
Flexible hours
