Chapter 3 Flashcards
What are the 3 elements of structure?
Formal reporting relationships
Grouping
Systems for communication, coordination, integration
Name the 3 Vertical Information Linkages
Hierarchical referral
Rules and plans
Information Systems
Name the 5 Horizontal Information Linkages
Information systems Direct contact (liason) Task Forces Full Time Integrator Teams
Name the 6 grouping options
Functional Divisional Matrix Horizontal Virtual Networks Hybrid
Explain functional structure
Grouped by function
For example: HR, Accounting, Marketing
Strengths of functional structure
- economies of scale
- in depth knowledge
- best with 1 or few products
Weaknesses of functional structure
slow response to environmental change
hierarchy overload
poor coordination across departments
less innovation
Explain divisional structure
grouped by product
such as google maps, google drive, etc
Strengths of divisional structure
Suited to fast change
High coordination across functions
Decentralized decision making
Best in large orgs with several products
Weaknesses of divisional structure
eliminates economies of scale
poor coordination across product lines
no in-depth knowledge/specialization
Explain matrix structure
implements different structures simulatenously
What are the three conditions for a matrix structure?
- Pressure to share resources across product lines
- Pressure for 2 or more outputs
- Domain is complex and uncertain
Strengths of matrix structure
meet dual demands
sharing resrouces
best in medium size org with multiple products
Weaknesses of matrix structure
dual authority
time consuming
lots of effort to maintain balance
Explain horizontal structure
grouped by core processes, run by process owners and self managed teams
Strengths of horizontal structure
Flexibility and rapid response to change
A broader view of goals
Team work and collaboration
Improves employee quality of life
Weaknesses of horizontal structure
difficult and time consuming to designate core processes
requires a lot of changes
managers have to give up power
limits in depth skill
Explain virtual network structure
subcontract major processes to separate companies
central hub maintains control over processes and makes decisions
Strengths of virtual network structure
obtain talent and resources worldwide
immediate scale and reach
highly flexible and responsive to change
reduces admin overhead costs
Weakness of virtual network structure
lack of control over employees
risk of failture depends on others
weak employee loyalty
Explain hybrid structure
combines characteristics of various structures
useful in rapidly changing environments
often functional and divisional is used
What are 4 key aspects of vertical alignment?
Control
Efficiency
Stability
Reliability
What are 4 key aspects of horizontal alignment?
Coordination
Learning
Flexibility
Innovation
