organization Flashcards
what are the 6 dimensions of organizational effectiveness?
CULTURE COMPETENCIES ACTIVITIES STRATEGY STRUCTURE SYSTEMS
was ist CULTURE?
values and norms consistent and aligned with the company’s strategy
was ist COMPETENCIES?
critical organizational competencies to deliver the strategy
what people need to have from a leader and competencies prespective
was ist ACTIVITIES?
what you have to put in place to make sure the strategy happens
activities that are performed by the company’s resources
was ist STRATEGY?
path to achieve the organization’s vision
was ist STRUCTURE?
organizational structure that serves as catalyst to execute
how you draw the boxes
was ist SYSTEMS?
systems and processes that allow for an effective and efficient organization
how you link boxes together
was ist PRODUCT BASED ORGANIZATION?
organized around product divisions (single products, group of products, product line)
each product has its own strategy (R&D, HR, …)
eg: department for shampoos, another for soaps,…
when does it make sense?
products that aren’t totally related [unilever has shampoos and knorr)
not to lose sights of synergies that you can create along the different product groups
key characteristics
strategy developed by product group - products are managed as portfolio of investments
rapid new product offering when they extend existing product lines
easy assessment of whether a product has achieved potential sales
difficult to customers who purchase different product from the company
collaboration among product divisions to develop new products across categories
was ist GEOPGRAPHIC DRIVEN ORGANIZATION STRUCTURE?
organized around geographic regions - dependent on granularity of business
when does it make sense?
companies that benefit form local legal structures
eg: mcdonalds has different meals across countries
key characteristics
heads of geographic divisions at a corporate center, geographic regions managed by on site regional managers or country managers
allows for development of general management skills and networks
often on global scale - rotation of managers across geographically dispersed business divisions
strengthens firms ability to respond to local/gov regulatory laws and practices
duplication and redundancies of staffs, systems, and infrastructure can result in high costs and ineff
coordination or product variations, new products, and production techniques among regions
was ist CUSTOMER BASED ORGANIZATION STRUCTURE?
organized around key accounts, customer groupings, or brands targeted at specific customer agents
when does it make sense?
try to understand what makes the difference to the customers, what are customers needs and what is important to them - how can companies offer best solution
microsoft
key characteristics
products and services are customized and bundled according to key accounts or customer segment requirements
creates opportunities to identify and focus on customer needs and develop high value customized products
helps leverage full revenue potential per customer by exploiting economies of scale [facilitate cross selling]
may result in under emphasis of functional and product expertise
orgs may become too dependent on specific customers
was ist FUNCTIONAL ORGANIZATION STRUCTURE?
similar tasks and skills are grouped together, while P&L responsibility resides in corporate parent
people receive reports, have information from multiple sources, easing the decision making process
typical organization
key characteristics?
builds and maintains deep technical expertise by allowing for greater specialization
simple
build on professional/academic divisions of labor
org may become less able to respond quickly and flexible to changes in market place
internal focus on distinct and fragmented functional goals brings about fragmentation of overall performance objectives; may inhibit cross functional processes
hard to groom top managers with multi-skilled competencies
was ist MATRIX ORGANIZATION STRUCTURE
model combining multiple dimensions
to formalize two or more multiple reporting relationships
difficult to manage - same employee may have two bosses - problems inside the personnel or lots of bureaucracy
key characteristics?
middle managers with multidimensional responsibilities report directly to more than one manager
forces consideration of multiple dimensions of a business in decision-making process
may be complex and often costly to administer, requiring high-level management skills
managing the matrix can keep the organization from paying attention to external forces or facts
was ist ASSET, VALUE, PROCESS [or HORIZONTAL] and PROJECT-BASED ORGANIZATION STRUCTURE
ASSET ORGANIZATION STRUCTURE
aligned with individual assets (manufacturing facility, a mine, an exploration site, a communication network)
VALUE CHAIN BASED ORGANIZATION STRUCTURE
organized around steps in the value chain (exploration, production, refinement)
eg: BP
PROCESS OR “HORIZONTAL ORGANIZATION STRUCTURE
cross functional core business processes (not tasks or functions) organize work and define goals
process owners and managers are responsible for the core process in its entirety
PROJECT-BASED ORGANIZATION STRUCTURE
work is organized around project teams assembled to develop large, complex, and highly customized products and services
whats CULTURE?
what defines and explains how a company functions
underlying beliefs, assumptions, values and ways of interacting of a company
“the way we do things around here”
what are the 3 levels of culture
individual behaviors: how people behave
values: how organization behaves as whole
collaboration: how teams behave as a whole [are they more competitive or do they help each other]
