Chapter Three
Chapter Three
Fundamentals of Organization Structure
A Sample Organization Chart
CEO
Vice President Fianance
Vice President Manufacturing
Director Human Resources
Chief Accountant
Budget
Plant Maintenance Training Benefits
Analyst Superintendent Superintendent Specialist Administrator
The Relationship of Organization Design to Efficiency vs. Learning Outcomes
Horizontal Organization Designed for Learning
Dominant Structural Approach
Horizontal structure is dominant
? Shared tasks, empowerment
? Relaxed hierarchy, few rules
? Horizontal, face -to-face communication
? Many teams and task forces
Vertical structure is dominant
? Decentralized decision making
? Specialized tasks
? Strict hierarchy, many rules
? Vertical communication and reporting systems
? Few teams, task forces or integrators
? Centralized decision making
Vertical Organization Designed for Efficiency
Ladder of Mechanisms for Horizontal Linkage and Coordination
Amount of Horizontal Coordination Required
H IGH
Teams
Full-time Integrators
Task Forces
Direct Contact
LOW
Information Systems
LOW
HIGH
Cost of Coordination in Time and Human Resources
Project Manager Location in the Structure
President
Finance Department
Financial Accountant
Budget Analyst
Engineering Department
Product Designer
Draftsperson
Management Accountant
Electrical Designer
Marketing Department
Market Researcher
Advertising Specialist
Market Planner
Purchasing Department
Buyer
Buyer
Buyer
Project Manager New
Product A
Project Manager New
Product B
Project Manager New
Product C
Teams Used for Horizontal Coordination at Rodney Hunt Company
Marketing Vice Pres.
Water Control Equip. Sales Manager
Water Control Product Team
Textile Machinery Domestic Sales Manager
Textile Machinery Export Manager
Advertising Manager
President
Engineering Vice Pres
Manufacturing Vice Pres
Water Control Equip. Chief Engineer
Textile Machinery Chief Engineer
Textile Product Team
Customer Service, Purchasing,
Production Manager
Foundry General Supervisor
Machine Shop General Supervisor
Stainless Steel General Supervisor
Shipping and Yard Supervisor
Structural Design Options for Grouping Employees into Departments
Functional Grouping
Engineering
CEO Marketing
Manufacturing
Divisional Grouping
CEO
Product Division 1
Product Division 2
Source: Adapted from DavidNadler and Michael Tushman , Strategic Organization Design (Glenview, Ill.: ScottForesman , 1988), 68.
Product Division 3
Strengths and Weaknesses of Functional Organization Structure
b STRENGTHS:
? Allows economies of scale within functional departments
? Enables in-depth knowledge and skill development
? Enables organization to accomplish functional goals
? Is best with only one or few products
Source: Adapted from Robert Duncan, "What Is the Right Organization Structure? Decision Tree Analysis Provides the Answer," Organizational Dynamics (Winter 1979): 429.
b WEAKNESSES:
? Slow response time to environmental changes
? May cause decisions to pile on top, hierarchy overload
? Leads to poor horizontal coordination among departments
? Results in less innovation
? Involves restricted view of organizational goals
Strengths and Weaknesses of Divisional Organization Structure
b STRENGTHS:
b WEAKNESSES:
? Suited to fast change in unstable environment
? Leads to client satisfaction because product responsibility and contact points are clear
? Involves high coordination across functions
? Allows units to adapt to differences in products, regions,
? Eliminates economies of scale in functional departments
? Leads to poor coordination across product lines
? Eliminates in-depth competence and technical specialization
clients
? Makes integration and
? Best in large organizations with
standardization across
several products
product lines difficult
? Decentralizes decision-making
Source: Adapted from Robert Duncan, "What Is the Right Organization Structure? Decision Tree Analysis Provides the Answer," Organizational Dynamics (Winter 1979): 431.
Reorganization from Functional Structure to Divisional Structure at Info-Tech
Functional Structure
R&D
Info-Tech President
Manufacturing Accounting Marketing
Divisional Structure
Info-Tech President
Electronic Publishing
Office Automation
Virtual Reality
R&D Mfg Acctg Mktg R&D Mfg Acctg Mktg R&D Mfg Acctg Mktg
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- group organisation structure
- finance organizational structure
- official organizational chart usps
- chapter three
- eisai corporate organization chart
- inside the intelligent finance function kpmg
- 2020 4 1 mizuho bank ltd organization chart
- novartis organizational structure
- securities and exchange commission organization chart
- designing a finance function to meet tomorrow s challenges
Related searches
- three functions of managerial finance
- chapter three psychology test
- chapter by chapter bible summary
- chapter three research methodology sample
- three by three matrix solver
- chapter by chapter summaries
- novel outline template chapter by chapter pdf
- chapter 9 chapter review answers
- outsiders chapter summary chapter 5
- genesis chapter by chapter summary
- solving three equations with three unknowns
- chapter by chapter bible study