Term
| simple organizational structure |
|
Definition
small, with narrow product line
owner/manager makes all decisions
staff is an extension of top execs personality |
|
|
Term
| advantages of simple structure |
|
Definition
highly informal
coordination of tasks by direct supervision
centralized decision making
little specialization
few rules and regs |
|
|
Term
| disadvantages of simple structure |
|
Definition
employees may not understand their responsibilities
employees may take advantage of lack of regs
limited upward mobility |
|
|
Term
|
Definition
major functions of the firm are grouped internally
high product volume
specialists in various function areas is needed
CEO coordinates and integrates functions |
|
|
Term
|
Definition
enhanced coordination and control
centralized decision making
enhanced org level perspective |
|
|
Term
| disadvantages of functional |
|
Definition
impeded coordination and communication due to differences in values
may lead to short term thinking
difficult to establish uniform performance standards |
|
|
Term
| Divisional organization structure |
|
Definition
divisions are autonomous
each division has its own functional specialist
division execs help to determine product market and financial objectives |
|
|
Term
| Advantages of divisional organization |
|
Definition
separation of strategic and operational control
quick response to changes
minimal sharing problems
management talent development enhanced |
|
|
Term
| disadvantages of divisional organization |
|
Definition
expensive
dysfunctional competition between divisons |
|
|
Term
| Strategic Business Unit structure |
|
Definition
achieved through related diversification
each SBU is a profit center |
|
|
Term
|
Definition
planning and control done by corporate office
synergies through sharing |
|
|
Term
|
Definition
difficult to achieve synergies
corporate office removed from divisions |
|
|
Term
| Holding company structure |
|
Definition
synergies are limited
operating divisions have autonomy
corporate staffs are small and have limited involvement |
|
|
Term
| Advantages to holding company |
|
Definition
costs savings with fewer personnel
division autonomy increases motivation of division execs |
|
|
Term
| Disadvantages of holding comapany |
|
Definition
limited synergies
little corporate control |
|
|
Term
| Matrix Organizational structure |
|
Definition
functional departments, product groups and geographical units are combined
individuals have two managers
Project managers and functional managers |
|
|
Term
| Advantages of Matrix Organization |
|
Definition
market responsiveness, collaboration and synergies
efficient utilization of resources |
|
|
Term
| disadvantages of Matrix Organization |
|
Definition
dual reporting creates uncertainty
longer decision making |
|
|
Term
|
Definition
drives firms to foreign operations
degree of product diversity
extent to which firm is dependent on foreign sales |
|
|
Term
|
Definition
international division
geographic area
worldwide matrix |
|
|
Term
|
Definition
worlwide functional
worldwide product division
worldwide holding company |
|
|
Term
| boundary-less organizational design |
|
Definition
vertical boundaries between orgs
horizontal boundaries between functional areas
external boundaries between firm, customers,competitors and regulators
geographic boundaries |
|
|
Term
| Benefits of boundary less design |
|
Definition
agency costs are reduced
transaction costs are reduced
participants less likely to perceive conflict of interest |
|
|
Term
| costs of boundary less deisgn |
|
Definition
high importance on relationships over products
conflicts resolved through ad-hoc negotiations
relationships driven through social connections rather than need |
|
|
Term
|
Definition
higher level of trust and shared interests
shift from exec development to org development
greater use of teams
flexible porous org boundaries |
|
|
Term
|
Definition
outsources non vital functions
retains strategic control
uses best in class supplier knowledge
focuses scarce resources on key areas
accelerates org learning
leverages capital |
|
|
Term
|
Definition
continually developing network of independent companies
linked together to share skills and costs
coping with uncertainty through cooperative efforts
may not be permanent |
|
|
Term
|
Definition
addresses adaptability and alignment
pursue modest incremental innovations
establishes product teams that are structurally independent |
|
|
