Professional Documents
Culture Documents
Creating Effective
Organizational Designs
McGraw-Hill/Irwin
Strategic Management: Text and Cases, 4e
10 - 2
Traditional Forms of
Organizational Structure
Organizational structure refers to formalized patterns
of linking interactions
Structure provides a means of balancing two
conflicting forces
- Need for the division of tasks into meaningful groupings
- Need to integrate the groupings for efficiency and
effectiveness
10 - 3
Simple Structure
Simple structure is the oldest and most common
organizational form
- Direct supervision of all tasks
- Decision making is highly centralized
10 - 4
Functional Structure
Functional Structure is found where there is a single or closely
related product or service, high production volume, and some
vertical integration
Advantages?
Adapted from Exhibit 10.2 Functional Organizational Structure
Disadvantages?
10 - 5
10 - 6
Divisional Structure
Organized around
products, projects, or
markets
10 - 7
Divisional Structure
10 - 8
Divisional Structure
Strategic business unit (SBU) structure
10 - 9
Matrix Structure
10 - 10
Matrix Structure
10 - 11
10 - 13
Modular type of
organization
10 - 15
Modular type of
organization
10 - 17
Boundaryless Organizations:
Making Them Work
10 - 18
Other
Two contradictory challenges faced by firms
- Adaptability
- Alignment
International Organizations
- Strategy
- Product Diversity
- % Foreign Sales