Beruflich Dokumente
Kultur Dokumente
11
McGraw-Hill/Irwin
112
Chapter Case 11
EXHIBIT 11.1
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LO 11-1 Define organizational design and list its three components. LO 11-2 Explain how organizational inertia can lead established firms to failure. LO 11-3 Define organizational structure and describe its four elements. LO 11-4 Compare and contrast mechanistic versus organic organizations. LO 11-5 Describe different organizational structures and match them with appropriate strategies. LO 11-6 Describe the elements of organizational culture and explain where organizational cultures can come from the how they can be changed. LO 11-7 Compare and contrast different strategic control and reward systems.
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11-10
Bureaucratic Costs
Organizational inertia
Resistance to change
Often leads to failure because of the environmental dynamics: competition, technology, strategyetc.
Organizational strategy and structure are not static But rather are dynamic!
EXHIBIT 11.2
Organizational Inertia
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LO 11-1 Define organizational design and list its three components. LO 11-2 Explain how organizational inertia can lead established firms to failure. LO 11-3 Define organizational structure and describe its four elements. LO 11-4 Compare and contrast mechanistic versus organic organizations. LO 11-5 Describe different organizational structures and match them with appropriate strategies. LO 11-6 Describe the elements of organizational culture and explain where organizational cultures can come from the how they can be changed. LO 11-7 Compare and contrast different strategic control and reward systems.
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Formalization
Centralization Hierarchy
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Span of control
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technology
Mechanistic organizations
High degree of specialization and formalization Tall hierarchy Centralized decision making
Example: McDonalds
EXHIBIT 11.3
LO 11-1 Define organizational design and list its three components. LO 11-2 Explain how organizational inertia can lead established firms to failure. LO 11-3 Define organizational structure and describe its four elements. LO 11-4 Compare and contrast mechanistic versus organic organizations. LO 11-5 Describe different organizational structures and match them with appropriate strategies. LO 11-6 Describe the elements of organizational culture and explain where organizational cultures can come from the how they can be changed. LO 11-7 Compare and contrast different strategic control and reward systems.
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EXHIBIT 11.4
Functional Structure
Functional structure
Groups of employees with distinct functional areas
EXHIBIT 11.5
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EXHIBIT 11.6
USA Today: one of the widest print circulations in U.S. USA Today.com, a new independent SBU under Gannett Although attracted readers and advertising dollars, USA Today.com lost key editorial talent due to uneven resource distribution Integration of USA Today and USA Today.com to eliminate duplication of resources and reduce waste
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cross-functional teams
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Multidivisional Structure
Multidivisional structure
Consists of several distinct SBUs
GE, Honda
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multidivisional.
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EXHIBIT 11.7
Functional Structure
Matrix Structure
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Multidivisional Structure
Typical Chemical Company
CEO
Oil Division (Functional Structure) Pharmaceuticals Division (Product Team Structure) Plastics Division (Matrix Structure)
Copyright 1998 by Houghton Mifflin Company. All rights reserved.
Multidivisional Structure
Use with various corporate strategies
Related diversification
Co-opetition among SBUs
Unrelated diversification
Decentralized decision making Competing for resources
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EXHIBIT 11.8
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Watchmaker #1 needs to put all parts together or the watch falls apart and he needs to start all over with his 10,000 parts. Watchmaker #2 has developed 100 subsystems of 100 parts. This is the principle of near-decomposability (I.e., a system that contains localized sub-systems)
there is poor performance in division 2 it does not lead to failure of the entire system.
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the firm; Giving quasi-autonomous standing to each division (usually of a profit center nature); Monitoring the efficiency performance of each division; Awarding incentives; Allocating cash flow to high yield uses; and Performing strategic planning (diversification, acquisition, and related activities).
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developing firm capabilities and resources; and Large conglomerates may have excessive political power.
Matrix Structure
A combination of functional and M-form structure
Creation of dual line of authority and reporting lines Each SBU receives support both horizontally and
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EXHIBIT 11.9
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EXHIBIT 11.10
LO 11-1 Define organizational design and list its three components. LO 11-2 Explain how organizational inertia can lead established firms to failure. LO 11-3 Define organizational structure and describe its four elements. LO 11-4 Compare and contrast mechanistic versus organic organizations. LO 11-5 Describe different organizational structures and match them with appropriate strategies. LO 11-6 Describe the elements of organizational culture and explain where organizational cultures can come from the how they can be changed. LO 11-7 Compare and contrast different strategic control and reward systems.
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and attitudes Artifacts: expression of culture in items such as physical design, stories, and celebrations
Socialization
Internalize organizations value and norms through
interactions
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Cultural change
Brings new leadership Mergers and acquisitions
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Organizational Culture
Culture must be valuable, rare, inimitable, and non-substitutable (RBV)
Causal ambiguity and social complexity
Zappos
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Organizational Culture
Cultural impact on employee behavior
Motivates employees by appealing to their ideas
Strengthen employee commitment, engagement, and
effort
LO 11-1 Define organizational design and list its three components. LO 11-2 Explain how organizational inertia can lead established firms to failure. LO 11-3 Define organizational structure and describe its four elements. LO 11-4 Compare and contrast mechanistic versus organic organizations. LO 11-5 Describe different organizational structures and match them with appropriate strategies. LO 11-6 Describe the elements of organizational culture and explain where organizational cultures can come from the how they can be changed. LO 11-7 Compare and contrast different strategic control and reward systems.
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Input controls
Rules and standard operating procedures Budgets Behavior guidelines
Output controls
Result-oriented ROWEs (results only work environment)
Dan Pinks RSA Video
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