Beruflich Dokumente
Kultur Dokumente
Hills, Jones
Chapter Twelve
Corporate Single Industry Strategy
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Organizational Structure
Assigns employees to specific value creation tasks and roles To coordinate and integrate the efforts of all employees
Organizational Culture
The collection of values, norms, beliefs, and attitudes shared within an organizations To control interactions within and outside the organization
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Organizational structure, control, and culture shape peoples behaviors, values, and attitudes and determine how they will implement an organizations business model and strategies.
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Organizational structure follows the range and variety of tasks that an organization pursues. Companies group people and tasks into functions, and then functions into divisions.
A function is a collection of people who work together and perform similar tasks or hold similar positions. A division is a way of grouping functions to allow an organization to better serve its customers. Handoffs are the work exchanges between people, functions, and subunits. Bureaucratic costs result from the inefficiencies surrounding these handoffs.
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Allocating Authority
and Responsibility
To economize on bureaucratic costs and effectively coordinate the activities, company must develop a clear and unambiguous hierarchy of authority
Organizational Structure Decision Making: Centralized versus Decentralized Delegating and empowering employees Centralized decisions Principle of the Minimum Chain of Command: Choose hierarchy with the fewest levels of authority necessary to use organizational resources efficiently and effectively
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Integration and
Integrating Mechanisms
Integration and integrating mechanisms are used to increase communication and coordination among functions and divisions
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Flexible Provides accurate information Timely Measures should be tied to the goals of developing distinctive competencies in efficiency, quality, innovativeness, and responsiveness to customers.
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Figure 12.4
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subordinates. The result is more possibilities for learning to occur and competencies to develop. Set appropriate performance goals for each division, department, and employee, then measure actual performance relative to these goals. Establish standardization, predictability, and accuracy by creating a system of rules to direct actions and/or behaviors of divisions, functions, or individuals.
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Output Control
Behavior Control
Output control
IT allows all employees or functions to use the same software platform to provide information on their activities.
Integrating mechanism
IT provides people at all levels and across all functions with more information.
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Developing Culture
Managers must implement functional strategy and develop incentive systems to allow each function to succeed.
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Functional Structure
Figure 12.5
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Measurement problems
Difficulties measuring contribution as product range widens
Customer problems
Satisfying customer needs and coordinating value-chain functions
Location problems
Functional structure not the best way to handle regional diversity when selling or producing in multiple locations
Strategic problems
These problems mean a company has outgrown its structure
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Effective organization design often means moving to a more complex structure that:
Economizes on bureaucratic costs Increase revenue from product differentiation Lowers overall cost structure by obtaining economies of scope or scale
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Market Structure
Figure 12.8
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Geographic Structure
Figure 12.9
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Matrix structure
Value chain activities are grouped by function and by product or project Flat and decentralized Promotes innovation and speed Norms and values based on innovation and product excellence
Product-team structure
Tasks divided along product or project lines Functional specialists are part of permanent cross-functional teams
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Matrix Structure
Figure 12.10
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Product-Team Structure
Figure 12.11
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Reengineering
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements Focuses on processes (which cut across functions), not on functions
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