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Org structures 2

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  • 1. 4 - Team Theory Product Team Structure —a divisional structure in which specialists from the support functions are combined into product development teams. Typically used by an organization whose products are very technologically complex or whose characteristics change rapidly to suit customer needs.
  • 2. 4 - Product Team Structure. 4-29 Product Division Product Division CEO Functions Product Development Teams Product Division V ice President Research and Development V ice President Sales and Marketing V ice President Manufacturing V ice President Finance Functional specialist V ice President Materials Management PTM Product Team Manager PTM PTM PTM
  • 3. 4 - Team Structures
    • Reduces barriers among departments
    • Increases collaboration
    • Shorter response times and quicker decision making
    • Increases morale and motivation as employees are involved in the decision making
    • Conflict
    • Time consuming as lots of compromise needed
    • And much time spent in meetings.
  • 4. 4 - Matrix Structure CEO V ice President Engineering V ice President Finance V ice President Purchasing V ice President Sales and Marketing V ice President Research and Development Product A Manager Product B Manager Product C Manager Product D Manager Product Team Two-boss employee
  • 5.
    • Greater flexibility
    • Interdepartment co-operation
    • Expertise is available to all divisions
    • Improves information sharing
    • Frustration and confusion as employees have two bosses – dual chain of command
    • Time consumed in numerous meetings
    • Implementation is often slow
  • 6. 4 - Network Structure A network structure is a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy.
  • 7. 4 - Organizational Theory Network structures often result from outsourcing. Outsourcing is the process of moving activities that were previously performed inside the organization to the outside (where they are done by other companies).
  • 8.
    • In this structure the firm is in the centre – a hub surrounded by a network of specialists
    • These specialists perform various services for the firm i.e. the firm outsources these services.
    • Services that are outsourced often include accounting, human resources and manufacturing.
  • 9.
    • Allows the firm to contract expertise anywhere that they may not have in-house
    • Reduced overhead costs for firm – less health care cost, utility cost, etc
    • Flexible and responsive
    • Lack of control as the firm cannot control the firms providing services
    • Co-ordination issues
    • Employee loyalty is weakened

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