Organizational Structure<br />2<br />Effective structures provide:<br />Stability<br />Flexibility<br />Structural stabili...
Functional organizational structure<br />Employees are grouped together according to their similar tasks, skills or activi...
Benefits of functional organizational structure<br />
Disadvantages od functional design<br />
Divisional organizational structure<br />It is suitable for medium sized to big companies, <br />Expanding geographically ...
Differences between functional and divisional design<br />Functional designs are based on groupings by input;<br />Each de...
Forms of divisional responsible design<br />
Strengths of divisional design:<br />
Weaknesses of divisional design<br />
Hybrid design<br />Hybrid design is one that has divisional units but also have functional departments specialized and cen...
Matrix design<br />It implements functional and divisional structures simultaneously in each department.<br />The worker i...
Strengths of matrix design<br />
Weaknesses of Matrix Design<br />
Group task<br />Give example of organizations having functional, divisional design.<br />For which industry is functional ...
Hierarchical<br />Functional <br />Matrix<br />Product<br />Ringed- Fence (Virgin)<br />Keiretsu<br />Book<br />Additional...
Zaibatsu<br />
Rich Merchants in Edo Period (Gosho)<br />MITSUI<br />-17c From Matsuzaka<br />-Kimono trade & money exchange in Edo, Kyot...
Yataro Iwasaki(1835-85)<br />Seisho (政商) from Tosa, founder of Mitsubishi Zaibatsu<br />Shipping company--grew fast with g...
Keiretsu<br />
DKB<br />Asahi Mutual Life Insurance (DKB)<br />The Dai-ichi Mutual Life Insurance Company (DKB)<br />Daiichi Sankyo<br />...
DKB<br />Asahi Mutual Life Insurance (DKB)<br />The Dai-ichi Mutual Life Insurance Company (DKB)<br />Daiichi Sankyo<br />...
Keiretsu Structure<br />
Horizontal keiretsu (kinyû keiretsu)<br />Affiliated `brother and sister` companies spanning different industries<br />
Horizontal Keiretsus<br />Typical of a Japanese horizontal keiretsu is Mitsubishi where the Bank of Tokyo-Mitsubishi sits ...
Vertical Keretsu<br />
Vertical Keiretsu<br />Group of companies within the horizontal keiretsu such as Toyota. <br />Toyota's success is depende...
Vertical Integration<br />
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Sustain 2011.03

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Sustain 2011.03

  1. 1.
  2. 2. Organizational Structure<br />2<br />Effective structures provide:<br />Stability<br />Flexibility<br />Structural stability provides: <br />The capacity required to consistently and predictably manage daily work routines<br />Structural flexibility provides for:<br />The opportunity to explore competitive possibilities<br />The allocation of resources to activities that shape needed competitive advantages<br />
  3. 3. Functional organizational structure<br />Employees are grouped together according to their similar tasks, skills or activities. Functional structures are suitable for SMEs with high level of specialization.<br />The decision making is centralized at the top of the organization.<br />
  4. 4.
  5. 5. Benefits of functional organizational structure<br />
  6. 6. Disadvantages od functional design<br />
  7. 7. Divisional organizational structure<br />It is suitable for medium sized to big companies, <br />Expanding geographically or on customer base.<br />A Divisional design means that all activities needed to produce a good or service are grouped into an anonymous unit.<br />
  8. 8. Differences between functional and divisional design<br />Functional designs are based on groupings by input;<br />Each department is not an independent profit center;<br />Divisional design considers output such as product, customer or location.<br />Each division is independent profit center;<br />
  9. 9. Forms of divisional responsible design<br />
  10. 10. Strengths of divisional design:<br />
  11. 11. Weaknesses of divisional design<br />
  12. 12. Hybrid design<br />Hybrid design is one that has divisional units but also have functional departments specialized and centralized in the headquarter.<br />
  13. 13. Matrix design<br />It implements functional and divisional structures simultaneously in each department.<br />The worker in each department is being supervised by two bosses at the same time.<br />
  14. 14.
  15. 15. Strengths of matrix design<br />
  16. 16. Weaknesses of Matrix Design<br />
  17. 17. Group task<br />Give example of organizations having functional, divisional design.<br />For which industry is functional design more appropriate and when divisional is suitable?<br />
  18. 18. Hierarchical<br />Functional <br />Matrix<br />Product<br />Ringed- Fence (Virgin)<br />Keiretsu<br />Book<br />Additional<br />
  19. 19. Zaibatsu<br />
  20. 20. Rich Merchants in Edo Period (Gosho)<br />MITSUI<br />-17c From Matsuzaka<br />-Kimono trade & money exchange in Edo, Kyoto, Osaka – huge success<br /><Transition to Meiji><br />Manager: Rizaemon Minomura<br />-Cope with bakufu policy<br /> to protect Mitsui business<br />-Support and work with<br /> new government<br />-Internal reform: from gosho to zaibatsu<br />-1876 Establish Mitsui Bank & Mitsui Trading Company<br />Sumitomo<br />-16c Adopt Western copper refining, copper trade (Kyoto)-17c Move to Osaka<br />-Besshi Copper Mine (under Bakufu’s commission)<br /><Transition to Meiji><br />Manager: Saihei Hirose<br />-Avoiding gov’t confiscation-Introducing Western mining technology to renovate Besshi<br />-Business diversification<br />
  21. 21. Yataro Iwasaki(1835-85)<br />Seisho (政商) from Tosa, founder of Mitsubishi Zaibatsu<br />Shipping company--grew fast with government support (receiving gov’t ships, contract for military transport)<br />Established Nippon Yusen (NYK Line), fierce battle with Kyodo Unyu (anti-Mitsubushi company), 1883-85<br />Expanded to many areas: trade, banking, shipbuilding, coal, mining (later, more)<br />
  22. 22. Keiretsu<br />
  23. 23. DKB<br />Asahi Mutual Life Insurance (DKB)<br />The Dai-ichi Mutual Life Insurance Company (DKB)<br />Daiichi Sankyo<br />Dentsu (DKB)<br />Fujitsu (Furukawa)<br />Hitachi (Hitachi)<br />Ishikawajima-Harima Heavy Industries (IHI)<br />Isuzu (IHI)<br />ITOCHU (DKB)<br />JFE Holdings (Kawasaki)<br />Kawasaki Heavy Industries (Kawasaki)<br />Kao (DKB)<br />K Line (Kawasaki)<br />Kobe Steel (Suzuki)<br />Meiji Seika (DKB)<br />Mizuho (Mizuho Financial Group)<br />Seibu Department Stores (DKB)<br />Sojitz (Suzuki)<br />Sompo Japan Insurance (DKB)<br />Taiheiyo Cement (Asano)<br />Tokyo Dome (DKB)<br />The Tokyo Electric Power Company (DKB)<br />Tokyo FM (DKB)<br />Yokohama Rubber Company (Furukawa)<br />
  24. 24. DKB<br />Asahi Mutual Life Insurance (DKB)<br />The Dai-ichi Mutual Life Insurance Company (DKB)<br />Daiichi Sankyo<br />Dentsu (DKB)<br />Fujitsu (Furukawa)<br />Hitachi (Hitachi)<br />Ishikawajima-Harima Heavy Industries (IHI)<br />Isuzu (IHI)<br />ITOCHU (DKB)<br />JFE Holdings (Kawasaki)<br />Kawasaki Heavy Industries (Kawasaki)<br />Kao (DKB)<br />K Line (Kawasaki)<br />Kobe Steel (Suzuki)<br />Meiji Seika (DKB)<br />Mizuho (Mizuho Financial Group)<br />Seibu Department Stores (DKB)<br />Sojitz (Suzuki)<br />Sompo Japan Insurance (DKB)<br />Taiheiyo Cement (Asano)<br />Tokyo Dome (DKB)<br />The Tokyo Electric Power Company (DKB)<br />Tokyo FM (DKB)<br />Yokohama Rubber Company (Furukawa)<br />
  25. 25. Keiretsu Structure<br />
  26. 26. Horizontal keiretsu (kinyû keiretsu)<br />Affiliated `brother and sister` companies spanning different industries<br />
  27. 27. Horizontal Keiretsus<br />Typical of a Japanese horizontal keiretsu is Mitsubishi where the Bank of Tokyo-Mitsubishi sits at the top of the keiretsu. <br />Also part of the core group is Mitsubishi Motors and Mitsubishi Trust and Banking followed by Meiji Mutual Life Insurance Company which provides insurance to all members of the keiretsu. <br />Mitsubishi Shoji is the trading company for the Mitsubishi keiretsu.<br />
  28. 28. Vertical Keretsu<br />
  29. 29. Vertical Keiretsu<br />Group of companies within the horizontal keiretsu such as Toyota. <br />Toyota's success is dependent on suppliers and manufacturers for parts, employees for production, real estate for dealerships, steel, plastics and electronics suppliers for cars as well as wholesalers. <br />All ancillary companies operate within the vertical keiretsu of Toyota but are members of the larger horizontal keiretsu, although much lower on the organizational chart. <br />
  30. 30. Vertical Integration<br />

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