Describe the most common organization structures used today understand their strengths and weaknesses

1. Restructuring Organizations
By BETA RIZQI F

2. Restructuring Organizations
Learning
Objectives
Describe the most common organization
structures used today understand their
strengths and weaknesses
Present the process of downsizing
Describe and evaluate the reengineering
intervention

3. 12-1 Structural Design
• Organization structure describe how the overall work of the organization is divided
into subunits and how these subunits are coordinated for task completion.
Based on this
picture,
organization
structures
should be
designed to fit
with at least
four factors: the
environment,
organization
size, technology,
and
organization
strategy

4. 12-1a The Functional Structure
The most widely used organizational structure in the world today is the
basic functional structure

5. The advantages and disadvantages of functional
structures

6. 12-1b The Divisional Structure
Also known as a product or self-contained-unit structure

7. The advantages and disadvantages of divisional structures.

8. 12-1c The Matrix Structure
Some organization development (OD) practitioners have focused on maximizing the
strengths and minimizing the weaknesses of both the functional and the divisional
structures, and this effort has resulted in the matrix structure.

10. 12-1d The Process Structure
A relatively new
logic for
structuring
organizations is
to form
multidisciplinary
teams around
core processes,
such as product
development,
order fulfillment,
sales generation,
and customer
support

12. 12-1e The Customer-Centric Structure
• Closely related to the process-based structure, the customer-centric structure
focuses subunits on the creation of solutions and the satisfaction of key
customers or customer groups.
• Customer-centric structures have a very different look and feel.
As shown in Table 12.6,
customer-centric
structures have important
strengths and weaknesses.
Customer-centric
structures present one face
to the customer. Divisional
structures, for example,
can confuse customers
when each division sends
its own sales team.

16. 12-1f The Network Structure
A network structure manages the diverse, complex, and dynamic relationships
among multiple organizations or units, each specializing in a particular business
function or task.
As shown in
Figure 12.8, the
network structure
redraws
organizational
boundaries and
links separate
organizations or
business units to
facilitate task
interaction.

17. Network
structures
typically have the
following
characteristics:
1. Vertical
disaggregation
2. Brokers.
3. Coordinating
mechanisms.

18. 12-2 Downsizing
• Downsizing refers to interventions aimed at
reducing the size of the organization.
• This typically is accomplished by decreasing
the number of employees through layoffs,
attrition, redeployment, or early retirement or
by reducing the number of organizational
units or managerial levels through divestiture,
outsourcing, reorganization, or delayering

19. 12-2a Application Stages
Successful downsizing interventions tend to proceed by
the following steps:
1. Clarify the
organization’s
strategy
2. Assess
downsizing
options and make
relevant chioces
3. Implement the
changes
4. Address the
needs of survivors
and those who
leave
5. Follow through
with growth plans

20. 12-2b Results of Downsizing

21. 12-3 Reengineering
The final restructuring intervention is
reengineering—the fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in performance.
Reengineering transforms how organizations
traditionally produce and deliver goods and
services.

22. 12-3a Application Stages
The following application steps are included in most reengineering efforts,
although the order may change slightly from one situation to another:
1. Prepare
the
organization
2. Fundamentally rethink
the way work gets done.
a. Identify and analyze core
business processes
b. Define performance
objectives
c. Design new processes
3.
Restructure
the
organization
around the
new business
processes

23. 12-3b Results from Reengineering
• The results from reengineering vary widely.
• Industry journals and the business press
regularly contain accounts of dramatic
business outcomes attributable to
reengineering.