Different forms of structure and rules to design them!!!

1. What is the Right Organization Design?
By- N. ANAND & RICHARD L. DAFT
ERA 1 •Self Contained
Organization
ERA 2 •Horizontal
Organization
ERA 3
•Hollow,
Virtual &
Modular
Organization
Objective is to
present Key
Developments
in
Organization
Structure &
Design for
greatest effect

2. Inbound
Logistics
Production
Outboard
Logistics
Between1970 to 1980
Rules:
1. Grouping of people into
functions/departments
2. Reporting Relationships between people
and departments
3. Proper co-ordination & Integration of
activities
Functional
Common
Functional
Grouping
E.g.: Large
Govt Orgn
Divisional
Departmental
or Divisional
Grouping
E.g.: Aircraft
Manufacturer
Matrix
Design
Vertical +
Horizontal
Combination
E.g.: Nike
Various Forms of Organization Structure

3. DESIGN
RULES
ORGANIZE
Diminish
Differences
Appoint
Leaders to
manage
Interaction
With
Customers
Outside
Expertise

4. Outsourcing of
Various
Organizational
Processes/work to
outside partners
Design Rules:
1. Determine all Non –Core
Business Processes
2. Get Market Forces to do
them
3. Align Process with
Incentive

5. Less Hierarchical (or more
"flat"), more decentralized, and
more flexible
Outsourcing only product processes
Design Rules:
1. Break Products into stand
alone basis
2. Design Interface for
Coordination of work
3. Outsource to External
Parties for efficiency
4. Assembling and
Distribution of Product

6. Competitor
1
Competitor
2
Form New
Company to
respond to
market
opportunities
Design Rules:
1. Create Boundaries for each
partner
2. Use Technology
3. Each Partner has to use his
excellence fully
4. Disband once the opportunity is
over
Explore a fleeting market
opportunity by partnering with
other complementary
organizations

7. ROLE RESPONSIBILITY
Operations
Collaborative
Demands v/s MANAGER
1. Get the Right
Partner on
the Bus
2. Select Right
People for
Organization
3. Seek Clarity
not control
4. Design
Coordination
Mechanisms
Managers have to be astute and realistic which leads to
competitive advantage and customers with greatest value