The document discusses various types of organizational structures including functional, divisional, matrix, and network structures. It provides details on each structure type, including their advantages and disadvantages. For example, it explains that a functional structure groups people based on expertise, while a divisional structure groups them according to products, markets, or customers. A matrix structure allows dual grouping by function and product.
6. Key elements of organizational designs: Departmentalization Span of Control Work Specialization Chain of Command Authority and Responsibility Centralization vs. Decentralization
25. Team Force or Team Engineering Marketing R & D Sales Production
26. Integrating Role or Department Computer Hardware Division Integration Role or Department Application Division Computer Software Division
27. Differentiation & Integration-key aspects Differentiation Integration A highly complex, highly differentiated organization needs high level of integration An organization that has a relatively simple, clearly defined role structure needs to use only simple integrating mechanism Expensive –in terms of the number of managers employed & the amount of managerial time spent on coordinating organizational activities. Unnecessary investment
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32. Centralization Advantages Disadvantages Top managers coordinate organizational activities effectively & keep the organization focused on its goal. Top management become overloaded & need to take care of day-to-day activities & cannot focus on long term decision making Lower hierarchy-afraid to make news or express their ideas Hierarchy of authority exists , people are constantly looking to their superiors for help.
33. Decentralization Advantages Disadvantages Promotes flexible & responsiveness by allowing subordinate to make on the spot decisions Planning & coordination becomes more difficult Motivates to perform the best Personal goals & objectives can be pursed at the expense of organization
73. Product Division Structure 4-19 Large Food Processor – E.g. Heinz 01/02/10 Vice President Sales and Marketing Vice President Research and Development Vice President Materials Management CEO Vice President Finance PDM PDM PDM PDM Centralized support functions Divisions
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76. Multidivisional Structure. Consumer Products Company. Corporate Managers CEO Divisional Managers Senior VP Marketing Senior VP Finance Senior VP Materials Management Senior VP Research and Development Functional Managers Corporate Headquarters Staff Division B Support functions Division D Support functions Division A Support functions Support functions Division C 4-21 01/02/10
77. COMPARISON 01/02/10 MULTIDIVISIONAL STRUCTURE PRODUCT DIVISION STRUCTURE Independence of each division – self contained. Divisions shares the services of a set of centralized functions. New level of management – a corporate head quarters staff – adds more control. No such level – control is lesser. Structure is designed to allow a Company to operate in many different businesses. Structure can only be used to control the activities of a Company that is operating in one business or Industry.
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81. Product Team Structure. 4-29 01/02/10 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
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84. Geographic Structure 4-31 01/02/10 Regional Operations Regional Operations Regional Operations Regional Operations CEO Central Support Functions Individual stores
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86. Market Structure 01/02/10 Commercial Division Consumer Division Government Division Corporate Division CEO Central Support Functions
90. 01/02/10 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
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94. 01/02/10 Multidivisional Matrix Structure CEO Senior Vice President Marketing Senior Vice President Finance Senior Vice President Research and Development Senior Vice President Materials Management Automobile Products Division Personal Computer Division Consumer Electronics Division
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96. Network Structure 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). 01/02/10