The document compares four main types of organizational structures: functional, divisional, matrix, and network. It provides information on key dimensions like division of labor, coordination mechanisms, decision rights, boundaries, importance of informal structure, basis of politics, and relative advantages and disadvantages. Specifically, it notes that functional structures have hierarchical supervision and centralized decision-making but poor adaptability. Divisional structures separate strategy and execution with more decentralized decision-rights and better adaptability. Matrix structures use dual reporting relationships and shared decision-making across interfaces. Network structures rely on cross-functional teams, knowledge/resources, and porous, shifting boundaries.
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The document compares four main types of organizational structures: functional, divisional, matrix, and network. It provides information on key dimensions like division of labor, coordination mechanisms, decision rights, boundaries, importance of informal structure, basis of politics, and relative advantages and disadvantages. Specifically, it notes that functional structures have hierarchical supervision and centralized decision-making but poor adaptability. Divisional structures separate strategy and execution with more decentralized decision-rights and better adaptability. Matrix structures use dual reporting relationships and shared decision-making across interfaces. Network structures rely on cross-functional teams, knowledge/resources, and porous, shifting boundaries.
The document compares four main types of organizational structures: functional, divisional, matrix, and network. It provides information on key dimensions like division of labor, coordination mechanisms, decision rights, boundaries, importance of informal structure, basis of politics, and relative advantages and disadvantages. Specifically, it notes that functional structures have hierarchical supervision and centralized decision-making but poor adaptability. Divisional structures separate strategy and execution with more decentralized decision-rights and better adaptability. Matrix structures use dual reporting relationships and shared decision-making across interfaces. Network structures rely on cross-functional teams, knowledge/resources, and porous, shifting boundaries.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
The document compares four main types of organizational structures: functional, divisional, matrix, and network. It provides information on key dimensions like division of labor, coordination mechanisms, decision rights, boundaries, importance of informal structure, basis of politics, and relative advantages and disadvantages. Specifically, it notes that functional structures have hierarchical supervision and centralized decision-making but poor adaptability. Divisional structures separate strategy and execution with more decentralized decision-rights and better adaptability. Matrix structures use dual reporting relationships and shared decision-making across interfaces. Network structures rely on cross-functional teams, knowledge/resources, and porous, shifting boundaries.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
DIVISION By Inputs By Outputs By Inputs & By Knowledge OF LABOR Outputs COORDUNA Hierarchical Division general Dual reporting Cross- TION supervision, plans manager & corporate relationship functional MECHANIS & procedures staff teams M DECISION Highly Separation of Strategy Shared Highly RIGHTS centralized & execution decentralized
S markets Interfaces changing IMPORTANC Low Modest Considerable High E OF INFORMAL STRUCTURE POLITICS Inter-functional Corporate – division & Along matrix Shifting Interdivisional dimensions coalitions
BASIS OF Positional & General management Negotiating Knowledge &
AUTHORITY functional responsibility & skills & resources A relative advantages and disadvantages of Different Structures Functional Divisional Matrix Network RESOURCE Excellent Poor Moderate Good EFFICIENCY TIME Poor Good Moderate Excellent EFFICIENCY RESPONSIVENES Poor Moderate Good Excellent S ADAPTABILITY Poor Good Moderate Excellent
ACCOUNTABILI Good Excellent Poor Moderate
TY ENVIRONMENT Stable Heterogeneous Complex Volatile FOR WHICH Environmen Environment environment environment BEST SUITED t with multiple demands
STRATEGY FOR Focused Diversified Responsiveness Innovative Strategy
WHICH BEST /low cost strategies strategy SUITED strategy The virtual network approach Examples Virtual network structure means that the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization. Example-----I Indian telecom company Bharti Tele –Ventures Ltd. Outsources everything except marketing and customer management. Example-----II In the music Industry Vivendi Universal and Sony have formed network of alliances with Internet service providers, digital retailers, software firms and other companies to bring music customers in new ways Comparison of Structural Approach