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Lecture 4 - Organization Structure
Lecture 4 - Organization Structure
Lecture 4 - Organization Structure
Organization Structure
Structure and
and
Management
Management Systems
Systems
OUTLINE
Board of Directors
Source: A.P. Sloan, My Years with General Motors, Orbit Publishing, 1972, p. 57.
The
The Basic
Basic Tasks
Tasks of
of Organization
Organization
Achieving high levels of productivity requires SPECIALIZATION
• Rational-legal authority
• Specialization of labor
• Hierarchical structure
• Coordination and control through rules and
standard operating procedures
• Standardization employment practices
• Separation of jobs and people
• Formalization of administrative acts, decisions
and rules
Mechanistic
Mechanistic and
and Organic
Organic Forms
Forms
Board of Directors
GM Europe
Midsize Small GM Vehicle Development
& Car Power Sales, & & Technical Asian &
Luxury Group Train Marketing Cooperation Pacific
Car Group Group Group Operations
Group
Latin
American,
African, &
Middle East
Operation
Corporate Executive Office
Chairman & CEO
Corporate Staff
Service Divisions Finance Business R&D Human Legal
Development Resources
GE GE GE
GE Aircraft GE Trans- GE
Industrial Appliances Supply
Engines portation Plastics
Systems
GE
GE Power GE Medical GE GE
Specialty NBC
Systems Systems Lighting Capital
Materials
General
GeneralElectric’s
Electric’sOrganization
OrganizationStructure,
Structure,2002
2002
Mobil
Mobil Corporation,
Corporation, 1997
1997
Board of Directors
CEO
Executive Office
Corporate
Draft Discuss Revised
Guidelines Approval
Business with Business
by
Plans Corporate Plans
Board
Forecasts/
Scenarios/
Planning Corporate
assumptions
Plan
Capex
Performance Annual Budget
Performance
Review
Targets