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Lecture

Lec 3 Notes

5 Pages
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Department
Financial Accounting
Course Code
MGAD40H3
Professor
Prof.Jan Klakurka

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MGTD54 Thu. Jan 27,
2011
Wk 3 chp.4
Organizational structures slide 1
- Manufacturing plants organized in functions
-Back office, legal, accounting
-Silo behaviour
-ABB market responsive
-Country units held a lot of power, closer to customer units
-Spans of control, accountability, attention
-Control: numbers and names
-Trading off between flat organization or one that has many levels
-Flat pairs down overhead
-Accountability = what F/S numbers accountable for
-Trade off between short and long term with profit and cost centres
-Attention: what kinds of staffs have
-How does it hold together holistically
-Centralized vs. decentralized: depends of needs and skillsets
-Centralized will give more efficiencies
Conceptual Design slide 2
-What does it mean to organization i.e. transactionally focused
-Data capture: transaction processing
-Sensitivity analysis, budgets, forecasts NPV, whether to buy assets or not
Design Options slide 3
-Operations grp reports to mngr, pres
-Back office support functions, sales + cust. Focus
www.notesolution.com
-Blue duplicated in grey environment
-Geographic organization supported by own functions
-Look for cost savings
-Indiv grps in every single country?
Overview of Organization Design Process
-Barnevik goes with his own model and implements
-Spans of control and accountability important for redesign
Defined by curr initiatives
-Chg sticks and boxes
-Sell concepts to leadership upwards
-How does it fit into overall plan
-Want to do decision support vs trans processing
Evaluation Criteria
-As a manager larger span of control, more opportunity to have problems, meetings,
may not be productive at times
Regional Model
-Time zone differences create problems
-What informal teams can be used to compliment formal structures
Overall Operating Model
-All strategies approved at the top
-GE model independent models act accordingly
-Fully vertical company integrate from left to right
-Operating model stand alone units have own hurdle rates, quasi stock to track price
and value of indiv business units
-Issue shares of specific performance of grp i.e. GM
www.notesolution.com

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Description
MGTD54 Thu. Jan 27, 2011 Wk 3 chp.4 Organizational structures slide 1 - Manufacturing plants organized in functions - Back office, legal, accounting - Silo behaviour - ABB market responsive - Country units held a lot of power, closer to customer units - Spans of control, accountability, attention - Control: numbers and names - Trading off between flat organization or one that has many levels - Flat pairs down overhead - Accountability = what FS numbers accountable for - Trade off between short and long term with profit and cost centres - Attention: what kinds of staffs have - How does it hold together holistically - Centralized vs. decentralized: depends of needs and skillsets - Centralized will give more efficiencies Conceptual Design slide 2 - What does it mean to organization i.e. transactionally focused - Data capture: transaction processing - Sensitivity analysis, budgets, forecasts NPV, whether to buy assets or not Design Options slide 3 - Operations grp reports to mngr, pres - Back office support functions, sales + cust. Focus www.notesolution.com
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