BU398 Lecture 6: Class 6- Organizational Structures
Document Summary
Structural deficiency - when organizational structure is not aligned with organizational needs. Structural alignment: when vertical and horizontal control is balanced. Organization departments are grouped based on users/ customers. Each department unit includes all necessary functional areas. Can adapt to specific needs of its own regions. Linkages across regions and to the national office are not emphasized. Employees report both horizontally (product ) and vertically (function); there is an equal balance of functional / product vs. power/authority. Medium sized (need for resource sharing across product lines) + lots of product lines/ outputs. Employees organized around core processes (e. g. , new product development, technical support, customer service) Re-engineering: redesign vertical organization along its horizontal workflows/processes. Results in better/faster customer service, more flexibility, more teamwork/collaboration (e. g. , task forces, cross-functional teams) Outsourcing majority of major processes (small headquarters remains), common for newer/smaller companies, lean. Functional (departments providing service to whole organization) + divisional (large company, several products) is a common hybrid.
