BU398 Lecture 4: Lecture 4 - Org. Structure Part 2
Document Summary
Geographical structure: split geographically since each region of the country may have distinct tastes and needs, have a divisional structure in each geographic division, strengths, ability to adapt to different regions, weaknesses, standardization across product lines difficult. Matrix structure: combines both divisional and functional structure, used when both technical expertise and product innovation are important, strengths, achieves coordination necessary to meet dual demands from customers, sharing of resources, weaknesses, dual authority, time-consuming. Horizontal structure: activities and people are grouped around core processes. Instead of managers, orgs. have process owners that coordinate the process. Instead of departments, orgs. have self-managed teams: strengths, enables rapid response to customer needs, focuses on teamwork and collaboration, weaknesses, determining core processes is time-consuming, requires major org. change such as training and re-ranking. Virtual network structure: functions are outsourced to separate companies and coordinated by a central hub.
