Organizational Structure

1
Organizational Structure
2
Functional Structure

• Advantages
• Extensive Training of Specialists
• Economies of Scale
• Good intra-unit communication
• Disadvantages
• Coordination between departments is poor
• Change is difficult and slow
• Parochial interests - conflict

3
Product Structure

• Advantages
• Good coordination between departments
• Able to change quickly
• Focuses on client needs
• Disadvantages
• Duplication of services
• Coordination problems between product lines
• Less technical competence

4
Geographic Structure

• Advantages
• Can adapt to local circumstances
• Take advantage of local legal, political,
  cultural differences
• Disadvantages
• Duplication of staff services
• Hard for top management to control local
  operations

5
Matrix Structure

• Advantages
• Good use of functional specialists
• Establishes one focal person for projects
• Able to respond to changing environment
• Disadvantages
• Possible conflict with 2 bosses
• Power struggle with bosses
• Need good interpersonal skills expertise
• Decision making slower than product

6
Self-Leading Teams

• Set standards and goals
• Make strategic decisions on work
• Provide strategy information
• Decide if and who regarding leaders
• Interact with customers and suppliers
• Monitors and corrects own performance

7
Networking Rules of Thumb for Todays Alliance
Manager

• Marry Well Dependable, trustworthy, best
• Play Fair Win-win opportunities
• Offer the Best and the Brightest
• Define Objectives
• Build a Common Infrastructure

8
Informal Structure

• Pattern of repeated interactions within
  organization, e.g., who talks to whom