organizational structure copyright © 2008 the mcgraw-hill companies, inc. all rights reserved
TRANSCRIPT
Organizational Structure
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
10-2
Designing Organizational Structure
• Organizing– The process by which managers establish
working relationships among employees to achieve goals.
© 2007 Prentice Hall, Inc. All rights reserved.
10–3
Departmentalization by Type
• Functional – Grouping jobs by
functions performed
• Geographical– Grouping jobs on the
basis of territory or geography
• Product– Grouping jobs by
product line
• Customer– Grouping jobs by type
of customer and needs
10-4
Grouping Jobs into Functions
• Function– Groups of people, working together, who
possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs
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10–5
Functional Departmentalization
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10–6
Functional Departmentalization
• Advantages
• Efficiencies from putting together people with common skills and knowledge,
• Good coordination within functional area
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10–7
Functional Departmentalization
• Advantages
• Efficiencies from putting together people with common skills and knowledge,
• Good coordination within functional area
• Disadvantages
• Poor communication across functional areas
• Less focus on organizational goals
© 2007 Prentice Hall, Inc. All rights reserved.
10–8
Geographical Departmentalization
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10–9
Geographical Departmentalization
• Advantages
• More effective handling of specific regional issues that arise
• Serve needs of unique geographic markets better
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10–10
Geographical Departmentalization
• Advantages
• More effective handling of specific regional issues that arise
• Serve needs of unique geographic markets better
• Disadvantages
• Duplication of functions
Ex. Of Organization by Geography
Hewlett-Packard’s Headquarters Worldwide
AmericasHouston, Texas
Europe, Middle East, AfricaGeneva, Switzerland
Asia PacificHong Kong
Hewlett Packard
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10–12
Product Departmentalization
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10–13
Product Departmentalization
+ Allows specialization in particular products and services
+ Managers can become experts in their industry
+ Closer to customers
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10–14
Product Departmentalization
+ Allows specialization in particular products and services
+ Managers can become experts in their industry
+ Closer to customers
– Duplication of functions
– Limited view of organizational goals
An Example of Organization by Product
Imaging andPrinting Group
PersonalSystems Group
EnterpriseSystems Group
HP ServicesHP Financial
Services
Hewlett Packard
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10–16
Customer Departmentalization
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10–17
Customer Departmentalization
+ Customers’ needs and problems can be met by specialists
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10–18
Customer Departmentalization
+ Customers’ needs and problems can be met by specialists
- Duplication of functions
- Limited view of organizational goals
© 2007 Prentice Hall, Inc. All rights reserved.
10–19
Removing External Boundaries
• Virtual Organization
– An organization that consists of a small core of full-time employees and that temporarily hires specialists to work on opportunities that arise.
• Network Organization
– A small core organization that outsources some of its major business functions (e.g., manufacturing) in order to concentrate what it does best.
• Modular Organization
– A manufacturing organization that uses outside suppliers to provide product components for its final assembly operations.
10-20
Example of Network Structure
Marketing Research Consultants
Interviewing Company
Coding & Data Tabulation Firm
Printing Company