Y
Y





Chapter 12 Lecture 1
 Y

¦ut structures can differ
ëDue to choice

ëDue to national laws

The words used to describe them also can

differ
ëOrganization chart, design, structure

The way they are drawn can differ

ë pyramid, sideways pyramid, circle
  
 is the skeleton of the organization
 reflects corporate governance
 is intended to meet organizational
objectives
 arises out of strategic directions
 and causes managers to ask:
ë what structure will best aid us in meeting
our strategy and objectives?
 Y


 Turnover in top management

 Competitive positioning
 Mergers and/or acquisitions
 Cost-savings
 Even the illusion of managerial control
 

D e trained hard²but it seemed that every time we
were beginning to form up into teams, we would
be reorganized. I was to learn later in life that we
tend to meet any new situation by reorganizing;
and a wonderful method it can be for creating the
illusion of progress while producing confusion,
inefficiency, and demoralization.´
±Petronius Arbiter, 210 ¦.C.
  
!
 it focuses attention on particular areas
 shapes how resources will be used
 directs communication flows
 defines control and other processes
 illustrates people¶s roles relative to others¶
roles
 *"#

 Ônderstand organizational objectives

(articulated in the varied levels of
strategy)
 Analyze the structure
 Assess the match between
organizational strategies and structures
 $
%$
 
 ?od or conscience in a wholly owned private firm
 The family in a family owned firm
 The ¦oard in a publicly owned firm:
ë Ô.S. boards often are chaired by the CEO

ë ¦oards in Ô
Ô..K. usually are chaired by a non
executive
ë European companies often have a two-
two-tier
board
In ?ermany, duties are split between
supervisory and management boards
Spain and France often use an executive
committee
 !!&  
 
 Intra and interorganizational networks
 Special cases
 Functional, divisional, hybrids
 $'
Intraorganizational networks
internal networks
shamrock
spiderwebs
Interorganizational networks
ë strategic alliances

ë joint ventures

ë partial acquisitions/mergers

ë cross-sector partnerships
 
 Family structure
 Holding companies
 Virtual structure
( )##*+
 
$
( 
  

#,-
 Functional structure
 Divisional structure
 Hybrid structures
ë Combined functional/divisional structure

ë Matrix structure

#, 



ù

ù
   ù
  ù
 ù





 
 


 
  

   '
,
 Product
 ?eographic
 Customer group served

#
  


 

V
 

! " V
  

V V 

V  #$ %  % 

   

#%& 

%ù%&% &'( '()  ( '% &*

&'% &  '%

+ & &,%    ( '& -%   ( '& '-  ( '&
â#&Y$
%#,&
 ,

 Matrix forms are hybrids

 Some hybrids combine a mostly functional
structure with one or more important
products or markets, e.g., North America
 Some hybrids combine a mostly divisional
structure with one or more important
functions, e.g., marketing
[
(Y
&  
!&

#( 


 
!  

 .  

è


  

 
   
   

 

  



 
 

 

!



 #&,&
  
Danone ?roup, 2003
Chair and CEO Vice Chair and COO

Exec VP, Exec VP,

?eneral
Exec VP, Fresh Dairy ater
Secretary
Finance

Exec VP, Exec VP, Exec VP,

¦iscuits and Asia-Pacific Intl Strategy
Cereal Snacks
  

 spiderwebs
 internal
 networks
 shamrocks
 horizontal
 keiretsu
 chaebol
#
 $'
#.
  
 Strategic alliances
 Joint ventures
 Partial acquisitions
 
 Family structures²
structures²usually hierarchical with a
patriarch/matriarch or a set of family members
who divide tasks according to skill or obligation
 Structures that arise out of national tradition²
tradition²
?erman firms always have union representation
and two levels of boards
 Holding companies
 Virtual organizations