5.

Matrix Organizations
  Problems with the Matrix:  if it is a three-dimensional matrix, 2 or 3
managers must agree on a decision. This can lead to less-than-optimum
compromises, delayed responses, and power politics in which more attention
is paid to the progress than to the problem
 Matrix Overlay:  an organization in which top-level divisions are required to
heed input from a staff composed of experts of another organizational
dimension in an attempt to avoid the double reporting difficult of a matrix
organization but still mesh two or more dimensions
It attempts to address the problem by requiring accountability of all functions in
the organization while avoiding the burdensome management stresses of a pure
matrix structure. Product managers on its staff who provide input to regional
decisions

6. Strategic Business Units (SBUs)

 The business entity with a clearly defined market, specific competitors, the ability
to carry out its business mission, and a size appropriate for control by a single
manager

III. CHANGES IN ORGANIZATIONAL FORMS

1. The reasons for the changes in organizational forms
 2. Reengineering:  redesigning organizational structure, hierarchy, business
systems, and processes in order to improve organizational efficiency
-          A significant reduction in the levels of middle management, restructuring of
work processes to reduce the fragmenting of the process across the functional
department, improvement in the speed and quality of strategy execution,
empowerment of employees, and the use of computers for instant communication
and swift transmittal of information

-          CEO are striving to make their organization flat, lean, fast to respond, and
innovative
IV. CURRENT ORGANIZATIONAL TRENDS
Two organization forms: The virtual corporation and the horizontal corporation
  The virtual corporation: An organization that coordinates economic
activities to deliver value to customers using resources outside the
traditional boundaries of the organization
 Teleworking
 Homeoffices
 Flexible working pratices

Benefits
- Greater flexibility
- Lower building competence
- Lower startup cost
- Responding rapidly to changing
circumstances

Disadvantages
- The potential to reduce management’s
control over the corporation’s activitites
- The unintended “borrowing” of technical
and other knowledge
- Replace the security of long-term
employment and the promise of ever-
increasing salaries with the insecurity of
global market
  The horizontal corporation: a form of organization characterized by
lateral decision processes, horizontal network, and a strong
corporatewide business philosophy
teams are drawn from different departments to solve a problem or deliver a product

“antiorganizaion” – seeking to remove the constraints imposed by the comventional organzational

structures

Proponents claim lateral relationship incite innovation and new-product development, place more
decision-making responsibility in the hands of middle managers