Evolution of Organization Structure, Theory & Design: DR Debasis Dash

JBIMS-MHRD Nov-Dec 2022 - Jan 2023
Evolution of
Organization
Structure, Theory &
Design
Dr Debasis Dash
JBIMS-MHRD
Faculty - Dr Debasis Dash 1

Evolution Theory
Design Environment
Organization
Design
Determinants &
Parameters
2
Unit-II: Evolution of Organizational Theory and Design JBIMS-MHRD
Dr Debasis Dash

Topics: Unit-II
 Unit-I
 Organizations and Organizational Effectiveness –
Stakeholders, Managers, & Ethics  Unit-II
 Unit-III
 Organizing in a Changing Global Environment
 Unit-IV
 Organizational Strategy
 Organization and Technology
 Fundamentals of Organizational Structures
 Types of Organizational Structure & Work Flow
Dependence
3
Dr Debasis Dash

Strategy,
Organizational Design
and
Effectiveness
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Dr Debasis Dash

Organizational Goal
 Organizational Goal is a desired state of affairs that the organization
attempts to reach.
 Organizational purpose is the major distinction between the
organization's officially stated goals or mission and the operative goals
the organization pursues.
 Organization Mission = official goals = mission statement, which is the
organization’s reason for existence. Further,
- It describes the organization’s vision, shared values and beliefs, and
reason for being.
- Refers to the formally stated definition of business scope and
outcomes the organization is trying to achieve.
- It primarily serve as a communication tool.
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Dr Debasis Dash

Organizational Goal
Types of Goals Purpose of Goals
Official goals, mission Legitimacy
=> describe a value system
Employee direction and motivation,
decision guidelines, the standard of
Operative Goals
performance
=> represent the primary tasks of the
organization
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Dr Debasis Dash
Operative goals
Designate the ends sought through the actual operating procedures of the
organization and explain what the organization is actually trying to do.
These goals concern overall performance, boundary spanning, maintenance,
adaptation and production activities.
They provide direction for the day-to-day decisions and activities within
departments.
Operative goals comprises of:

1. Overall performance: reflected in profitability (net income, return on
investment etc.), growth in sales or profits over time and the volume of sales.
2. Resources: acquisition of needed material and financial resources.
3. Market: market share or market standing desired by the organization.
4. Employee development: employee training, promotion, safety and growth.
5. Innovation and change: internal flexibility, readiness to adapt
6. Productivity: the amount of output achieved from available resources.

 Establish and communicate organizational

mission and goals.
 Communicate official goals to provide a
statement of the organization’s mission to
external constituents.
 Communicate operational goals to provide
internal direction, guidelines and standards of
Discussion performance for employees.
1
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Dr Debasis Dash

Framework for Selecting Strategy & Design

 Strategy.
- It’s a plan for interacting with the competitive environment to
achieve organizational goals.
- The essence of formulating strategies is choosing whether the
organization will perform different activities than its competitors
or similar activities more efficiently.
 Formulating strategy. Two models used are;
1. Porter’s model of competitive strategies
2. Miles and Snow’s strategy typology
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Dr Debasis Dash


 Porter’s Competitive Strategies.
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Dr Debasis Dash


 Miles and Snow’s Strategy Topology.
- Organizations strive for a fit among internal organization
characteristics, strategy, and the external environment.
- Four strategies:
1. Prospector. E.g. Microsoft.
2. Defender. E.g. Paramount Pictures.
3. Analyzer. E.g. Sony.
4. Reactor. E.g. McDonald’s.
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Dr Debasis Dash
Miles and Snow’s Strategy Topology.
Four strategies:
1) Prospector: to innovate, take risks, seek out new opportunities, and grow.
Suited to a dynamic, growing environment where creativity is more important
than efficiency. E.g. Microsoft.
2) Defender: almost the opposite of the prospector. The strategy is concerned

with stability and seeks to hold onto current customers, but it neither innovates
nor seeks to grow. Internal efficiency and producing reliable, high-quality
products are important. E.g., Paramount Pictures.
3) Analyzer: tries to maintain a stable business while innovating on the

periphery. Midway between prospector and defender. E.g. Sony.
4) Reactor: not really a strategy at all. Response to environmental threats and

opportunities in an ad-hoc fashion. E.g. McDonald’s has operated like this for a
long time.


Porter’s competitive strategies Miles and Snow’s Strategy Typology
Strategy: Differentiation Strategy: Prospector
Organization design: Organization design:
- Learning orientation; acts in a flexible, loosely knit - Learning orientation; flexible, decentralized structure;
way, with strong horizontal coordination; - Strong capability in research
- Strong capability in research; Strategy: Defender
- Values and builds-in mechanisms for customer Organization design:
intimacy; - Efficiency orientation; centralized authority and tight
- Rewards employee creativity, risk-taking, and cost control;
innovation. - Emphasis on production efficiency; low overhead;
Strategy: Low-cost leadership - Close supervision; little employee empowerment.
Organization design: Strategy: Analyzer
- Efficiency orientation; strong central authority; Organization design:
tight cost control, with frequent, detailed control - Balances efficiency and learning; tight cost control
reports; with flexibility and adaptability;
- Standard operating procedures; - Efficient production for stable product lines;
- Highly efficient procurement and distribution emphasis on creativity, research, and risk-taking;
systems; Strategy: Reactor
- Close supervision; routine tasks; limited employee Organization design:
power. - No clear organizational approach; design 11
Unit-II: Evolution of Organizational Theory and Design
Dr Debasis Dash characteristics
JBIMS-MHRD


 Other Facts Affecting Organizational Design.
 Strategy is important for organization design, but there are
other factors.
 The emphasis given to efficiency and control versus learning
and flexibility is determined by contingencies of;
- Strategy
- Environment
- Technology
- Size/life cycle
- Culture
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Dr Debasis Dash


 Assessing Organizational Effectiveness.
 Understanding organizational goals and strategies, as well as
the concept of fitting design to various contingencies (strategy,
environment, technology, size/life cycle and culture), is the first
step toward understanding organizational effectiveness.
 Effectiveness: broad concept evaluates the extent to which
multiple goals are attained.
 Efficiency: limited concept, amount of resources used to
produce a unit of output.
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Dr Debasis Dash

 After goals have been defined, select strategies for

achieving those goals.
 Define specific strategies based on Porter’s competitive
strategies or Miles and Snow’s strategy typology
 Design the organization to support the firm’s
competitive strategy.
- With a low-cost leadership or defender strategy,
select design characteristics associated with an
efficiency orientation.
Discussion
- For a differentiation or prospector strategy, choose
2 characteristics that encourage learning, innovation, and
adaptation. Use a balanced mixture of characteristics
for an analyzer strategy 14
Dr Debasis Dash


 Contingency Effectiveness Approaches. To measure
effectiveness in different parts of the organization, concerns which
measurements managers choose to track and include;
1. Goal approach: identifying an organization’s output goals and
assessing how well the organization has attained those goals.
2. Resource-based approach: observing the beginning of the
process and evaluating whether the organization achieves its
goals in terms of desired levels of output
3. Internal process approach: looks at internal activities and
assesses effectiveness by internal health and efficiency
indicators.
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Dr Debasis Dash
Contingency effectiveness approaches:
1) Goal approach: identifying an organization’s output goals and assessing

how well the organization has attained those goals.
a. Indicators: the important goals to consider are operative goals because they
reflect activities the organization is actually performing.
b. Usefulness: Effectiveness can often not be assessed by one single indicator.
There can be conflicts in goals = issues of multiple goals. Opposing: a
balanced approach. Or the problem of how to measure goal attainment =
subjective indicators of goal attainment.
2) Resource-based approach: observing the beginning of the process and

evaluating whether the organization achieves its goals in terms of desired
levels of output.
a. Indicators: Bargaining position = getting all the resources an organization
needs, ability to perceive and correctly interpret the real properties of the
external environment, ability to use tangible and intangible resources, ability to
respond to a changing environment.
b. Usefulness: Valuable when other indicators are difficult to obtain.
Shortcoming: it vaguely considers the organization’s link to the environment.

3) Internal process approach: looks at internal activities and assesses

effectiveness by internal health and efficiency indicators.
a. Indicators: Seven indicators
(1) Strong corporate culture and positive work climate
(2) team spirit, group loyalty, teamwork
(3) confidence, trust and communication between workers and management
(4) Decision-making near sources of information
(5) undistorted horizontal and vertical communication
(6) rewards to managers for performance, growth and creating effective work
groups
(7) Interaction between parts.
b. Usefulness: efficient use of resources and harmonious internal functioning
are ways to
assess organizational effectiveness. Shortcoming: total output and the
organization’s
relationship with the environment are not evaluated.


 Competing Values Model.
 Tries to balance concerns with various parts of the
organization rather than focusing on one part.
 It combines several indicators of effectiveness into a single
outcome
 Indicators: whether the focus lies on the internal or external
environment and the structure emphasizes stability or flexibility.
 Usefulness: The model integrates diverse concepts of
effectiveness into a single perspective. The model calls attention
to effectiveness criteria as management values and shows how
opposing values exist at the same time.
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Dr Debasis Dash


 An Integrated Effectiveness Model.
Internal process emphasis
Human relations emphasis
Internal Primary goal: human resource Primary goal: stability,
equilibrium
development
Subgoals: information
Subgoals: cohesion, morale, training
management, communication
Focus
Open systems emphasis
Rational goal emphasis
Primary goal: growth and resource
Primary goal: productivity,
acquisition
External Subgoals: flexibility, readiness, external efficiency, profit
Subgoals: planning, goal setting
Evaluation
Flexibility Structure Control
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Dr Debasis Dash

 Use the following approaches to obtain

specific pictures of organizational effectiveness:-
- Goal
- Resource-based
- Internal processes
 Assess competing values to obtain a broader,
Discussion more balanced picture of the effectiveness.
3
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Dr Debasis Dash

Fundamentals of
Organization Structure
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Dr Debasis Dash

Fundamentals of Organizational Structure

 Organizational Structure. Three key components:-
1. Designates formal reporting relationships, including the
number of levels in the hierarchy and the span of control of
managers and supervisors = structural framework, vertical
hierarchy.
2. Identifies the grouping of individuals into departments and
departments into the total organization = structural framework,
vertical hierarchy.
3. Includes the design of systems to ensure effective
communication coordination and integration of efforts across
departments = pattern of interactions among organizational
employees.
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Dr Debasis Dash JBIMS-MHRD

 Develop organization charts

(organogrammen) that describe task
responsibilities, reporting relationships, and the
grouping of individuals into departments.
 Provide sufficient documentation so that all
people within the organization know to whom
they report and how they fit into the total
organization picture.
Discussion
4
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Dr Debasis Dash


 Information Processing Perspective on Structure.
 The organization should be designed to provide vertical and
horizontal information flows as necessary to accomplish the
organization’s overall goals or contain too little information or
irrelevant information.
1. Vertical linkage = is designed primarily for efficiency and
control of the organization.
2. Horizontal linkage = designed for learning (reducing control,
more coordination and collaboration)
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Dr Debasis Dash
An information-Processing perspective on structure:

The organization should be designed to provide both vertical and horizontal
information flows as necessary to accomplish the organization’s overall goals.
Or else: too little information, irrelevant information.
Vertical linkages = are designed primarily for efficiency and control of the
organization.
When a vertical structure is dominant, there are specialized tasks, a strict
hierarchy with many rules, a vertical information system (a database with
reports etc.), few teams/task forces/integrators, and centralized decision-
making.
Horizontal linkages = designed for learning (reducing control, more

coordination and collaboration)
Refers to the amount of communication and coordination horizontally across
organizational departments.
When a horizontal structure is dominant, there are shared tasks and
empowerment, a relaxed hierarchy with few rules, horizontal (face-to-face)
communication, many teams and task forces, and decentralized decision-
making.
Horizontal linkage mechanisms are often not drawn on the organization chart.

According to Malone, there will be more horizontal organizations, his key points
on the future of work:
- Information technology is the key driver of the transformation
- Managers will move from command and control to coordinate and cultivate
- Every organization needs standards.

 Provide vertical and horizontal information

linkages to integrate diverse departments into a
coherent whole.
 Achieve vertical linkage through hierarchy referral,
rules and plans, and vertical information systems.
 Achieve horizontal linkage through cross-
functional information systems, direct contact (by
liaison roles = person standing between two
Discussion departments), task forces (temporary team of
5 different experts), full-time integrators (located
outside departments, responsibility for coordinating
several departments) and teams (permanent task
forces). 23


 Cost of Coordination.
 The strongest horizontal linkage mechanisms are more costly
in terms of time and human resources but are necessary when
the organization needs a high degree of horizontal
coordination to achieve its goals.
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Dr Debasis Dash


 Organizational Design Alternatives.
 The overall design of the organizational structure indicates three
things:
1) Required work activities: have several departments for certain
work activities. If new activities appear (like e-business), create
new departments.
2) Reporting relationships: the chain of command, vertical lines in
the organization chart.
3) Departmental grouping options: affects employees because they
share a common supervisor and common resources, are jointly
responsible for the performance and tend to identify and
collaborate with one another.
25


 Organizational Design Alternatives. Five structural design options
for grouping employees into departments:
1. Functional grouping: bringing employees together who perform similar
functions;
2. Divisional grouping: grouping per product;
3. Multi-focused grouping: two structural grouping structures simultaneously,
matrix or hybrid structures. Example: each division is divided per product.
4. Horizontal grouping: HRM and finance are in departments, but the other
employees are organized around core work processes (so from purchase to
end product to the customer)
5. Virtual network grouping: most recent approach to departmental
grouping. Electronic connection for the sharing of information and
completion of tasks. 26
Dr Debasis Dash


 Common Organizational Designs.
Source: Shannon Williams
1. Functional structure
2. Functional structure with
Horizontal Linkages
3. Divisional Structure
4. Geographical Structure
5. Matrix Structure
6. Horizontal Structure
7. Virtual Network Structure
8. Hybrid Structure
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Dr Debasis Dash


1. Functional Structure.
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Dr Debasis Dash
Functional Structure
Similar to a hierarchical organizational structure, a functional org structure
starts with positions with the highest levels of responsibility at the top and goes
down from there. Primarily, though, employees are organized according to their
specific skills and their corresponding function in the company. Each separate
department is managed independently.
Pros
•Allows employees to focus on their role
•Encourages specialization
•Help teams and departments feel self-determined
•Is easily scalable in any sized company
Cons
•Can create silos within an organization
•Hampers interdepartmental communication
•Obscures processes and strategies for different markets or products in a
company


1. Functional Structure.
 Most effective when;
- In-depth expertise is critical to meeting organizational goals.
- The organization needs to be controlled and coordinated through the
vertical hierarchy.
- When efficiency is important.
Strengths Weaknesses
Allows economies of scale within functional Dept. Slow response time to environmental changes
Enables in-depth knowledge and skill Dept. May cause decisions to pile on top, hierarchy overloaded
Enables organization to accomplish functional goals Leads to poor horizontal coordination among Dept.
Is best with only one or a few products Results in less innovation
Involves restricted view of organizational goals
2. Functional Structure with Horizontal Linkages. Organizations compensate

for the vertical functional hierarchy by installing horizontal linkages. 29
Dr Debasis Dash


3. Divisional Structure – Product Based.

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Dr Debasis Dash
Divisional Structure
In divisional organizational structures, a company’s divisions have control over
their own resources, essentially operating like their own company within the
larger organization. Each division can have its own marketing team, sales
team, IT team, etc. This structure works well for large companies as it
empowers the various divisions to make decisions without everyone having to
report to just a few executives.
Depending on your organization’s focus, there are a few variations to consider.
Product-based divisional org structure

Divisions are separated by product line. For example, a tech company might
have a division dedicated to its cloud offerings, while the rest of the divisions
focus on the different software offerings—e.g., Adobe and its creative suite of
Illustrator, Photoshop, InDesign, etc.


3. Divisional Structure – Market based.
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Dr Debasis Dash
Product-based divisional org structure

Divisions are separated by product line. For example, a tech company might
have a division dedicated to its cloud offerings, while the rest of the divisions
focus on the different software offerings—e.g., Adobe and its creative suite of
Illustrator, Photoshop, InDesign, etc.


3. Divisional Structure.
 Same as product structure or strategic business units.
 Unless effective horizontal mechanisms are in place, a divisional
structure can cause real problems when divisions don’t know what the
other divisions are doing, and products aren’t compatible.
Suited to fast change in unstable environment Eliminates economies of scale in functional departments
Leads to customer satisfaction because product This leads to poor coordination across the product lines
responsibility and contact points are clear
Involves high coordination across functions Eliminates in-depth competence and technical specialization
Allows units to adapt to differences in products, Makes integration and standardization across product lines
regions, customers difficult
Best in large organizations with several products
Decentralized decision making
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Dr Debasis Dash

 Recognize that the strongest horizontal linkage

mechanisms are more costly in terms of time and human
resources but are necessary when the organization needs a
high degree of horizontal coordination to achieve its goals
 When designing the overall organizational structure,
choose a;
- functional structure when efficiency is important, in-
depth knowledge and expertise are critical to meeting
organizational goals the organization needs to be
Discussion controlled and coordinated through the vertical hierarchy.
6
- divisional structure in a large organization with multiple
product lines and when you wish to give priority to product
goals and coordination across functions. 33
Dr Debasis Dash


4. Geographical Structure.
34
Dr Debasis Dash
Geographical Structure
Divisions are separated by region, territories, or districts, offering more
effective localization and logistics. Companies might establish satellite offices
across the country or the globe in order to stay close to their customers.
Pros
•Helps large companies stay flexible
•Allows for a quicker response to industry changes or customer needs
•Promotes independence, autonomy, and a customized approach
Cons
•Can easily lead to duplicate resources
•Can mean muddled or insufficient communication between the headquarters
and its divisions
•Can result in a company competing with itself


4. Geographical Structure.
 Each geographic unit includes;
- all functions required to produce
- market products or services in that region.
 The strengths and weaknesses of a geographic divisional
structure are similar to the divisional organization characteristics.
 Horizontal coordination within a region is emphasized rather
than linkages across regions or to the national office.
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Dr Debasis Dash


5. Matrix Structure. Source: Shannon Williams
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Dr Debasis Dash
Matrix Structure
A matrix organizational chart looks like a grid, and it shows cross-functional
teams that form for special projects. For example, an engineer may regularly
belong to the engineering department (led by an engineering director) but work
on a temporary project (led by a project manager). The matrix org chart
accounts for both of these roles and reporting relationships.
Pros
•Allows supervisors to easily choose individuals by the needs of a project
•Gives a more dynamic view of the organization
•Encourages employees to use their skills in various capacities aside from their
original roles
Cons
•Presents a conflict between department managers and project managers
•Can change more frequently than other organizational chart types


5. Matrix Structure.
 When an organization’s structure needs to be multi-focused in that
both product and function or product and geography are emphasized at
the same time.
 The matrix can be used when technical expertise, product innovation,
and change are important for meeting organizational goals.
 Both product division and functional structures (horizontal and
vertical) are implemented simultaneously.
 Two versions of the matrix structure have appeared:
(a) Functional matrix: the functional bosses have primary authority;
(b) Product matrix: the project or product managers have primary
authority.
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Dr Debasis Dash


 Conditions for matrix structure include;
(a) Pressure exists to share scarce resources across product lines.
Organization is medium-sized and has a moderate number of
product lines.
(b) Environmental pressure exists for two or more critical outputs,
such as for in-depth technical knowledge (functional structure) and
frequent new products (divisional structure).
(c) The organization's environmental domain is complex and
uncertain, requiring a large amount of coordination and
information processing in both vertical and horizontal directions.
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Dr Debasis Dash


Achieve coordination necessary to meet dual Causes participants to experience dual authority,
demands from customers which can be frustrating and confusing
Flexible sharing of human resources across Means participants need good interpersonal skills
products and extensive training
Suited to complex decisions and frequent Is time consuming; involves frequent meetings
changes in unstable environment and conflict resolution sessions
Provides opportunity for both functional and It will not work unless participants understand it
product skill development and adopt collegial rather than vertical type
relationships
Best in medium-sized organizations with Requires great effort to maintain power balance
multiple products
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Dr Debasis Dash


6. Horizontal Structure.
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Dr Debasis Dash
Horizontal Structure
A horizontal or flat organizational structure fits companies with few levels
between upper management and staff-level employees. Many start-up
businesses use a horizontal org structure before they grow large enough to
build out different departments, but some organizations maintain this structure
since it encourages less supervision and more involvement from all
employees.
Pros
•Gives employees more responsibility
•Fosters more open communication
•Improves coordination and speed of implementing new ideas
Cons
•Can create confusion since employees do not have a clear supervisor to
report to
•Can produce employees with more generalized skills and knowledge
•Can be difficult to maintain once the company grows beyond start-up status


 Organizes employees around core processes.
 Organizations typically shift toward a horizontal structure
during reengineering (or business process reengineering);
- Reengineering = redesign of a vertical organization along its
horizontal workflows and processes. Reengineering changes
the way managers think about how work is done.
- Process = an organized group of related tasks and activities
that work together to transform inputs into outputs that
create value for customers. E.g. New product development,
customer service
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Dr Debasis Dash


6. Horizontal Structure. Characteristics are as follows:-
(a) Structure is created around cross-functional core processes
rather than tasks, functions or geography. Boundaries between
departments are obliterated (=exchanged).
(b) Self-directed teams, not individuals, are the basis of
organizational design and performance.
(c) Process owners are responsible for each core process.
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Dr Debasis Dash


6. Horizontal Structure. Characteristics are as follows:-
(d) People on the team are given the skills, tools, motivation and
authority to make decisions central to the team’s performance;
(e) Teams have the freedom to think creatively and respond
flexibly to new challenges;
(f) Customers drive the horizontal corporation;
(g) The culture is one of openness, trust and collaboration,
focused on continuous improvement.
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Dr Debasis Dash


Promotes flexibility and rapid response to Determining core processes is difficult and
changes in customer needs time-consuming
Requires changes in culture, job design,
Directs the attention of everyone toward the
management philosophy and information and
production and delivery of value to the customer
reward systems
Each employee has a broader view of Traditional managers may balk when they have
organizational goals to give up power and authority
Requires significant employee training to work
Promotes a focus on teamwork and collaboration
effectively in a horizontal team environment
Improves quality of life for employees by offering
them the opportunity to share responsibilities, Can limit in-depth skill development
make decisions and be accountable for outcomes 44
Dr Debasis Dash

 Consider a matrix structure when the organization

needs to prioritise both products and functions equally
because of dual pressures from customers in the
environment.
 Use either a functional or product matrix if the
balanced matrix with dual lines of authority is not
appropriate for your organization.
 Consider a horizontal structure when customer needs
Discussion and demands change rapidly and when learning and
7 innovation are critical to organizational success.
 Carefully determine core processes and train managers
and employees to work within the horizontal structure 45
Dr Debasis Dash


7. Network Structure.
46
Dr Debasis Dash
7. Network org structure

These days, few businesses have all their services under one roof, and
juggling the multitudes of vendors, subcontractors, freelancers, offsite
locations, and satellite offices can get confusing. A network organizational
structure makes sense of the spread of resources. It can also describe an
internal structure that focuses more on open communication and relationships
rather than hierarchy.
Pros
•Visualizes the complex web of onsite and offsite relationships in companies
•Allows companies to be more flexible and agile
•Give more power to all employees to collaborate, take initiative, and make
decisions
•Helps employees and stakeholders understand workflows and processes
Cons
•Can quickly become overly complex when dealing with lots of offsite
processes
•Can make it more difficult for employees to know who has final say
Consider the needs of your organization, including the company culture that
you want to develop, and choose one of these organizational structures.


7. Virtual Network Structure.
 Extends the concept of horizontal coordination and
collaboration beyond the boundaries of the traditional
organization.
 With a virtual network structure (modular structure), the firm
subcontracts many or most of its major processes to separate
companies and coordinates their activities from a small
headquarters organization.
 Outsourcing = to contract out certain corporate functions,
such as manufacturing, information technology, or credit
processing, to other companies.
47
Dr Debasis Dash


7. Virtual Network Structure.
Enables even small organizations to Managers do not have hands-on control over
obtain talent and resources worldwide many activities and employees
Gives a company immediate scale and
Requires a great deal of time to manage
reach without huge investments in
relationships and potential conflicts with
factories, equipment, or distribution
contract partners
facilities
Enables the organization to be highly There is a risk of organizational failure if a
flexible and responsive to changing needs partner fails to deliver or goes out of business
Employee loyalty and corporate culture might
Reduces administrative overhead costs be weak because employees feel they can be
replaced by contract services
48
Dr Debasis Dash


8. Hybrid Structure.
 Many structures in the real world do not exist in the pure
forms that are outlined previously.
 Organizations often use a hybrid structure that combines
characteristics of various approaches tailored to specific strategic
needs
Vertical control = goals of efficiency and stability.

Horizontal coordination = learning, innovation and flexibility.
49
Dr Debasis Dash

 Use a virtual network structure for extreme flexibility and

rapid response to changing market conditions. Focus on key
activities that give the organization its competitive advantage
and outsource other activities to carefully selected partners.
 Implement hybrid structures, when needed, to combine
characteristics of functional, divisional and horizontal
structures.
 Use a hybrid structure in complex environments to take
advantage of the strengths of various structural
Discussion characteristics and avoid some weaknesses.
8  Find the correct balance between vertical control and
horizontal coordination to meet the needs of the
organization. Consider a structural re-organisation when
symptoms of structural deficiency are observed.
50


 Symptoms of Structural Deficiency;
1. Decision-making is delayed or lacking in quality: delay caused by
the hierarchy when information does not reach the correct people.
2. The organization does not respond innovatively to a changing
environment: departments are not coordinated horizontally, and
department responsibilities must be specified.
3. Employee performance declines and goals are not being met: the
structure should reflect the complexity of the market environment
and be straightforward to effectively work within.
4. Too much conflict is evident: organization structure should allow
conflicting departmental goals to combine into a single set of goals
for the entire organization.
51
Dr Debasis Dash

Thank you
Dr Debasis Dash
dashdebasis76@gmail.com
+(91)8019126104

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JBIMS-MHRD Nov-Dec 2022 - Jan 2023

Faculty - Dr Debasis Dash 1

Faculty - Dr Debasis Dash 2

Faculty - Dr Debasis Dash 3

Faculty - Dr Debasis Dash 4

Faculty - Dr Debasis Dash 5

Operative goals comprises of:

Faculty - Dr Debasis Dash 6

 Establish and communicate organizational

Faculty - Dr Debasis Dash 7

Framework for Selecting Strategy & Design

Faculty - Dr Debasis Dash 8

Framework for Selecting Strategy & Design

Faculty - Dr Debasis Dash 9

Framework for Selecting Strategy & Design

Miles and Snow’s Strategy Topology.

2) Defender: almost the opposite of the prospector. The strategy is concerned

3) Analyzer: tries to maintain a stable business while innovating on the

4) Reactor: not really a strategy at all. Response to environmental threats and

Faculty - Dr Debasis Dash 10

Framework for Selecting Strategy & Design

Faculty - Dr Debasis Dash 11

Framework for Selecting Strategy & Design

Faculty - Dr Debasis Dash 12

Framework for Selecting Strategy & Design

Faculty - Dr Debasis Dash 13

 After goals have been defined, select strategies for

Faculty - Dr Debasis Dash 14

Framework for Selecting Strategy & Design

Contingency effectiveness approaches:

1) Goal approach: identifying an organization’s output goals and assessing

2) Resource-based approach: observing the beginning of the process and

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3) Internal process approach: looks at internal activities and assesses

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Framework for Selecting Strategy & Design

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Framework for Selecting Strategy & Design

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 Use the following approaches to obtain

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Fundamentals of Organizational Structure

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 Develop organization charts

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Fundamentals of Organizational Structure

An information-Processing perspective on structure:

Horizontal linkages = designed for learning (reducing control, more

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 Provide vertical and horizontal information

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Fundamentals of Organizational Structure

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Fundamentals of Organizational Structure

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Fundamentals of Organizational Structure

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Fundamentals of Organizational Structure

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Fundamentals of Organizational Structure