1 / 26

Organizational structures, internal and external network cooperation

Organizational structures, internal and external network cooperation. Ondřej Částek castek@econ.muni.cz. Content. Basics of organizational structure design Trends from hierarchy to holocracy Trends from outsourcing to clusters. GE – development of organizational structure.

bmercer
Download Presentation

Organizational structures, internal and external network cooperation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Organizational structures, internal and external network cooperation Ondřej Částek castek@econ.muni.cz

  2. Content • Basicsoforganizationalstructure design • Trendsfrom hierarchy to holocracy • Trendsfrom outsourcing to clusters

  3. GE – developmentoforganizationalstructure 1930s – 40s: functionalapproach, high and rigidstructure 1950s: decentralization, smallerdepartments/divisions 1970s: from 190 divisionsinto 43 SBU 1980s: J. Welch 3 top managers, 3 operativemanagers from 240 industriesinto 14 10-15 subordinates

  4. Process structure

  5. Department structure

  6. b a c d Departmentalization

  7. Traditional structures

  8. Contemporarystructures – projectcoordination

  9. Contemporarystructures – projectstructure CEO Manager Manager Project manager Procurement R & D

  10. Contemporarystructures – matrix structure

  11. Principles of structure design • Hierarchy ofauthority • Unity ofcommand • Taskspecialization (productorfunction) • Responsibilities and jobdescription (formalization) • Line and stafffunctions • Spanofcontrol

  12. Contingency Theory - no ONE beststructure (unlikeclassicalscholars) - thebeststructuredepends on many things: • strategy • differentiation x costleadership • size • small x large • technology/task • unit production/smallbatch x massproduction/largebatch x continuous • exceptionsanalyzable x un-analyzable; few x many • environment • stable x turbulent • suppliers and distributors • market factors; bargainingpower

  13. Factorsinfluencingorganizationstructure

  14. Fromhierarchies to networks

  15. Fromhierarchies to networks Divisions SBU´s Teams Amebas Holacracy ROWE, CLOU Virtualorganizations Outsourcing Holding structures Strategicalliances Othernetworks

  16. Divisions, SBU´s Decentralizationofdecisionmaking Strivefor flexibility and lowercosts

  17. Teams Fortune 1,000 companieslongitudinal study: 1980: 20% had team-basedstructures 1990: 50% 2000: 80% „Especially in chaotic industries, it pays for the CEO to delegate as much authority as possible in order to encourage experimentation.“

  18. Ameba KnownfromKyocera Group Similarstructure in othercompanies Specificcompetitiveenvironment in whichtheteamsoperate

  19. Holacracy Structureof „circles“, „subcircles“ and „supercircles“ Empowerment, delegation, self-evaluation, self-government, democracy Still, leadershave to bedesignated „I think flexibility and adaptability is what’s actually going to be the competitive advantage. And holacracy allows for faster flexibility and adaptability.“Hsieh, Zappos Zappos: 14 % outof 1500 employeesleft

  20. ROWE, CLOU Results-Only Work Environment • onlyresultsmatter. Not when, where and howthey are achieved. ColleagueLetterofUnderstanding • insteadof a labourcontract • enumeratesgoals, rights, responsibilitiesofanindividual • formulated in discussionwithcolleagues

  21. Virtualorganizations Use of IT to beable to operatewithouttheattachment to a physical place. Fromworkfromhome to complicatedstructuresinvolving not onlyindividualemployeesor independent contractors, but evenwholecompanies.

  22. Outsourcing Contractingouttasksorprocesses Keyterms: costs, transactioncosts, quality, flexibility, dependability, competitiveadvantage Sometimesinvolves transfer ofemployeesorevenwholedepartmentsordivision.

  23. Holding structures Legalindependence Economic dependence ofparent and subsidiarycompanies Keiretsu, concern

  24. Strategicalliances Legalindependence Economiccooperation: close – loose Usuallyformedforoneor more of these reasons: • Sharingresources • Reductionofcompetition • Transfer and use ofknowledge Multilateralagreements, franchising, joint ventures…

  25. Clusters Regionalnetworks Formed to boostcompetitiveness in nationalorinternatinalscale Typicallybothhorizontal, vertical and othercooperations Examples: shoeindustry in Italy, wine-makers in Southern Moravia Key benefit: developmentofinfrastructure Keyproblem: trust

  26. Thanksforattention

More Related