Introduction

1. Introduction • 陳韋志 • 台中人 • 彰化師大資管系 • 電玩 單車 影集 • 任維廉老師實驗室

2. Fundamentals ofOrganization Structure 報告人 : 陳韋志 授課教師 : 任維廉老師 報告日期 : 2009/11/05

3. Agenda • Basic concepts of organization structure • Information processing perspective on structure • Organization design alternatives • Related structure design • Discussion

4. A Sample Organization Chart

5. Information processing perspective on structure Horizontal Organization Designed for Learning • Horizontal structure is dominant • Shared tasks, empowerment • Relaxed hierarchy, few rules • Horizontal, face-to-face communication • Many teams and task forces • Decentralized decision making Dominant Structural Approach • Vertical structure is dominant • Specialized tasks • Strict hierarchy, many rules • Vertical communication and reporting systems • Few teams, task forces or integrators • Centralized decision making Vertical Organization Designed for Efficiency and Control

6. Vertical Information Linkages • Hierarchical referral • Rules and plans • Vertical information systems -periodic reports, written information and computer-based communications.

7. Horizontal Information Linkages • Information systems • Direct contact • Task forces • Full-time integrator • Teams

8. Project Manager Locationin the Structure

9. Ladder of Mechanisms for Horizontal Linkage and Coordination Teams H IGH Full-time Integrators Task Forces Amount of Horizontal Coordination Required Direct Contact LOW Information Systems LOW HIGH Cost of Coordination in Time and Human Resources

10. Organization Design Alternatives • Required Work Activities • Reporting Relationships • Departmental Grouping Options

11. Functional Structure • consolidates human knowledge and skills with respect to specific activities CEO Manufacturing Engineering Marketing

12. Strengths and Weaknesses of Functional Organization Structure • Strengths : • Allows economies of scale • Enables in-depth knowledge and skill development • Enables organization to accomplish functional goals • Is best with only one or a few products • Weaknesses : • Slow response time to environmental changes • May cause decisions to pile on top, hierarchy overload • poor horizontal coordination among departments • less innovation • Involves restricted view of organizational goals

13. Divisional Structure • called product structure or strategic business units • departments are grouped based on organizational outputs CEO Product division 1 Product division 2 Product division 3

14. Strengths and Weaknesses of Divisional Organization Structure • Strengths : • fast change in unstable environment • client satisfaction • Involves high coordination across functions • adapt to differences in products, regions, clients • Best in large organizations with several products • Decentralizes decision-making • Weaknesses : • Eliminates economies of scale in functional departments • poor coordination across product lines • Eliminates in-depth competence and technical specialization • Hard to integrate and standardize across product lines

15. Geographical Structure • groups the organization’s users or customers together by geographical area. CEO Steve Jobs Apple Americas Apple Pacific Apple Europe Canada Australia France Latin America/ Caribbean Japan Asia Sales Service and Marketing to Regions

16. Matrix Structure • combines product and functional designs with its unique purposeful violation of unity of command. President Procure- ment Director Design Mfg Marketing Vice President Vice President Vice President of Product Controller Operations Manager Product Manager A Product Manager B Product Manager C Product Manager D

17. Strengths and Weaknesses of Matrix Organization Structure • Strengths : • Achieves coordination necessary to meet dual demands from customers • Flexible sharing of human resources across products • Suited to complex decisions and frequent changes in unstable environment • Provides opportunity for functional and product skill development • Best in medium-sized organizations with multiple products • Weaknesses • dual authority, which can be frustrating and confusing • participants need good interpersonal skills and training • Is frequent meetings and conflict resolution sessions • Will not work unless participants understand it and adopt collegial rather than vertical-type relationships • Requires great effort to maintain power balance

18. Horizontal Structure • employees around core processes so they can easily communicate and coordinate their efforts Top Management Team Process Owner Team 1 Team 2 Team 3 Market Analysis Research Product Planning Testing Customer New Product Development Process Team 1 Team 2 Team 3 Process Owner Customer Analysis Purchasing Material Flow Distrib.

19. Top Management Team Process Owner Team 1 Team 2 Team 3 Market Analysis Research Product Planning Testing Customer New Product Development Process Team 1 Team 2 Team 3 Process Owner Customer Analysis Purchasing Material Flow Distrib. Procurement and Logistics Process

20. Virtual Network Structure The firm subcontracts many or most of its major processes to separate companies and coordinates their activities from a small headquarters organization.

21. Hybrid Structure subcontracts many or most of its major processes to separate companies and coordinates their activities from a small headquarters organization.

22. Applications of Structural Design Matrix Structure Horizontal Structure Functional Structure Divisional Structure Functional with cross-functional teams, integrators • Horizontal: • Coordination • Learning • Innovation • Flexibility Dominant Structural Approach • Vertical: • Control • Efficiency • Stability • Reliability

23. Discussion • Globalization → Multinational firms →Cross departments • Project management (divisional structure → functional structure)