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ORGANISATION AND MANAGEMENT. M. Ingham. Organisational structure. OS is a firm’s Design: Formal role configuration Procedures Governance Control mechanisms Authority Decision-making. S. D. Organisation. C. Organizational design.
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ORGANISATIONAND MANAGEMENT M. Ingham
Organisational structure • OS is a firm’s • Design: Formal role configuration • Procedures • Governance • Control mechanisms • Authority • Decision-making S D Organisation C
Organizational design • Relate units and create organizational contexts propitious to the achievement of organizational objectives and activities • creativity, effectiveness and efficiency
Central dimensions • Key concepts • differentiation and integration • specialization and coordination
CENTRAL DIMENSIONS SPECIALISATION DIFFERENTIATION INTEGRATION COORDINATION
Key Elements • How to organize the value activities (value chain) • integration or de-integration • network
Organizational design • Determinants • industry, strategy, technology, production process,… • size, growth, product range and activities • cultures (national and corporate) • preferences (power) and managerial styles • ...
How do companies grow Revolutions Size ? large ? Evolutions collaboration red tape coordination control delegation autonomy direction leadership creativity s y 1 2 3 4 5 Age
How companies Grow and Change large High-growth Industry Medium-growth Industry Low-growth Industry Evolutions , Revolutions small young mature Greiner:1998
THE CONTINUUM STRATEGIC OPTIONS INTEGRATION SPECIALISATION DIVERSIFICATION HOLDING SOLAR FUNCTIONAL MATRIX DIVISIONAL SIMPLE SOPHISTICATED RELATED CONGLOMERATE PROJECT ORGANISATIONAL DESIGN
Types of structures • “Simple and solar” • One leader ( founder or small team)) coordinating the activities and functions • No formal hierarchy and informal communication
Simple- Sun SALES CEO Leader-entrepreneur PRODUCTION
Functional (Simple and Pure) • One product line, one distribution channel • Integrated production process • Integrated Flow RD PROD MARKETING
Functional 2 • One dominant line with some secondary products • Dominant channel • Larger size • Hierarchical with vertical levels
Divisional • Diversified activities and product lines • Different markets • Different production processes • ...
PROJECT • “Ad hoc”structure; permanent or not permanent teams • RD, MF, MKT MKT PROD RD
Innovation Project R&D Manufacturing Marketing Sequential: linear Man Mark R&D Overlapping
NETWORKS CORE ACTIVITIES
THE « ORGANISATIONAL DIAMOND » DIRECTION EFFICIENCY COOPERATION PROFICIENCY COMPETITION INNOVATION CONCENTRATION Mintzberg,
ORGANISATION: TOWARDS CONFIGURATIONS ENTREPRENEURIAL IDEOLOGICAL PROFESSIONAL MACHINE POLITICAL DIVERSIFIED ADHOCRACY Mintzberg,
How do companies grow: strategic options PRODUCT LINES PRESENT NEW MARKETS SPECIALISATION EXPANSION RELATED DIVERSIFICATION PRESENT EXPANSION INTERNATIONALISATION RELATED DIVERSIFICATION UNRELATED (CONGLOMERAL) DIVERSIFICATION INTEGRATION NEW
How do companies grow: strategic options and organisational design PRODUCT LINES PRESENT NEW MARKETS DIVISIONAL (related) FUNCTIONAL PRESENT CONGLOMERAL MULTIDOMESTIC ( PURE) SEGM GEO FUNCTIONAL II with Geo subsidiaries NEW