cs 05 structure

8/13/2019 CS 05 Structure

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Corporate Strategy

Organization Structure

Sebastian Spaeth

Organization: Zeynep Erden
mailto:[email protected]:[email protected]


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2

Where we left off: Diversification

It is a growth strategy, associated with thegranuating strat.

!nso"" #atri$, and coseness %easures &i'ersi"ication &iscounts

2 &i%ensions "or (ategorizing

(oncentric, )orizonta, *ertica, (ongo%erate

&e"ensi'e, O""ensi'e

+ort"oio #anage%ent


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Overview

- Organizationa Structure

&e"inition

&i%ensions

(onte$tua *ariabes

- Organigra%s

- or%s o" organizationa Structure

/0or%, #0or% 1cooperati'e, co%petiti'e, )0or%, 30or%,

#atri$ organization

#atri$ organization: !d'antages, disad'antages


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=

Organizational Structure (2)

5&e"ines the "ir%s "or%a reporting reationships,procedures, contros, and authority and decision%a8ing process.6

(an support or resist an organizations strategy. Itis a critica ee%ent o" a strategy i%pe%entation

process.

It is not co%petey captured in an organigra%


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?

Organizational structure ()

Strategy and Structure ha'e a reciprocareationship.

5Structure "oows Strategy.6 1(hander, ;?2


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Di!ensions of organizational structure

Structuring o" !cti'ities:

Speciaization o" acti'ities

Standardization o" procedures

or%aization o" docu%entation

(oncentration o" !uthority

(entraization o" authority

(on"iguration o" roe structure


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Specialization of activities

Is concerned with the di'ision o" abor in thewor8"ow

5Speciaist6 those who per"or% ony a speci"ic tas8 &i%ensions:

7u%ber o" speciaists,

&egree o" roe speciaization


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Ill be happy to give you inovativethinking.What are the guidelines?

Stan"ar"ization of #roce"ures (1)

!re there rues thatco'er a circu%stancesand appy in'ariabyB


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Stan"ar"ization of $oles (2)

&egree to which organization prescribes roede"inition D uai"ication, %easures roe

per"or%ance

&egree to which Fob tites and sy%bos, rewardsare standardized


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%or!alization of "ocu!entation

- )ow "ar are co%%unications and procedures in an

organization written down and "iedB

- State%ents o" procedures, roes, etc.


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Centralization of authority

(oncerns the ocus o" authority to %a8e decisionsa""ecting the organization.

; or%a or institutiona authority

2 +ersona authority 1due to personaity ore$pertise

(ontro o" resources 1%oney, peope, %ateria

(ontro o" acti'ities 1wor8"ow


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Configuration of role structure

- (oncerns the authority structure, ie reations between

superiors and subordinates in an organization.

- span o" contro

- *ertica span o" contro

- (riteria "or seg%entation

- G o" Hobs in 'arious seg%ents


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%le&i'ility

- E$presses changes in the organizationa structure

per ti%e unit

- (an be %easured in no. o" changes, speed o"

changes, continuous or in batches


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$eorganizing

Je trained hard but it see%ed that e'eryti%e we

were beginning to "or% up into tea%s we woud be

reorganized. I was to earn ater in i"e that we tend

to %eet any new situation by reorganizing and a

wonder"u %ethod it can be "or creating the iusion

o" progress, whie producing con"usion, ine""iciency

and de%oraisation.

1(harton Ogburn, ;=


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Conte&tual varia'les

- Origin D )istory

- Ownership D (ontro

- Size

- (harter

- Kocation

- Lesources

- Interdependence


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ypology of organizations

- wor8"ow bureaucracy

- personne bureaucracy

- "u bureaucracy

- non0bureaucracy


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Organigra!

- Lepresents part o" the organizationa structure. he

chart usuay shows the units and subunits showing

authority andMor reporting reations.

CO

Sales*anufacturi

ng$+D


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- Si%pe Structure

- unctiona Structure 1/

- #utidi'isiona Structure 1#

ypical volution of co!panies


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,nitary for! (,-%or!)

Organized aong "unctiona ines

CO

Sales *anufacturing

$+D


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,nitary for! (,-%or!): .ariant /

Opti%ized "or (ost Keadership

(entraizeds ta ff CO

Sales*anufacturi

ng$+D


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22

,nitary for! (,-%or!) .ariant 0

Opti%ized "or &i""erentiation Strategy

CO

Sales*anufactur

ing$

*areting

Prod.

R&D


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2

*ulti-"ivisional for! (*-%or!)

- Nuasi0autono%ous operating di'isions

- Organized aong +roduct, brand or geographica

inesCO

,S urope/sia3/fric

a

Staff


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24


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2=

Opti!al "ivizionalizing in the *-%or!

(riteria:

Identi"ication o" separabe econo%ic acti'ities

Nuasi0autono%ous standing to each 1pro"it center

Enabes:

#onitoring per"or%ance

!warding incenti'es

!ocate cash "ows to high yied uses

+er"or% strategic panning

1Jiia%son ;=


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2?

Cooperative *-%or!


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2A

ol"ing for! (-%or!)

E$tre%e case o" an #0or%

ol"ing

Co!p / Co!p 0 Co!p C


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2

*i&e" for! (4-%or!)

CO

Sales*anufactur

ing$+D #ro"5 /

S a l e s*anufactur

ing$+D


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C

*atri& organization

&isad'antagesB

CO

#ro" /

#ro" 0

#ro" C

Sales*anufactur

ing$+D

Staff Staff Staff


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;

6ining 7nternalization *entalities an"

Structure

- Internationa, 9oba, #utinationa, ransnationa

- N: )ow are these in8ed to Organizationa

Structure. Jhat #entaity does "it 17O what

structureB

- N: )ow can organizationa structure di%ensions

in8ed to to %entaitiesB Or, are theyB


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2

#rocter + 8a!'le

- Leorganized ; in #atri$0or%

- = &i'isions 19oba usiness

+roduct /nits:

aby, e%inine and a%iy care

abric and )o%e care,

ood and e'erages,

)eath care

eauty care

- #ar8ets de'eop%entsorganizations:

Southeast !sia etc.

CO

urope9orth

/5/ustralia

0a'y %oo"ealt

h


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*-%or! as of une 2;;

cs 05 structure

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