Unformatted text preview: Improve How Organizational Structure
Break business into smaller units Build teamwork Impose autonomy Create meaningful incentives Outsource non-operating activities Share business capabilities across units Matrix Organization Matrix Outsourcing Outsourcing
+ Time to focus on Time company’s primary function function + Increased level of Increased expertise expertise + Cost effectiveness + Decreased overhead + Risk reduction + Flexibility + Technology - Less personal approach - Less control by owner in Less planning, implementing & carrying out company’s future future - Potential for competing Potential for the outsourcing firm’s time time Virtual Organizations Virtual
A temporary networked organization made up of temporary replaceable firms that join and leave as needed; replaceable Reduces fixed costs Obtains needed expertise quickl...
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