Lecture_ILRHR_4641_Organizational_Design

Lecture_ILRHR_4641_Organizational_Design - Organizational...

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    Organizational Design ILRHR 4641 Business Strategy, Organizational Design, and HR Strategy
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    Business Strategy and Organizational  Design Organizational structure must reflect and respond to strategic demands and changes in these demands Changes in structure are sometimes necessary to carry out a new or modified strategy Structural decisions affect the distribution of power, work, decision-making, and resources necessary for strategy implementation
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    There is no perfect organizational  structure… All structural options have pros and cons What’s important is to anticipate likely consequences of choices and weigh your options given the demands of your strategy
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    …but there are good and bad structural  decisions! Failure Stories Airbus A-380 (differentiation strategy) poor structural integration across different geographic locations lack of communication GM (mixed strategy) unclear structure with poor integration Success Stories Wal-Mart (cost leadership strategy) all aspects of structure are designed around cost minimization Dell Computer (mixed strategy) structured around cost minimization and customization
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    Key Topics Related to Organizational  Design and Strategy Implementation Structural components Centralization Formalization Specialization Communication/Integration
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