Ch11 Part 1 Lecture SLIDES 2009

Ch11 Part 1 Lecture SLIDES 2009 - KnowledgeObjectives...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Knowledge Objectives Define organizational structure and controls Review the difference between strategic and financial controls. Discuss the functional structures used to implement business-level strategies.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Organizational Structure Structural stability provides: The capacity required to consistently and predictably manage daily work routines Structural flexibility provides for: The opportunity to explore competitive possibilities The allocation of resources to activities that shape needed competitive advantages
Background image of page 2
3 Strategy and Simple Structure Owner-manager Makes all major decisions personally Monitors all activities Staff Serve as an extension of the manager’s authority Advantage Quick decision-making and flexibility Disadvantage One person (owner) bears all the information- processing responsibility
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4 Strategy and Functional Structure Chief Executive Officer (CEO) Limited corporate staff Functional line managers in dominant areas: Manufacturing Marketing Engineering Accounting Human resources Supports use of business-level strategies and corporate-level strategies with low levels of diversification
Background image of page 4
5 Functional Structure (cont’d) Advantages: Allows more specialization Should make better decisions w/ input from managers with high levels of expertise Disadvantages: Requires more formalization Higher coordination and control costs because functional managers may take a myopic view Decision making may be slower and some flexibility may be lost
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6 Different Forms of Functional  Structure Forms of functional organizational structure is matched to generic strategy Differences in these forms are seen in three important structural characteristics: Specialization (number and types of jobs) Centralization (decision-making authority) Formalization (formal rules and work procedures)
Background image of page 6
7 Functional Structure for Cost Leadership Notes: • Operations is the main function
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 23

Ch11 Part 1 Lecture SLIDES 2009 - KnowledgeObjectives...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online