Organizational Structure 2

Organizational Structure 2 - • “Make at least $1...

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Understanding and Managing Organizational Structure What if organization wants to expand to different markets? What if environment wants flexibility and responsiveness? Structuring work (a divisional approach): o DMS in Northeast, DMS in South, DMS in West o Within each division we find functional employees as needed o Bases for divisions: Products Technologies Projects Geography Customer type Programs o Characteristics: Those doing “different things” in same division Less standardized methods across divisions Lower degree of control/ centralization within divisions at top of organization Divisions organized as profit centers
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Unformatted text preview: • “Make at least $1 billion next year” This structure competitive in dynamic environments requiring flexibility Kenan-Flagler could have this structure, but it doesn’t • Divisions would be BSBA, MBA, MAC o Advantages: Increased flexibility Decreased response times Better coordination within divisions Good training for general managers o Disadvantages: Lose economies of scale Poor coordination/ cooperation between divisions Lose depth of competence in some specialties Advancement outside of specialty...
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This note was uploaded on 05/30/2011 for the course BUSI 405 taught by Professor Blackburn during the Fall '10 term at UNC.

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Organizational Structure 2 - • “Make at least $1...

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