Organizational Structure 4

Organizational Structure 4 - Increased organizational...

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Understanding and Managing Organizational Structure Network/ virtual structure: o Corporate headquarters manages: Designers Suppliers Producers Distributors o Characteristics: Organization retains what it does best Network relationships may change as demands change Contracts and control systems monitor partner activities Operational decisions are decentralized to partners Competitive in environment that demands much flexibility and responsiveness w/ lower organizational investments (ex. KFBS Online MBA) o Advantages: Small organizations can get talent and assistance from anywhere Organization can “ramp up” w/o huge investment in facilities
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Unformatted text preview: Increased organizational flexibility and responsiveness Reduces administrative overhead costs o Disadvantages: Little hands-on control of network “partners” Expenses of establishing monitoring systems Reduced partner-employee loyalty • How can you know if you have the wrong structure? o If you replaced the employees, would the problems remain? No?: you have a people problem Yes?: you have a structural problem o Is the firm inefficient or inflexible? o Are decisions made too late? o Are decisions of poor quality? o Is there too much conflict?...
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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 4 - Increased organizational...

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