49056189-Strategic-Mgmt-ch11

49056189-Strategic-M - Chapter 11 Organizational Structure 0Chapter Summary This chapter seeks to familiarize you with both perspectives on

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Organizational Structure 0Chapter Summary This chapter seeks to familiarize you with both perspectives on organizational structure and the major trends in structuring business organizations today. It starts by looking at what have been traditional ways to organize, along with the advantages and disadvantages of each organizational structure. This chapter examines ways organizations are structured and ways to make those structures most effective. It describes five traditional organizational structures—simple organization, functional structure, divisional structure, matrix structure and product-team structure. The 21st century has seen an accelerating move away from traditional organizational structures toward hybrid adaptations that emphasize an external focus, flexible interaction, interdependency, and a bottom-up approach. Organizations have sought to adapt their traditional structures in this direction by redefining the role of corporate headquarters, rebalancing the need for control vs. coordination, adjusting and reengineering the structure to emphasize strategic activities, downsizing and moving toward self-managing operational activities. 21st century leaders increasingly speak about making their organizations boundaryless, absent internal and external boundaries between units, levels, and locations that lessen the company’s ability to generate and share knowledge. 0Learning Objectives 1. Identify four traditional organizational structures, and the pros and cons of each. 2. Explain when one traditional structure is more likely to be used than another. 3. Describe the product-team structure and explain why it is a prototype for the more open, agile organizational structures frequently called for in today’s global economy. 4. Characterize differences between views on traditional, twentieth-century organizational structures and twenty-first-century organizational structure needs. 5. Explain five ways improvements have been sought in traditional organizational structures. 6. Describe what is meant by agile, virtual organizations. 7. Explain how outsourcing can create agile, virtual organizations, along with its pros and cons. 8. Explain strategic alliances, along with their basic pros and cons. 9. Explain what is meant by boundaryless organizations and why they are important. 10. Explain why organizations of the future need to be ambidextrous learning organizations and how this fits into the global economy. 0Lecture Outline I0. Traditional Organization Structures and Their Strategy-Related Pros and Cons A0. Organizational structure refers to the formalized arrangement of interaction between and responsibility for the tasks, people, and resources in an organization. 229
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This note was uploaded on 06/02/2011 for the course BA 13213 taught by Professor Deez during the Spring '10 term at Aarhus Universitet, Aarhus.

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49056189-Strategic-M - Chapter 11 Organizational Structure 0Chapter Summary This chapter seeks to familiarize you with both perspectives on

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