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A Horizontal Structure Team 3 Team 2 Team 1 Top Management Team Team 3 Team 2 Team 1 Customer Customer Process Owner Process Owner Testing Product Planning Research Market Analysis New Product Development Process Distrib. Material Flow Purchasing Analysis Procurement and Logistics Process Sources : Based on Frank Ostroff, The Horizontal Organization , (New York: Oxford University Press, 1999); John A. Byrne, “The Horizontal Corporation,” Business Week, December 20, 1993, 76-81; and Thomas A. Stewart, “The Search for the Organization of Tomorrow,” Fortune, May 19, 1992, 92-98. Strengths and Weaknesses of Horizontal Structure b STRENGTHS: Flexibility and rapid response to changes in customer needs Directs the attention of everyone toward the production and delivery of value to the customer Each employee has a broader view of organizational goals Promotes a focus on teamwork and collaboration—common commitment to meeting objectives Improves quality of life for employees
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Unformatted text preview: by offering them the opportunity to share responsibility, make decisions, and be accountable for outcomes b WEAKNESSES: • Determining core processed to organize around is difficult and time-consuming • Requires changes in culture, job design, management philosophy, and information and reward systems • Traditional managers may balk when they have to give up power and authority • Requires significant training of employees to work effectively in a horizontal team environment • Can limit in-depth skill development Sources: Based on Frank Ostroff, The Horizontal Organization: What the Organization of the Future Looks Like and How It Delivers Value to Customers, (New York: Oxford University Press, 1999); and Richard L. Daft, Organization Theory and Design, 6 th ed., (Cincinnati, Ohio: South -Western College Publishing, 1998) 253....
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