BA310-2-3 Design - BA 310 Organizational Structure II Coordination and Design 1 Reset The Functional Structure Jesse Ventura President Steven Gold

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

View Full Document Right Arrow Icon
1 BA 310: Organizational Structure II Coordination and Design
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 Reset : The Functional Structure Jesse Ventura President Steven Gold Manager, Finance Luther X Manager, Legal Stan McHale Manager, Marketing Accountant, East Region Accountant, West Region Licensing Specialist Litigation Specialist Apparel Sales Action Figure Sales
Background image of page 2
3 The key problem with functional structures in large org’ns: “Silos” As functional organizations grow, the # of organizational levels increase. You get the “Silo” effect: 1) slow communication and decisions, action is up and down the hierarchy not across it. 2) preoccupation with departmental rather than organizational goals. B i g T a l l C o m p a n y , I n c . P r o d ' n E n g i n e e r M a n a g e r M i d d l e M g r V P M f g E x e c . V P M f g M k t g A n a l y s t M a n a g e r D i r e c t o r V P M k t g E x e c . V P M k t g C E O “SILOS” (Functions) AND “Throwing it over the wall”: Doing your job without really involving the next group/function The next group first sees the project once your group is finished.
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 Red October (fast forward) If we think of the sub as an organizational unit, we can see it responds differently in the two cases below. Both are unusual. Can you list three reasons why the response is so different? Captain’s “All back full” order Ryan’s request of the captain Ryan’s request almost fails – Why? His message travels ACROSS “silos” => low responsiveness Captain: “I have my orders” = Within-silo priorities comes first! Ryan must influence from weakness, has to take a desperate gamble Captain’s “All back full” order is implemented quickly Hierarchy can produce very rapid response All involved are WITHIN the “silo” (sub) = high responsiveness
Background image of page 4
5 Structure (and silos) determine organizational responsiveness Problem is not individual competence Rather, structure defines what an org’n can and can not do CAN: Functional specialization = why Ryan figured things out CAN NOT: Silos = why Ryan had so much trouble More examples: Helicopter scene – Ryan has the same problem! Compaq new product marketing IBM Consulting MRP introduction
Background image of page 5

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

View Full DocumentRight Arrow Icon
6 Pushing the Limits: When functional structures lose effectiveness What if you Have many (different) products? Operate in many (different) countries? Have many (different) customers? These situations are tough for functional structures because such structures tend to be “one-size-fits all.” Loyalties (and focus & expertise) are ultimately based on function rather than to on specific product, country or customer. Déjà vu: This is just departmentalization all over again
Background image of page 6
7 Answer: The divisional structure Divisional Structure : Organizational structure made up of separate, semiautonomous units called “divisions”. Each division produces specific products, operates in specific
Background image of page 7

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

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

This note was uploaded on 04/07/2008 for the course BADM 310 taught by Professor G. love during the Spring '08 term at University of Illinois at Urbana–Champaign.

Page1 / 43

BA310-2-3 Design - BA 310 Organizational Structure II Coordination and Design 1 Reset The Functional Structure Jesse Ventura President Steven Gold

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