The Pros and Cons of Barrier-Free Structure
- Leverages the talents of all employees.
- Difficult to overcome political and authority
- Enhances cooperation, coordination, and
boundaries inside and outside the organization.
- Lacks strong leader
Creating Ambidextrous Organizations - Most firms must be competent and adapt to changing
environment quickly. These firms have to focus on two dimensions simultaneously
Focus on the new adventures or business opportunities
Linking Strategic Reward and Evaluation Systems to: BusinessLevel, and CorporateLevel Strategies
1. Business-Level Strategy: Overall Cost Leadership, and Differentiation
2. Corporate-Level Strategy: Related and Unrelated Diversification
Definitions of other Structures:
1. International Division Structure An organizational form in which international
operations are in a separate, autonomous division. Most domestic operations are kept in
other parts of the organization.
For Senior Managers Salaries are lower than comparable companies, but a significant portion
of total compensation is based on return on stockholder equity. A portion of pretax earnings is
placed in a pool and divided among officers as bonuses that are par
Boundaryless Organizations: Making Them Work Within the framework of an appropriate
organizational design, managers must select a mix and balance of tools and techniques to
facilitate the effective coordination and integration of key activities.
Some of t
Virtual Organization A continually evolving network of independent companies that are
linked together to share skills, costs, and access to one anothers markets.
1. The Virtual Organization differs from the modular type by participating firms that give up
Rewards for Differentiation Professional experts are essential for devising, assessing,
implementing, and continually changing complex product designs.
1. Related to Innovation and Design
Hard to come up with reward for all employees (why?)
In a modular company, outsourcing the non-core functions offers 3 advantages:
1. A firm can decrease overall costs, stimulate new product development by hiring
suppliers with superior talent to that of in-house personnel, avoid idle capacity,
Boundaryless Organizational Designs These are organizations in which the boundaries,
including vertical, horizontal, external, and geographic boundaries, are permeable. Firms with
boundary less Organizational Designs are more open.
Example: GE and UB G