Org. Theory and Design: Chapter 6 (Matching)

Reduced production costs = To the degree that an organization can find network partners that can perform a specific functional activity reliably, and at a lower cost, production costs are reduced. Decentralized control = Because Nike outsources many functional activities, it is able to stay small and flexible. Control of the design process is decentralized to teams that are assigned to develop each of the new kinds of sports and leisure shoes. Organic action = A network structure allows an organization to act in an organic way; an organization can quickly alter its network in response. Mutual adjustment = A considerable level of mutual adjustment is needed to permit the groups to interact so that they can learn from one another and constantly improve the final product.

Complex value-creation process = It is unlikely that a network structure would provide an organization with the ability to control such a complex value-creation process because managers lack the means to coordinate and move the various network partners effectively. Ongoing learning = It would be difficult to obtain the ongoing learning that builds core competences over time inside a company, because separate companies have less incentive to make such an investment. Coordination of activities = Managers must be there to integrate the activities of the groups to make sure their activities mesh well. Trust between groups = There has to be considerable trust between the different groups so they are willing to share their ideas, which is necessary for successful new product development.

Matrix structure = The matrix structure opens up communication between functional specialists and provides an opportunity for team members from different functions to learn from one another and develop their skills. Mul divisional matrix structure = A mul divisional matrix structure is a structure that provides for more integration between corporate and divisional managers and between divisional managers. This structure allows an organization to coordinate activities effectively but is difficult to manage. Hybrid structure = A hybrid structure is the structure of a large organization that has many divisions and simultaneously uses many different types of organizational structure. Network structure = A network structure is a cluster of different organizations whose actions are coordinated by contracts and agreements, rather than by a formal hierarchy of authority.

<p>Matrix structure = Structure in which people and resources are grouped by function and by project or product Product team structure = Combines support functions into product development teams, each supervised by a product team manager Geographic structure = Organizes divisions according to the requirements of different locations in which an organization operates Market structure = Aligns functional skills and competences with the product needs of different customer groups</p> Signup and view all the answers

<p>Managing the corporate-divisional relationship = Mul divisional structure Imposing geographic grouping over basic functional grouping = Geographic structure Aligning functional skills and competences with customer needs = Market structure Coordinating activities between functional and product teams = Matrix structure</p> Signup and view all the answers

<p>Specialists from support functions combined into product development teams = Product team structure Decentralization of control to regional hierarchies = Geographic structure Two-boss employees reporting to both product team manager and functional manager = Matrix structure Creation of a new level of hierarchy, regional managers = Geographic structure</p> Signup and view all the answers

<p>Functional structure = Groups people into separate functions or departments based on common skills and expertise Advantages of a functional structure = Provides people with the opportunity to learn from one another and become more specialized and productive Control problems in a functional structure = The challenge of keeping control of increasingly complex activities as the organization grows and differentiates Purpose of functional structure = To increase the effectiveness of achieving the principal goal by providing customers with high-quality products at competitive prices</p> Signup and view all the answers

<p>Specialization and productivity = Advantages of a functional structure Increasingly complex task requirements = Formation of different functions within an organization Norms and values development = Effectiveness of working closely within a function Coordination challenge = Control problems in a functional structure</p> Signup and view all the answers

<p>Supervision and control = People grouped together by common skills Learning from one another = Advantages of a functional structure Extended time periods working together = Development of norms and values within a function Responding to complex task requirements = Formation of different functions within an organization</p> Signup and view all the answers

<p>Increasing number of functions = Response to increasingly complex task requirements Development of norms and values = Effectiveness in achieving principal goals Learning and specialization = Increased productivity and effectiveness Coordination challenge = Control problems in a functional structure</p> Signup and view all the answers

<p>Communication problems = Reduction in coordination and mutual adjustment among functions Measurement problems = Difficulty in measuring the contribution of each function or product to overall profitability Location problems = Control problem posed by geographic spread within a functional structure Customer problems = Inability to identify and satisfy customer needs, leading to lost sales opportunities</p> Signup and view all the answers

<p>Grouping tasks into separate functions = Foundation of horizontal differentiation Increasing complexity of task requirements = Formation of different functions within an organization Growing number of functions = Response to increasingly complex task requirements Learning from one another = Advantages of a functional structure</p> Signup and view all the answers

<p>Increase in vertical differentiation = Involves increasing the number of levels in the hierarchy Increase in horizontal differentiation = Overlaying functional grouping of activities with another kind of subunit grouping Increase in integration between subunits = Aims to improve coordination and mutual adjustment among functions Centralize support functions at the top = One set of support functions services all the different product divisions</p> Signup and view all the answers

<p>Extended time periods working together = Development of norms and values within a function Common skills and expertise = Grouping people into separate functions or departments Learning from one another = Advantages of a functional structure Supervision and control within a function = People grouped together by common skills</p> Signup and view all the answers

<p>Product division structure = Characterized by centralized set of support functions servicing the needs of all product divisions Mul divisional structure = Each product division is given its own set of support functions, making them self-contained divisions Corporate headquarters staff = Responsible for overseeing the activities of the divisional managers heading up different divisions Functional and market structure = Structure designed to allow a company to operate in many different businesses</p> Signup and view all the answers

<p>Product team structure = Chosen by organizations whose products are very complex technologically or rapidly changing to suit customer needs Centralized support services = Chosen by organizations whose products are broadly similar and aimed at the same market Self-contained divisions = Associated with a mul divisional structure where each product division controls its own value-creation activities Corporate managers = Form an additional level in the hierarchy in a mul divisional structure</p> Signup and view all the answers