Podcast
Questions and Answers
In a liberated company model, how does the role of managers fundamentally shift compared to traditional hierarchical structures?
In a liberated company model, how does the role of managers fundamentally shift compared to traditional hierarchical structures?
- Managers transition into coaching roles or may become obsolete, emphasizing employee autonomy and self-direction. (correct)
- Managers retain their authority but collaborate more closely with employees to implement decisions.
- Managers primarily focus on enforcing strict hierarchical controls to maintain operational efficiency.
- Managers act as liaisons between different departments, ensuring smooth communication and resource allocation.
What is the most critical challenge that organizations with functional structures face when dealing with increasing complexity?
What is the most critical challenge that organizations with functional structures face when dealing with increasing complexity?
- Overlooking long-term strategic problems due to a focus on immediate operational issues.
- Maintaining strict task specialization to maximize efficiency.
- Centralizing control to prevent deviations from core competencies.
- Ensuring effective coordination and communication across different functional areas. (correct)
How do divisional structures aim to resolve control problems inherent in functional structures, particularly concerning diverse products or markets?
How do divisional structures aim to resolve control problems inherent in functional structures, particularly concerning diverse products or markets?
- By grouping functions according to specific demands of products, markets, or customers, enabling more tailored strategies. (correct)
- By eliminating functional departments and assigning employees to cross-divisional teams.
- By implementing rigid performance metrics across all divisions to enforce uniformity.
- By centralizing all product and market decisions under a single authority.
What distinguishes matrix structures from traditional organizational designs in addressing new or technically sophisticated products in rapidly changing markets?
What distinguishes matrix structures from traditional organizational designs in addressing new or technically sophisticated products in rapidly changing markets?
How do network structures enhance adaptation in a changing environment compared to more traditional organizational forms?
How do network structures enhance adaptation in a changing environment compared to more traditional organizational forms?
Why might a company choose a matrix structure over a functional or divisional structure when launching a new, technologically advanced product?
Why might a company choose a matrix structure over a functional or divisional structure when launching a new, technologically advanced product?
In the context of organizational design, what is the primary aim of 'boundaryless structures,' and how do they seek to achieve it?
In the context of organizational design, what is the primary aim of 'boundaryless structures,' and how do they seek to achieve it?
When a company transitions from a functional to a divisional structure, what fundamental shift in strategic focus typically occurs?
When a company transitions from a functional to a divisional structure, what fundamental shift in strategic focus typically occurs?
What underlying assumption about organizational dynamics does the liberated company model challenge, and what alternative principle does it emphasize?
What underlying assumption about organizational dynamics does the liberated company model challenge, and what alternative principle does it emphasize?
In what specific scenario would a network structure be most advantageous compared to other organizational structures, such as functional or divisional ones?
In what specific scenario would a network structure be most advantageous compared to other organizational structures, such as functional or divisional ones?
Why might some employees report challenges working in boundaryless organizations, despite the intended advantages of increased flexibility and collaboration?
Why might some employees report challenges working in boundaryless organizations, despite the intended advantages of increased flexibility and collaboration?
What unique control-related challenge does the divisional structure present compared to the functional structure, and how can organizations mitigate it?
What unique control-related challenge does the divisional structure present compared to the functional structure, and how can organizations mitigate it?
How might the implementation of information systems influence the effectiveness of different organizational designs, such as functional, divisional, and matrix structures?
How might the implementation of information systems influence the effectiveness of different organizational designs, such as functional, divisional, and matrix structures?
What characteristic of liberated companies could pose difficulties in highly regulated industries?
What characteristic of liberated companies could pose difficulties in highly regulated industries?
In what way might a functional structure create barriers to innovation, and how could a matrix structure overcome these?
In what way might a functional structure create barriers to innovation, and how could a matrix structure overcome these?
How might the move towards distributed workforces and remote collaboration impact hierarchical structures, specifically regarding organizational communication and employee empowerment?
How might the move towards distributed workforces and remote collaboration impact hierarchical structures, specifically regarding organizational communication and employee empowerment?
What potential drawbacks might arise from the decentralized decision-making in liberated companies, particularly if it leads to inconsistencies or errors?
What potential drawbacks might arise from the decentralized decision-making in liberated companies, particularly if it leads to inconsistencies or errors?
In considering the long-term sustainability of network structures, what is the most crucial factor in maintaining collaboration and value creation among partner organizations?
In considering the long-term sustainability of network structures, what is the most crucial factor in maintaining collaboration and value creation among partner organizations?
In what fundamental way does a boundaryless structure challenge established organizational theories regarding departmentalization, and what implications does this challenge have for traditional management practices?
In what fundamental way does a boundaryless structure challenge established organizational theories regarding departmentalization, and what implications does this challenge have for traditional management practices?
Considering the matrix organizational structure, what implications arise when an employee receives conflicting directives from both functional and product managers, and how should this situation be resolved?
Considering the matrix organizational structure, what implications arise when an employee receives conflicting directives from both functional and product managers, and how should this situation be resolved?
Flashcards
Liberated Company
Liberated Company
A model where employees make decisions without formal hierarchical control.
Flat Organization
Flat Organization
Few or no hierarchical levels, encouraging direct communication and shared decision-making.
Functional Structure
Functional Structure
A design that groups people based on common expertise, experience, or shared resources.
Main challenge of Functional Structure
Main challenge of Functional Structure
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Divisional Structure
Divisional Structure
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Challenge of Divisional Structure
Challenge of Divisional Structure
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Advantage of Matrix Structures
Advantage of Matrix Structures
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Challenge of Matrix Structures
Challenge of Matrix Structures
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Network Structures:
Network Structures:
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Challenge of Network Structures
Challenge of Network Structures
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Boundaryless structures
Boundaryless structures
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Study Notes
- Organisational behaviour and design is part of License 2 (2024-25), Economics and Management, Université Côte d’Azur
Subject Choice for Group Presentation:
- The group presentation subject options include Union Carbide Bhopal Event, Babcock and Wilcox-Three Mile Island Event, and NASA-Columbia Disaster
- Further subject options include BP-Deepwater Horizon, Duralex SCOP Event, and The H&M Marketing Controversy.
- More topics are Southwest Airlines Law, Kodak Survival Strategy, Mattel - Bratz Doll Lawsuit, and Westland/Hallmark Meat Packaging Scandal.
Presentation Guidelines:
- Student groups of 4-5 must prepare a 10-minute presentation based on a case provided
- Each student must participate in order to get maximum points
Presentation Content:
- Part 1 requires a presentation of the organisation (history, type, structure)
- Part 2 requires that the event which made it noticeable/organisational problem is highlighted
- Part 3 requires an explanation of how the organisational problem has been solved
- Part 4 requires suggestions of what to do to have a better ending
Structure Topics:
- Part 1 focuses on organizations and organizational theories
- Part 2 looks at the basic challenges of organizational design
- Part 3 is about designing organizational structures with specialisation and coordination
- Part 4 covers new challenges of organisational design with the development of information systems (3 hours)
Flat Organisation vs Liberated Company
- A liberated company operates without formal hierarchical control, inspired by Isaac Getz and Brian M. Carney whereas flat organisations have few or no hierarchical levels
- Liberated companies have almost complete removal of hierarchy and managers become coaches whereas flat organisations may still have some supervision
- In liberated companies, employees take initiatives and in flat organisations decisions are often collective and may be delegated
- Autonomy is very high in liberated companies as each employee is responsible for their work, whereas flat organisations have high autonomy but with some self-regulation structures
- Liberated companies maximise motivation by eliminating organisational constraints
- Flat organisations make the company more agile by avoiding bureaucracy
- Examples of liberated companies are FAVI, Michelin, Harley-Davidson
- Examples of flat organisations are Spotify, Valve, Gore-Tex
Designing Organisational Structures:
- Section 1 – Traditional organizational designs
- Section 2 – More recent organizational designs (post-1980s)
- Section 3 – Organizational behaviour and coordination mechanisms
- Section 4 – Some empirical illustrations
Functional Structure
- Tasks are grouped based on common expertise, experience, or shared resources
- Advantages include task specialisation, control and creation of a core competence
- The main challenges of functional structure include trade-offs between control and coordination, lack of integration, communication problems, and long-term strategic problems overlooked by top management
Divisional Structure
- Functions are grouped based on specific demands of products, markets, or customers
- Advantages include solving control problems, longer-term growth, more effective human-relations management and increased organisational effectiveness
- The main challenges include communication problems between top and divisional managers, coordination issues between divisions, and high administrative costs
Comparing Structures
- Functional Structure - CEO/President > Vice President Marketing
- Product Structure - CEO/President > Vice President Educational Toys
- Geographic Structure - CEO/President > Vice President North America
- Client-based Structure - CEO/President > Vice President Government Contracts
Matrix Structure
- This structure groups activities by function and product and is implemented when an organization needs to deal with new or technically sophisticated products in rapidly changing markets
- Advantages include enhanced communication between functional experts, stimulation of polyvalent jobs and overcoming the problem of sub-unit orientation
- Main challenges include lack of clear hierarchy and confusion of employees’ roles
Network Structure
- These are formed when an organisation forms agreements or contracts with other organisations to perform specific functional value creation activities
- Advantages include reducing production costs and internal bureaucratic costs whilst enhancing adaptation to a changing environment
- Main challenges include a lack of close interaction between partners and a lack of control
Fluid Organisations
- Boundaryless structures dissolve hierarchy, function, and geography, empowering cross-functional teams to act quickly with customers/suppliers
- Advantages include stimulating innovation and growth in turbulent environments with creativity enhanced by the flat structure
- The main challenge is that hierarchy may not be explicit with recent challenges reported of a hidden layer of powerful management
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