Business Structure PDF

I. DEFINITION AND ELEMENTS OF BUSINESS STRUCTURE never stop daring CHAPTER OUTLINE I. Definition and elements of business structure A. Definition B. The fundamental elements that define the structure C. Factors that influence the choice of a structure II. The main structures A. T...

I. DEFINITION AND ELEMENTS OF BUSINESS STRUCTURE never stop daring CHAPTER OUTLINE I. Definition and elements of business structure A. Definition B. The fundamental elements that define the structure C. Factors that influence the choice of a structure II. The main structures A. The simple or entrepreneurial structure B. The functional structure (Taylor, 1881) C. The divisional structure D. The matrix structure (Galbraith, 1970) E. The project structure F. The extended enterprise G. And tomorrow the liberated company? 5 I. DEFINITION AND ELEMENTS OF STRUCTURE A. Definition Structure can be defined as: The set of mechanisms by which a company Distributes (who does what) Organizes (how we work together) Coordinates & (performance) Controls (results) its activities in order to achieve its strategic objectives. An organizational chart is used to understand some of the formal elements. 6 I. DEFINITION AND ELEMENTS OF STRUCTURE A. Definition The organization chart: schematically represents the distribution of activities and the relationships that exist between the actors. Vertical reading of the organization chart allows you to understand hierarchical links in the company. Horizontal reading highlights functional links between employees. 10 I. DEFINITION AND ELEMENTS OF STRUCTURE A. Definition Example : The human resources director has functional relationships with other departments (administrative personnel management) and a hierarchical position in relation to the members of the HR department. 11 I. DEFINITION AND ELEMENTS OF STRUCTURE A. Definition The shape of the organization chart allows you to better understand the company: A vertical organizational chart (pyramid with a large number of levels) reveals a very hierarchical structure. A flat organizational chart (few intermediate levels) reveals a flexible structure. Boundaries : the organization chart describes the organization but does not reflect informal relationships and all real power relationships. 12 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure The design of a business structure imposes choices in terms of: Work division Distribution of authority Degree of centralization Coordination 13 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure 1. Division of tasks (or specialization) This is the distribution of activities between different entities of the company. Each actor is assigned one or more tasks in the company. 14 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure There are 2 types of specialization: Horizontal specialization reveals the width of the position: the number of tasks it contains. Vertical specialization reveals the depth of the position: the degree of control that the incumbent exercises over his work (execution, control, etc.). 15 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Specialization Enlargement Horizontal Ex. Specialization in assembly Ex. Doctor that also manages (Doing the task) Ex. Specialization by function (HR, her office and does the Marketing,..) accounting. Ex. A sports team Division of Labor (Smith) Focus and get good at one task Vertical Only perform the task Perform task (Administering (ex. take notes in class) Fix objectives the task – define how Expert focuses on act of doing (not Control process work should be done) managing, controling, etc.) Define standards (ex. learn through projects) 16 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure No Vertical Specialization Vertical Specialization No Horizontal Specialization Horizontal Specialization A General Practictioner A Restaurant Manage Manage Administrate Administrate Supplies Heal Accounting Cleaning Reception Cook Mgmt patients 17 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure It improves work productivity It limits flexibility and opposes versatility (repetitive tasks). Staff. It facilitates staff training. Monotony of tasks who can create a It simplifies the identification of disinterest for work, a lack of involvement responsibilities. and demotivation. It can increase job security for It compartmentalizes functions – silos employees (hard to replace) emerge May decrease employability of employee (few job opportunities, less flexible) 18 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure 2. The distribution of authority It determines the attribution of rights attached to a hierarchical position and how responsibilities are shared. The line of authority or reporting chain helps employees answer the following questions: Who should I contact if I encounter a problem? Who do I report to? 19 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Authority is linked to the place occupied in the organization and takes no account of the personal characteristics of the manager. Example: “the king is dead, long live the king”: anyone who is a king exercises the rights specific to this title. Authority belongs to the position and therefore to its new occupant. The granting of rights also requires assuming one's obligations and responsibilities: the holder of authority must be held responsible for the results obtained. 20 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Authority can take two forms: Hierarchical authority: which allows a superior to direct the work of an employee. Functional Authority: authority assigned to certain positions and intended to relieve, assist and advise holders of hierarchical authority. 21 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure 3. Centralization or decentralization? Centralization means that the Decision-making power is concentrated at the top level of the hierarchy. In this type of structure, the hierarchical line is small (or even non- existent). In a highly centralized structure, top management makes most of the key decisions in the organization, with very little input from lower-level employees (ex. Young startups) 22 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Clear chain of command (no Employees do not participate in the confusion about who should make decision-making process (decrease in the decision). performance and demotivation). Speed of decision-making. Rigidity of work and control from superiors. Quick implementation. Less worker loyalty. 23 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure When a company grows, it is often necessary to decentralize decisions: delegate decision-making power to lower levels to gain responsiveness. There are 2 types of decentralization: Vertical : Power is distributed along the hierarchical structure. Decisions are made at lower levels. Horizontal : Power is attributed to functions. Decisions are made be experts. 24 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Decisions taken as close as Increase in the number of strata which possible to the action complicates management (costs + poor circulation of information, etc.) Faster adaptation to market developments The transfer of responsibilities can create Optimal exploitation of friction between employees stakeholders’ skills (demotivation for some)... Motivation of actors 25 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure 4. Coordination mechanisms The division of labor between company stakeholders requires the establishment of coordination mechanisms in order to establish coherence in all actions. Henry Mintzberg, distinguishes 5 coordination mechanisms : 26 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Mutual adjustment: it consists of communicating directly between employees without having to resort to a hierarchy. Coordination is based on informal communication (very common in VSEs, SMEs, or in companies that operate in project mode). 27 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Mutual Adjustment Advantages Disadvantages Simple May be difficult in large firms and requires Easy in small firms « integrators » to coorindate across activities Increases flexibility or « boundary spanners » that share Good for non-routine tasks information across activities/functions Good for simple AND complex tasks Time consuming Works well when people can easily adapt to Heterogeneity of solutions across others organization Can result in engagement of participants Requires strong ability to adapt It's especially useful when nobody really All stakeholder needs may not be knows ahead of time how to do what they're considered doing. Not effective if mental models are very different 29 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Direct supervision: coordination is done by a person who gives instructions and who controls the achievements (common in medium-sized, highly hierarchical companies). 30  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure important/not important We see this emerge as organizations Role clarity is _______________________. less / more complex and agreement on ways forward becomes become ____________ DIRECT SUPERVISION easy / hard Even when the line of command or authority is clear, managers ___________. few / many people which may result in ___________ often supervise ____________ few / many layers of management. The organization’s reaction time to customer needs will be slow / fast This is seen when _____________ _________. weak / strong heirarchies exist and people are comfortable / not comfortable ___________________________ giving or receiving orders. This can result in increased /decreased learning by individual contributors. ____________________  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Direct Supervision Advantages Disadvantages Role clarity is required – who does what is clear There are limits on how many people you can As complexity of organization evolves and manage – so levels of managers are required agreement on how to advance becomes tough, A slow process that decreases reaction time direct supervision will be required Not everyone is comfortable either telling For Henri Fayol (early 20th century) this was the people what to do or receiving “orders” best mechanism of control – formal chain of Potential for decreased learning through error command Good when authority is clear Effective where strong hierarchies (ex. Medium sized companies) exist Reward and coercive power can also be used One decider = one way of doing things 32 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Standardization of processes and work: consists of defining the tasks to be carried out, the order in which to carry them out and how to carry them out (widely used in large companies where it is necessary to rationalize the work). 33  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure are / are not easy to describe, standardization of work can be When tasks ____________ TANDARDISATION OF PROCESS AND WORK lower /higher levels of stress. This is good for used, resulting in ______________ experienced / new employees. It can ________________ _________________ increase/decrease risk of errors. increase/decrease costs vs direct supervision. Standardization of work may __________________ fewer/more errors, there Although the specific task may be completed with ____________ less/more may be __________concern of how well later process tasks by others are little / sufficient room for completed. Standardization of work leaves _______________ increase/decrease its effectiveness in some deviations, something that may ________________ situations (for example in solutions selling – which is very ambiguous).  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Standardization of Processes and Work Advantages Disadvantages When activities are too complex or numerous Not good in ambiguous situations (solution for direct supervision but understood selling) Good for simple and routine tasks that can be Not possible for some complex tasks that can’t described easily be described (where tacit knowledge is Decreases stress of worker used) Easy follow and eventually use for new No room for maneuvering/adjusting to the employees (ex. Like IKEA instructions) situation – people will avoid deviating when Decreases risks of poor execution they “should” No direct supervision required (saves costs) Requires that task can be explicitly defined No need to communicate with others to know Decreased interest in quality impact of next what to do steps 37 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Standardization of results: consists of defining a performance and achievement objective (widely used in international companies). 38  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure increase/decrease Standardization of results can __________________autonomy of workers and TANDARDISATION OF RESULTS increase/decrease self intititive. Outcomes or results __________________ ________________ must be /may not be does / does not require that people measureable to be effective. Obvioulsy this _____________ do / do not __________want low/high to take responsibility and that expertise is __________. However, because the focus is on the results, people may do things that decrease / increase personal results at the expense of overall organizational __________________ may / may not performance. Also, empoyees ______________be motivated to go beyond fixed « hard » outcome targets.  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Standardization of Results Advantages Disadvantages Opens up initiative and autonomy Not applicable to all – people have to be ready Measurable (makes management easier) to define how work is done (responsibility) Good for making connections/interface with Assumes some degree of expertise (people need next steps of a process (when you have to know how to execute tasks and reach the synchronized interdependence – the output of goal) one task is the input for the next) Risk of « doing whatever it takes » to achieve the goal – risk of creating problems for others (ex. achieve sales objectives by lying about product – results in decreased loyalty in long term) Once goal is achieved, maybe no interest to ‘do more 40 I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Standardization of skills specifying the training required for tasks (widely used in companies where the knowledge is specific: medical field, law firms, etc.). 41  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure skill / output Standardization of skills requires _____________validation and that TANDARDISATION OF SKILLS ___________________ employees / employers maintain certification as skills evolve – something often easy /tough ______________to implement for employees and organizations. It is OK / dangerous __________________ to consider that skills are certified « for life ». Having a certificate ______________guarantee does / does not effective application or skill execution. It easy / hard is realtively ________________to deploy across large organizations. Employees must / do not need to _______________________ have the desire and the ability to self manage the activity.  I. DEFINITION AND ELEMENTS OF STRUCTURE B. The fundamental elements that define the structure Standardization of skills Advantages Disadvantages Assumes coherent and standard skill certification Certificaton processes may not update as quickly or validation as needs progress Employees have to maintain certification – so Many certifications are « lifelong » – and skills are always updated competence can be lost over time (does a Transparency of requried skills certificate obtained 20 years ago say anything Easy to deploy across a large organization about the skill level today) – may need to validate skill level again. Does not garantee effective use of skill set (execution) (knowing what to do doesn’t mean it is actually done) Assumed desire and capability of worker to self- manage the activity 43 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure There is no single, ideal structure. Many factors can influence the way a company is organized: these are called contingency factors. Example : 1) Age : a young company often has a simple structure with few hierarchical levels. The older a company is, the more formalized and complex the structure will be. 44 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure 2) Size : the larger the company , the more specialized the tasks, the more differentiated the units, the more elaborate the structure. 45 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure 3) The technical system : The standardization of production pushes the adoption of mechanistic structures, centralized and rigid. The need for innovation pushes the adoption of organic structures, decentralized and flexible. 46 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure Mechanistic - Most common structure - Typically used in a manufacturing environment - Bureaucratic - Little interaction vertically - Status is linked to position and title - Specialized employees tend to work separately on their own narrowly defined tasks defined by their superior - Employees use formalized procedures and processes - Written communication dominates 47 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure Organic - Significant interaction is needed across functions to perform effectively - Decision making is often shared - Teams, groups are used and responsiblities are shared - Vertical and horizontal communications are prevalent - Easily adapt to changing context - Status is linked to skills and aptitude 48 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure Mechanistic Organic Coordination Procedures, Direct Results, skills Span of Control Narrow Wide Specialization High Low Distribution of Authority Strong Line Mix (Dotted line) Degree of Centralization High Low Height (chain of command) Tall (long) Short (short) 49 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure Mechanistic Organic Business environment Stable, Certain Uncertain Input required to take effective decisions One or few people Many people Relations of functional activities independent dependent Required speed of adaptation slow fast Competition Low rivalry High rivalry Changing needs of stakeholders Low (low variance) High 50 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure 4) The environment : the structure must adapt to external and internal influences (globalization, digitalization, demand for quality and faster delivery, mentalities, social relationships). In an unpredictable environment, a flexible structure must be favored. 51 I. DEFINITION AND ELEMENTS OF STRUCTURE C. Factors that influence the choice of a structure 5) Strategy : the relationships between strategy and structure are reciprocal. When a company changes strategy, the structure of the company is often modified (e.g. if the company decides to outsource one of its functions the structure evolves). Structure can also influence strategy (e.g. an organic structure favors the diversification strategy. Conversely, a mechanistic structure which implies stability and efficiency is better suited to a cost domination strategy). 52 II. THE MAIN STRUCTURES never stop daring II. THE MAIN STRUCTURES A. The simple or entrepreneurial structure Most businesses starting out adopt a simple structure: The management of the company is heart of the organization. It is related to the whole of the actors and holds all powers. 54 II. THE MAIN STRUCTURES A. The simple or entrepreneurial structure ADVANTAGES DISADVANTAGES Low specialization of work The functioning of the business depends on Lack of formal rules and procedures: the personality and skills of the business coordination occurs through mutual owner. adjustment She can be overwhelmed and fail to A sharing of responsibilities and a climate of coordinate and control the activity of trust employees. Low cost operation She may lack skills in some areas. Flexibility and the ability to adapt to changes If she encounters problems, the information and decision-making center disappears with him. 55 II. THE MAIN STRUCTURES B. The functional structure When the company develops it adopts a so-called functional structure : Related or similar tasks are grouped within functions (marketing, production, sales, accounting, etc. ) and supervised by a director. In France, almost one in two companies has a functional structure (48%). It is very present in small companies (especially single-product companies). 56 II. THE MAIN STRUCTURES B. The functional structure 57 II. THE MAIN STRUCTURES B. The functional structure ADVANTAGES DISADVANTAGES Provides for a high degree of specialization Isolation of departments from each other (Taylor) since they tend to form “silos,” Simple and straightforward reporting system Closed mindsets (diluted responsibility - within departments concern for one’s department) Intra-functional communication is easy (same Poor communication across departments, skills and “language”) Slow decision-making and poor coordination Offers economies of scale of tasks across departments Not difficult to scale if and when the Competition for power and resources organization grows. Monotony (routine tasks) Direct supervision of tasks 58 II. THE MAIN STRUCTURES B. The functional structure Advantages : The specialisation (basic principle of the Taylorian conception : Organization Scientist of Work ). A strong hierarchical line. Coordination is done from the top through direct supervision ( formal instructions, strict procedures, control of compliance with procedures, etc.: centralized and pyramidal structure). Communication is facilitated within units because members share the same skills. 59 II. THE MAIN STRUCTURES B. The functional structure Limits : Lack of flexibility and relative rigidity : slowness in decision- making depending on the length of the hierarchical line. Routine tasks Partitioning between services Poor flow of information Diluted responsibilities : each actor will tend to favor their function to the detriment of the overall coherence of the company. 60 II. THE MAIN STRUCTURES C. The divisional structure When a company develops several activities (diversification) it adopts a divisional structure : It is divided into specialized divisions (units): By Products / Services Regions / Sales areas Types of customers / Markets In France, 22% of companies have a divisional structure. Ex. Engie is divided into divisions: natural gas transport, gas distribution, liquefied natural gas terminals and natural gas storage. 61 II. THE MAIN STRUCTURES C. The divisional structure In this structure the general management: Develop the overall strategy Monitors divisional performance Distributes resources between divisions Provides common services (legal, etc.) However, each division is autonomous: it has its director and brings together most of the resources (human, infrastructure, etc.) necessary for its activity. Divisions often operate on a functional model and standardization is the preferred mechanism for coordinating activities. 64 II. THE MAIN STRUCTURES C. The divisional structure ADVANTAGES DISADVANTAGES Customer contact and service can be quicker Divisions can easily become isolated and Proximity of divisions to their market insular from one another – eventual (responsiveness). competition Decentralized decision-making means that Incompatibility of systems (technology, headquarters does not have to micromanage accounting, advertising, budgets) can occur, all the divisions. which creates a strain on company strategic Flexibility of the company in the context of goals and objectives. (coordination) organizational changes (integration or Job or resource redundancy, (many people in elimination of a division). organization doing same thing) diseconomies Coordination within a divisional grouping is of scale easier. Different systems, such as accounting, or Everyone can more easily know their finance, may suffer from poor and infrequent responsibilities and accountability communication and coordination of 65 expectations enterprise mission, direction, and values. II. THE MAIN STRUCTURES C. The divisional structure Advantages : Proximity of divisions to their market (responsiveness). Flexibility of the company in the context of organizational changes (integration or elimination of a division). Management can optimize the distribution of resources between divisions ( economies of scale resulting from the centralization of part of the support functions). 66 II. THE MAIN STRUCTURES C. The divisional structure Limits : Risk of dispersion of resources between divisions ( diseconomies of scale : risk of redundancies in positions and activities: purchasing, finance, accounting, etc.). Risk of conflicts and coordination difficulties between divisions which may find themselves in competition. 67 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) The matrix structure is adopted when a segmentation criterion (function or product) is not sufficient to organize the activities. In this structure, we juxtapose 2 segmentation criteria. It combines the advantages of structures: Functional (one specialist per function) and Divisional (one specialist per division) It is particularly suitable for large multi-activity and / or multi- market companies. 68 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) This structure combines the advantages of structures: Functional (one specialist per function) and Divisional (one specialist per division) Each employee therefore has 2 superiors (duality of command): a functional head (permanent) and a divisional manager (project manager who can evolve according to needs). 69 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) Boeing was one of the first companies to adopt this type of structure. The work teams belong to both: A specialty : wings, guidance system… And to their program department corresponding to the type of aircraft: 727, 737, 747… 70 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) 71  II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) Product or Project Dimension 72 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) It is based on a principle of dual command/reporting: each employee has 2 superiors: One of the often referred to as “dotted line” management as it is probably weaker) Breaks rule of “unity of command” 73 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) There are 3 types of matrix structures , giving more or less authority to the department head and the project manager: The strong matrix (the project manager holds a greater part of the decision-making power compared to the department head). The balanced matrix (authority is shared between the department head and the project manager). The weak matrix (the project manager has less authority compared to the department head). 74 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) ADVANTAGES DISADVANTAGES It promotes decentralization, the circulation of information, Risks of conflicts relating to the distribution of decision- participation and motivation. making power. Personal development Power struggles between functional and product managers that may have different goals It is scalable and adapts flexibility to environmental and organizational changes: entire sections of the organization A risk of role confusion. Report to who? Priorities? are born and die with products or projects. Team members from different functional areas may find it Synergy effects through the mobilization of specialized skills difficult to work together. and transversality within the company. Makes control and coordination difficult. Efficient use of resources (resources should flow to where Critical skills (ex. negotiation) required of managers they are most valued) Teamwork – increase innovation – pooled skills. Sense of ownership can improve productivity. Use conflict resolution (product vs function) as a source of improvement 75 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) Advantages : It promotes decentralization, the circulation of information, participation and motivation. It is scalable and adapts to environmental and organizational changes : entire sections of the organization are born and die with products or projects. Synergy effects through the mobilization of specialized skills and transversality within the company. 76 II. THE MAIN STRUCTURES D. The matrix structure (Galbraith, 1970) Limits : Slow decision making Risks of conflicts relating to the distribution of decision-making power. A risk of confusion in the hierarchy of priorities. The matrix structure is therefore complex and makes control and coordination difficult. In France, 25% of companies have a matrix structure. 77 II. THE MAIN STRUCTURES E. Project structure The project structure (team structure) is based on the occasional creation of teams intended to initiate and implement time-limited projects. Example: launching new products, improving quality, reducing costs, customer satisfaction, etc. 78 II. THE MAIN STRUCTURES E. Project structure Organization by projects works very well in a company that has adopted a matrix-type structure. Examples of companies using this structure: NASA, Google, start-ups, advertising agencies, consulting firms, etc. 79 II. THE MAIN STRUCTURES E. Project structure ADVANTAGES DISADVANTAGES Very flexible structure perfectly suited to Lack of consistency between projects changing environments. Poor combination of individual skills within The role of managers in this type of project teams organization is to act as a facilitator, mentor The permanent dissolution of teams can and coach. They support the teams and hinder the accumulation of knowledge... provide the necessary resources to get the job done efficiently. 80 II. THE MAIN STRUCTURES E. Project structure Advantages : Very flexible structure perfectly adapted to changing environments. The role of managers in this type of organization is to act as a facilitator, mentor and coach. They support teams and provide the necessary resources to accomplish the work efficiently. Motivation of employees. 81 II. THE MAIN STRUCTURES E. Project structure Limits : Lack of consistency between projects. Poor mix of individual skills within project teams. The permanent dissolution of teams can hinder the accumulation of knowledge… In France, 6% of companies operate in project mode. 82 II. THE MAIN STRUCTURES F. The extended enterprise The rise of ICT to give rise to new forms of organizations: 1. The unstructured company (boundaryless organization ) : Organization which is not determined by boundaries linked to a predefined structure. The president of General Electric, Jack Welch was the first to speak of a destructured company to improve performance (Work-out program). We eliminate: horizontal boundaries (between departments) and vertical boundaries (between hierarchical levels) The external boundaries between the organization and its customers, suppliers and other stakeholders. 83 II. THE MAIN STRUCTURES F. The extended enterprise 2. The virtual company: It is made up of a small core of permanent employees supplemented by external experts who are recruited temporarily depending on current projects. By working with independent contractors: the company benefits from a network of skills without having to endure administrative burden and structural complexity. 84 II. THE MAIN STRUCTURES F. The extended enterprise 3. The network organization: is based both on its own collaborators and on a network of external members ( suppliers, transporters, financiers, competitors, etc. ). The units remain independent of each other but are linked by partnership and contractual relationships. The network business has no defined border. Its size and number of units fluctuate depending on the projects developed. 85 II. THE MAIN STRUCTURES F. The extended enterprise Advantages : Pooling of skills Pooling of costs It is an evolving structure : the partners change depending on the projects. 86 II. THE MAIN STRUCTURES Organisational Complexity Environmental Uncertainty 87 II. THE MAIN STRUCTURES G. And tomorrow the liberated company? The objective is to put people at the heart of the company's operations. The principles : Let employees take individual initiatives rather than following directives imposed by their superiors. The hierarchy is removed : the pyramidal hierarchical structure is replaced by a flat structure where each employee directs themselves or organizes themselves into small teams (controls and surveillance are a thing of the past). 88 II. THE MAIN STRUCTURES G. And tomorrow the liberated company? Advantages : Employees are more productive and efficient : by improving their quality of life , their well-being at work and their personal involvement , employees are more motivated. Internal cohesion is stronger : by highlighting collaborative work and collective intelligence , employees form a strong and united collective. 89 II. THE MAIN STRUCTURES G. And tomorrow the liberated company? The organization becomes more agile : decision-making is faster and the structure can adapt almost instantly to changes in the markets. The company becomes more innovative : the autonomy of the teams allows everyone to express their ideas and take initiatives without going through months and months of internal research. 90 II. THE MAIN STRUCTURES G. And tomorrow the liberated company? Limits : French employees are not ready : the pyramid hierarchy is strongly anchored in the culture of French companies. A risk of anarchy An increase in pressure : with the increase in everyone's responsibilities there is increased stress and the risk of burn-out. 91 CONCLUSION There is no ideal structure. A structure is effective when it adapts to a particular situation. Organizations are therefore not fixed in a structure. They constantly evolve and adapt (in a more or less brutal way). 92