Professional Documents
Culture Documents
Effective
Organizational
Designs
chapter 10
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Learning Objectives
10-2
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Learning Objectives
10-3
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Organizational Structure
10-4
Consider . . .
To implement strategy successfully, firms must
have appropriate organizational designs.
How should a firm coordinate internal operations?
And how should a firm integrate its operations with
external parties?
How can these internal & external boundaries be
made both flexible and permeable?
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Organizational Structure
10-5
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Question?
10-6
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Organizational Structures
10-7
Exhibit 10.1
Dominant Growth
Patterns of Large
Corporations
Source: Adapted from J.R.
Galbraith and R.K. Kazanjian.
Strategy Implementation:
Structure, Systems and
Process, 2nd edition.
Copyright © 1986.
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Organizational Structures:
Simple Structure
10-8
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Organizational Structures:
Simple Structure
10-9
Advantages Advantages
Disadvantages Disadvantages
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Organizational Structures:
Functional Structure
10-11
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Organizational Structures:
Functional Structure
10-12
Advantages Disadvantages
Disadvantages
Advantages
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Organizational Structures:
Divisional Structure
10-14
Advantages Advantages
DisadvantagesDisadvantages
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Organizational Structures:
SBU Structure
10-17
Advantages Advantages
Disadvantages
Disadvantages
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Organizational Structures:
Holding Company Structure
10-20
Advantages Disadvantages
Advantages Disadvantages
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Organizational Structures:
Matrix Structure
10-22
Advantages Advantages
Disadvantages Disadvantages
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Organizational Structures:
International Operations
10-25
▪ International ▪ Worldwide
division structure functional structure
▪ Geographic-area ▪ Worldwide product
division structure division structure
▪ Worldwide matrix ▪ Worldwide holding
structure company structure
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Organizational Structures:
International Operations
10-26
▪ A global start-up:
▪ Uses inputs from around the world
▪ Sells its products & services to customers around
the world
▪ Has communication & coordination challenges
▪ Has fewer resources than well-established
corporations
▪ Must use less costly administrative mechanisms
▪ Frequently chooses a boundaryless
organizational design
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Organizational Structures:
Boundaryless Designs
10-27
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Organizational Structures:
Boundaryless Designs
10-28
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Organizational Structures:
Boundaryless Designs
10-29
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Organizational Structures:
Boundaryless Designs
10-31
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Organizational Structures:
Boundaryless Designs
10-32
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Organizational Structures:
Boundaryless Designs
10-33
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Organizational Structures:
Boundaryless Designs
10-34
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Example:
A Virtual Organization
10-35
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Organizational Structures:
Boundaryless Designs
10-38
Benefits
Benefits
Costs Costs
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Organizational Structures:
Ambidextrous Designs
10-39
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Question?
10-40
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Organizational Structures:
Ambidextrous Designs
10-41
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