UGBA 105UGBA 105Sections 102, 104, 106Sections 102, 104, 106

Week 3Week 3: Organizational : Organizational StructureStructure

In the In the news …news …“Asked why he chose someone from outside the organization, Ford said that wasn't one of the central criteria guiding his decision.

“’It wasn't about inside versus outside. I was more focused on who was the best candidate,’ he told reporters. "Business skills are by and large transferable, especially with someone with an industrial background who's focused on the customer."

AgendaAgenda

1.1. Review: Formal organizationReview: Formal organization2.2. Types of org structuresTypes of org structures3.3. AllentownAllentown4.4. Next week’s coming attractions Next week’s coming attractions 5.5. Team assignmentsTeam assignments

1. Review: Formal org1. Review: Formal org Strategic groupingStrategic grouping: : How work How work

is dividedis divided– FunctionalFunctional– DivisionalDivisional– MatrixMatrix– ProcessProcess– NetworkNetwork– HybridHybrid

1. Review (cont.)1. Review (cont.) Strategic linkingStrategic linking: How work is : How work is

coordinatedcoordinated– HierarchyHierarchy– Mutual adjustmentMutual adjustment– Rules & standardsRules & standards– ““Culture”Culture”

1. Review (cont.)1. Review (cont.) How do you decideHow do you decide: :

ConsiderationsConsiderations– Task interdependenceTask interdependence– Congruence! (environment, informal Congruence! (environment, informal

org, people, etc.)org, people, etc.)

2. Types of structure2. Types of structure

R&D Engineer-ing

Manu-facturing

General Manager

Human resources Sales

ProductA

Product

B

Product C

Functional grouping

CEO

Cars PrefabHouses Electronics

HR Mfg Mkt HR Mfg Mkt HR Mfg Mkt

Product grouping

CEO

North America Europe Asia Pacific

HR Mfg Mkt HR Mfg Mkt HR Mfg Mkt

Regional grouping

Product Z

manager

Engineer-ing

Manufac-turing Marketing

General Manager

Z Eng

Z Mfg

Z Mkt

Matrix organization

Top Management

TeamTeamProcessCoordinators

TeamTeamProcessCoordinators

TeamTeamProcessCoordinators

New product development process

Order fulfillment process

Procurement, logistics process

DesignersCore Firm

Producers

DistributorsSuppliers

Managers

Suppliers Distributors

ITServicesProducers

Producers

Designers

Distributors

Suppliers

Brokers

Full Vertical Integration

Full Network Organization

Networked Firm

HR Services

IT Services

HR Services

Designers Marketers

HR Services

IT Services

Managing process & Managing process & network organizationsnetwork organizations Abandonment of the “manager as Abandonment of the “manager as

engineer” (vertical, mechanistic) engineer” (vertical, mechanistic) model model – Less hierarchical command & controlLess hierarchical command & control– Fewer rules, standards, and proceduresFewer rules, standards, and procedures– Less detailed and rigid division of labor Less detailed and rigid division of labor – No more vertical career No more vertical career

Embrace of “manager as leader” Embrace of “manager as leader” (horizontal, organic) model (horizontal, organic) model – Teamwork (coordination through Teamwork (coordination through

mutual adjustment) mutual adjustment) – Networking and political maneuvering Networking and political maneuvering – Leadership and cultureLeadership and culture– EntrepreneurialEntrepreneurial

4. Allentown 4. Allentown MaterialsMaterials

5. Recap5. Recap Define and describe the different Define and describe the different

types of organizational structures types of organizational structures Understand the pros/cons and the Understand the pros/cons and the

tradeoffs made in eachtradeoffs made in each Identify some of the considerations Identify some of the considerations

managers weigh when making managers weigh when making decisions about structuredecisions about structure

5. Wrap-up/Next week5. Wrap-up/Next week Did everyone sign in?Did everyone sign in? For next week, prep the case For next week, prep the case

“The Team that Wasn’t”“The Team that Wasn’t” Be sure you’re doing the readingsBe sure you’re doing the readings

TEAMS - 102TEAMS - 102 Team 1Team 1

– Minette Minette – Jessica Jessica – Vivian Vivian – RichardRichard

Team 2Team 2– KatherineKatherine– Eric Eric – Roger Roger – Melanie Melanie

Team 3Team 3– BrandonBrandon– KevinKevin– AngelaAngela– AlfonsoAlfonso

Team 4Team 4– Angelo Angelo – Stephanie Stephanie – Paul Paul – YuetYuet

Team 5Team 5– DianaWDianaW– DeanDean– Kei ManKei Man– SepidehSepideh

Team 6Team 6– LauraLaura– MargarethaMargaretha– Jennifer Jennifer – Michael Michael

Team 7Team 7– AnthonyAnthony– Jean Jean – Samuel Samuel – Veronique Veronique

TEAMS - 104TEAMS - 104 Team 1Team 1

– Jennifer Jennifer – Keng WaiKeng Wai– AlexanderAlexander– Ruoh-WeiRuoh-Wei– MichaelMichael

Team 2Team 2– ClaudiaClaudia– Verena Verena – Sarah Sarah – Sofia Sofia – Ha KyungHa Kyung

Team 3Team 3– JasonJason– RosalvaRosalva– AngieAngie– Hannah Hannah – KatherineKatherine

Team 4Team 4– Claire Claire – Erick Erick – HamedHamed– Josephine Josephine – IanIan

Team 5Team 5– DanielleDanielle– Seema Seema – RamonRamon– Louise Louise – JosephJoseph

Team 6Team 6– AlbertAlbert– George George – Wing YanWing Yan– KazumaKazuma– Wang Wang

Team 7Team 7– Brian Brian – MaryanneMaryanne– AntonAnton– Reilly Reilly – Erica Erica

Team 8Team 8– Terri Terri – Nicholai Nicholai – James James – EdwardEdward– ZarinaZarina

TEAMS - 106TEAMS - 106 Team 1Team 1

– SaminSamin– Jennifer Jennifer – Kirstin Kirstin – KatyaKatya

Team 2Team 2– AndyAndy– Ethan Ethan – Christopher Christopher – Brian Brian

Team 3Team 3– IanIan– WayneWayne– David David – JunJun– TracyTracy

Team 4Team 4– Cindy Cindy – Alex F.Alex F.– JonanthanJonanthan– JosephineJosephine– BenBen

Team 5Team 5– Martine Martine – Alex H.Alex H.– YanivYaniv– Jaime Jaime – CherieCherie

Team 6Team 6– Anthony Anthony – Andrew Andrew – HamedHamed– Sagar Sagar – NicholasNicholas

Team 7Team 7– Douglas Douglas – PavPav– ShirleyShirley– YangYang– JinJin

Team 8Team 8– Maria Maria – Priya Priya – Elizabeth Elizabeth – Amy Amy – ShiyuanShiyuan

All problems involve one or more disconnects, or All problems involve one or more disconnects, or incongruenciesincongruencies, , between 4 major components of organizations:between 4 major components of organizations:

In turn, solutions involve the analytic - and creative - achievement of congruence.

Input Environment(Competition, change)

Resources(munificence)

History (age, conditions at founding)

Output

SystemsUnit

Individual

Informal Org(culture, politics

leadership, networks)

Tasks (technologie

s, work flows)

People(ability, skills,

motivation, biases)

Formal Org (job titles,

depts, reporting

hierarchy, IT & HR

systems)

The Congruence ModelThe Congruence Model

Strategy (diversification innovation)

EmailTeleconferencing

GroupwareKnowledge management

ERP

Is information technology the answer?

It facilitates teamwork and networking

IT and the manager’s IT and the manager’s jobjob FolkloreFolklore: IT has : IT has

made organizations made organizations flatter, leaner, more flatter, leaner, more flexible, more flexible, more virtual, more global, virtual, more global, less integrated, less integrated, empowered people, empowered people, reduced need for reduced need for rigid control systemsrigid control systems

FactFact: The effects of IT : The effects of IT have been complex & have been complex & contradictory. It has also contradictory. It has also disempowered disempowered employees by employees by intensifying surveillance, intensifying surveillance, increased written increased written communication and some communication and some forms of standardization, forms of standardization, created information created information overloads and shortened overloads and shortened attention spans attention spans