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ORGANISATION AND MANAGEMENT. M. Ingham. Organisational structure. OS is a firm’s Design: Formal role configuration Procedures Governance Control mechanisms Authority Decision-making. S. D. Organisation. C. Organizational design. - PowerPoint PPT Presentation
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ORGANISATIONAND MANAGEMENT
M. Ingham
Organisational structure
• OS is a firm’s– Design: Formal role configuration– Procedures– Governance– Control mechanisms– Authority– Decision-making
Organisation
S
C
D
Organizational design
• Relate units and create organizational contexts propitious to the achievement of organizational objectives and activities– creativity, effectiveness and efficiency
Central dimensions
• Key concepts
– differentiation and integration – specialization and coordination
CENTRAL DIMENSIONS
DIFFERENTIATION
INTEGRATION
SPECIALISATION
COORDINATION
Key Elements
• How to organize the value activities (value chain)– integration or de-integration– network
Organizational design
• Determinants• industry, strategy, technology, production
process,…• size, growth, product range and activities• cultures (national and corporate)• preferences (power) and managerial styles• ...
How do companies grow
Age
Size
ys
large
1 2 3 4 5
creativity
direction
delegation
coordination
collaboration
leadership
autonomy
control
red tape
? ?Evolutions
Revolutions
How companies Grow and Change
Greiner:1998matureyoungsmall
large High-growth Industry
Medium-growth Industry
Low-growth Industry
Evolutions , Revolutions
THE CONTINUUM
SOLAR FUNCTIONAL
SIMPLE SOPHISTICATED
DIVISIONAL
RELATED CONGLOMERATE
HOLDINGMATRIX
PROJECTORGANISATIONAL
DESIGN
STRATEGIC OPTIONS
SPECIALISATION DIVERSIFICATION
INTEGRATION
Types of structures
• “Simple and solar”
• One leader ( founder or small team)) coordinating the activities and functions
• No formal hierarchy and informal communication
Simple- Sun
CEO
Leader-entrepreneur
SALES
PRODUCTION
Functional (Simple and Pure)
• One product line, one distribution channel• Integrated production process• Integrated Flow
RD PROD MARKETING
Functional simple
F in
H r
R D P R O D U C TIO N M A R K E TIN G
C E O
Functional 2
• One dominant line with some secondary products
• Dominant channel • Larger size • Hierarchical with vertical levels
Functional 2
F in \ A c H R
R D
B y p rod u c t
P R O DD O M IN L in e
M A R K E T
C E O
Divisional
• Diversified activities and product lines• Different markets• Different production processes• ...
Divisions (1)
S u p p ort a ctiv it ies
D iv is1
R D P R O D U C T M A R K E T
D IV IS 2 D IV IS 3
C E O
Divisions 2
S u p p ortac tiv it ies
F in , H R ,M IS ,
D IV IS 1 1 D IV IS 1 2
G R O U P 1 G R O U P 2 G R O U P
C E O
MATRIX
RD MAN MKT
Product line 1
BU11
BU 12
Product line2
BU 21
BU 22
…
PROJECT
• “Ad hoc”structure; permanent or not permanent teams– RD, MF, MKT
PROD
MKT
RD
Innovation Project
R&D Manufacturing Marketing
Sequential: linear
Overlapping
R&D
ManMark
NETWORKS
CORE ACTIVITIES
ORGANISATION
THE « ORGANISATIONAL DIAMOND »
Mintzberg,
DIRECTION
PROFICIENCY
INNOVATIONCONCENTRATION
EFFICIENCY COOPERATION
COMPETITION
ORGANISATION: TOWARDS CONFIGURATIONS
Mintzberg,
PROFESSIONAL
ENTREPRENEURIAL
DIVERSIFIED ADHOCRACY
IDEOLOGICAL
POLITICAL
MACHINE
STRATEGY-ORGANISATION
How do companies grow: strategic optionsPRODUCT LINES
PRESENT NEW
MARKETS
PRESENT
NEW
SPECIALISATION EXPANSION
RELATED DIVERSIFICATION
EXPANSION
INTERNATIONALISATION
RELATED DIVERSIFICATION
UNRELATED (CONGLOMERAL)
DIVERSIFICATION
INTEGRATION
How do companies grow: strategic options and organisational design
PRODUCT LINES
PRESENT NEW
MARKETS
PRESENT
NEW
DIVISIONAL (related)
CONGLOMERAL
MULTIDOMESTIC ( PURE)
FUNCTIONAL
FUNCTIONAL II with Geo subsidiaries
SEGM
GEO