Scribd
Upload
39 views

Corporate Strategy Organization Structure: Sebastian Spaeth Organization: Zeynep Erden

This document discusses organizational structure and its dimensions. It defines organizational structure as the formal reporting relationships, procedures, controls, and decision-making processes in a firm. The key dimensions of organizational structure discussed are specialization of activities, standardization of procedures, formalization of documentation, centralization of authority, and configuration of role structures. Different forms of organizational structure are also presented, including U-form, M-form, matrix organization. The document notes that organizational structure and strategy have a reciprocal relationship, with structure following strategy.

Uploaded by

dukomaniac
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
39 views

Corporate Strategy Organization Structure: Sebastian Spaeth Organization: Zeynep Erden

This document discusses organizational structure and its dimensions. It defines organizational structure as the formal reporting relationships, procedures, controls, and decision-making processes in a firm. The key dimensions of organizational structure discussed are specialization of activities, standardization of procedures, formalization of documentation, centralization of authority, and configuration of role structures. Different forms of organizational structure are also presented, including U-form, M-form, matrix organization. The document notes that organizational structure and strategy have a reciprocal relationship, with structure following strategy.

Uploaded by

dukomaniac
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 35

Corporate Strategy Organization Structure

Sebastian Spaeth <[email protected]> Organization: Zeynep Erden

Where we left off:Diversification


It is a growth strategy, associated with the granu ating strat. !nso"" #atri$, and c oseness %easures &i'ersi"ication &iscounts 2 &i%ensions "or (ategorizing
(oncentric, )orizonta , *ertica , (ong o%erate &e"ensi'e, O""ensi'e

+ort"o io #anage%ent
2

Overview
- Organizationa Structure

&e"inition &i%ensions (onte$tua *ariab es

- Organigra%s - .or%s o" organizationa Structure

/0.or%, #0.or% 1cooperati'e, co%petiti'e2, )0.or%, 30.or%, #atri$ organization

#atri$ organization: !d'antages, disad'antages


,

Organizational Structure (1)


- 5Organizationa structure is the %ost inhu%an thing
e'er in'ented.6 07ico as )aye8, (hair%an Swatch 9roup 1:ay or, ;<<,,2

Organizational Structure (2)


5&e"ines the "ir%>s "or%a reporting re ationships, procedures, contro s, and authority and decision %a8ing process.6

(an support or resist an organization>s strategy. It is a critica e e%ent o" a strategy i%p e%entation process.

It is not co%p ete y captured in an organigra%


=

Organizational structure ( )
Strategy and Structure ha'e a reciproca re ationship. 5Structure "o ows Strategy.6 1(hand er, ;<?22

Di!ensions of organizational structure


Structuring o" !cti'ities:
Specia ization o" acti'ities Standardization o" procedures .or%a ization o" docu%entation

(oncentration o" !uthority


(entra ization o" authority (on"iguration o" ro e structure

Specialization of activities
Is concerned with the di'ision o" abor in the wor8" ow 5Specia ist6 those who per"or% on y a speci"ic tas8 &i%ensions:
7u%ber o" specia ists, &egree o" ro e specia ization

Stan"ar"ization of #roce"ures (1)


!re there ru es that co'er a circu%stances and app y in'ariab yB

Ill be happy to give you inovative thinking.What are the guidelines?


<

Stan"ar"ization of $oles (2)


&egree to which organization prescribes ro e de"inition D Eua i"ication, %easures ro e per"or%ance &egree to which Fob tit es and sy%bo s, rewards are standardized

;C

%or!alization of "ocu!entation
- )ow "ar are co%%unications and procedures in an
organization written down and "i edB

- State%ents o" procedures, ro es, etc.

;;

Centralization of authority
(oncerns the ocus o" authority to %a8e decisions a""ecting the organization.

;2 .or%a or institutiona authority 22 +ersona authority 1due to persona ity or e$pertise2

(ontro o" resources 1%oney, peop e, %ateria 2 (ontro o" acti'ities 1wor8" ow2
;2

Configuration of role structure


- (oncerns the authority structure, ie re ations between
superiors and subordinates in an organization.

- span o" contro - *ertica span o" contro - (riteria "or seg%entation - G o" Hobs in 'arious seg%ents
;,

%le&i'ility
- E$presses changes in the organizationa structure
per ti%e unit

- (an be %easured in no. o" changes, speed o"


changes, continuous or in batches

;4

$eorganizing
IJe trained hard but it see%ed that e'eryti%e we were beginning to "or% up into tea%s we wou d be reorganized. I was to earn ater in i"e that we tend to %eet any new situation by reorganizing and a wonder"u %ethod it can be "or creating the i usion o" progress, whi e producing con"usion, ine""iciency and de%ora isation.I 1(har ton Ogburn, ;<=@2

;=

Conte&tual varia'les
- Origin D )istory - Ownership D (ontro - Size - (harter - Kocation - Lesources - Interdependence
;?

(ypology of organizations
- wor8" ow bureaucracy - personne bureaucracy - "u bureaucracy - non0bureaucracy

;@

Organigra!
- Lepresents part o" the organizationa structure. :he
chart usua y shows the units and subunits showing authority andMor reporting re ations.
C)O

Sales

*anufacturi ng

$+D

;A

(ypical )volution of co!panies


- Si%p e Structure - .unctiona Structure 1/2 - #u tidi'isiona Structure 1#2

;<

,nitary for! (,-%or!)


Organized a ong "unctiona ines

C)O

Sales

*anufacturi ng

$+D

2C

,nitary for! (,-%or!): .ariant /


Opti%ized "or (ost Keadership

C)O

(entra ize d s t a ff

Sales

*anufacturi ng

$+D

2;

,nitary for! (,-%or!) .ariant 0


Opti%ized "or &i""erentiation Strategy

C)O Prod. R&D *ar2etin g

Sales

*anufactur ing

1$
22

*ulti-"ivisional for! (*-%or!)


- Nuasi0autono%ous operating di'isions - Organized a ong +roduct, brand or geographica
ines
C)O Staff

,S

)urope

/sia3/fric a
2,

24

Opti!al "ivizionalizing in the *-%or!


(riteria:
Identi"ication o" separab e econo%ic acti'ities Nuasi0autono%ous standing to each 1pro"it center2

Enab es:
#onitoring per"or%ance !warding incenti'es ! ocate cash " ows to high yie d uses +er"or% strategic p anning
1Ji ia%son ;<@=2
2=

Cooperative *-%or!

2?

Co!petitive *-%or!

2@

1ol"ing for! (1-%or!)


E$tre%e case o" an #0.or%

1ol"ing

Co!p /

Co!p 0

Co!p C

2A

*i&e" for! (4-%or!)

C)O

Sales

*anufactur ing

$+D

#ro"5 /

S a le s

*anufactur ing

$+D

2<

*atri& organization
&isad'antagesB
C)O

Sales #ro" / #ro" 0 #ro" C Staff

*anufactur ing

$+D

Staff

Staff

,C

6in2ing 7nternalization *entalities an" Structure


- Internationa , 9 oba , #u tinationa , :ransnationa - N: )ow are these in8ed to Organizationa
Structure. Jhat #enta ity does "it 17O:2 what structureB

- N: )ow can organizationa structure di%ensions


in8ed to to %enta itiesB Or, are theyB

,;

#rocter + 8a!'le
- Leorganized ;<<< in #atri$0.or% - = &i'isions 19 oba Ousiness
+roduct /nits2:

Oaby, .e%inine and .a%i y care .abric and )o%e care, .ood and Oe'erages, )ea th care Oeauty care

C)O 0a'y
)urope 9orth /5 /ustra lia

%oo"

1ealt h

- @ #ar8ets de'e op%ents


organizations:

Southeast !sia etc.

,2

*-%or! as of :une 2;;< ( =#ro"uct ,nits> + 0usiness seg!ents)


Oeauty
Oeauty seg%ent 9roo%ing seg%ent

)ouseho d (are
Oaby (are and .a%i y (are seg%ent .abric (are and )o%e (are seg%ent

)ea th D Je 0Oeing
)ea th (are Snac8s, (o""ee and +et (are
,,

Wrap up
Organizationa Structure
&e"inition &i%ensions: Specia ization, Standardization, .or%a ization, (entra ization, (on"iguration, . e$ibi ity (onte$tua *ariab es

Organigra%s .or%s o" organizationa Structure


/0.or%, #0.or% 1cooperati'e, co%petiti'e2, )0.or%, 30 .or%, #atri$ organization #atri$ organization: !d'antages, disad'antages
,4

$eferences

,=

You might also like