STRUCTURAL

IMPLEMENTATION
 What is Structure ?
 Arrangement of tasks and sub tasks required to implement a strategy.
 Diagrammatic representation could be organizational chart but
administrative mechanism provides “Flesh and Blood” to an
organization.
 Organizational strategy has 3 key components :
Identifies formal relationships.
It specifies grouping of individuals in departments.
It ensure effectiveness, coordination, and integration of effects
across departments.
TYPES OF ORGANISATIONAL
STRUCTURES :

1. Entrepreneurial Structure
2. Functional Structure
3. Divisional Structure
4. SBU Structure
5. Matrix Structure
6. Network Structure
1.Entrepreneurial Structure:
 An organization that is owned and managed by one person .
 A small-scale industrial unit, a small proprietary concern or a
mini-service outlet may exhibit the characteristics of
organizations which are based on an entrepreneurial structure.
 The owner-manager looks after all decisions, whether they are
day-to-day operational matters or of a strategic nature.
Advantages:

Timely
Quick
response
decision- Informal
to
making ,as and simple
environme
a power is organisatio
nt
centralized n system.
changes;
.
and
Disadvantages:

May divert
Excessive reliance Increasingly
attestation of
on owner- inadequate for
owner-manager to
manager and so future
day-to-day
proves to be requirements if
operation matters
demanding for volume of
and ignore
the owner- business expands.
strategic
manager;
decisions ; and
2.Functional Structure:
As the volume of business expands, the entrepreneurial structure
may outlive its usefulness.
The need arises for specialized skills and delegation of authority
to managers who can look after the different functional areas.
The functional structure seeks to distribute decision-making and
operational authority along functional lines.
Advantages:

Providing time for

Efficient
Delegation of day- the top
distribution of
to-day operational management to
work through
functions; and focus on strategic
specialization;
decisions.
Disadvantages:

Create specialists
which results in
Creates difficulty in
narrow Leads to functional
coordination among
specialization, often and line and staff
different functional
at the cost of the conflicts.
areas;
overall benefit of the
organization;
3.Divisional Structure:
There comes a time on the life of organizations when growth increasing
complexity in terms of geographic expansion, market segmentation and
diversification make the functional structure inadequate.
A divisional structure basically, work divided on the basics of product
lines, type of customers served or geographic area covered and then,
separate divisions or groups are created and placed under the divisional-
level management.
Advantages:
Enables grouping of
functions required
for the performance
of activities related
to a division;

Generates quick
response to
environmental
changes affecting
the businesses of
different divisions
and

Enables the top

management to
focus on strategic
matters.
Disadvantages:
Problems in the
allocation of
resources and
corporate overhead
costs, particularly if
the business and
corporate objectives
are ill-defined;

Inconsistency arising
from the sharing of
authority between the
corporate and
divisional levels; and

Policy inconsistencies
between the different
divisions.
 4. SBU Structure:
A Strategic Business Unit (SBU) is a part of business organization which
is treated separately for strategic management purposes.
An SBU is a discrete element of the business serving specific products-
markets with readily identifiable competitors and for which strategic
planning can be conducted.
Essentially, SBU can be created by adding another level of management
authority, on the basis of common strategic interests.
Advantages:

Establishes
Facilities
coordination
strategic Fixes
between
management accountability
divisions
and control of at the level of
having
large, diverse distinct
common
organization; business units.
strategic
and
interests;
Disadvantages:

Addition of
There are too Difficulty in
another layer
many different assigning
of
SBUs to responsibility
management
handle and defining
between
effectively, in autonomy for
cooperate and
large, diverse SBU heads;
divisional
organizations; and
management.
5. Matrix Structure:
It is a type of structure which is created by assigning functional
specialists to work on a specific project or a new product or
service. For the duration of the project, specialists from different
areas from a group or team and report to a team leader.
Simultaneously, they may also work in their respective parent
departments. Once the project is completed, the term members
revert to their parent departments.
Advantages:

Allows Fosters
Provides good
individuals creativity
exposure to
specialists to be because of
specialists in
assigned where pooling of
general
their talents is diverse talents;
management.
most needed; and
Disadvantages:

Dual
accountability Requires a high Shared authority
creates confusion level of vertical may create
and difficulty for and horizontal communication
individuals team combination; and problems.
members;
6. Network Structure:
The network structure is most suited to organizations that face a
continually changing environment, requiring quick response, high
level of adaptability and strong innovation skills. This structure
makes extensive use of outsourcing of support services required
to produce and market products or services.
There are few resources internally and the network structure firm
relies heavily on outsiders who are specialized in their respective
areas.
Advantages:

High level of
flexibility to change Permits Adaptability to cope
structural concentration on with rapid
arrangements in line core competencies of environment change.
with business the firm; and
requirements;
Disadvantages:

Risk of
Loss of control and High costs as
overspecialization
lack of coordination duplication of
as most tasks are
as there are several resources could
performed by
partners; exist.
others; and
PRESENTED BY :
Nikhil Ku. Sahoo
Sonali Priyadarshani
Shruti Shree
Payal Sahani