Professional Documents
Culture Documents
Organization Structure
Three Components
Formal reporting relationships Grouping of people and departments Design of systems to ensure effective communication, coordination, and integration
Linkages
Vertical
Linkages
Horizontal
Organizational Structure
Functional Structure
CEO
Finance
Marketing
Engineering
Divisional Structure
Divisional Structure
CEO
Product One
Product Two
Product Three
Divisional Structure
CEO
Soft Drinks
Aquafina
Gatorade
Geographical Structure
Geographic Structure
CEO
United States
Asia
Europe
Matrix Structure
Horizontal Structure
Reengineering Faster and better service for customers Organized around processes and teams Strengths Weaknesses
Modular Structure
Subcontracts processes
Hybrid Structure
Centralized functional structure for stable products; other products may have selfcontained departments Certain departments work through entire organization (functional), but processes are focused in other areas (horizontal).
Applications
Have scarce resources and need efficiency? Need inter-functional coordination, innovation, and learning?
Decision-making is delayed Non-responsiveness to environmental changes Too much conflict/ Turf wars