Professional Documents
Culture Documents
009
Chapter Eleven
Organizational
Structure &
Controls
Todays Agenda
Organizational Structure & Controls
Evolutionary Patterns of Strategy & Structure
Simple
Functional
Multidivisional
112
113
114
Organizational Structure
Effective structures provide:
Stability
Flexibility
Organizational Controls
Purposes of Organizational Controls:
Guide the use of strategy.
Indicate how to compare actual results with expected
results.
Suggest corrective actions to take when the
difference between actual and expected results is
unacceptable.
Organizational Controls
Strategic
Controls
Organizational
Controls
Financial
Controls
Organizational Controls
Strategic
Controls
Organizational
Controls
Financial
Controls
119
1110
1111
Strategy
and
Structure
Growth
Pattern
Simple Structure
Efficient implementation
of formulated strategy
Sales Growth
Coordination and Control Problems
Functional Structure
Efficient implementation
of formulated strategy
Sales Growth
Coordination and Control Problems
Multidivisional Structure
1113
Staff
Serves as an extension of the managers supervisor
authority.
Simple Structure
Growth creates:
Complexity in relative competitive and external
analysis
Managerial and structural challenges
Owner-managers
Commonly lack organizational skills and experience.
Become ineffective in managing the specialized and
complex tasks involved with multiple organizational
functions.
1115
Marketing Engineering
Accounting
R&D
Human resources
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1119
1120
1121
1122
1123
1124
1125
1127
SBU M-Form
Competitive M-Form
Structural
Characteristics
(Related Constrained
Strategy)a
(Related Linked
Strategy)a
(Unrelated Diversification
Strategy)a
Centralization of
operations
Centralized at
corporate office
Partially centralized
(in SBUs)
Decentralized to
divisions
Use of integration
mechanisms
Extensive
Moderate
Nonexistent
Divisional
performance
appraisals
Emphasize subjective
(strategic) criteria
Use a mixture of
subjective (strategic)
and objective
(financial) criteria
Emphasize objective
(financial) criteria
Mixed linkage to
corporate, SBU, and
Linked to divisional
performance
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1129
1131
1133
1135
Wrap-up
1136
Wrap-up
Organizational Structure & Controls
Evolutionary Patterns of Strategy & Structure
Simple
Functional
Multidivisional
1137