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Lecture 7
Hybrid design
Hybrid design is one that has divisional units but also have functional departments specialized and centralized in the headquarter.
Group task
Give example of organizations having functional, divisional design. For which industry is functional design more appropriate and when divisional is suitable?
Matrix design
It implements functional and divisional structures simultaneously in each department. The worker in each department is being supervised by two bosses at the same time. It is suitable for the following situations: Environmental pressure exists for a dual focus; Large amount of information needs to be processed; Innovations are performed Organization is working on several projects together. Efficiency is needed in the use of resources.
Task
Give example of the organizations with organic and mechanistic design. Which of the design forms is more appropriate in Internet economy?
Strategies by Chandler
Defender Strategy: To protect the organizations market Prospector Strategy: Seek high growth of the organizations market Problem: How to facilitate and coordinate numerous activities Structure: Divisional design and decentralized control.
Strategies by Chandler
Analyzer
Strategy: protect some markets while seeking growth in other markets Problem: How to differentiate the organizations structure and processes to accommodate both stable and dynamic areas of operation. Structure: Matrix design, centralized control.
Structures by Mintzberg
Simple structure. It is used by small and young organizations run by aggressive environment. Machine bureaucracy. The organization is large and old, there is standartization of work processes. It is suited to stable and simple environment.
Types of structures
Professional bureaucracy. Operating core is dominating, coordination is achieved through standardization of skills. Decentralized decision making. Divisionalised form. Standartization of output is performed. Decisions are made by middle managers. Suitable for steady environment. Adhocracy. Typical for dynamic and complex environment. Matrix design with focus on operating core and technostructure.