Organization Structure & Design Rules
Download as PPTX, PDF3 likes2,969 views
This document discusses the evolution of organizational design over three eras and various forms of organizational structure. It outlines key developments in organizational structure and design that have led to greater effectiveness. These include moving from self-contained organizations to horizontal and modular/virtual structures. The document also outlines different design rules for various organizational structures, such as functional, divisional, and matrix designs. It discusses how organizations have moved to outsourcing non-core processes and forming temporary partnerships to pursue market opportunities. The objective is to present optimal organizational designs and structures for different contexts.
Organization Structure & Design Rules
- 1. What is the Right Organization Design? By- N. ANAND & RICHARD L. DAFT ERA 1 •Self Contained Organization ERA 2 •Horizontal Organization ERA 3 •Hollow, Virtual & Modular Organization Objective is to present Key Developments in Organization Structure & Design for greatest effect
- 2. Inbound Logistics Production Outboard Logistics Between1970 to 1980 Rules: 1. Grouping of people into functions/departments 2. Reporting Relationships between people and departments 3. Proper co-ordination & Integration of activities Functional Common Functional Grouping E.g.: Large Govt Orgn Divisional Departmental or Divisional Grouping E.g.: Aircraft Manufacturer Matrix Design Vertical + Horizontal Combination E.g.: Nike Various Forms of Organization Structure
- 4. Outsourcing of Various Organizational Processes/work to outside partners Design Rules: 1. Determine all Non –Core Business Processes 2. Get Market Forces to do them 3. Align Process with Incentive
- 5. Less Hierarchical (or more "flat"), more decentralized, and more flexible Outsourcing only product processes Design Rules: 1. Break Products into stand alone basis 2. Design Interface for Coordination of work 3. Outsource to External Parties for efficiency 4. Assembling and Distribution of Product
- 6. Competitor 1 Competitor 2 Form New Company to respond to market opportunities Design Rules: 1. Create Boundaries for each partner 2. Use Technology 3. Each Partner has to use his excellence fully 4. Disband once the opportunity is over Explore a fleeting market opportunity by partnering with other complementary organizations
- 7. ROLE RESPONSIBILITY Operations Collaborative Demands v/s MANAGER 1. Get the Right Partner on the Bus 2. Select Right People for Organization 3. Seek Clarity not control 4. Design Coordination Mechanisms Managers have to be astute and realistic which leads to competitive advantage and customers with greatest value