OT CH6 part3

Horizontal Organization

• Definition• Characteristics - cross-functional ex. Ford - self-directed team - process owner’s responsibility: coordinate - cross-trained, multi-ability to decision-making

for performance

• -think creatively and respond flexibility -customers evaluate the organization -culture: openness, trust and collaboration, focused on continuous improvement

Ex. BPR

Strengths and WeaknessStrengths Weakness

1.Promotes flexibility and rapid response to changes in customer needs.2.Directs the attention of everyone toward the production and delivery of value to the customer.3.Each employee has a boarder view of organization goals.4.Promotes a focus on teamwork and collaboration.5.Improves quality of life for employees by offering them opportunity to share responsibility, make decisions, and be accountable for outcome.

1.Determine core processes is difficult.2.Requires change in culture, job design, management philosophy, and information and reward systems.3.Traditional managers may balk when they have to give up power and authority.4.Requires significant training of employees to work effectively in a horizontal team environment.5.Can limit in-depth skill development

Virtual Network Structure

• Definition• Strategic view – RBV• How to work 1. Industrial division 2. Core competence (ourselves) 3. Strategic resource (others)

Strengths and WeaknessStrengths Weakness

1.Enables even small organizations to obtain talent and resources worldwide.2.Gives a company immediate scale and reach without huge investments in factories, equipment, or distribution facilities.3.Enables the organization to be highly flexible and responsive to changing needs. 4.Reduces administrative overhead costs.

1.Mangers do not have hands-on control over many activities and employees.2.Requires change a great deal of time to manage relationships and potential conflicts with contract partners.3.There is a risk of organizational failure if a partner fails to deliver or goes out of business.4.Employee loyalty and corporate culture might be weak because employees feel they can be replaced by contract services.

Hybrid Structure

• Definition• Ex. carrefour

Applications of Structural Design

• Structural Alignment - vertical control - horizontal coordination Why?

Symptoms of Deficiency

• Definition• Decision making -delayed - lacking in quality• Not respond innovatively• Employee performance declines and goals are

not being met.• Too much conflict

Summary

• 1. Information-processing perspective - vertical and horizontal linkages• 2.Organization design alternative• 3. The type of organization - functional, divisional, geographic and matrix• 4. Horizontal and Virtual network organization• 5. Applications of Structural Design

• Thanks for your listening