2. Identifiable group of people contributing
their efforts towards the attainment of
goals.
A Group of people united by a common
purpose
S.Chandramouli - MBA Dept.
3. Consideration of objectives
Division of work and
specialization
Definition of jobs
Separation of line and staff
functions
Chain of command
Parity of authority &
responsibility
Unity of command
span of supervision
Balance of various factors
Communication
Flexibility S.Chandramouli - MBA Dept.
4. Organization based on
Functions
• Economic
• Political
• Integrative
• Pattern maintenance
Organization based on
services
• Mutual benefit
• Business organization
• Service organization
Organization based on Authority & Responsibility
Formal
Informal
S.Chandramouli - MBA Dept.
7. V P M a rketin g V P F in a n ce
C ou n try A C o u n try B
P ro d u ct 1 P ro d u ct 2 P ro d u ct 3
V P O p era tion s V P R & D V P L e g a l issu es
C E O
9. Authority & responsibility relationships between
various positions in the organization by showing
who reports to whom.
1. Clear-cut authority relationships
2. Pattern of communication
3. Location of decision centres
4. Proper balancing
5. Stimulation creativity
6. Encouraging growth
S.Chandramouli - MBA Dept.
12. Diagrammatic presentation of the
Organizational structure is what is known as
organizational chart
Chart that describes administrative and
functional structures of an organization
S.Chandramouli - MBA Dept.
17. A d m in /F in a n c e
V P fo r th e A m e ric a s V P E u ro p e V P E . A s ia
M a rk e tin g O p e ra tio n s
A u s tra lia /N Z In d o n e s ia Is la n d s
V P A u s tra la s ia
C E O
18. DIVISIONAL STRUCTURE (BY PRODUCT LINES)
FRAGRANCES SKIN CARE PRODUCTS HAIR CARE PRODUCTS OTHER PRODUCTS
COSMETICS CORPORATION
19. M a n a g e m e n t
fin a n c in g
p a rts
s p o rts u tilitie s
lig h t tru c k s
a u to s
S tra te g ic B u s in e s s u n its N . A m e ric a L a tin A m e ric a E u ro p e A s ia
E x e c u tiv e C o m m itte e
C h a irm a n o f th e B o a rd
20. Chair and CEO Vice Chair and COO
General
Secretary
Exec VP,
Finance
Exec VP,
Fresh Dairy
Exec VP,
Water
Exec VP,
Biscuits and
Cereal Snacks
Exec VP,
Asia-Pacific
Exec VP,
Intl Strategy
Notes de l'éditeur
Function first followed by product, then country attention usual for extractive industries (mining and oil) or where the firm is transporting products and raw materials from one geographic area to another.
ADVANTAGES:
High professional identity
High external and internal specialization
Ease of supervision and assessment; tight centralized control
Limited duplication of resources; relatively lean managerial staff
DISADVANTAGES:
Encourages group differences and fiefdoms
Putting products and marketing in different departments makes it difficult to manage multiple product lines
Specialist skills may self-perpetuate and drive out new ideas or new ways
Responsibility is sometimes elusive
Limited training for developing senior executives who need to be generalists
ADVANTAGES:
Targets inherent differences
Better accountability for performance
Clarifies goals
Moves decision making downward
Simplifies intraunit coordination
DISADVANTAGES:
Duplicates and can be costly
May lead to suboptimal decisions
Clarifies opposition
May induce reliance on bad decisions others make
Increase interunit competition
Advantages
useful when teams are needed to innovate;
when information sharing is important.
Disadvantages
people report to two or more bosses;
increases structural complexity;
can make it harder to work toward common goals.
Here’s another type of hybrid; you can see they had the Chair and CEO working at an equal level with the COO, although Chair and Vice Chair tell us who makes the final decision. Then reporting to both are various VPs for functions, areas, and products.