Mngt and Org

Resource Dependence

(dissimilar org types, competitive org relationship) describes ways organizations deal with each other to reduce dependence on the environment - supply chain management - large, independent companies have power over small suppliers

Collaborative Network

(dissimilar org types, cooperative org relationship) wherein organizations allow themselves to become dependent on other organizations to increase value and productivity for all. - Companies join together to become more competitive and to share scarce resources.

Population Ecology

(similar org types, competitive org relationships) examines how new organizations fill niches left open by established organizations and how a rich variety of new organizational forms benefits society - focuses on organizational diversity and adaptation within a population of organizations. A population is a set of organizations engaged in similar activities with similar patterns of resource utilization and outcomes. Organizations within a population compete for similar resources or similar customers

Institutionalism

(similar org types, cooperative org relationship) why and how organizations legitimate themselves

Symptoms of Structural Deficiency

- Decision making is delayed. - The organization does not respond innovatively to a changing environment. - Employee performance declines and goals are not being met - Too much conflict is evident

Establishing formal relationships to influence resources in the external envr

- acquire an ownership stake - form joint ventures and partnerships - lock in key players - recruit executives - use advertising and public relations

Influencing Key Sectors to influence resources in the external envr

- change where you do business (your domain) - use political activity, regulation - join in trade associations - avoid illegitimate activites

Global Matrix Structure

A global matrix structure provides a way to achieve vertical and horizontal coordination simultaneously along two dimensions but for multinational corporations the geographic distances for communication are greater and coordination is more complex. ۰The matrix works best when pressure for decision making balances the interests of both product standardization and geographic localization and when coordination to share resources is important.

Efficiency

Amount of resources used to achieve the org's goals

Global Geographic Structure

Divides the world into geographic regions, with each geographic division reporting to the CEO. Each division has full control of functional activities within its geographic area ۰Companies can find low-cost manufacturing within countries, as well as meet different needs across countries for marketing and sales. Manufacturing firms are emphasizing the ability to customize their products to meet specific needs, which requires a greater emphasis on local and regional responsiveness. All organizations are compelled to develop closer relationships with customers, which may lead companies to shift from product-based to geographic-based structures ۰The problems encountered by senior management using a global geographic structure result from the autonomy of each regional division. it is difficult to do planning on a global scale because each division acts to meet only the needs of its region. it is difficult to rapidly introduce products developed offshore into domestic markets, and there is often duplication of line and staff managers across regions

Economies of scope

Economies of Scope: number and variety of products and services a company offers, number and variety of regions, countries, and markets it serves. Having a presence in multiple countries provides marketing power and synergy compared to the same size firm that has presence in fewer countries

Global Product Division Structure

In a global product structure, the product divisions take responsibility for global operations in their specific product area. This is one of the most commonly used structures ۰With a global product structure, each division's manager is responsible for planning, organizing, and controlling all functions for the production and distribution of its products for any market around the world ۰The global product structure works best when the company has opportunities for worldwide production and sale of standard products for all markets, thus providing economies of scale and standardization of production, marketing, and advertising ۰The product structure is great for standardizing production and sales around the globe, but it also has problems. Often the product divisions do not work well together, competing instead of cooperating in some countries; and some countries may be ignored by product managers. The solution adopted by some companies is using country coordinators

Mintzberg's 5 Organization Types: Diversified Form

Organizations are mature firms that are extremely large and are subdivided into product or market groups. There is a relatively small top management and a small technical support group for the top level. There is a larger administrative support staff. In the exhibit, four independent divisions are shown below the headquarters, middle management is key. Each of the independent divisions illustrates a machine bureaucracy with its own technical and administrative support staff, but on occasion a division may resemble the entrepreneurial structure, professional bureaucracy, or even adhocracy. The diversified form helps to solve the problem of inflexibility experienced by a too-large machine bureaucracy by dividing it into smaller parts.

Expanded Coordination Roles

Organizations may also implement structural solutions to achieve stronger coordination and collaboration. Creating specific organizational roles or positions for coordination is a way to integrate all the pieces of the enterprise to achieve a strong competitive position

Specialist strategy for org survival

Organizations that provide a narrower range of goods or services or that serve a narrower market

Generalist Strategy for Org Survival

Organizations with a wide niche or domain, that is, those that offer a broad range of products or services or that serve a broad marke

Middle Management in Mintzberg's Organizational Parts

Responsible for implementation and coordination at the department level

Administrative Support of Mintzberg's Organizational Parts

Responsible for the smooth operation and upkeep of the org, including its physical and human elements. Includes HR activities and maintenance activities.

Stages of International Evolution: Domestic

Strategic Orientation: Domestically oriented Stage of development: initial foreign involvement Structure: Domestic Structure plus export department Market Potential: Moderate, mostly domestic

Stages of International Evolution: Global

Strategic Orientation: Global Stage of development: Global Structure: Matrix, transnational structure Market Potential: whole world

Stages of International Evolution: Multinational

Strategic Orientation: Multinational Stage of development: Explosion Structure: Worldwide geographic product structure Market Potential: Very large, multinational

Stages of International Evolution: International

Strategic Orientation: export oriented, multidomestic Stage of development: competitive postitioning Structure: Domestic Structure plus international division Market Potential: Large, multidomestic

Mintzberg's 5 Organization Types: Professional Bureaucracy

The distinguishing feature is the size and power of the technical core, which is made up of highly skilled professionals, such as in hospitals, universities, law firms, and consulting firms. The technical support staff is small or nonexistent, because professionals make up the bulk of the organization. A large administrative support staff is needed to support the professionals and handle the organization's routine administrative activities. The primary goals are quality and effectiveness, professionals in the technical core have autonomy. Professional organizations typically provide services rather than tangible goods, and they exist in complex environments.

Buffer Departments

The traditional approach to coping with environmental uncertainty was to establish buffer departments. The purpose of buffering roles is to absorb uncertainty from the environment. The technical core performs the primary production activity of an organization. Buffer departments surround the technical core and exchange materials, resources, and money between the environment and the organization. They help the technical core function efficiently.

Transnational Model of Organization

The transnational model represents the most advanced kind of international organization. It reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts. ۰The transnational model is useful for large, multinational companies with subsidiaries in many countries that try to exploit both global and local advantages as well as technological advancements, rapid innovation, and global learning and knowledge sharing. The transnational model seeks to achieve all three simultaneously. Dealing with multiple, interrelated, complex issues requires a complex form of organization and structure ۰The transnational model addresses these challenges by creating an integrated network of individual operations that are linked together to achieve the multidimensional goals of the overall organization. The management philosophy is based on interdependence rather than either full divisional independence or total dependence of these units on headquarters for decision making and control.

Speed and responsiveness

a challenge for orgs is to respond quickly and decisively to envr changes, org crisis's, or shifting customer expectations

Management Information System

a computer-based system that provides information and support for managerial decision making. The MIS is supported by the organization's transaction processing systems and by organizational and external databases

Intelligence Team

a cross-functional group of managers and employees, usually led by a competitive intelligence professional, who work together to gain a deep understanding of a specific business issue, with the aim of presenting insights, possibilities, and recommendations to top leaders. ۰can provide insights that enable managers to make more informed decisions about goals, as well as devise contingency plans and scenarios related to major competitive issues.

Executive Information System

a higher-level application that facilitates decision making at the highest levels of management. These systems are typically based on software that can convert large amounts of complex data into pertinent information and provide that information to top managers in a timely fashion

Task

a narrowly defined piece of work assigned to a person. In traditional organizations, tasks are broken down into specialized, separate parts, as in a machine. Knowledge and control of tasks are centralized at the top of the organization, and employees are expected to do as they are told.

knowledge management

a new way to think about organizing and sharing an organization's intellectual and creative resources. It refers to the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known.

Role

a part in a dynamic social system. A role has discretion and responsibility, allowing the person to use his or her discretion and ability to achieve an outcome or meet a goal. In learning organizations, employees play a role in the team or department and roles may be continually redefined or adjusted. There are few rules or procedures, and knowledge and control of tasks are located with workers rather than with supervisors or top executives. Employees are encouraged to take care of problems by working with one another and with customers.

Full-time Integrator

a stronger horizontal linkage device is to create a full-time position or department solely for the purpose of coordination. A full-time integrator frequently has a title, such as product manager, project manager, program manager, or brand manager. The integrator does not report to one of the functional departments being coordinated The integrator can also be responsible for an innovation or change project, such as coordinating the design, financing, and marketing of a new product. Integrators need excellent people skills. Integrators in most companies have a lot of responsibility but little authority. The integrator has to use expertise and persuasion to achieve coordination

Organizational Ecosystem

a system formed by the interaction of a community of organizations and their environment. A company can create its own ecosystem. Today, successful companies develop relationships with numerous other organizations cutting across traditional business limits.

Departmental Grouping

affects employees because they share a common supervisor and common resources, are jointly responsible for performance

Organizational Envr

all elements that exist outside the boundary or limit of the organization and have the potential to affect all or part of the organization. Sectors: industry, raw materials, human resources, financial resources, market, technology, economic conditions, government, sociocultural, and international. For most companies, the sectors can be further subdivided into the task environment and general environment.

Licensing

allowing another firm to market your brands. Companies often seek joint ventures to take advantage of a partner's knowledge of local markets, to achieve production cost savings through economies of scale, to share complementary technological strengths, or to distribute new products and services through another country's distribution channels

Trickle-Up

an economic theory used to describe the overall ability of middle class people to drive and support the economy. The theory was founded by John Maynard Keynes

Multi-focused Grouping

an organization embraces two or more structural grouping alternatives simultaneously. These structural forms are often called matrix or hybrid.

Global teams

are cross-border work groups made up of multiskilled, multinational members whose activities span multiple countries.

Diversity

as orgs increasingly operate on a global playing field, the workforce, as well as the customer base, grows increasingly diverse

Stakeholder Approach

balancing the needs of groups in and outside of the organization that has a stake in the organization's performance

tacit knowledge

based on personal experience, rules of thumb, intuition, and judgment. It includes professional know-how and expertise, individual insight and experience, and creative solutions that are difficult to communicate and pass on to others

Business process re-engineering

basically means the redesign of a vertical organization along its horizontal workflows and processes. A process refers to an organized group of related tasks and activities that work together to transform inputs into outputs that create value for customers

Direct Contact

between managers or employees affected by a problem. One way to promote direct contact is to create a special liaison role. A liaison person is located in one department but has the responsibility for communicating and achieving coordination with another department

Institutional similarity

called institutional isomorphism in the academic literature, is the emergence of a common structure and approach among organizations in the same field. Isomorphism is the process that causes one unit in a population to resemble other units that face the same set of environmental conditions

Reporting Relationships

called the chain of command, are represented by vertical lines on an organization chart. The chain of command should be an unbroken line of authority that links all persons in an organization and shows who reports to whom

International Envr

can directly affect many organizations, and it has become extremely important in the last few years. In addition, international events can influence all domestic sectors of the environment as well.

Social Network Analysis

can help managers learn about informal relationships and network structures within an organization. With SNA they can know who has influence and who doesn´t, who people turn for answers, who has the knowledge and technical capability to be innovative..... SNA was developed by scientists as a social theory to diagram relationships among people that differ from the formal hierarchy. People play different roles in social networks. Roles Hub: People who are at the center of an informational network Peripheral players: have fewest connections and operate on the boundaries of a network Brokers: have the ability for connecting people across boundaries and subgroups

Contingency Factors (Dimensions of Org Design)

characterize the whole org. They describe the organizational setting that influences and shapes the structural dimensions. Types: Size, Org tech, envr, goals and strategy, culture Aka contextual dimensions

Mechanistic Org Design

characterized by machine-like standard rules and procedures with clear authority Features: vertical structure, rigid culture, competitive strategy, formal systems, routine tasks, stable environment, efficient performance 1. Tasks are broken down into specialized, separate parts 2. tasks are rigidly defined 3. there is a strict hierarchy and control, and there are many rules 4. knowledge and control of tasks are centralized at the top of the org 5. communication is vertical

Low-cost production factors

companies also turn to other countries as a source of cheap labor, lower costs of capital, sources of cheap energy, reduced government restrictions, or other factors that lower production costs

Multidomestic strategy

competition is handled in each country independently and would encourage product design, assembly, and marketing tailored to the specific needs of each country

Simple-Complex Dimension

concerns environmental complexity, which refers to the number of external elements relevant to an organization's operations. The more external factors that regularly influence the organization and the greater number of other companies in an organization's domain, the greater the complexity.

Horizontal Structure

created around cross-functional core processes rather than tasks, functions, or geography. Thus, boundaries between departments are obliterated.

Required Work Activites

departments are created to perform tasks considered strategically important to the company. As organizations grow larger and more complex, managers find that more functions need to be performed. Organizations typically define new positions, departments, or divisions as a way to accomplish new tasks deemed valuable by the organization

Organic/Natural Org Design

design of org is looser, free-flowing, and adaptive Features: horizontal structure, empowered roles, adaptive culture, shared info, collaborative strategy, Turbulent envr, learning org 1. Employees contribute to the common tasks of the department 2. tasks are adjusted and redefined through employee teamwork 3. there is less hierarchy of authority and control, and there are few rules 4. Knowledge and control of tasks are located in the org 5. Communication is horizontal

Traditional Org orientation

designed for efficiency, emphasizing vertical communication, centralization and control

Mintzberg's 5 Organization Types: Adhocracy

develops in a complex, rapidly changing environment. The design goal is frequent innovation and meeting continually changing needs, as in the aerospace and defense industries. Middle management, technical, and administrative support merged together into an amorphous mass in the middle. The main structure consists of many overlapping teams rather than a vertical hierarchy. Adhocracies are usually young or middle-aged and can grow quite large. The organization has professional employees, and the technical and administrative support staff are part of the mix of ongoing innovation teams and projects rather than being placed in separate departments. Employees are engaged in the administration and support of their own teams. The production center, illustrated with dashed lines, is separate from the fluid and innovative core above it. If standardized production is done within the organization, it would occur in this operating core quite separate from the ongoing innovation in the professional center above it. In the professional center, the adhocracy is decentralized.

Economies of scale

domestic markets no longer provide the high level of sales needed to maintain enough volume to achieve scale economies, so companies are forced to become international in order to survive

Contemporary learning org orientation

emphasizes horizontal communication and coordination

Horizontal Grouping

employees are organized around core work processes, the endto-end work, information, and material flows that provide value directly to customers. All the people who work on a core process are brought together in a group. Strengths: - promotes flexibility and rapid response to changes in customer needs - directs the attention of everyone toward the production and delivery of value to the customer - each employee has a broader view of org goals - promotes a focus on teamwork and collaboration - improves quality of life for employees by offering them the opportunity to share responsibility, make decisions, and be accountable for outcomes Weaknesses: - determining core processes is difficult and time consuming - requires changes in culture, job design, mngt philosophy, and info and reward systems - traditional managers may balk when they have to give up power and authority - requires significant training of employees to work effectively in a horizontal team envr - can limit in-depth skill development

Explicit knowledge

formal, systematic knowledge that can be codified, written down, and passed on to others in documents or general instructions. Tacit knowledge, on the other hand, is often difficult to put into words.

Competitive Intelligence

gives top executives a systematic way to collect and analyze public information about rivals and use it to make better decisions.

Headquarters Planning

headquarters to take an active role in planning, scheduling, and control to keep the widely distributed pieces of the global organization working together and moving in the same direction

Technical Support of Mintzberg's Organizational Parts

helps the org adapt to the envr. Employs engineers, researchers, and IT professionals who scan the envr for problems, opportunities, and tech developments

Organizational Theory

helps us explain what happened in the past, as well as what may happen in the future, so that we can manage orgs more effectively

Vertical Information Systems

include the periodic reports, written information, and computer-based communications distributed to managers. Information systems make communication up and down the hierarchy more efficient

Technical Core of Mintzberg's Organizational Parts

includes people who do the basic work of the org. This part actually produces the product/service outputs of the org

Task envr

includes sectors with which the organization interacts directly and that have a direct impact on the organization's. The task environment typically includes the industry, raw materials, and market sectors, and perhaps the human resources and international sectors

General Envr

includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it. The general environment often includes the government, sociocultural, economic conditions, technology, and financial resources sector.

Mintzberg's 5 Organization Types: Entrepreneurial

is typically a new, small start-up company. It consists mainly of a top manager and workers in the technical core. The organization is managed and coordinated by direct supervision from the top, which is the key part of the structure. Few support staff are needed. The primary goal of the organization is to survive and become established in its industry. This form is suited to a dynamic environment because the simplicity and flexibility enable it to maneuver quickly and compete successfully with larger, less adaptable organizations.

Mintzberg's 5 Organization Types: Machine Bureaucracy

is very large, typically mature, and the technical core is often oriented to mass production. It has fully elaborated technical and administrative departments who routinize, and formalize work in the high-volume production center. The narrow middle management area reflects the tall hierarchy for control. This form reflects extensive formalization and specialization, with a primary goal of efficiency. This form is suited to a simple, stable environment. It would not do well in a dynamic environment because the bureaucracy is not adaptable.

Task Forces

liaison roles usually link only two departments. When linkage involves several departments, a more complex device such as a task force is required which is a temporary committee composed of representatives from each organizational unit affected by a problem

Variation (org populations)

means the appearance of new, diverse forms in a population of organizations. These new organizational forms are initiated by entrepreneurs, established with venture capital by large corporations, or set up by governments seeking to provide new services

Intercultural Teams

members come from different countries and meet face to face

Intranet

networking, which links people and departments, enabling them to share information and cooperate on projects, has become an important strategic tool for many companies. Intranet is a private, companywide information system that uses the communications protocols and standards of the Internet and the World Wide Web but is accessible only to people within the company

Acquisitions

offer greater control than joint ventures

Complex Envr

one in which the organization interacts with and is influenced by numerous diverse external elements.

Virtual Team

one that is made up of organizationally or geographically dispersed members who are linked primarily through advanced information and communications technologies. Members frequently use the Internet and collaboration software to work together, rather than meeting face to face.

The digital workplace

orgs have been engulfed by info tech that affects how they are designed and managed

Divisional Grouping

people are organized according to what the organization produces. All people required to produce xxxx are grouped together under one executive. Strengths: - suited to fast change in unstable envr - leads to customer satisfaction because product responsibility and contact points are clear - involves high coordination across functions - allows units to adapt to differences in products, regions, customers - best in large orgs with several products - decentralizes decision making Weaknesses: - eliminates economies of scale in functional departments - leads to poor coordination across product lines - eliminates in-depth competence and technical specialization - makes integration and standardization across product lines difficult

Envr uncertainty

pertains primarily to those sectors that an organization deals with on a regular, day-to-day basis. To assess uncertainty, each sector of the organization's task environment can be analyzed along dimensions such as stability or instability and degree of complexity. The total amount of uncertainty felt by an organization is the uncertainty accumulated across environmental sectors

Functional Grouping

places together employees who perform similar functions or work processes or who bring similar knowledge and skills to bear Strengths: - allows economies of scale within functional departments - enables in-depth knowledge and skill development - enables the org to accomplish functional goals - is best with only one or a few products Weaknesses: - slow response to envr changes - may cause decisions to pile on top (hierarchy overload) - leads to poor horizontal coordination among departments - results in less innovation - involves restricted view of organizational goals

Normative Forces

pressures to change to achieve standards of professionalism and to adopt techniques that are considered by the professional community to be up to date and effective. Changes may be in any area, such as information technology, accounting requirements, marketing techniques, or collaborative relationships with other organizations

Globalization strategy

products are standardized throughout the world

learning organization

promotes communication and collaboration so that everyone is engaged in identifying and solving problems, enabling the org to continuously experiment, improve and increase its capacity

Structural Dimensions of Org Design

provide labels to describe the internal characteristics of an org. They create a basis for measuring and comparing orgs. Types: formalization, specialization, hierarchy of authority, centralization, professionalism, personnel ratios

decision support system

provides specific benefits to managers at all levels of the organization. These interactive, computer-based systems rely on decision models. and integrated databases. Using decision-support software, users can pose a series of what-if questions to test possible alternatives

Business Intelligence

refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be significant.

Selection (org population)

refers to whether a new organizational form is suited to the environment and can survive. Only a few variations are "selected in" by the environment and survive over the long term.

Stable-Unstable Dimension

refers to whether elements in the environment are dynamic. An environmental domain is stable if it remains the same over a period of months or years. Under unstable conditions, environmental elements shift abruptly. Environmental domains seem to be increasingly unstable for most organizations.

Management function of Mintzberg's Organizational Parts

responsible for directing and coordinating other parts of the org. Top management provides direction, planning, strategy, goals, and policies for the entire org or major divisions.

Boundary Spanning

roles link and coordinate an organization with key elements in the external environment. activities which cover the limits is primarily concerned with the exchange of information to: 1. detect and bring into the organization information about changes in the environment 2. send information into the environment that presents the organization in a favorable light. Organizations have to keep in touch with what is going on in the environment so that managers can respond to market changes and other developments. A study of high-tech firms found that 97 percent of competitive failures resulted from lack of attention to market changes or the failure to act on vital information

Joint Ventures

separate entity of two or more firms. Groups of independent companies— including suppliers, customers, and even competitors—that join together to share skills, resources, costs, and access to one another's markets

Enterprise Resource Planning

systems collect, process, and provide information about a company's entire enterprise, including order processing, product design, purchasing, inventory, manufacturing, distribution, human resources (HR), receipt of payments, and forecasting of future demand

Project Teams

tend to be the strongest horizontal linkage mechanism. Teams are permanent task forces and are often used in conjunction with a full-time integrator. When activities among departments require strong coordination over a long period of time, a cross-functional team is often the solution. Members from each team meet at the beginning of each day as needed to resolve problems concerning customer needs, backlogs, programming changes, scheduling conflicts, and any other problem with the product line

Interorganizational relationships

the continuing resource transactions, flows, and linkages that occur among two or more organizations

Effectiveness

the degree to which an org achieves its goals

Organizational Differentiation

the differences in cognitive and emotional orientations among managers in different functional departments, and the difference in formal structure among these departments

Coercive forces

the external pressures exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations

Legitimacy

the general perception that an organization's actions are desirable, proper, and appropriate within the environment's system of norms, values, and beliefs. Institutional theory thus is concerned with the set of intangible norms and values that shape behavior, as opposed to the tangible elements of technology and structure

Hierarchical Referral

the hierarchy, or chain of command. The lines of the organization chart act as communication channels.

Information Reporting System

the most common form of MIS, provides mid-level managers with reports that summarize data and support day-to-day decision making.

Simple Envr

the organization interacts with and is influenced by only a few similar external elements.

Virtual network Grouping

the organization is a loosely connected cluster of separate components. Departments are separate organizations that are electronically connected for the sharing of information and completion of tasks. Strengths: - enables even small orgs to obtain talent and resources worldwide - gives a company immediate scale and reach without huge investments - Enables the org to be highly flexible and responsive to changing needs - reduces admin overhead costs Weaknesses: - managers do not have hands-on control over many activities and employees - requires a great deal of time to manage relationships and potential conflicts with contract partners - there is a risk of org failure if a partner fails to deliver or goes out of business - employee loyalty and corporate culture might be weak because employees feel they can be replaced by contract services

Domain

the organization's niche and defines those external sectors with which the organization will interact to accomplish its goals.

Retention (org population)

the preservation and institutionalization of selected organizational forms. Certain technologies, products, and services are highly valued by the environment. The retained organizational form may become a dominant part of the environment

Big Data Analytics

the process of examining these large data sets to uncover hidden patterns, correlations, and other useful information and make better decisions

Horizontal Information Systems

the use of cross-functional information systems enable managers or front-line workers throughout the organization to routinely exchange information about problems, opportunities, activities, or decisions

Intense Competition

this growing global interdependence creates new advantages but also means that the envr for companies is extremely competitive

Outsourcing

to contract out certain tasks or functions, such as manufacturing, human resources, or credit processing, to other companies.

Rules and Plans

to the extent that problems and decisions are repetitious, a rule or procedure can be established so employees know how to respond without communicating directly with their manager. Plans also provide standing information for employees. The most widely used plan is the budget

Ethics and Social Responsibility

today's managers face tremendous pressure from the govt and the public to hold their orgs and employees to high ethical and professional standards

Vertical linkages

used to coordinate activities between the top and bottom of an organization and are designed primarily for control of the organization

Social Business

using social media technologies for interacting with and facilitating communication and collaboration among employees, customers and other stakeholders

Globalization

with rapid advances in tech and communications, markets, technologies, and orgs are becoming increasingly interconnected. Today's orgs feel "at home" anywhere in the world

Geographic Structure

۰Another basis for structural grouping is the organization's users or customers. The most common structure in this category is geography. Each region of the country may have distinct tastes and needs. ۰Each geographic unit includes all functions required to produce and market products or services in that region

International Division

۰As companies begin to explore international opportunities, they typically start with an export department that grows into an international division. The international division has a status equal to the other major departments or divisions within the company ۰Whereas the domestic divisions are typically organized along functional or product lines, the international division is organized according to geographic interests. ۰The international division has its own hierarchy to handle business (licensing, joint ventures) in various countries, selling the products and services created by the domestic divisions, opening subsidiary plants, and in general moving the organization into more sophisticated international operations ۰Although functional structures are often used domestically, they are less frequently used to manage a worldwide business. Firms typically start with an international department and, depending on their strategy, later use product or geographic division structures or a matrix

Balanced Scorecard

۰Balanced scorecard designs used a "four perspective" approach to identify what measures to use to track the implementation of strategy. `The four "perspectives" proposedare Financial: encourages the identification of a few relevant high-level financial measures. Examples: cash flow, sales growth, net income, return on equity. Customer: encourages the identification of measures that answer the question "What is important to our customers and stakeholders?" Examples: percent of sales from new products, on time delivery, share of important customers' purchases, ranking by important customers. Internal business processes: encourages the identification of measures that answer the question "What must we excel at? "Examples: cycle time, unit cost, new product introductions. Learning and growth: encourages the identification of measures that answer the question "How can we continue to improve, create value and innovate?". Examples: time to develop new generation of products, life cycle to product maturity, time to market versus competition. The idea was that managers used these perspective headings to prompt the selection of a small number of measures , or indicators that informed on that aspect of the organisation's strategic performance

Matrix Structure

۰The matrix is a strong form of horizontal linkage. The unique characteristic of the matrix organization is that both product divisions and functional structures (horizontal and vertical) are implemented simultaneously ۰The product managers and functional managers have equal authority within the organization, and employees report to both of them ۰The matrix structure often is the answer when organizations find that the functional, divisional, and geographic structures combined with horizontal linkage mechanisms will not work. Strengths: - achieves coordination necessary to meet dual demands from customers - flexible sharing of HR across products - suited to complex decisions and frequent changes in unstable envr - Provides opportunity for both functional and product skill development - best in medium-sized orgs with multiple products Weaknesses: - causes participants to experience dual authority, which can be frustrating and confusing - means participants needs good interpersonal skills and extensive training - is time consuming; involves frequent meetings and conflict resolution sessions - will not work unless participants understand it and adopt collegial rather than vertical relationships - requires great effort to maintain power balance

Disadvantages to Organization through Processes

• It can create tension with department managers: Department managers may consider that the people in charge of the process are interfering in their functions. • It may imply large time investments in the involved teams: the teams have to carry out their department obligations, as well as their obligations within the processes. • It may imply contradictions between department obligations and the teams' process obligations: Every team members belong to departments which have their own managers. Certain process-established goals may go against department's goals.

Advantages to Organization Through Processes

• It improves orientation towards the costumer from the whole organization: costumer's voice can get to everyone in the company who plays a part in the process (costumer-orientated processes) • It improves global adjustment with the company's goals: partial optimizations generated by departments, that go against global optimizations, are reduced. • Increases organization's flexibility: we understand it as the adaptation to environmental changes. Processes may be modified at a quicker pace than departments. •It raises efficiency: repetitions and overlaps between different processes' activities become evident. • It promotes costumer's participation in the process

Strategic Processes

•They are related with their sense of being (mission) and future organization's position (vision). • They involve high level staff, they give guidelines to other processes and they definitely affect the company.

Business processes

•They develop company's key capacities, they include a lot of functions and they are related to organization's goals.

Support Processes

•They support the main processes. Costumers are internal and many times they are inside a department.