The senior management team must make decisions on what actions will be required in moving from a national to cross-national enterprise. The team has asked you to provide them with a presentation addressing the areas that will require special consideration when making this move. The focus needs to be centered on the impact to the organization's personnel and matrix team structure. Since the senior management team is not familiar with these considerations, you need to familiarize them with the organizational behavior impacts. They will need recommendations that prioritize the actions and the logic.
Discussion of Key concepts
Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Organizational structure determines the role and responsibilities within the organization.
Purpose of organization structure
Organization structure is one of the key elements of the strategy implementation. Thus key objectives of it are:
? Building a capable organization
? Allocating ample resources to strategy-critical activities
? Establishing strategy supportive policies & procedures
? Instituting best practices & mechanisms for continuous improvement
Organizational structure depends on the product to be developed. Wheelwright and Clark define a continuum of organizational structures between two extremes, functional organizations and project organizations. Functional organizations are organized according to technological disciplines. Senior functional managers are responsible for allocating resources. The responsibility for the total product is not allocated to a single person. Coordination occurs through rules and procedures, detailed specifications, shared traditions among engineers and meetings (ad hoc and structured). Products that need a high level of ...
This solution discusses the key concepts of organizational structure, functional structure, divisional structure, and the matrix structure. It also comments on the advantages and disadvantages of the particular structure. All references used are included.