organization structure and management systems l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Organization Structure and Management Systems PowerPoint Presentation
Download Presentation
Organization Structure and Management Systems

Loading in 2 Seconds...

play fullscreen
1 / 14

Organization Structure and Management Systems - PowerPoint PPT Presentation


  • 209 Views
  • Uploaded on

Organization Structure and Management Systems. Evolution of the corporation Principles of organizational design The role of hierarchy: bureaucratic control vs. modular integration Alternative structural forms Management systems. OUTLINE. Evolution of the Modern Corporation. Strategic

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Organization Structure and Management Systems' - Mia_John


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
organization structure and management systems
Organization Structure and Management Systems
  • Evolution of the corporation
  • Principles of organizational design
  • The role of hierarchy: bureaucratic

control vs. modular integration

  • Alternative structural forms
  • Management systems

OUTLINE

evolution of the modern corporation
Evolution of the Modern Corporation

Strategic

changes

The business

environment

Organizational

consequences

Early

19th

century

Local markets Firms specialized & Small firms.

Transport slow focused on local Simple manage-

Limited mechanization markets ment structures

Introduction of Geographical and Functional struct-

railroads, telegraph vertical expansion ures. Line/staff

industrialization separation. Accou-

nting systems

Late

19th

century

Excess capacity in Product & Development of

distribution. Growth multinational multidivisional

of financial institut- diversification corporation

ions & world trade

Early

20th

century

general motors organization structure 1921
General Motors’ Organization Structure, 1921

Board of Directors

President

Executive Committee

GM Acceptance Corporation

Legal Department

General Advisory Staff

Financial Staff

Chevrolet Division

Sheridan

Division

Canadian Division

Oldsmobile Division

Buick Division

Cadillac Division

GM Export Company

GM Truck Division

Samson Tractor Division

Oakland Division

Inter-company Parts Division

Scripps Booth Corp.

Source: A.P. Sloan, My Years with General Motors, Orbit Publishing, 1972, p. 57.

the basic tasks of organization
The Basic Tasks of Organization

Achieving high levels of productivity requires SPECIALIZATION

Specialization by individuals necessitates COORDINATION

THE ORGANIZATIONAL CHALLENGE:

to design structure & systems that:

  • Permit specialization
  • Facilitate coordination by grouping individuals & link groups with systems of communication, decision making, & control
  • Create incentives to align individual & firm goals

For coordination to be effective requires COOPERATION

But goals of employees == goals of owners

THE AGENCY PROBLEM

slide5

Hierarchy Economizes on Coordination

(a) Self Organizing Team:

10 interactions

(b) Hierarchy:

4 interactions

slide6

Hierarchy of Loosely-Coupled

Modules Allows Flexible Adaptation

Tightly-coupled,integrated system: Change in any part of the system requires system-wide adaptation

Loose-coupled, modular hierarchy: partially-autonomous modules linked by standardized interfaces permits decentralized adaptation and innovation

weber s principles of bureaucracy
Weber’s Principles of Bureaucracy
  • Rational-legal authority
  • Specialization of labor
  • Hierarchical structure
  • Coordination and control through rules and standard operating procedures
  • Standardization employment practices
  • Separation of jobs and people
  • Formalization of administrative acts, decisions and rules
mechanistic and organic forms
Mechanistic and Organic Forms

FEATURE MECHANISTIC ORGANIC

Task definition Rigid & highly specialized Flexible; less

specialized

Coordination Rules & directives Mutual adjustment.l

& control imposed from the top Cultural control

Communication Mainly vertical Horizontal & vertical

Commitment To immediate superior To the organization & its

& loyalty goals & values

Environmental Stable with low tech- Dynamic, ambiguous,

context nological uncertainty technologically

uncertain

slide9

Designing the Hierarchy: The Basis for Defining

Organizational Units and their Relationships

Units may be defined on the basis of Common Tasks, Products,

Geographical Proximity, or Process/Function

Critical issue: Intensity of Coordination—Employees with the greatest

interdependence should be grouped into same organizational unit.

Additional criteria: Economies of Scale, Economies of Utilization,

Learning, Standardization of Control Systems

general motors organization structure 1997
General Motors’ Organization Structure, 1997

Board of Directors

Corporate Functions

President’sCouncil

North American Operations

Delphi Automotive Systems

GM Acceptance Corporation

International Operations

Hughes Electronics

GM Europe

Midsize & Luxury Car Group

Small Car Group

GM Power Train Group

Vehicle Sales, & Marketing Group

Development & Technical Cooperation Group

Asian & Pacific Operations

Latin American, African, & Middle East Operation

slide11

Corporate Executive Office

Chairman & CEO

Corporate Staff

Finance Business R&D Human Legal

Development Resources

Service Divisions

GE

Appliances

GE

Supply

GE Aircraft

Engines

GE Trans-

portation

GE

Industrial

Systems

GE

Plastics

GE

Lighting

GE

Specialty

Materials

NBC

GE

Capital

GE Power

Systems

GE Medical

Systems

26 businesses organized into 5 segments:

Consumer Mid-market Specialized Specialty Equipment

Services Financing Financing Insurance Management

General Electric’s Organization Structure, 2002

mobil corporation 1997
Mobil Corporation, 1997

Board of Directors

CEO

Executive Office

Corporate Center

Support Services

North America

Technology

New Exploration

Worldwide LNG & IPP

Asia/ Pacific

Europe & CIS

Africa & Middle East

South America

North America M&R

Worldwide Chemicals

Shipping

the generic strategic planning cycle
The Generic Strategic Planning Cycle

Corporate

Guidelines

Draft

Business

Plans

Discuss

with

Corporate

Revised

Business

Plans

Approval

by

Board

Forecasts/

Scenarios/

Planning

assumptions

Corporate

Plan

Capex

Budget

Annual

Performance Targets

Performance

Review