Strategy & Structure Aligning administrative, responsibility, and account structures to accomplish organizational purpose in big organizations

POSDCORB Strategic PLANNING ORGANIZING STAFFING Organizational DEVELOPMENT CONTROLLING OPERATING REPORTING BUDGETING

The Rise of Bureaucracy Perfected by Prussians during 19th Century –detailed centralized materials requirements and logistical planning (input budgets), –control by rules, standard operating procedures, and the merit principle, –functional administrative design, distinction between staff and line –decomposition of tasks to their simplest components, –Sequential processing.

Bureaucracy made large, complex organizations possible; also made them inevitable POSDCORB functions were all treated as separate concerns, performed by staff specialists and coordinated by top mgmt. substantial staff resources needed to gather and process data for top mgmt. to coordinate activities and allocate resources

The Marketing Information System Marketing managers Analysis Planning Implemen- tation Control Assessing information needs Distributing information Internal records Marketing decisions and communication Marketing environment Test markets Marketing channels Competitors Publics Macro- environment forces Marketing Information System Developing information Marketing intelligence Marketing research Marketing decision support analysis

Managing at Arms Length Multi-product, or M-form, organizational structure –each major operating division serves a distinct product market Decentralized control –by the numbers, using the DuPont system of financial controls, return-on-assets target Coordination – short run via transfer prices –Long run via modern capital budgeting system

Flexible Production Nobody but the front-line worker adds value, Front-line workers can perform most functions better than specialists (lean manufacturing), Every step of the fabrication process should be done perfectly (TQM) This reduces the need for buffer stocks (JIT) and produces a higher quality end-product.

Modern IT: reduced economies of scale and scope Multidisciplinary teams, members work together from start of job to completion push exercise of judgment down to teams that do an organization's work more equal distribution of knowledge, authority, and responsibility average firm size falling for the last twenty years

The Balanced Scorecard Four perspectives …………………………………. Financial Customer Internal Business Processes Learning and Growth Perspective

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