Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2002 by South-Western, a division of Thompson Learning. All rights reserved.Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Horizontal Organization When organizations grow and evolve, two things happen:  New positions and departments are added  Senior managers have to find a way to tie all of the different departments together

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Coordination Quality of collaboration across departments

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Evolution of Organization Structures Traditional Vertical Structure Teams and Project Managers for Horizontal Coordination Reengineering to Horizontal Processes New Workplace Learning Organization

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Structural Design Task Force...A temporary team or committee formed to solve a specific short-term problem Team…Participants from several departments who meet to solve ongoing problems Project Manager…A person responsible for coordinating the activities of several departments

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Reengineering “Business Process Reengineering” One of the most popular management concepts Complete rethinking and transformation of key business processes Leads to emphasizing horizontal coordination and greater flexibility Emphasizes core processes “Texas Instruments Incorporated is the world leader in digital signal processing and analog technologies.”

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Traditional Vertical Organization Dominant Structural Approach New Workplace Organization Traditional versus Learning Organizations Horizontal structure is dominant Vertical Structure is dominant 1. Few teams, tasks forces, or project managers 2. Vertical communications and reporting system 3. Centralized strategic decision making 4. Specialized tasks 5. Rigid culture 1. Horizontal teams, task forces, project management 2. Open information, horizontal communication, face to face 3. Decentralized decision making, participate strategy 4. Empowered employees, shared responsibility 5. Strong adaptive culture

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Empowerment Giving employees the power, freedom, knowledge, and skills to make decisions and perform effectively

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Corporate Culture The set of key values. Beliefs, understandings, norms shared by members of the organization. Is the foundation of a learning organization

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Strong, Adaptive Culture Values The whole is more important than the parts, and boundaries between parts are minimized. The culture is egalitarian The culture values change risk taking

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Structure Follows Strategy Differentiation strategy, organization attempts to develop innovative products Cost leadership strategy, striving for internal efficiency

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Influencing Organizational Structure Interdependence Strategy Environment Technology Traditional Vertical Structure New Horizontal Structure Company Performance

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Three Things Happen Due To Uncertain Environments 1.Increased differences occur among departments 2.The organization needs increased coordination to keep departments working together 3.The organization must adopt to change

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Environment versus Structure

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Woodward’s Manufacturing Technology  Small batch and unit production  Large batch and mass production  Continuous process production

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Manufacturing Technology and Organizational Structure

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Interdependence The extent to which departments depend on each other for resources or materials to accomplish their tasks.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Types of Interdependence and Required Coordination