1. Organizational Structure
Need to create division of labor
Need to integrate these groups to ensure organizational effectiveness
Dimensions of Structure
Horizontal differentiation
Vertical differentiation
Spacial dispersion
Degree of formalization
Degree of centralization

2. Firm Growth as Evolutionary Process
Single Business
Product
Diversification
(Product Diversity)
Geographic
Diversification
(Foreign Sales as %Total Sales)
Product and Geographic
Diversification

3. Horizontal Differentiation
degree to which tasks are divided into distinct homogeneous groups
function-wise
geographic-wise
product-wise
production stage-wise

4. Vertical Differentiation
Number of levels within the organization

5. Spacial Dispersion
Degree to which activities are located in different areas

6. Pressures for Global Efficiency
Structure Follows Strategy
High
Horizontal Differentiation?
Pressures for Global Efficiency
and Centralization
Vertical Differentiation?
Spacial Dispersion
Low
Low
High
Pressures for Local Responsiveness and Decentralization

7. Export
Germany
U.S.
Mexico
Malaysia

8. Functional Structure w/ International Sales Division

9. Multidomestic
Germany
U.S.
Mexico
Malaysia

10. Geographic Structure

11. Pure Global
Germany
U.S.
Mexico
Malaysia

12. Global Functional Structure For Single-business Firms

13. Product Division Structure For Product-diversified Firms

14. Transnational (1)
Germany
U.S.
Mexico
Malaysia

15. Matrix Structure (A)

16. Matrix Structure (B)

17. Transnational (2) Germany U.S. Mexico Malaysia Engines Steel Final
Assembly
Malaysia
Trim, seats,
glass

18. Matrix Structure (B)

19. Mixed Structure

20. Stopford-Wells Structure ModelHi
Product
Divisions
Mixed /
Matrix /
Network
Product Diversity
Intl.
Division
Geographic
Divisions Lo 0%
100%
Foreign Sales as % of Total Sales

21. Kimberly-Clark’s Old Structure

22. Kimberly-Clark’s New Structure

23. Kimberly-Clark’s New Structure

24. Formalization
Degree to which rules, procedure, lines of authority/responsibility are enunciated or specified
More formality: eliminates confusion and uncertainty, limits creativity and innovation
Less formality: imbues flexibility, creative solutions.

25. Centralization
Degree to which authority and decision making is at higher levels of the organization
Centralized: tight org control, managers are order-takers
Decentralized: managers closest to product and/or customer able to make decisions

26. Data Management Control Mechanisms
Information systems
Measurement systems
Resource allocation procedures
Strategic planning
Budgeting processes

27. Managers’ Management Control Mechanisms
Choice/selection of key managers
Career paths
Rewards and punishment systems
Management development
Patterns of socialization

28. Organizational Learning/ Conflict Resolution Control Mechanisms
Decision responsibility assignments
Integrators
Transnational teams
Coordination committees
Task forces