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Chapter11OrganizationalStructureandControlsMichaelA.HittR.DuaneIrelandRobertE.Hoskisson©2000South-WesternCollegePublishingCompetitivenessChapter3InternalEnvironmentChapter2ExternalEnvironmentTheStrategicManagementProcessStrategicIntentStrategicMissionStrategicCompetitivenessAboveAverageReturnsFeedbackStrategyFormulationChapter4Business-LevelStrategyChapter5CompetitiveDynamicsChapter6Corporate-LevelStrategyChapter8InternationalStrategyChapter9CooperativeStrategiesChapter7Acquisitions&RestructuringStrategyImplementationChapter10CorporateGovernanceChapter11Structure&ControlChapter12StrategicLeadershipChapter13Entrepreneurship&InnovationStrategicInputsStrategicActionsStrategicOutcomesStructureTypesAllorganizationsrequiresomeformoforganizationalstructuretoimplementandmanagetheirstrategiesFirmsfrequentlyaltertheirstructureastheygrowinsizeandcomplexityThreebasicstructuretypes:FunctionalStructureMulti-divisionalStructure(M-form)SimpleStructureStrategy&StructureGrowthPatternsSalesGrowthCoordinationandControlProblemsEfficientimplementationofformulatedstrategyMultidivisionalStructureEfficientimplementationofformulatedstrategySalesGrowthCoordinationandControlProblemsFunctionalStructureSimpleStructureSimpleStructureOwner/ManagerOwner/ManagermakesallmajordecisionsdirectlyandmonitorsallactivitiesDifficulttomaintainthisstructureasthefirmgrowsinsizeandcomplexity*Production*Finance*Engineering*Accounting*Sales&Marketing*HumanResourcesFunctionalStructureFirststagebeyondaSimpleStructureAppropriateforsingleordominant-businessfirmsAllowsspecializationoftasksOvercomesinformationprocessinglimitsofsingleowner/managerFunctionaldepartmentheadsreporttoChiefExecutiveOfficerwhointegratesdecisionsandactionsfromacompany-widepointofviewRisksconflictsbetweenmyopicfunctionmanagersProductionFinanceEngineeringAccountingSales&MarketingHumanResourcesFunctionalStructureChiefExecutiveOfficerCorporateFinanceCorporateR&DCorporateMarketingCorporateHumanResourcesStrategicPlanningMarketingEngineeringOperationsPersonnelAccountingFunctionalStructureforCostLeadershipStrategyOfficeofthePresidentCentralizedStaffOperationsismainfunctionProcessengineeringisemphasizedratherthannewproductR&DFormalizedproceduresallowforlow-costcultureStructureismechanical;jobrolesarehighlystructuredRelativelylargecentralizedstaffcoordinatesfunctionsMarketingNewProductR&DOperationsHumanResourcesFinanceR&DMarketingFunctionalStructureforDifferentiationStrategyPresidentandLimitedStaffMarketingisthemainfunctionfortrackingnewproductideasNewproductR&DisemphasizedMostfunctionsaredecentralizedFormalizationislimitedtofosterchangeandpromotenewideasOverallstructureisorganic;jobrolesarelessstructuredMulti-DivisionalStructureEachdivisionisoperatedasaseparatebusinessAppropriateforrelated-diversifiedbusinessesKeytaskofcorporatemanagersisexploitingsynergiesamongdivisionsManagersuseacombinationofstrategiccontrolsandfinancialcontrolsManagerstrytostrikeabalancebetween:CompetingamongdivisionsforscarcecapitalresourcesCreatingopportunitiesforcooperationtodevelopsynergiesThegoalistomaximizeoverallfirmperformanceMulti-DivisionalStructureBalanceonthesedimensionsmaychangeovertimeThedecision-makingofmanagersinaMulti-Divisionalstructuremaybe:CentralizedorDecentralizedBureaucraticorNon-bureaucraticChangesinstrategyDegreeofdiversificationGeographicscopeNatureofcompetitionStructurewillevolveovertimewith:DivisionDivisionDivisionDivisionProductionFinanceEngineeringAccountingSales&MarketingHumanResourcesMulti-DivisionalStructureChiefExecutiveOfficerCorporateFinanceCorporateR&DCorporateMarketingStrategicPlanningCorporateHumanResourcesCooperativeFormStrategicBusinessUnit(SBU)StructureCompetitiveFormVariationsoftheMulti-DivisionalStructureMulti-DivisionalStructure(M-form)Related-ConstrainedStrategyRelated-LinkedStrategyUnrelated/HoldingCompanyStrategyProductDivisionProductDivisionProductDivisionProductDivisionProductDivisionStrategicPlanningCorporateR&DLabCorporateHumanResourcesLegalAffairsCorporateMarketingCorporateFinanceCooperativeFormPresidentRelated-ConstrainedStrategyGovernmentAffairsStructuralintegrationdevicescreatetightlinksamongalldivisionsLargecorporateofficewithR&DlikelytobecentralizedCultureemphasizescooperativesharingPresidentStrategicBusinessUnitASBUFormRelated-LinkedStrategyCorporateFinanceCorporateR&DCorporateMarketingStrategicPlanningCorporateHumanResourcesDivisionDivisionDivisionStrategicBusinessUnitCDivisionDivisionDivisionStrategicBusinessUnitBStrategicBusinessUnitDStructuralintegrationexistsamongdivisionswithinSBUs,butnotacrossSBUsEachSBUmayhaveitsownbudgetforstafftofosterintegrationCorporateheadquartersstaffserveasconsultantstoSBUsanddivisionsCompetitiveFormUnrelated/HoldingCompanyStrategyPresidentLegalAffairsFinanceCorporateheadquartershasasmallstaffFinanceandauditingarethemostprominentfunctionsintheheadquartersDivisionsareindependentandseparateforfinancialevolutionpurposesDivisionsretainstrategiccontrol,butcashismanagedbythecorporateofficeDivisionscompeteforcorporateresourcesAuditingDivisionDivisionDivisionDivisionDivisionCostLeadershipDecentralizationDifferentiationCentralizationMulti-DivisionalStructureThechoicebetweencentralizationanddecentralizationisfrequentlybasedonthebusiness-levelstrategyimplementedineachdivisionComplexMulti-Divisionalstructurefirmsmaybesimultaneouslycentralizedanddecentralized,dependinguponthevariousbusiness-levelstrategiesemployedthroughoutthefirm’sindividualbusinessesMulti-Divisionalstructurefirmsuseacombinationof:FinancialControlsStrategicControlsAttributesofVariousStructuralFormsStructuralCharacteristicsDegreeofCentralizationUseofIntegratingMechanismsDivisionalPerformanceAppraisalDivisionalIncentiveCompensationTypeofStrategyCooperativeM-FormSBUM-FormCompetitiveM-FormCentralizedatCorporateOfficeCentralizedinSBUsDecentralizedtoDivisionLinkedtoCorporatePerformanceLinkedtoCorporation,Division&SBULinkedtoDivisionalPerformanceExtensiveSynergiesModerateSynergiesNonexistentSynergiesFinancialCriteriaStrategic&FinancialCriteriaSubjective/StrategicCriteriaRelated-ConstrainedRelatedLinkedUnrelatedNorthAmericaAustraliaEuropeAsiaLatinAmericaAfricaProductAProductBProductCProductDProductAEvolutionofMulti-DivisionalStructureChiefExecutiveOfficerCorporateOffice(Staff)AStructuralevolutionbasedonGeographiclinesusuallyimpliesaMulti-DomesticInternationalStrategyEvolutionofMulti-DivisionalStructureNorthAmericaAustraliaEuropeAsiaLatinAmericaAfricaProductAProductBProductCProductDChiefExecutiveOfficerCorporateOffice(Staff)ImplementationofaMultidomesticStrategyWorldwideGeographicAreaStructureMultinationalHeadquartersAsiaUnitedStatesLatinAmericaEuropeAustraliaMiddleEast/AfricaGreencirclesindicatedecentralizationofoperationsEmphasisisondifferentiationbylocaldemandtofitacultureCorporateheadquarterscoordinatesfinancialresourcesamongindependentsubsidiariesTheorganizationislikeadecentralizedfederationProductAProductBProductCProductDAStructuralevolutionbasedonProductlinesusuallyimpliesaGlobalInternationalStrategyEvolutionofMulti-DivisionalStructureChiefExecutiveOfficerCorporateOffice(Staff)ImplementationofaGlobalStrategyWorldwideProductDivisionalStructureGreencircleindicatescentralizationtocoordinateinformationflowamongworldwideproductsHeadquartersusesmanyintercoordinationdevicestofacilitateglobaleconomiesofscaleandscopeHeadquartersalsoallocatesfinancialresourcescooperativelyTheorganizationislikeacentralizedfederationMultinationalHeadquartersWorldwideProductsDivisionWorldwideProductsDivisionWorldwideProductsDivisionWorldwideProductsDivisionWorldwideProductsDivisionWorldwideProductsDivisionATransnationalInternationalStrategyislikelytoutilizeastructureandthatresultsinemphasisonbothgeographicandproductstructuresEvolutionofMulti-DivisionalStructureStrategicNetworksAStrategicNetworkisagroupingoforganizationsthathasbeenformedtocreatevaluethroughparticipationinanarrayofcooperativearrangements,suchasastrategicallianceAStrategicCenterFirmoftenmanagesthenetworkTheStrategicCenterFirmidentifiesactionsthatincreasetheopportunityforeachfirmtoachievesuccessthroughitsparticipationinthenetworkTheStrategicCenterFirmcreatesincentivesthatreducetheprobabilityofanysinglefirmtakingadvantageofitsnetworkpartnersAStrategicNetworkStrategicCenterFirmNetworkFirmsStrategicCenterFirmStrategicCenterFirm’sCriticalFunctionsStrategicOutsourcingCapabilityDevelopmentTechnologySharingBuildingLinkagestoFacilitateLearningStrategicCenterFirmStrategicOutsourcingCenterfirmcoordinatesoutsourcingamongpartners,initiatesactionsandcoordinatesproblemsolvingStrategicCenterFirmStrategicCenterFirm’sCriticalFunctionsStrategicOutsourcingCapabilityDevelopmentTechnologySharingBuildingLinkagestoFacilitateLearningStrategiccenterfirmmanagesthedevelopmentandsharingtechnology-basedideasamongnetworkpartnersCapabilityandTechnologyStrategicCenterFirmCenterfirmattemptstodevelopeachpartner’scorecompetenciesandprovidesincentivesfornetworkfirmstosharetheircapabilitiesandcompetencieswithpartnersStrategicCenterFirmStrategicCenterFirm’sCriticalFunctionsStrategicOutsourcingCapabilityDevelopmentTechnologySharingBuildingLinkagestoFacilitateLearningStrategicCenterFirmBuildingLinkagestoFacilitateLearningStrategiccenterfirmemphasizestopartnerstheneedtobuildlinkagesbetweenvaluechainsandnetworksofvaluechains.ThestrategicnetworkseekstodevelopacompetitiveadvantageinprimaryorsupportactivitiesADistributedStrategicNetworkMainStrategicCenterFirmDistributedStrategicCenterFirmsInternationalCooperativeStrategiesoftenrequiremorecomplexnetworksManylargemultinationalfirmsformdistributedstrategicnetworkswithmultipleregionalstrategiccenterstomanagetheirarrayofcooperativearrangementswithpartnerfirmsBreakinglargenetworksintomultiplemanageably-sizednetworkshelpstomanagethecomplexityofmaintainingmanyrelationships9、静夜夜四无无邻,,荒居居旧业业贫。。。1月-231月-23Wednesday,January4,202310、雨中黄叶叶树,灯下下白头人。。。23:06:4023:06:4023:061/4/202311:06:40PM11、以我独独沈久,,愧君相相见频。。。1月-2323:06:4023:06Jan-2304-Jan-2312、故故人人江江海海别别,,几几度度隔隔山山川川。。。。23:06:4023:06:4023:06Wednesday,January4,202313、乍见见翻疑疑梦,,相悲悲各问问年。。。1月-231月-2323:06:4023:06:40January4,202314、他乡乡生白白发,,旧国国见青青山。。。04一一月月202311:06:40下下午午23:06:401月-2315、比不了得得就不比,,得不到的的就不要。。。。一月2311:06下午1月-2323:06January4,202316、行动出成成果,工作作出财富。。。2023/1/423:06:4023:06:4004January202317、做做前前,,能能够够环环视视四四周周;;做做时时,,你你只只能能或或者者最最好好沿沿着着以以脚脚为为起起点点的的射射线线向向前前。。。。11:06:40下下午午11:06下下午午23:06:401月月-239、没有失败败,只有暂暂时停止成成功!。1月-231月-23Wednesday,January4,202310、很多事情情努力了未未必有结果果,但是不不努力却什什么改变也也没有。。。23:06:4023:06:4023:061/4/202311:06:40PM11、成功就是日日复一日那一一点点小小努努力的积累。。。1月-2323:06:4023:06Jan-2304-Jan-2312、世间间成事事,不不求其其绝对对圆满满,留留一份份不足足,可可得无无限完完美。。。23:06:4023:06:4023:06Wednesday,January4,202313、不不知知香香积积寺寺,,数数里里入入云云峰峰。。
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