Presentation on theme: "HybridDesigns. Hybrid Departmentalization All pure divisionalized forms consist of top level divisions based upon product line, technological process,"— Presentation transcript:
Hybrid Departmentalization All pure divisionalized forms consist of top level divisions based upon product line, technological process, territory Or customer, but are then functionally divided inside each division. Due to the inherent inflexibility of functional units, very few pure divisionalized forms exist, especially pure functional forms. Most organizations are hybrid forms divided up on multiple bases, to optimize the performance/environment of each division.
The Limited, Inc. – A Hybrid CEO Structure The Limited Express Lerner New York Victoria’s Secret Bath & Body Works Other Chains
Why Go Beyond This? Despite the increased flexibility provided by the divisionalized forms over the classic functional form, these designs still are very limited in their ability to cope with environmental uncertainty and change. Many newer and emerging industries require significantly more flexibility in responding to environmental demands than is provided by these designs. Newer designs, such as project, matrix and horizontal forms have been created in order to help organizations cope with higher rates of change and environmental uncertainty.
Project Management/Teams Project Management/Teams is a method of integrating functional, product, process, and geographical groups in organizations. The project manager (PM) is a formal integrator. The PM is an administrative role, and has responsibility for the entire project. The PM does not have formal authority over team members. Formal authority for pay raises, hiring, firing, etc. rests with the functional departments, who have formal authority over subordinates.
The Matrix Structure The matrix design was developed to find even faster and better ways to respond to customer needs. This design groups people and resources in two way simultaneously. The primary difference between this design and product teams is that each employee works for two or more superiors at the same time, a team manager and a functional manager. The organization design tends to be flat with loose responsibilities and deliberately vague roles. Team membership is not fixed. Members move from team to team as their skills are needed.
Advantages of Matrix Design Adapts to fluctuating work loads Establishes one person as focal point for all matters pertaining to an individual project Permits maximum use of limited pool of functional specialists Provides a home base for functional specialists between projects Makes it possible to respond to several environmental sectors simultaneously
Disadvantages of Matrix Design Places a premium on teamwork Leads to possible conflict with existence of two separate operating systems Creates possible power struggles between project managers and functional area heads Slows decision making and increases costs in certain instances Promotes narrow management viewpoints