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

2. An Overview Which Comes first—strategy or structure?
Form follows function
But, once the form is in place, it impacts the function.

3. Chapter Outline The horizontal organization The need for coordination
Task force, teams and project management

4. Coordination
Quality of collaboration across departments

5. Evolution of Organization Structures
Traditional Vertical Structure
Teams and Project Managers for Horizontal Coordination
Reengineering to Horizontal Processes
New Workplace Learning Organization

6. 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

7. Traditional versus Learning Organizations
Traditional Vertical Organization
New Workplace Organization
Horizontal structure is dominant
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
Dominant Structural Approach
Vertical Structure is dominant
1. Few teams, tasks forces, or project managers Vertical communications and reporting system Centralized strategic decision making Specialized tasks Rigid culture

8. Chapter Outline Traditional organizations vs. the new workplace
Horizontal structure
Open information
Decentralized decisions making & participative strategy
Empowered employee
Strong, adaptive culture

9. Empowerment
Giving employees the power, freedom, knowledge, and skills to make decisions and perform effectively

10. Corporate Culture
The set of key values. Beliefs, understandings, norms shared by members of the organization.
Is the foundation of a learning organization

11. 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

12. Structure Follows Strategy
Differentiation strategy, organization attempts to develop innovative products
Cost leadership strategy, striving for internal efficiency

13. Chapter Outline Factors shaping structure Structure follows strategy
Structure reflects the environment
Structure fits the technology
Structure follows the workflow

14. Influencing Organizational Structure
Strategy
Traditional Vertical Structure
Environment
Company Performance
Technology
New Horizontal Structure
Interdependence

15. Three Things Happen Due To Uncertain Environments
Increased differences occur among departments
The organization needs increased coordination to keep departments working together
The organization must adopt to change

16. Environment versus Structure

17. Woodward’s Manufacturing Technology
Small batch and unit production
Large batch and mass production
Continuous process production

18. Manufacturing Technology and Organizational Structure

19. Interdependence
The extent to which departments depend on each other for resources or materials to accomplish their tasks.

20. Types of Interdependence and Required Coordination