CHAPTER 5: BUSINESS ORGANIZATION, STRUCTURE AND STRATEGY
ORGANIZATION STRUCTURE
ELEMENTS
DEPARTMENTALIZATION
CENTRALIZATION
WORK SPECIALIZATION
SPAN OF CONTROL
CHAIN OF COMMAND
FORMALIZATION
DECENTRALIZATION
DECISION MAKING TAKES PLACE AT UPPER LEVELS OF THE ORGANIZATION
LOWER-LEVEL MANAGERS PROVIDE IMPUT OR ACTUALLY MAKE DECISION
HOW STANDARDIZED AND ORGANIZATION'S JOB ATR AND THE EXTEND TO WHICH EMPLOYEE BEHAVIOUR IS GUIDED BU RULES AND PROCEDURES
FORMAL VS INFORMAL
FORMAL
WELL DEGINED STRUCUTRE OF AUTHORITY AND RESPONSIBILITY
WORK ALONG PRE-DEFINED SETS OF POLICIES
MOST DECISIONS ARE BASED ON PREDETERMINED POLICIES
INFORMAL
UNPLANNED STRUCTURE
FULFILLMENT OF SOCIAL NEED
NO FORMAL STRUCTURE
INFORMAL LEADER
INFORMAL COMMUNICATION SYSTEM
NO RULED AND REGULATIONS
NO FIXED TENURE
MINTZBERG 5 COMPONENTS
TRATEGIC APEX
SUPPORT STAFF
MIDDLE LINE
TECHNOSTRUCTURE
OPERATING CORE
DEPARTMENTALIZATION
FUNCTIONAL DEPARTMENTALIZATION
GEOGRAPHIC DEPARTMENTALIZATION
PRODUCT/BRAND DEPARTMENTALIZATION
CUSTOMER DEPARTMENTALIZATION
GROUPING ACTIVITIES BY FUNCTIONS PERFORMED
GROUPING ACTIVITIES BY MAJOR PRODUCT AREAS
GROUPING ACTIVITIES BY CUSTOMER
GROUPING ACTIVITIES ON THE BASIS OF GEOGRAPHY OR TERRITORY
PROCESS DEPARTMENTALIZATION
GROUPING ACTIVITIES ON THE BASIS OF WORK OR CUSTOMER FLOW
AUTHORITY
DEFINITION
THE RIGHTS INHERENT IN A MANAGERIAL POSITION TO GIVE ORDERS AND EXPECT IT TO BE OBEYED
TYPES
STAFF AUTHORITY
LINE AUTHORITY
ENTITLE A MANAGER TO DIRECT THE WORK OF AN EMPLOYEE
POSITIONS CREATED TO SUPPORT, ASSIST AND ADVISE THOSE HOLDING LINE AUTHORITY
STRATEGY
BUSINESS-LEVEL (COMPETITIVE)
CORPORATE-LEVEL (COMPANYWIDE)
EACH BUSINESS UNIT IN A DIVERSIFIED FIRM CHOOSES A BUSINESS-LEVEL STRATEGY AS ITS MEANS OF COMPETING IN INDIVIDUAL PRODUCT MARKETS
A FIRM GAIN A COMPETITIVE ADVANTAGE BY SELECTING AND MANAGING A GROUP OF DIFFERENT BUSINESSES COMPETING IN SEVERAL INDUSTRIES AND PRODUCT MARKETS
GROWTH STRATEGY
EXPANDS THE NUMBER OF MARKETS SERVED OR PRODUCTS OFFERED THROUGH ITS CURRENT OR NEW BUSINESSES
CONCENTRATION
VERTICAL INTEGRATION (BACKWARD OR FORWARD)
HORIZONTAL INTEGRATION
DIVERSIFICATION (RELATED AND UNRELATED/CONGLOMERATE)
STABILITY STRATEGY
RENEWAL/RETRENCHMENT STRATEGY
THE ORGANIZATION CONTINUES TO DO WHAT IT IS CURRENTLY DOING
DECLINING ORGANIZATIONAL PERFORMANCE
COMPETITIVE ADVANTAGE
WHAT SETS THE ORGANIZATION APART; ITS DISTINCTIVE EDGE
STRATEGIC BUSINESS UNITS
A SINGLE BUSINESS THAT ARE INDEPENDENT AND FORMULATE THEIR OWN COMPETITVE STRATEGY
TYPES
COST LEADERSHIP STRATEGY
DIFFERENTIATION STRATEGY
FOCUS STRATEGY
COMPETING ON HAVING THE LOWEST COSTS
COMPETING ON HAVING UNIQUE PRODUCTS THAT ARE WILDLY VALUED BY CUSTOMERS
COMPETING IN A NARROW SEGMENT OR NICHE WITH EITHER A COST FOCUS OR A DIFFERENTIATION FOCUS
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