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

Nguyễn Ngọc Anh - Anh 1 ACCA