Organisational Structures Overview

Multidivisional Structure

  • Organizes tasks by divisions based on product or geographic market.

  • Divisional heads manage day-to-day operations.

  • Top executives Focus on strategy, resource allocation, and new business assessments.

  • Reduces complexity allowing units to focus on specific product lines.

  • Can incorporate horizontal mechanisms to handle complexity.

Matrix Structure

  • Complex structure overlaying one type of organization on another.

  • Distinct features: employees report to multiple bosses, shared subordinates, dual management responsibilities.

  • Promotes communication, flexibility, and skill maximization among professionals.

  • Encourages a focus on both cost and quality.

  • Motivation increases due to project-based work, though it can lead to confusion and power struggles.

  • Adopted by firms like WIPRO, TRW, Bechtel for its responsiveness.

Networked Structure

  • Composed of multiple organizations coordinated by contracts instead of a formal hierarchy.

  • A lead organization manages the network and offers key competencies like marketing.

  • Provides flexibility and rapid responses to markets.

Virtual Organisation

  • Operates in cyberspace, lacking a physical form.

  • Relies heavily on technology for communication and coordination.

  • Adapts quickly to changing conditions, often involving customers in the organizational process.

Learning Organisation

  • Thrives on continuous learning and adaptation.

  • Key features:

    • System thinking

    • Personal mastery

    • Mental models

    • Shared vision

    • Team learning

  • Shifts focus from hierarchical authority to empowering employees.

Team-based Designs

  • Flat organizations with autonomous work teams instead of hierarchies.

  • Focus on processes rather than tasks, enhancing collaboration across functions.

Boundaryless Organisations

  • Chains of command are absent, aimed at eliminating barriers within and between firms.

  • Promotes a free flow of communication and collaboration.

Strategic Alliances

  • Cooperative agreements between firms for joint efforts like marketing and technology sharing.

  • Can be structured as shared management, assigned, or delegated arrangements.

Built-to-Change (b2change) Organisation

  • Constantly adapting to changing environments.

  • Key processes: strategising, creating value, and designing organizational structures accordingly.

Informal Organisations

  • Behaviors and influences that arise from human interactions within formal structures.

  • Emphasizes informal relationships which can either pervade an entire organization or occur in smaller groups.