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Designing Organizational Communication Structures

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					Designing Organizational
Communication Structures




                           1
    Major Functions in Satellite Production

Product Design

          Process Design


                   Fabrication

                             Assembly


                                        Testing
                                                  2
      Functional Design


              General Manager


Engineering Director   Manufacuring Director


    Product Design              Fabrication

   Process Design               Assembly

                                 Testing




                                               3
           Strengths                           Weaknesses
• Functional efficiency: economies • Communication inefficiency:
  of scale within functions           slow information sharing and
                                      decision-making across functions
• Depth: in-depth skill development   and up and down the hierarchy
• Focus: on functional goals        • Information overload:
• Careers: long career paths          communication moves vertically
                                      up the hierarchy
• Intrafunctional coordination
                                    • Functional myopia: poor inter-
                                      function coordination; conflict
                                      across functions
                                    • Inertia: low responsiveness and
                                      adaptability to change
                                    • Low innovation


Functional Structure works best for small- or medium-size organizations
    facing stable environments and producing only a few products
                                                                  4
  Horizontal communication
 solutions, in order of capacity

Liaison roles


        Task forces


                Teams


                        Integrators

                                Integrating
                                Departments
                                              5
        Integrated Functional Design


                         General Manager


Engineering Director   Manufacuring Director   Engineering Services


    Product Design           Fabrication

   Process Design             Assembly

                               Testing




                                                                      6
                     Divisional Design



                             General Manager


    Director                     Director                     Director
Satellite Division      Commercial Antenna Division   Consumer Antenna Division


Product Design               Product Design               Product Design

Process Design               Process Design               Process Design

 Fabrication                   Fabrication                  Fabrication

  Assembly                     Assembly                     Assembly

   Testing                      Testing                       Testing




                                                                                  7
   Bonanza International: Functional Structure


                                 President


                              General Manager


Real Estate   Marketing    Stores       Franchise    Finance   Legal
                          Operation    Development




                                                                       8
Bonanza International: Divisional Structure

                         President


          General        General        General
          Manager        Manger         Manager
          Bonanza        Peoples         B-80


           Real Estate    Real Estate     Real Estate


            Marketing      Marketing      Marketing


             Stores         Stores          Stores
            Operation      Operation       Operation

            Franchise      Franchise      Franchise
           Development    Development    Development

             Finance        Finance        Finance




                                                        9
        Some Divisional Organization Types

•   Product line (e.g. Chevrolet vs. Pontiac)
•   Product part (e.g. chassis vs. engine)
•   Geography (e.g., East vs. West)
•   Project (e.g., 8-bit vs. 16 bit computer design)
•   Client (e.g., Client A vs. Client B)
•   Market (e.g., government vs. consumer)

                                               10
                       Client: Ad Agency
                          Board of Directors


                              President


                       Executive Vice President



Account Supervisor       Account Supervisor       Account Supervisor


 Account Executive        Account Executive       Account Executive
     Client 1                 Client 2                Client N

•Merchandising            •Merchandising           •Merchandising
•Media                    •Media                   •Media
•Research                 •Research                •Research
•Copy                     •Copy                    •Copy
•Art                      •Art                     •Art
•Newspaper/Magazine       •Newspaper/Magazine      •Newspaper/Magazine
  Production                Production               Production
•TV/Radio Production                               •TV/Radio Production   11
                          •TV/Radio Production
        Geographic: Apple Computer

                             CEO



Apple Products   Apple USA         Apple Europe   Apple Pacific


                   Regions             West          Canada


                                       North        Australia


                                      France         Japan


                                      South          Latin
                                                    America

                                                    Far East

                                                                  12
            Strengths                                Weaknesses
• Communication efficiency because        • Divisional myopia: poor
  information must pass through             intrafunctional coordination across
  fewer layers                              divisions; conflict and competition
• Adaptability and responsiveness to        across product lines
  change                                  • Functional inefficiency: no
• Interfunctional coordination within       economies of scale within functions
  each division                           • Generalism: less in-depth
• Client satisfaction because product       competence and technical
  responsibility and contact points are     specialization and shorter functional
  clear                                     career paths
• Customization in that units can         • Fragmentation: difficult to
  adapt to differences in products,         integrate and standardize across
  regions, clients, etc.                    products
• Decentralizes decision-making           • Information islands: poor
                                            knowledge transfer across functions



Divisional Structure works best for larger organizations facing dynamic
             environments and producing several products            13
  Horizontal communication
 solutions, in order of capacity

Liaison roles


        Task forces


                Teams


                        Integrators

                                Integrating
                                Departments
                                          14
                     Integrated Divisional Design


                                             General Manager


    Director                    Director                      Director                 Director
Satellite Division     Commercial Antenna Division    Consumer Antenna Division   Business Processes


Product Design              Product Design                 Product Design

Process Design              Process Design                 Process Design

 Fabrication                  Fabrication                      Fabrication

  Assembly                    Assembly                         Assembly

   Testing                     Testing                          Testing




                                                                                                       15
               Simplified Matrix Design
                                        General Manager


Engineering Director       Director                 Director          Manufacturing Director
                           Satellites           Commercial Antennas


    Product Design                                                          Fabrication


           Team 1 Leader                                                      Team 1 Leader


           Team 2 Leader                                                      Team 2 Leader

           Team 3 Leader                                                      Team 3 Leader

    Process Design                                                           Assembly


           Team 1 Leader                                                      Team 1 Leader


           Team 2 Leader                                                      Team 2 Leader

           Team 3 Leader                                                      Team 3 Leader

                                                                              Testing


                                                                              Team 1 Leader


                                                                              Team 2 Leader

                                                                              Team 3 Leader
Function


Project/                                                                                       16
Division
                Simplified Matrix Design
                                          General Manager


 Engineering Director        Director                 Director          Manufacturing Director
                             Satellites           Commercial Antennas


    Product Design                                                            Fabrication


           Team 1 Leader                                                         Team 1 Leader


                                                                                 Team 2 Leader
              team members

                                                                                Team 3 Leader
           Team 2 Leader

                                                                               Assembly
        Team 3 Leader

    Process Design
                                                                                 Team 1 Leader


           Team 1 Leader                                                         Team 2 Leader

                                                                                Team 3 Leader
           Team 2 Leader

                                                                                Testing
        Team 3 Leader


                                                                                 Team 1 Leader


                                                                                 Team 2 Leader
Matrix Boss
                                                                                Team 3 Leader
Two-Boss                                                                                         17
Employee
                                              Weaknesses
          Strengths                • Extremely high communication
• Coordination across both           costs: frequent and time-consuming
  functions and products             meetings and conflict resolution
• Flexible use of human              demands
  resources across products        • Communication intensive: people
                                     need good interpersonal
• Integration within functions
                                     communication skills and training;
• Skill development within           requires collegial rather than
  functions                          hierarchical relationships
• Capacity to handle complex       • Who’s the real boss? Difficulties
  decisions and frequent changes     with dual reporting relationships
                                   • Requires dual pressure from the
                                     business environment to maintain the
                                     power balance
                                   • Very tricky to maintain effectively



 Matrix Organization works best for medium size organizations
        with multiple products in unstable environment              18

				
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posted:10/11/2012
language:English
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