- What The Faff!!ContentsOrganizational Structure, Chart...................................................................................................................2

Structure of Org...........................................................................................................................................2

Division of Labor: Kaam Baato...Dard khud mit jayega............................................................................2

Centralization versus Decentralization:...................................................................................................2

Line Maaro, Authority Paao....Staff Research deke jaao..........................................................................2

Unity of Command..................................................................................................................................3

Formalization- Code Red or No Code?.....................................................................................................3

Types of Organization..................................................................................................................................3

Mechanistic Organizations:.....................................................................................................................3

Organic Organizations:............................................................................................................................3

Simple Structure......................................................................................................................................4

MATRIX Organization..................................................................................................................................4

Types of Matrix (no..not Reloaded And Revolutions)..............................................................................4

Virtual/Network Organizations....................................................................................................................5

Virtual Organizations...............................................................................................................................5

Network Organizations............................................................................................................................5

Comparison of Structures- ONE SLIDE SLAP................................................................................................6

Critical Success Factors................................................................................................................................7

Appex Case Study........................................................................................................................................7

APPEX EVOLUTION..................................................................................................................................8

NOVARTIS CASE...........................................................................................................................................8

Organizational Structure, Chart

Bahut Authority hai Gabbar ke haathon mein..haan!

Chain of Command shows: Chained to me or to Chained to Gabbar ki Goli!

Span of Control: Arre o Samba...Kitne Aadme the ?

Hierarchical Level: No of people at each level

Structure of Org

Division of Labor: Kaam Baato...Dard khud mit jayega

Centralization versus Decentralization:Gabbar Ltd= Centralized. Any Club at ISB= Decentralized (I hope!)

Line Maaro, Authority Paao....Staff Research deke jaaoLine functions= Production, Marketing, Sales

Staff Fucntions= HR, IT, Finance

Unity of CommandOf course, you don't want your employees to run around sayin "mere do do boss! mere do do boss!"

Formalization- Code Red or No Code?

If you are a code red organization, you CEO must really be of the kind "we follow orders or people die!"A No Code Organization= SAS? I

Types of Organization

Mechanistic Organizations: well defined jobs, hierarchical info, sab kuch high, span of control narrow, slow decision making, little flexibility and low productivity.

Organic Organizations: loosely defined jobs, free info, sab kuch low, span of control wide and productivity high

Main disadvantage of Divisional Structure is duplication and lack of synergy. Similar prob with gegraphic. Team structure -Remember CHAK DE... team can become bigger than Organization. Kabir Khan won't like it.

Simple StructureWho says what's in a name? Here everything is clear!- less Formalization, less departments, more control, more authority concentration, easier decisions making and suitable for small orgs.

And Now for the ONE..

MATRIX OrganizationWake up Neo!

The matrix structure groups employees by both function and product. A matrix organization frequently uses teams of employees to accomplish work Helps take advantage of the strengths, as well as make up for the weaknesses, of functional and

decentralized forms.

An example would be a company that produces two products, "product a" and "product b". Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department. !

You: Wow! This is like almost best of both worlds! This Matrix Orgs...Do they exist for real?Morpheus: What is real? How do you define real?You: Aargh... Not again!!

Types of Matrix (no..not Reloaded And Revolutions)Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.

Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and project-wala organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.

Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.

Virtual/Network Organizations

Virtual Organizations A firm that contracts out almost all functions A virtual organization might not have even have a permanent office Best Example would be your fashion industry ABC. There may be a brand ABC with no

company/office, but one designer XYZ outsourcing tailoring work to one guy, buying material from Thailand & China to another and marketing to another.

Network Organizations It is a collection of autonomous firms or units that behave as a single larger entity Uses social mechanisms for coordination and control Entities are subsidiaries or different legal entities

Egg Sample: ITC and its different divisions. Like Spices division will supply to not just ITC foods, but also other companies. (now does this info count in my ELP? Anyone hear me??)

Comparison of Structures- ONE SLIDE SLAP

Critical Success Factors

Appex Case Study- Short Version Shikhar Ghosh brought in a number of significant and radical structural changes in an attempt to

respond to its meteoric growth Op performance improved, but brought friends like inefficiencies the number and frequency of the changes has resulted in a work environment fraught with

fiefdoms, employee anxiety, and power struggles Probls like Loss of customer focus & Lack of Innovation death knell for APPEX Appex should undergo a substantive restructuring Should consider Matrix Struc for enabling innovation, performance, and growth Will reduce duplicity, increase flexibility The matrix will provides a mechanism for Appex to leverage aspects of EDS’s infrastructure and

competencies

APPEX EVOLUTIONTimeframe Employees Revenue Structure Positive Effects Negative Effects

86-87 << 26 $1M Informal - Start-Up Fluid, informal organization Strong informal ties

Innovative, committed workforce High-bandwidth communication Fast, extensive idea generation Quick market response

No underlying planning structure No product accountability Unclear reporting structure “Fire-fighting” mentality Lack of customer service focus

Summer 88 < 26 Circular Non-hierarchical Concentric circles expanding out from executives to customers

Free flow of information Theoretically customer-based Theoretically responsive structure

Employees “could not relate” Aimed at response, not planning Unclear decision hierarchies Customer became the “enemy”

Late 88 ~ 26 $2.3M Horizontal Non-hierarchical Typical org-chart turned sideways

Impression of traditional structure Complete failure Employees gave no response

Feb 89 ~ 40 Hierarchical/Functional Separation into functional teams (e.g. Sales, Service, Operations)

Focus on task completion Increased planning System for assessing accountability

Extensive politics Development of sub-functions Polarization of teams Reduction on cooperation Poor skill/management matches

Aug 89 ~ 80 Addition of Product Teams Overlay of functional representatives for each key product

Improved planning Application of management vs. skill to products

No system of authority Extensive executive decision support No system of priorities between products

Nov 89 ~ 100 $6.8M Addition of Business Teams Intermediaries between product teams and corporate management

Decision making authority Resource allocation authority

“More tail than tooth” – too many people in overhead Too many layers of management Internal process focus Loss of customer focus Loss of P&L accountability

Aug 90 ~ 150 Divisions Separation into three divisions, ICS, IS, and Operations

Improved accountability, budgeting, and planning Extensive communications within divisions

Resource allocations squabbles Cross-divisional antagonism Second guessing of Sr. Management No cross-divisional communication or cooperation Fractal structures Financial gamesmanship

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