1. OT CH6 part3

2. Horizontal Organization
• Definition
• Characteristics
- cross-functional ex. Ford
- self-directed team
- process owner’s responsibility: coordinate
- cross-trained, multi-ability to decision-making
for performance

3. • -think creatively and respond flexibility
-customers evaluate the organization
-culture: openness, trust and collaboration,
focused on continuous improvement
Ex. BPR

5. Strengths and Weakness
Strengths Weakness
1.Promotes flexibility and rapid
response to changes in customer
needs.
2.Directs the attention of everyone
toward the production and
delivery of value to the customer.
3.Each employee has a boarder
view
of organization goals.
4.Promotes a focus on teamwork
and collaboration.
5.Improves quality of life for
employees by offering them
opportunity to share
responsibility,
1.Determine core processes is
difficult.
2.Requires change in culture, job
design, management philosophy,
and information and reward
systems.
3.Traditional managers may balk
when they have to give up power
and authority.
4.Requires significant training of
employees to work effectively in a
horizontal team environment.
5.Can limit in-depth skill development

6. Virtual Network Structure
• Definition
• Strategic view – RBV
• How to work
1. Industrial division
2. Core competence (ourselves)
3. Strategic resource (others)

8. Strengths and Weakness
Strengths Weakness
1.Enables even small organizations
to obtain talent and resources
worldwide.
2.Gives a company immediate scale
and reach without huge
investments in factories,
equipment, or distribution
facilities.
3.Enables the organization to be
highly flexible and responsive to
changing needs.
4.Reduces administrative overhead
costs.
1.Mangers do not have hands-on
control over many activities and
employees.
2.Requires change a great deal of
time to manage relationships and
potential conflicts with contract
partners.
3.There is a risk of organizational
failure if a partner fails to deliver
or goes out of business.
4.Employee loyalty and corporate
culture might be weak because
employees feel they can be
replaced by contract services.

9. Hybrid Structure
• Definition
• Ex. carrefour

11. Applications of Structural Design
• Structural Alignment
- vertical control
- horizontal coordination
Why?

13. Symptoms of Deficiency
• Definition
• Decision making
-delayed
- lacking in quality
• Not respond innovatively
• Employee performance declines and goals are
not being met.
• Too much conflict

14. Summary
• 1. Information-processing perspective
- vertical and horizontal linkages
• 2.Organization design alternative
• 3. The type of organization
- functional, divisional, geographic and matrix
• 4. Horizontal and Virtual network organization
• 5. Applications of Structural Design

15. • Thanks for your listening