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Organization Design Approaches

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g ddf gsd sg sd gds • Organization design approaches:

Simple, Flat Structure. A simple structure tends to be flat, meaning it doesn't have a lot of managers. This approach consists of a lot of employees and a single boss or perhaps one level of managers. This works well for small businesses that operate in one location and depend on the owner for their direction. The business owner can be very hands-on with this approach because he has direct access to all employees.

Matrix Structure. In a matrix structure, employees may report to more than one person. Lines of authority can go both up and sideways. For example, an employee may have to account to a divisional manager for a marketing project and report to the marketing manager at the same time. While this structure offers lots of supervision, it can create conflicts between competing managers.

Team Structure. A team structure divides employees into groups. These groups work on projects or come up with solutions to specific problems. Usually, the team leader reports to management. This leader can be assigned by management or voted into the position by the team. The lines of accountability tend to run within the team for individuals, while teams themselves may be accountable to other teams and management.

Functional Structure. If a company has self-contained departments that have many employees who require an overseeing manager or executive, a functional structure may work. For example, a company can be organized into the functions of human resources, accounting, manufacturing, sales and production. Each of these departments has its own standards and procedures, and the manager of the department reports to the head of the company.

Divisional Structure. A company that has divisions that operate autonomously may set these units up so that they operate like businesses within the business. Each has a manager who reports to the CEO, and the division sets its own procedures and standards and even may have its own marketing department, shipping department and other departments that exist elsewhere in the company. Some duplication of functions is inevitable if each division takes care of its own needs.

Lecture three. Reorganization projects.

What was given:

• Definition of project: a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case, it’s properties: Change; Temporary; Cross-functional; Unique; Uncertainty;

• 6 aspects of project performance: Time, Cost, Quality, Scope, Risks, Benefits.

• Process modelling project goals: Documentation of processes; Documentation of system requirements; Benchmarking; Customization of IT system; ISO certification; Specification of workflows; Improvement of communication; Creation of simulation model;

• Project stages: Preparation of modeling (pre-project); Strategy and organizational frame; As-is modeling; To-be modeling; Organizational structure; Implementation

• Project organization scheme. The management appoints a project manager. It is advantageous to select a person from the organization department, since this would eliminate a possible accusation that the project manager is representing his own interests in the project. The role of the project manager in a process modeling project is extremely versatile. The project manager reports to the project steering committee (PSC), which uses these reports to make decisions. The PSC meets periodically, checks the progress of the project by means of the defined milestones, decides on the “stop or go” alternatives and makes the substantive decisions that are relevant



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