Learning Objectives
      1. Identify             five           traditional 
          organizational  structures  and  the 
          pros and cons of each
      2. Describe            the         product-team 
          structure  and  explain  why  it  is  a 
          prototype  for  a  more  open,  agile 
          organizational structure
      3. Explain  five  ways  improvements 
          have  been  sought  in  traditional 
          organizational structures
      4. Describe  what  is  meant  by  agile, 
          virtual organizations                          11-2
  Learning Objectives (contd.)
    5. Explain  how  outsourcing  can 
        create              agile,             virtual 
        organizations,  along  with  its 
        pros and cons
    6. Describe                      boundaryless 
        organizations and why they are 
        important
    7. Explain  why  organizations  of 
        the       future         need        to      be 
                                                         11-3
        ambidextrous                        learning 
        organizations
  Organizational Structure
    Organizational structure refers 
        to  the  formalized arrangement 
        of  interaction  between  and 
        responsibility  for  the  tasks, 
        people,  and  resources  in  an 
        organization
    It is most often seen as a chart, 
        often  a  pyramidal  chart,  with 
        positions or titles and roles in 
                                                         11-4
        cascading fashion 
  Simple Organizational Structure
     A           simple           organizational 
        structure is one where there is an 
        owner  and  a  few  employees  and 
        where  the  arrangement  of  tasks, 
        responsibilities,                           and 
        communication  is  highly  informal 
        and  accomplished  through  direct 
        supervision 
     This type of structure can be very 
        demanding on the owner-manager
                                                        11-5
        Most businesses in this country and 
        around the world are of this type 
 Functional Organizational Structure
      A      functional        organizational 
        structure  is  one  on  which  the 
        tasks,  people,  and  technologies 
        necessary  to  do  the  work  of  the 
        business  are  divided  into  separate 
        “functional”      groups      (such     as 
        marketing, operations, and finance) 
        with increasingly formal procedures 
        for  coordinating  and  integrating 
        their    activities   to   provide  the 
        business’s products and services  11-6