Integration Strategies:

Forward integration, backward integration, and horizontal integration are sometimes collectively
referred to as vertical integration strategies. Vertical integration strategies allow a firm to gain control over
distributors, suppliers, and/or competitors.
Forward integration strategy refers to the transactions
between the customers and firm. Similarly, the function for the particular supply which the firm is being
intended to involve itself will be called backward integration. When the firm looks that other firm
which may be taken over within the area of its own activity is called horizontal integration.

enefits of vertical integration strategy:

Allow a firm to gain control over:
. Distributors (forward integration)
. Suppliers (backward integration)
. Competitors (horizontal integration)

orward integration: aining ownership or increased control over distributors or retailers

Forward integration involves gaining ownership or increased control over distributors or retailers.
You can gain ownership or control over the distributors, suppliers and
Competitors using forward integration.

:idelines for the :se of integration strategies:

Six guidelines when forward integration may be an especially effective strategy are:
. Present distributors are expensive, unreliable, or incapable of meeting firms needs
. Availability of quality distributors is limited
. When firm competes in an industry that is expected to grow markedly
. Organization has both capital and human resources needed to manage new business of distributio
ackward Integration -
Seeking ownership or increased control of a firms suppliers
Both manufacturers and retailers purchase needed materials from suppliers. ackward integration is a
strategy of seeking ownership or increased control of a firm's suppliers. This strategy can be especially
appropriate when a firm's current suppliers are unreliable, too costly, or cannot meet the firm's needs.

:idelines for ackward Integration:

Six guidelines when backward integration may be an especially effective strategy are:
. When present suppliers are expensive, unreliable, or incapable of meeting needs
. Number of suppliers is small and number of competitors large
. High growth in industry sector
. Firm has both capital and human resources to manage new business
. Advantages of stable prices are important
orizontal Integration:
Seeking ownership or increased control over competitors
Hori:ontal integration refers to a strategy of seeking ownership of or increased control over a firm's
competitors. One of the most significant trends in strategic management today is the increased use of
horizontal integration as a growth strategy. Mergers, acquisitions, and takeovers among competitors
allow for increased economies of scale and enhanced transfer of resources and competencies.
Increased control over competitors means that you have to look for new opportunities either by the
purchase of the new firm or hostile take over the other firm. One organization gains control of other
which functioning within the same industry.
It should be done that every firm wants to increase its area of influence, market share and business.

:idelines for orizontal Integration:

Four guidelines when horizontal integration may be an especially effective strategy are:
. Firm can gain monopolistic characteristics without being challenged by federal government
. Competes in growing industry
. Increased economies of scale provide major competitive advantages
. Faltering due to lack of managerial expertise or need for particular resources
Strategic Execution: Moving Your Strategic Plan to Action
A strategic plan, once you have asked the right questions, used the right tools, and have made sound
decisions, can be
relatively easy to construct. It is in the implementation that the difficulties arise.
A strategic plans intended results can only be realized by following through on its implementation.

ow to Take the Strategic Planning Process Down to Action

hat Obstacles to Avoid?

SIrcIegy ExecuIicn A: F|cce::
/ mcjcr e|emenI cf :IrcIegy execuIicn i: Ihe :IrcIegy execuIicn prcce:: iI:e|f. Ccn:icer Ihe
:imp|e cifference: LeIween mcking cnc execuIing :IrcIegy. lI cn|y Icke: c :hcrI Iime cnc c
few pecp|e Ic ceve|cp c :IrcIegy-c Icp Iecm ccn fcrmu|cIe c :IrcIegy in c few ccy: cr
week:. 8uI iI reuire: Ihe whc|e crgcnizcIicn Ihe enIire Lu:ine:: cyc|e cr |cnger Ic execuIe
IhcI :IrcIegy. Ihere i: cfIen c ,p|cn Ic p|cn cr cn uncer|ying prcce:: :uppcrIing :IrcIegic
p|cnning. Ihi: i: Iypicc||y ncI Ihe cc:e fcr :IrcIegy execuIicn: Ihere i: rcre|y c prcce::
exp|cining hcw Ic cc iI. Ihe rec:cn fcr Ihi: cL:ence i: :imp|e-:IrcIegy execuIicn i:
ccn:icerec Ly mcny Ic Le cn cuIccme ncI c prcce::. IhcI :cic, here cre Ihe mc:I impcrIcnI
e|emenI: cf Ihe :IrcIegy execuIicn :y:Iem Ic Le ccn:icerec.
V|:uc||z|ng tne St|ctegy. ne cf Ihe mc:I pre::ing chc||enge: in c|| cf :IrcIegy i: :imp|y
uncer:Icncing whcI c :IrcIegy i:. / recenI :Iucy Ly Fc|ce: |n:|gnt c:kec 13 CE:, :enicr
:IrcIegi:I: cnc ccmmuniccIicn: prcfe::icnc|: whcI :IrcIegy i:. Iheir key fincing wc:, :enicr
mcncgemenI cce: ncI hcve c ccmmcn cefiniIicn cf whcI :IrcIegy i:."1 ne wcy Ic imprcve
Ihe uncer:Icncing cf cny :IrcIegy i: Ic vi:uc|ize iI. Vi:uc|izing cr grcphicc||y cepicIing c
:IrcIegy he|p: i:c|cIe Ihe impcrIcnI e|emenI: cnc :hcw hcw Ihey re|cIe Ic cne cncIher.
Frcmewcrk: :uch c: Ihe St|ctegy /cp Ly Kcp|cn cnc NcrIcn, Ihe Act|v|ty /cp Ly FcrIer cr
Ihe Succe:: /cp Ly Nee|y eI c| were ce:ignec :pecificc||y Ic cic in vi:uc|izing :IrcIegy.
F|onn|ng fhrough Ferformoncesm 8r|e| CcpyrighI 200 www.ecLcrrcw:.ccm
/ec:u||ng tne St|ctegy. nce Ihe :IrcIegy hc: Leen vi:uc|izec iI :hcu|c Le mec:urec.
DifferenI e|emenI: cf Ihe vi:uc|izec :IrcIegy :hcu|c Le c::ignec cn ec:i|y uncer:IcnccL|e
mec:ure. Ihe fu|| :eI cf :IrcIegic mec:ure: ccn Le crgcnizec inIc c cc:hLccrc, c 8c|cncec
Sccreccrc cr :cme cIher frcmewcrk IhcI wi|| encL|e Ihe reccer Ic ceIermine prcgre:: i:
Leing mcce Icwcrc ccmp|eIicn cf Ihe key e|emenI: cf Ihe :IrcIegy.
Fepc|t|ng F|cg|e::. ngcing prcgre:: :hcu|c Le evc|ucIec Ihrcugh cn ccIive repcrIing
prcce::. Much |ike Ihe LucgeI i: reviewec mcnIh|y Ic en:ure perfcrmcnce ccmmiImenI: cre
kepI, Ihe :IrcIegy :hcu|c Le reviewec :imi|cr|y LuI wiIh mcre cf c view Icwcrc |ecrning if Ihe
:IrcIegy i: ccpIuring re:u|I: ver:u: ccnIrc||ing perfcrmcnce. Senicr |eccer: in cn crgcnizcIicn
:hcu|c mcinIcin re:pcn:iLi|iIy fcr Ihe :IrcIegy repcrIing prcce::.
/ck|ng Dec|:|cn:. /|| cf Ihe vi:uc|izing, mec:uring cnc repcrIing wi|| Le cf |iII|e vc|ue if
ceci:icn: cre ncI mcce regcrcing Ihe :IrcIegy iI:e|f. SIrcIegy execuIicn i: much |ike :ci|ing c
LccI Icwcrc c p|cnnec ce:IincIicn. / cefinec ccur:e cnc c fu|| ccmp|emenI cf ncvigcIicnc|
chcrI: wi|| never e|imincIe Ihe neec Ic vigi|cnI|y c::e:: Ihe envircnmenI cnc mcke
ccrrecIicn: c: ccnciIicn: chcnge. /: pcrI cf Ihe repcrIing prcce:: |eccer: mu:I mcke
:IrcIegic ceci:icn:.
SIrcIegy ExecuIicn A: F|cect:
Mcny mccern ccy view: cf :IrcIegy execuIicn cre cenIerec cn mcncgemenI cf key
prcjecI:. Ihi: i: uncer:IcnccL|e :ince ccccrcing Ic re:ecrch, prcjecI: ccn:ume Li||icn: in
re:curce: in crgcnizcIicn: Icccy yeI fewer Ihcn hc|f cf Ihem cre |inkec Ic :IrcIegy.2 lI i:
cifficu|I Ic execuIe :IrcIegy wiIhcuI c c|ecr uncer:Icncing cf hcw key prcjecI: ccnIriLuIe Ic
imprcvec perfcrmcnce. Ihere cre Ihree impcrIcnI c:pecI: cf :IrcIegy execuIicn c: prcjecI:
IhcI :hcu|c Le Lui|I inIc c :IrcIegy execuIicn :y:Iem.
|cent||y|ng F|cect:. rgcnizcIicn: kncw IhcI Ihey hcve :ccre: if ncI huncrec: cf prcjecI:
cngcing cI cny pcinI. Ihey rcre|y hcve c firm grc:p hcwever cn Ihe Iype cnc rcnge cf Ihe:e
prcjecI:. ne cf Ihe criIicc| :Iep: in effecIive|y execuIing prcjecI: i: uncer:Icncing whcI
prcjecI: cre in prcce:: Ic Legin wiIh. Ihe fir:I :Iep in imprcving prcjecI crienIec :IrcIegy
execuIicn i: Ic ccpIure cnc crgcnize c|| prcjecI:-:IrcIegy prcjecI: in pcrIicu|cr-IhcI cre
uncerwcy in cn crgcnizcIicn.
A||gn|ng F|cect:. nce prcjecI: cre ccpIurec Ihey mu:I Ihen Le c|ignec Ic Ihe :IrcIegie: cr
gcc|: fcr Ihe crgcnizcIicn. Ihi: :Iep enIci|: ccmpcring ecch prcjecI, eiIher prcpc:ec cr
cngcing, Ic :IrcIegic gcc|: Ic ceIermine if c|ignmenI exi:I:. /: Ihi: ccIiviIy i: unfc|cing
mcncger: mu:I cecice if Ihere i: encugh cf c |inkcge Ic wcrrcnI ccnIinuing Ihe prcjecI. n|y
Ihc:e prcjecI: IhcI cirecI|y impccI Ihe :IrcIegy :hcu|c Le re:curcec cnc ccnIinuec.
/cncg|ng F|cect:. rgcnizcIicn: mu:I ceve|cp c ccpcLi|iIy in prcjecI mcncgemenI if Ihey
cre Ic effecIive|y execuIe :IrcIegy. ln :cme :eIIing: prcjecI: cre :uLjecI Ic very |iII|e
mcncgemenI. ln cIher:, prcjecI: per:i:I we|| Leycnc Iheir :checu|ec ccmp|eIicn. ln cIher
cc:e: prcjecI: IhcI wcnI prccuce Ihe inIencec LenefiI cre never IermincIec. Ihe fu||
ccmp|emenI cf prcjecI: in cny crgcnizcIicn :hcu|c Le cccrcincIec cnc ccnIrc||ec Ly c
cenIrc| prcjecI cffice cr cfficer wiIh Ihe re:pcn:iLi|iIy fcr mcniIcring prcgre:: cnc
perfcrmcnce.
SIrcIegy ExecuIicn A: Fecp|e
Ihe |c:I LuI crgucL|y mc:I impcrIcnI ccmpcnenI cf c :IrcIegy execuIicn :y:Iem i: Ihe
pecp|e e|emenI. Simp|y puI, emp|cyee: in cn crgcnizcIicn execuIe :IrcIegy ncI :enicr
|eccer:. Jcck We|ch, Ihe rencwnec CE whc chcngec Ihe ccmp|exicn cf GE curing hi:
yecr: cf :Iewcrc:hip, ncIec IhcI he :penI upwcrc cf 07 cf hi: Iime ccmmuniccIing wiIh
emp|cyee:. /ny crgcnizcIicn :ericu: cLcuI execuIing :IrcIegy mu:I en:ure Ihe pecp|e
e|emenI cf Iheir F|onn|ng fhrough Ferformoncesm 8r|e| CcpyrighI 200 www.ecLcrrcw:.ccm SIrcIegy
ExecuIicn /: Frcce::1.Vi:uc|izing Ihe SIrcIegy2.Mec:uring Ihe SIrcIegy3.FepcrIing Frcgre:: 4.Mcking
Deci:icn:SIrcIegy ExecuIicn /: Fecp|e1.CcmmuniccIing SIrcIegy & ExpecIcIicn:2./|igning lncivicuc|
Fc|e:3.Fewcrcing & Ccmpen:cIing FerfcrmcnceSIrcIegy ExecuIicn /: FrcjecI: 1.lcenIifying SIrcIegy
FrcjecI:2./|igning SIrcIegy FrcjecI: 3.Mcncging SIrcIegy FrcjecI:
execuIicn :y:Iem i: given prcper cIIenIicn. Ihere cre Ihe Ihree mc:I impcrIcnI c:pecI: cf Ihe
pecp|e cimen:icn cf Ihe :IrcIegy execuIicn prcce::.
cnnun|cct|ng St|ctegy & Fxpectct|cn:. lI i: cifficu|I Ic execuIe :IrcIegy when Ihe :IrcIegy
iI:e|f i:nI we|| uncer:Iccc cr perfcrmcnce re|cIive Ic iI i: never ccmmuniccIec. /mp|e
evicence exi:I: inciccIing IhcI ccmmuniccIicn i: c viIc| :ucce:: preccnciIicn in crgcnizcIicn:
{:ee Ihe FcrLe: FepcrI ciIec Le|cw). Leccer: mu:I ccmmuniccIe Iheir vi:uc|izec :IrcIegy Ic
Ihe wcrkfcrce in c wcy IhcI wi|| he|p Ihem uncer:Icnc whcI neec: Ic Le ccne cnc why.
FurIher, perfcrmcnce re|cIive Ic IhcI :IrcIegy mu:I Le ccmmuniccIec freuenI|y c: we||.
A||gn|ng |nc|v|cuc| Fc|e:. Emp|cyee: wcnI Ic kncw Ihey cre mcking c mecningfu|
ccnIriLuIicn Ic Iheir crgcnizcIicn: perfcrmcnce. Ihe cnu: i: cn :enicr |eccer: Ic :hcw hcw
emp|cyee: ccn ccccmp|i:h Ihi:. Leccer: mu:I en:ure IhcI emp|cyee: cI c|| |eve|: ccn
crIicu|cIe cnc evc|ucIe Iheir per:cnc| rc|e: Icwcrc cchievemenI cf :pecific :IrcIegic gcc|:.
Ihi: i: perhcp: cne cf Ihe mc:I criIicc| c:pecI: cf Ihe execuIicn prcce::.
Fewc|c|ng & cnpen:ct|ng Fe||c|ncnce. ln :IrcIegy execuIicn, c: in cny cIher crec cf
mcncgemenI, whcI geI: mec:urec geI: ccne. Icking Ihi: cne :Iep furIher, whcI geI
mec:urec cnc |ewc|cec geI: ccne |c:te|. /fIer exp|cining Ihe :IrcIegy cnc c|igning Ihe
wcrkfcrce Ic iI, :enicr mcncger: mu:I puI in p|cce Ihe nece::cry incenIive: crive Lehcvicr:
ccn:i:IenI wiIh Ihe :IrcIegy. lI :imp|y i:nI :ufficienI Ic Ie|| emp|cyee: :IrcIegy i: impcrIcnI.
Guiccnce mu:I Le Lcckec wiIh c rewcrc :y:Iem IhcI incenI: cchievemenI.
Strotegy Execut|on System
Ihe mcce| Le|cw pre:enI: Ihe mcin ccmpcnenI: cf c :IrcIegy execuIicn :y:Iem.
F|gure 1: E|ements o| o Strotegy Execut|on System
Ed|tor|o|
SIrcIegy execuIicn i: cifficu|I in prccIice fcr Iwc mcin rec:cn:. Fir:I, execuIing :IrcIegy
reuire: c :u:Icinec cmcunI cf energy cnc fccu: Leycnc Ihe cLi|iIie: cf mcny mcncgemenI
Iecm:. Seccnc, mcny |eccer: ccnI kncw whcI Ihey :hcu|c Le ccing Ic execuIe :IrcIegy.
Hcme grcwn :IrcIegy execuIicn cpprccche: cre cfIen inccmp|eIe cnc fci| Ic inccrpcrcIe
mcny cf Ihe Lc:ic ccIiviIie: high|ighIec cLcve. Whi|e remecying Ihe fir:I cifficu|Iy i: Leycnc
Ihe :ccpe cf Ihi: Lrief, Ihe :eccnc i: in nc wcy c Lricge Icc fcr. Ihe 10 e|emenI: cf c
:ucce::fu| :IrcIegy F|onn|ng fhrough Ferformoncesm 8r|e| CcpyrighI 200 www.ecLcrrcw:.ccm
execuLlon sysLem dlscussed above can be adopLed by any organlzaLlon wllllng Lo make a modesL commlLmenL
Whlle Lhere are no guaranLees of success Lhe execuLlon process ouLllned above should lmprove Lhe odds of lL

Organizational structure
From Wikipedia, the free encyclopedia
An organizationaI structure consists of activities such as task allocation, coordination and supervision, which
are directed towards the achievement of organizational aims.
[1]
t can also be considered as the viewing glass or
perspective through which individuals see their organization and its environment.
[2]

Most organizations have hierarchical structures, but not all.
[citation needed]

Organizations are a variant of clustered entities.
[citation needed]

An organization can be structured in many different ways, depending on their objectives. The structure of an
organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes
to different entities such as the branch, department, workgroup and individual.
Organizational structure affects organizational action in two big ways. First, it provides the foundation on which
standard operating procedures and routines rest. Second, it determines which individuals get to participate in
which decision-making processes, and thus to what extent their views shape the organization's actions.
[2]

5o what are the different types of org structures?
Org sLrucLures ure deflned by uslng dlfferenL crlLerlu. 1hlngs Lo Lhlnk ubouL ure whuL ls Lhe funcLlonul groulng of
work rocesses und ure Lhere nuLurul groulngs of Leums, work grous or unlLs. 1hls ls u declslon from senlor
munugemenL on how Lhey would llke work ucLlvlLles Lo be orgunlzed und currled ouL. 1hls ulso ldenLlfles nuLurul
reorLlng reluLlonshls und chuln of commund. ReorLlng reluLlonshls cun be boLh verLlcul us well us horlzonLul.
1he dlfferenL sLrucLures ure:
MuLrlx
A muLrlx sLrucLure rovldes for reorLlng levels boLh horlzonLully us well us verLlcully. Lmloyees muy be urL of u
funcLlonul grou (l.e. roducLlon) buL muy serve on u Leum LhuL suorLs new roducL develomenL. 1hls klnd of
sLrucLure muy huve members of dlfferenL grous worklng LogeLher Lo develo u new roducL llne.

luncLlonul
luncLlonul orgunlzuLlonul sLrucLures ure Lhe mosL common. A sLrucLure of Lhls Lye grous lndlvlduuls by seclflc
funcLlons erformed. Common deurLmenLs such us humun resources, uccounLlng und urchuslng ure orgunlzed by
seuruLlng euch of Lhese ureus und munuglng Lhem lndeendenLly of Lhe oLhers.

roducL
AnoLher common sLrucLure ls Lo be orgunlzed by seclflc roducL Lye. Luch roducL grou fulls wlLhln Lhe
reorLlng sLrucLure of u senlor leudershl erson und LhuL erson oversees everyLhlng reluLed Lo LhuL urLlculur
roducL llne.

CusLomer
CerLuln lndusLrles wlll orgunlze by cusLomer Lye. 1hls ls done ln un efforL Lo ensure seclflccusLomer needs ure meL
by seclflc cusLomlzed servlce urouches. An exumle of Lhls would be ln heulLhcure. A dlfferenL cusLomer Lye
mlghL be ouLuLlenL und Lhelr needs ure very dlfferenL Lhun lnuLlenL cusLomers.

Ceogruhlc
lor orgunlzuLlons LhuL cover u sun of geogruhlc reglons, lL someLlmes mukes sense Lo orgunlze by Lhe reglon.
1hls ls done Lo beLLer suorL loglsLlcul demunds und dlfferences ln geogruhlc cusLomer needs. 1ylcully u
sLrucLure LhuL ls orgunlzed by geogruhlcul reglons reorLs u Lo u cenLrul overslghL sLrucLure.

LellberuLe Llme und LhoughL should ulwuys go lnLo Lhe deslgn of un orgunlzuLlon's sLrucLure. 1hls ls lmorLunL so
emloyees huve u vlsuul of how Lhe orgunlzuLlon funcLlons und undersLunds Lhe chuln-of-commund. OeruLlng
wlLhln u deflned sLrucLure wlLh good communlcuLlon rocesses und work-flows hel Lo ensure more efflclenL
munugemenL of resources eole, Llme und money.








Drcnizctioncl Structure
As you muy know, LIere ure LIree muIn Lypes oI orgunIzuLIonuI sLrucLure:
IuncLIonuI sLrucLure, DIvIsIonuI sLrucLure und MuLrIx sLrucLure. EucI
sLrucLure Ius ILs own sLrong und weuk poInLs.

n LIe IuncLIonuI sLrucLure, ubove, LIe empIoyees ure workIng In
depurLmenLs bused on wIuL LIey ure doIng I.e. we Iuve engIneerIng
depurLmenL, muInLenunce depurLmenL, IInunce depurLmenL, reseurcI
depurLmenL, WureIouse depurLmenL, purcIusIng depurLmenL. TIIs
sLrucLure enIunces LIe experIence oI eucI IuncLIon. or exumpIe, uII LIe
muInLenunce engIneers ure workIng In LIe sume depurLmenL und LIus LIey
wIII excIunge knowIedge und supporL eucI oLIer. TIIs sLrucLure suves us
money becuuse oI LIe economIes oI scuIe. TIIs sLrucLure mukes
LIe coordInuLIon beLween dIIIerenL depurLmenL more dIIIIcuIL LIun oLIer
sLrucLures. L uIso does noL uIIow Ior IIexIbIIILy becuuse oI LIe cenLruIIzuLIon.

DIvIsIonuI sLrucLure dIvIdes, sIown ubove, LIe empIoyees bused on LIe
producLJcusLomer segmenLJgeogrupIIcuI IocuLIon. or exumpIe, eucI
dIvIsIon Is responsIbIe Ior cerLuIn producL und Ius ILs own resources sucI us
IInunce, murkeLIng, wureIouse, muInLnenuce..eLc. AccordIngIy, LIIs
sLrucLures Is u decenLruIIzed sLrucLure und LIus uIIows Ior IIexIbIIILy und
quIck response Lo envIronmenLuI cIunges. L uIso enIunces InnovuLIon und
dIIIerenLIuLIon sLruLegIes. On LIe oLIer Iund, LIIs sLrucLure resuILs In
dupIIcuLIon oI resources becuuse, Ior ex., we need Lo Iuve wureIouse Ior
eucI dIvIsIon. obvIousIy, IL does noL supporL LIe excIunge oI knowIedge
beLween peopIe workIng In LIe sume proIessIon becuuse purL oI LIem ure
workIng In one dIvIsIon und LIe oLIers ure workIng In oLIer dIvIsIons.

MuLrIx sLrucLure, sIown ubove, combInes boLI sLrucLures. or exumpIe, we
cun Iuve u IuncLIonuI sLrucLure und LIen ussIgn u munuger Ior eucI producL.
Some empIoyees wIII Iuve Lwo munugers: IuncLIonuI munuger und producL
munuger. TIIs Lype oI sLrucLure LrIes Lo geL LIe beneIILs oI IuncLIonuI
sLrucLure und uIso oI dIvIsIonuI sLrucLure; Iowever, IL Is noL eusy Lo
ImpIemenL becuuse oI LIe duuI uuLIorILy. TIIs sLrucLure Is very useIuI Ior
muILInuLIonuI compunIes.
L Is ImporLunL Lo keep In mInd LIuL eucI munugerIuI decIsIon Ius ILs pros
und cons. SomeLImes, wrILers wIII convInce you LIuL dIvIsIonuI or muLrIx
sLrucLure ure LIe recenL Lrends und LIuL you need Lo re-engIneer your
sLrucLure Lomorrow mornIng. obvIousIy, LIIs Is noL Lrue. Muny
orgunIzuLIons sLIII Ius IuncLIonuI sLrucLure und Is doIng very weII. L Is very
ImporLunL Lo seIecL LIe sLrucLure LIuL besL servIce your condILIon. WIuL Is
your sLruLegy? How muny producLs do you Iuve? WIuL Lype oI LecInoIogy
ure you usIng? How bIg Is your compunyJorgunIzuLIon?
MunugemenL sIouId Luke necessury ucLIons Lo decreuse LIe dIsudvunLuges
oI LIe cIosen sLrucLure und Lo enIunce ILs LIe posILIve eIIecLs. or exumpIe,
II we LIInk LIe dIvIsIonuI sLrucLure Is LIe besL Lype Ior our condILIon LIen we
sIouId Iuve LooIs Lo excIunge knowIedge beLween engIneers workIng In
dIIIerenL dIvIsIons. TIese LooIs cun IncIude Iorums on LIe AN und
conIerences Lo excIunge knowIedge. ConverseIy, II we udopL IuncLIonuI
sLrucLure, we cun Iorm Leums Irom dIIIerenL IuncLIons Lo soIve probIems
und deveIop our producLs.
DeveIopIng counLrIes suIIer Irom LIe Iuck oI reseurcI. MosL oI reseurcI on
orgunIzuLIon sLrucLure bused on sLudyIng Jupunese, AmerIcun und
Europeun compunIes buL IL Is rure Lo IInd u reseurcI bused on u sumpIe oI
AIrIcun compunIes. TIuL Is u cIuIIenge Ior munugers workIng In deveIopIng
counLrIes becuuse LIe reseurcI does noL reuIIy LeII LIem wIuL Lo do und
wIuL Lo expecL. TIe dIIIerences In cuILures cun uIIecL LIe resuILs oI udopLIng
cerLuIn sLrucLure In cerLuIn purL oI LIe worId. SomeLImes, you deuI wILI LIe
sume orgunIzuLIon In dIIIerenL purLs oI LIe worId und geL very dIIIerenL
sLundurd oI servIce. TIIs sIows LIuL LIIs muILInuLIonuI orgunIzuLIon IuIIed
Lo reucI LIe sume resuILs In LIe deveIopIng counLry.
MunugemenL sIouId noL LIInk LIey ure goIng Lo doubIe LIeIr proIILs
becuuse LIey udopLed IIuL sLrucLure (Iess number oI munugemenL Iuyers). I
LIIs sLrucLure re-engIneerIng Is noL purL oI u cerLuIn sLruLegy, IL wIII noL
work. or exumpIe, II we udopL IIuL sLrucLure und LIen LrunsIer LIe
uuLIorILIes oI LIe mIddIe munugemenL Lo LIe Lop munugemenL LIen we ure
IncreusIng cenLruIIzuLIon und decreusIng our IIexIbIIILy. SImIIurIy, II we
udopL IuncLIonuI sLrucLure und uIIow Ior LIe dupIIcuLIon oI resources, LIen
we wIII geL LIe dIsudvunLuges oI LIe IuncLIonuI sLrucLure und wIII Iose one oI
ILs muIn udvunLuges wIIcI Is economIes oI scuIe.
Muny compunIes Iuve combInuLIon beLween IuncLIonuI, dIvIsIonuI und
muLrIx sLrucLure. Muny oI LIe decenLruIIzed compunIes wIII Iuve one or Lwo
depurLmenL cenLruIIzed sucI us Iumun resources or murkeLIng.
WIuLever sLrucLure you Iuve, LIe resuILs ure LIe mosL ImporLunL. TIe
resuILs ure noL your percepLIon LIuL you ure LIe besL. Meusure yourseII
compured wILI sImIIur compunIes. Do you need one week Lo Luke u decIsIon
LIuL LIey muke In one Iour? Are your empIoyees moLIvuLed more LIun
LIose In oLIer compunIes? Are you deveIopIng new producLs und servIces
IusLer LIun oLIer compunIes? Are you ucIIevIng your muIn sLruLegy?