Designing Organizations: Strategy, Structure, and Process at the Business Unit and Enterprise Levels
Jay R. Galbraith
This Third Edition of the groundbreaking book Designing Organizations offers a guide to the process of creating and managing an organization (no matter how complex) that will be positioned to respond effectively and rapidly to customer demands and have the ability to achieve unique competitive advantage. This latest edition includes fresh illustrative examples and references, while the foundation of the book remains the author’s popular and widely used Star Model.
- Includes a comprehensive explanation of the basics of organization design
- Outlines a strategic approach to design that is based on the Star Model, a holistic framework for combining strategy, structure, processes, rewards, and people
- Describes the different types of single-business, functional organizations and focuses on the functional structure and the cross-functional lateral processes that characterize most single-business organizations.
- Features a special section on the effects of big data on organization design, and whether or not it will result in a new dimension of organizational structure
Highlighting the social technologies used to coordinate work flows, products, and services across the company, this new edition of Designing Organizations brings theory to life with a wealth of examples from such well-known companies as Disney, Nike, IBM, and Rovio (Angry Birds) to show how various kinds of organization designs operate differently.
helping people (mostly women) in Africa to grow and harvest ingredients. A number of companies have Page 51 MeansB 52 c02.tex V2 - 11/26/2013 DESIGNING ORGANIZATIONS the ability to provide rewarding work because of their industry. Other dimensions come from the attraction some people have to continuous learning and developing their own skills. Many people find personal satisfaction in being perceived as an expert in their field. Thus, organizations that recognize and enable employees to
Dual Authority General Manager Functional Manager Project Manager Subproject Manager 2:21pm Page 104 MeansB c04.tex V2 - 11/30/2013 2:21pm D E S I G N I N G T H E L A T E R A L O R G A N I Z A T I O N 105 Only organizations that are skilled at lateral processes should attempt the dual authority step. It creates a power balance between the dimensions of the structure but can generate its own set of conflicts. The situation can easily produce more disagreements and confusion than
external data provided by vendors like credit bureaus, from data collected in interactions with the customer. For each customer, the database contains his or her credit risk profile, transaction preference (fast, friendly, or Web), profitability, products bought, products likely to buy, likelihood to leave, and lifetime value or potential. All of the data are available to customer contact people at the moment of customer interaction. The customer interaction is led by a personal banker and takes
where members of other functions join for however long they are needed to contribute. The functions contributing vary with the project, as the interdependencies change with each project. Usually representatives from hardware, the Web, community, data and analytics, product management, other software vendors, and advertising join the team. A software development leader stays close to a product and initiates new activities when updates are required. Other developers move from project to project.
sales and distribution. All functions, except research and development, contributed a full-time, dedicated manager. There was no research and development representation because no new products were involved. The channel team bought products from the factories and managed the relationships with copackers who packaged the products. Following these changes, two more dedicated cross-functional units were formed for the two customer partnerships. These units also consisted of full-time, dedicated