Boundaryless organization pros and cons

10

Creating Effective
Organizational Designs
Professor John Coy

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Learning Objectives

After reading this chapter, you should have a good understanding of:
The importance of organizational structure and the concept of the “boundaryless” organization in implementing strategies.
The growth patterns of major corporations and the relationship between a firm’s strategy and its structure.
Each of the traditional types of organizational structure: simple, functional, divisional, and matrix
The relative advantages and disadvantages of traditional organizational structure
The implications of a firm’s international operations for organizational structure
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Learning Objectives

After reading this chapter, you should have a good understanding of:
Why there is no “one best way” to design strategic reward and evaluation systems, and the important contingent roles of business- and corporate-level strategies.
The different types of boundaryless organizations—barrier-free, modular, and virtual—and their relative advantages and disadvantages
The need for creating ambidextrous organizational designs that enable firms to explore new opportunities and effectively integrate existing operations
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Traditional Forms of
Organizational Structure

Organizational structure refers to formalized patterns of interactions that link a firm’s
Tasks
Technologies
People
Structure provides a means of balancing two conflicting forces
Need for the division of tasks into meaningful groupings
Need to integrate the groupings for efficiency and effectiveness
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Question

Most organizations begin very small and ______.

A) grow to become a medium sized organization

B) continually grow

C) remain small

D) often decrease in size

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Answer: C

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Dominant Growth Patterns
of Large Corporations

Adapted from Exhibit 10.1 Dominant Growth Patterns of Large Corporations

Source: Adapted from J. R. Galbraith and R. K. Kazanjian, Strategy Implementation: The Role of Structure and Process, 2nd ed. (St. Paul, MN: West Publishing Company, 1986), p. 139.