GMS 200 Chapter Notes - Chapter 8: Departmentalization

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Deborah De Lange

Document Summary

Division structures: work on the same, product or process; serve similar customers; located in the same area or geographical region; complex organizations with diverse operations that extend across many products, territories, customers, and work processes, advantages, more flexibility, coordination; clear points of responsibility; focused expertise on specific customers, products, and regions; easier to change size by adding or deleting divisions, disadvantages, duplication of resources and efforts across divisions; competition, poor coordination across divisions; emphasis on divisional goals at expense of organizational goals. Network structure: network organizations only keep core activities internally, strategic alliance cooperative strategy with partners, outsourcing contracting of business functions to outside suppliers, advantages, firms can operate with fewer full time employees and less complex internal systems, reduced overhead costs and increased operating efficiency, permits operations across great distances, disadvantages, control and coordination problems from network complexity, less of control over outsourced activities, lack of loyalty among infrequently used contractors.