![]() ![]() Instead of bouncing a patient from department to department, Karolinska now envisions the illness to recovery period as a process with “pit stops” in admissions, X-ray, surgery, and so forth. The top executive team set about reorganizing workflow at the hospital around patient care. Even after top executives cut that down to 11, coordination was still inadequate. One interesting use of horizontal linkages Opens in new window occurred at Karolinska Hospital Opens in new window in Stockholm, Sweden, which had 47 functional departments. Managers improve horizontal coordination by using information systems, liaison roles, full-time integrators or project managers, task forces, or teams, and by creating the conditions that encourage relational coordination. “There’s not much that is distilled or screened, “ she says, “When we’re working on something, there’s a lot of back and forth.” For a small organization, this informal coordination works fine, but as organizations grow larger, they typically need stronger mechanisms for horizontal linkage. Moore has everyone sit in one big open room. For example, Watershed Asset Management is organized by functions such as legal, accounting, and investment, but to ensure coordination and collaboration, founder Meridee A. However, in today’s fast-moving world, very few companies can be successful with a strictly functional structure. Some organizations perform very effectively with a functional structure, and organizing by functions is still the prevalent approach to organization design Opens in new window. Functional Structure with Horizontal Linkages Other disadvantage of the functional structure are that innovation is slow because of poor coordination, and each employee has a restricted view of overall goals. Decisions pile up, and top managers do not respond fast enough. The vertical hierarchy becomes overloaded. ![]() The main weakness of the functional structure is a slow response to environmental changes that require coordination across departments. Employees are exposed to a range of functional activities within their own department. The functional structure also promotes in-depth skill development of employees. Constructing only one facility instead of separate facilities for each product line reduces duplication and waste. Producing all products in a single plant, for example, enables the plant to acquire the latest machinery. Economy of scale results when all employees are located in the same place and share facilities. One strength of the functional structure is that it promotes economy of scale within functions. Using Policies, Processes, and Procedures.Relationships Among Policies, Processes, and Procedures.Six Sigma vs TQM: Similarities & Differences.Quality Measurement (What is a Metric?)*.Information Technology for Decision Making & Control.Organizational Control (Hierarchical vs Decentralized Approach).Contingencies Unique to Different Organization.Strategies to Pursue Organization Design Goals.Organization Goal: Strategic Direction in Organization Design.Organization Design in Action: A Case Study of GE.Organic Versus Mechanistic Organization.Multinational Versus Nonprofit Organizations.Organization's Norms, Values, and Symbols.Leader’s Job and Roles in Organizational Change.Approaches to Managing Organizational Change.Virtual Network Structure and Outsourcing. ![]() Horizontal Linkage & Coordination Devices.Structural Devices for Vertical Information Sharing.Information-Sharing Perspective on Structure.Observable Artifacts of Organizational Culture.Abundance/Scarcity of Needed Financial Resources.Planning, Forecasting, and Responsiveness.Core Organization Technology in Service Firms.Core Organization Technology in Manufacturing Firms.Conservation of Resources Theory of Burnout.
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