High Output Management Chapter 8
14 snips
Jan 1, 1970 A deep dive into hybrid organizational forms, contrasting mission-driven units with functional groups. Trade-offs between local responsiveness and economies of scale get explored. The conversation explains dual reporting, matrix arrangements, and why ambiguity and peer decision-making are often necessary. Practical examples include advertising coordination, temporary teams, and how middle managers navigate cross-functional roles.
AI Snips
Chapters
Books
Transcript
Hybrid Structure Is Inevitable
- Large organizations naturally mix mission-oriented and functional forms into hybrids.
- The hybrid balances responsiveness to markets with leverage from centralized expertise.
Functional Groups Multiply Leverage
- Functional groups give economies of scale and let specialists' know-how serve the whole company.
- Centralized resources enable shifting capacity and applying expertise broadly for greater leverage.
Centralization Creates Resource Battles
- Functional groups face information overload and competition from many business units.
- Negotiations and rivalry for shared resources waste time and harm overall company output.
