This PPT slide, part of the 17-slide Guide to Organizational Structures PowerPoint presentation, presents a framework for a process-based organizational structure, emphasizing its key features, appropriate applications, and advantages. It outlines a model where divisions are organized around specific processes rather than traditional hierarchical roles. This structure allows for clearer reporting lines to the board and promotes accountability by separating strategy from execution.
Key features include a focus on process-based divisions that report directly to the board, a reduction in hierarchical layers, and a distinct separation between strategic planning and operational execution. This design is particularly beneficial for organizations that can delineate their value chain into clear, distinct processes serving various customer needs.
The slide identifies specific scenarios where this structure is most applicable. For instance, organizations that require expert knowledge and efficiency in their operations, or those with minimal interdependencies between core processes, can benefit significantly. It also highlights the importance of cultural differences within divisions, suggesting that a process-based approach can accommodate diverse workforces effectively.
Advantages of this structure are also noted. It supports the development of efficient processes, leading to economies of scale and reduced working capital. The clear division of processes enhances accountability and control, which can drive performance improvements. However, potential downsides are acknowledged, such as the risk of fostering competition between business units for resources and the possibility of misalignment in processes across divisions.
Overall, this slide provides a comprehensive overview of how a process-based structure can enhance organizational effectiveness, particularly in complex environments like oil companies, where expertise in specific processes is crucial.
This slide is part of the Guide to Organizational Structures PowerPoint presentation.
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Organizational Structure Strategic Planning Organizational Effectiveness Value Chain
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