Bundling Tasks Into Jobs and Subunits
Chapter 13 - Decision Rights: Bundling Tasks Into Jobs And Subunits
CHAPTER 13 DECISION RIGHTS: BUNDLING TASKS INTO JOBS AND SUBUNITS CHAPTER SUMMARY This chapter is the second of two on the assignment of decision rights. It analyzes the bundling of tasks into jobs and jobs into the basic subunits of the firm, and discusses recent trends in the assignment of decision rights. The appendix presents a gametheoretic example of some of the issues that arise in coordinating functional managers. CHAPTER OUTLINE BUNDLING TASKS INTO JOBS Specialized versus Broad Task Assignment Benefits of Specialized Task Assignment Exploiting Comparative Advantage Lower Cross-Training Expenses Historical Application: Adam Smith on the Economies of Specialization Costs of Specialized Task Assignment Forgone Complementarities across Tasks Coordination Costs Functional Myopia Reduced Flexibility Incentive Issues Productive Bundling of Tasks Managerial Application: Regulation Limits Bundling of Tasks BUNDLING OF JOBS INTO SUBUNITS Grouping Jobs by Function Managerial Application: Concentrating on Functions at Cadillac Grouping Jobs by Product or Geography Managerial Application: H-P Combines Two Operating Divisions Trade-offs between Functional and Product or Geographic Subunits Benefits of Functional Subunits Problems with Functional Subunits Benefits of Product or Geographic Subunits Problems with Product or Geographic Subunits Managerial Application: Citigroup Reorganizes to Control Conflicts Where Functional Subunits Work Best Environment, Strategy, and Architecture Matrix Organizations Managerial Application: Intel Corporation—A Matrix Organization Mixed Designs Network Organization Organizing within Subunits
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Chapter 13 - Decision Rights: Bundling Tasks Into Jobs And Subunits
RECENT TRENDS IN ASSIGNMENTS OF DECISION RIGHTS Managerial Application: An Executive Perspective on Increased Foreign Competition Historical Application: F.W. Taylor on Iron Workers Managerial
CHAPTER 13 DECISION RIGHTS: BUNDLING TASKS INTO JOBS AND SUBUNITS CHAPTER SUMMARY This chapter is the second of two on the assignment of decision rights. It analyzes the bundling of tasks into jobs and jobs into the basic subunits of the firm, and discusses recent trends in the assignment of decision rights. The appendix presents a gametheoretic example of some of the issues that arise in coordinating functional managers. CHAPTER OUTLINE BUNDLING TASKS INTO JOBS Specialized versus Broad Task Assignment Benefits of Specialized Task Assignment Exploiting Comparative Advantage Lower Cross-Training Expenses Historical Application: Adam Smith on the Economies of Specialization Costs of Specialized Task Assignment Forgone Complementarities across Tasks Coordination Costs Functional Myopia Reduced Flexibility Incentive Issues Productive Bundling of Tasks Managerial Application: Regulation Limits Bundling of Tasks BUNDLING OF JOBS INTO SUBUNITS Grouping Jobs by Function Managerial Application: Concentrating on Functions at Cadillac Grouping Jobs by Product or Geography Managerial Application: H-P Combines Two Operating Divisions Trade-offs between Functional and Product or Geographic Subunits Benefits of Functional Subunits Problems with Functional Subunits Benefits of Product or Geographic Subunits Problems with Product or Geographic Subunits Managerial Application: Citigroup Reorganizes to Control Conflicts Where Functional Subunits Work Best Environment, Strategy, and Architecture Matrix Organizations Managerial Application: Intel Corporation—A Matrix Organization Mixed Designs Network Organization Organizing within Subunits
13-1
Chapter 13 - Decision Rights: Bundling Tasks Into Jobs And Subunits
RECENT TRENDS IN ASSIGNMENTS OF DECISION RIGHTS Managerial Application: An Executive Perspective on Increased Foreign Competition Historical Application: F.W. Taylor on Iron Workers Managerial