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Organizations for Real-Time Decision Making-Chapter 8

Elsevier Inc.
DOI: 10.1016/b978-075067722-6/50080-4
  • Communication


Publisher Summary This chapter discusses several organizational structures for real-time decision making. Traditionally, organizations have been structured in two ways: functional organizations and projector product-oriented organizations. With respect to decision making, these two structures allow for either quicker or more informed decisions, but not both because of the inherent limitations on the type of interactions the employees experience. Functional organizations have evolved from a traditional hierarchical style of management. Hierarchical management styles work well in small businesses where an organizational structure is not necessary: the boss makes all the decisions and implements them with some help from employees. The result is informed, fast decisions and quick execution. A lean hierarchical leadership at the top of the company, leading strategy and company direction in execution, not only is desirable but is a necessity in most traditional manufacturing plants. Product-oriented organizations are highly compatible with supply chain management and product streams. They also lead themselves very well to open management styles and to easy communication with customers. The most important feature is their ability to make decisions quickly and maintain their focus on customers. The matrix organization is a cross between the functional organization and the product-oriented organization. It allows quick transfer of information and making quick and informed decisions at the same time.

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