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Chapter 3: Information Systems & Organizational Design
Matrix organization structure
This is a hybrid structure where employees report to functional managers and product managers. It is helpful for companies in need of flexibility in fast-changing markets. For example, a software developer might report to a project manager for project-specific tasks and to a functional manager for bigger technical standards.
Managerial levers
These are tools managers use to achieve desired outcomes, like policies or incentive structures. For example, a sales team leader might introduce a new incentive to boost sales.
Decision rights
This concept defines who makes decisions and who is held accountable. Clear decision rights speed up processes and reduce conflicts. In a family business, one sibling might handle finances, while another manages operations.
Chapter 4: Digital Systems and the Design of Work
Pros and cons of remote work
Remote work is possible thanks to the high-speed of Internet today and offers flexibility and eliminates commutes but can also lead to distractions (at home) and work-life balance challenges. For example, a digital marketer might enjoy the flexibility but struggle with home distractions.
Diversity challenges of telecommuting
Remote work can unintentionally favor certain socio-economic backgrounds, but sideline some talented individuals. Companies must maintain inclusivity in remote work policies.
Change management
This involves managing the human side of business changes. When implementing new systems or processes, the companys leaders must train employees and oversee smooth transitions. For example, introducing a new CRM system requires training and support for employees.
Additional Insights
1. The success of a matrix organization structure largely hinges on a company's ability to manage the difficulties and handle the conflicts that arise from dual reporting.
2. Remote work offers flexibility, but it is necessary for companies to invest in the right tools and monitoring to be able to make sure workers are actually productive and engaged with the team.
3. Clearly defined decision rights streamline processes and also empower employees by giving them a sense of ownership and responsibility.
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