Designing Organizations Designing Organizations Strategy, Structure, and Process at the Business Unit and Enterprise Levels Third Edition Jay R. Galbraith Copyright©2014byJayR.Galbraith.Allrightsreserved. PublishedbyJossey-Bass AWileyImprint OneMontgomeryStreet,Suite1200,SanFrancisco,CA94104-4594 www.josseybass.com Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedinany formorbyanymeans,electronic,mechanical,photocopying,recording,scanning,orotherwise, exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyrightAct,without eitherthepriorwrittenpermissionofthepublisher,orauthorizationthroughpaymentofthe appropriateper-copyfeetotheCopyrightClearanceCenter,Inc.,222RosewoodDrive, Danvers,MA01923,978-750-8400,fax978-646-8600,orontheWebatwww.copyright.com. RequeststothepublisherforpermissionshouldbeaddressedtothePermissionsDepartment, JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,201-748-6011,fax 201-748-6008,oronlineatwww.wiley.com/go/permissions. LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheirbest effortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespecttothe accuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimplied warrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymaybecreatedor extendedbysalesrepresentativesorwrittensalesmaterials.Theadviceandstrategiescontained hereinmaynotbesuitableforyoursituation.Youshouldconsultwithaprofessionalwhere appropriate.Neitherthepublishernorauthorshallbeliableforanylossofprofitoranyother commercialdamages,includingbutnotlimitedtospecial,incidental,consequential,orother damages.ReadersshouldbeawarethatInternetWebsitesofferedascitationsand/orsourcesfor furtherinformationmayhavechangedordisappearedbetweenthetimethiswaswrittenand whenitisread. Jossey-Bassbooksandproductsareavailablethroughmostbookstores.TocontactJossey-Bass directlycallourCustomerCareDepartmentwithintheU.S.at800-956-7739,outsidetheU.S. at317-572-3986,orfax317-572-4002. Wileypublishesinavarietyofprintandelectronicformatsandbyprint-on-demand.Some materialincludedwithstandardprintversionsofthisbookmaynotbeincludedine-booksorin print-on-demand.IfthisbookreferstomediasuchasaCDorDVDthatisnotincludedinthe versionyoupurchased,youmaydownloadthismaterialathttp://booksupport.wiley.com.For moreinformationaboutWileyproducts,visitwww.wiley.com. LibraryofCongressCataloging-in-PublicationData Galbraith,JayR. Designingorganizations:strategy,structure,andprocessatthebusinessunitandenterprise levels/JayR.Galbraith.—3rdEdition. pagescm Includesbibliographicalreferencesandindex. ISBN978-1-118-40995-4(hardback);ISBN978-1-118-41729-4(pdf); ISBN978-1-118-46382-6(epub) 1. Organizationaleffectiveness.2. Strategicplanning.I. Title. HD58.9.G352014 658.4′012—dc23 2013040235 PrintedintheUnitedStatesofAmerica THIRDEDITION HBPrinting 10987654321 The Jossey-Bass Business & Management Series Contents ListofFiguresandTables ix Preface xiii 1. Introduction 1 2. TheStarModel 15 3. Single-BusinessStrategyandFunctional Organization 57 4. DesigningtheLateralOrganization 89 5. TypesofSingle-BusinessStrategy 107 6. TheReconfigurableFunctionalOrganization 131 7. DesigningtheNetwork Organization 149 8. Multibusiness StrategyandOrganization 185 9. TheMixedModel 205 10. AddingValue 217 11. TheValue-AddingConglomerates 235 12. SynergyPortfolioStrategies 255 vii viii CONTENTS 13. OrganizationalDesignChallengesand Opportunities ResultingfromBigData 285 Bibliography 301 AbouttheAuthor 307 Index 309
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