Simple and complex structures - Management challenges for interdependent structures

7 important questions on Simple and complex structures - Management challenges for interdependent structures

The key advantages of a interdependent structure are a wider range of focus and better sharing responsibilities. But what are the 6 main challenges?

1 Selecting primary dimensions of focus
2 Managing with less autonomy
3 Achieving more extensive coordination across unit boundaries
4 Working with more complex accountabilities
5 Playing a more demanding parenting role
6 Adapting to change

What was the fundamental drawback (nadeel) in multidimensional structures? 

The decision-making is too slow and complex. By selecting a primary dimension of focus, decisions and accountabilities have been made clearer and less complex.

What need companies with interdependent structures to do to avoid paralyzing complexity in the decision process?

They need to clarify who is responsible for what, and how shared decisions will be taken. Whenever possible, consensus decisions must be avoided, and each unit should know its own role.
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How can the protection of specialist cultures be achieved in interdependent structures?

By giving them power over certain key decisions and by allocating a ring-fenced budget to them. Or by designing the critical processes through which different units work together in ways that take account of specialist cultures interests. Or by assigning high status managers to the unit.

Why is coordination across boundaries more difficult than within boundaries?

The risk is that some links will not be delivered. The risks can be mitigated by stating clear what type of relationship is sought. When ground and intentions of relationships are understood, conflicts will be avoided.

What are the managerial complaints in companies with interdependent structures?

That it is too easy for units to underperform without coming under any real pressure. Control is too loose and commitment too weak. This can be reduced by minimizing tied relationships and shared responsibilities in order to promote self-correcting control.

What is important for the parent in interdependent structures?

How responsibilities should be shared, providing protection for specialist cultures, guiding coordination between units.

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