cameron and green making-sense-of-change-management

Advantages Enables the Controlled by strategic Spreads profit responsibility. Decisions can be taken locally,founder, who leaders/chief executive. Enables evaluation of decentralized within a largehas a logical or Relatively low overheads. contributions of various corporation, which mightintuitive grasp Efficient. activities. otherwise be bureaucratic.of the business, Clearly delineated external Motivates managers and Optimum use of skills andto control its relationships. facilitates development of resources – and high-qualityearly growth Specialist managers develop both specialists and generalists. informed decisions, reconcilingand expertise. Enables adaptive change. conflicts within the organization.development. Relatively simple lines of CEO concentrates on Enables control of growth andcontrol. corporate strategy. increasing complexity.Can promote competitive Growth through acquisition Opportunities for managementadvantage through the easier. development.functions.Can be entrepreneurial.Divestment can be managedmore easily.199Limitations Founder may Succession problems – Conflict between divisions Difficult to implement.have insufficient specialists not generalists for resources. Dual responsibilities can causeknowledge in are created. Possible confusion over locus confusion.certain areas. Unlikely to be of responsibility (local or Accounting and controlOnly appropriate entrepreneurial or adaptive. head office). difficulties.up to a certain Profit responsibility Duplication of efforts and Potential conflict between thesize. exclusively with CEO. resources. two wings, with one generallyBecomes stretched by growth Divisions may thinkmore powerful.and product diversification. short-term and concentrate High overhead costs.Functional managers may on profits. Decision making can be slow.concentrate on short-term Divisions may be of differentroutine activities at the sizes and some may growexpense of longer-term very large.strategic developments. Evaluation of relativeProblems of ensuring performances may be difficult.coordination between Coordination offunctions – rivalry may interdependent divisions anddevelop.establishing transfer pricingFunctional experts may seek may be difficult.to build mini-empires.Source: summarized from Thompson (2001)