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The Changing role of top management (Part 2): beyond framing structure to building processes

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It was the creation of the divisionalized organization structure that defined the birth of the modern corporation and triggered what we have described in an earlier article as the strategy-structure-systems doctrine of corporate management... Because of this anchoring role of structure within the strategy-structure-systems doctrine, a generation of managers emerged during the 1960s, 1970s and 1980s deeply convinced that their control over the design of their companies' structural configuration was the most powerful tool they had to shape the direction and drive the efforts of their organizations. The creation of a new international division typically triggered an explosion in export sales, for example, while a restructuring into strategic business units allowed tighter management of under-performing business. Successive waves of refinement, reinforcement and realignment of the basic multidivisional model only confirmed their faith in the power of the structural tool

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp1994/94-20.pdf

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Copyright INSEAD. All rights reserved