The previous two chapters described many different ways companies
and their managers can persuade employees to work hard,
including the company's approach to leadership, its incentive structure, and the
use of empowered teams. As Sony's experience suggests, however, an organization's
structure and culture are also important factors that shape employees'
behavior. In this chapter, we first examine how an organization's structure and culture
affect its ability to pursue its business model successfully. Second, we examine
the two main decisions involved in designing an organizational structure (1) how
to divide up a company's activities, employees, and resources into functions and
divisions; and (2) how to link and coordinate these functions and divisions. Lastly,
we examine how a company's culture can make its organizational structure work
to its advantage. By the end of this chapter, you will understand how and why a
well-designed organizational structure and culture provide a good foundation for a
profitable business model.
