Harley-Davidson-From Dysfunctional to Cross-Functional.
(Pages 212-213). Questions:
1. During Teerlink's tenure as Harley's Chief Financial Officer, was the organization structure flat or tall? Centralized or decentralized? Explain your answers.
During Teerlink's tenure the organizational structure at Harley's was flat and decentralized. This was because he introduced a structure that had Cross-functionality, lifelong learning, and shared leadership fuel the so-called "circle organization" Harley-Davidson Inc. created to transport the famous motorcycle organization from a position of crisis to one of peak, participatory performance. 2. As Chief Executive Officer, how did Teerlink change the organizational structure? As the CEO Teerlink introduced the new organizational structure, the circle organization. The circle organization is depicted as three interlocking circles that define "the interdependent core processes" of an organization; a larger circle that represents all stakeholders surrounds these. In Harley-Davidson's case, the circle groups depict those who "create demand," "produce product," and "provide support." In the center, where all intersect, stands the Leadership and Strategy Council (LSC), a small, innovative entity that identifies the business issues affecting the entire organization (e.g., strategic plans, human resource policies, and operating budgets) and coordinates "cross-functional interdependent activities." The LSC is composed of only six members, each elected by peers within their respective circles, and the president of the organization. For Harley-Davidson, among the powerful results of this new structure were the elimination of senior vice president positions and the forfeiture of the president's ability to choose who serves on the executive committee. 2. Why does Harley-Davidson include outside suppliers on its cross-functional teams? Outside suppliers are included on its cross-functional teams so as to incorporate their point of...
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