The Marketing Book 5th Edition

334 The Marketing Book

and co-ordination, at the same time as preserv-
ing the efficiencies and expertise within func-
tional speciality. A recent article by Olsen et al.
(1995) identified seven types of new product
structure, or co-ordination mechanisms, which
they describe in terms of four structural attri-
butes: complexity, distribution of authority,
formalization and unit autonomy. These are
shown in Table 12.5 and discussed briefly
below.

 Bureaucratic control. This is the most formalized
and centralized, and the least participative
mechanism, where a high level general manager
co-ordinates activities across functions and is
the arbiter of conflicts among functions. Each
functional development operates with relative

autonomy within the constraints imposed by

hierarchical directives, and therefore most

information flows vertically within each

department. In such a mechanism, the different

functional activities work sequentially on the

developing product.

 Individual liaisons. Individuals within one

functional department have to communicate

directly with their counterparts in other

departments. Therefore, they supplement the

vertical communication found in bureaucracies.

 Integrating managers. In this co-ordination

structure, an additional manager is added to

the functional structure, responsible for

co-ordinating the efforts of the different

functional departments, but without the

authority to impose decisions on those

Table 12.5 Attributes of interfunctional co-ordination mechanisms

Types of co-ordination mechanisms

Structural

and process

variables

Bureaucratic

control

Individual

liaisons

Temporary

task forces

Integrating

managers

Matrix

structures

Design

teams

Design centres

Structural

attributes

Complexity Simple

structures

⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯→ Complex

structures

Distribution of

authority

Centralized ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯→ Decentralized

Formalization High; more

reliance on

rules and

standard

procedures

⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯→ Low: fewer rules

and standard

procedures

Unit

autonomy

Low ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯→ High

Source: Olsen et al.(1995).