Weitere ähnliche Inhalte Ähnlich wie Chapter 10 designing adaptive organizations(1) (20) Kürzlich hochgeladen (20) Chapter 10 designing adaptive organizations(1)2. Organizing
Organization is the deployment of resources to
achieve strategic goals.
It is reflected in
– Division of labor into specific departments & jobs
– Formal lines of authority
– Mechanisms for coordinating diverse organizational
tasks
Manager’s Challenge: Nissan
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3. Topics
Designing Adaptive Chapter 10
Organizations
Organizing Principles and Concepts
Organizing the Vertical Structure
Using Mechanisms for Horizontal
Coordination
Tailoring Various Elements of Structural
Design to Organizational Situations
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4. Organization Structure
Defines how tasks are divided, resources
are deployed, and departments are
coordinated
● Set of formal tasks assigned
● Formal reporting relationships
● The design of systems to ensure
effective coordination of employees
across department
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5. The Organization Chart
• Visual representation of an organization’s
structure “The Home Depot is the world's largest home
improvement retailer currently operating 1,363
• Important Features of Vertical Structure:
stores.
1. Work Specialization
2. Chain of Command
3. Authority, Responsibility and Delegation
4. Span of Management or Span of Control
5. Centralization/Decentralization
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6. Work Specialization
Division of Labor concept
Tasks are subdivided into individual jobs
Employees perform only the tasks relevant
to their specialized function
Jobs tend to be small, but they can be
performed efficiently
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7. Chain of Command
Unbroken line of authority that links all
Unbroken line of authority that links all
persons in an organization
persons in an organization
Shows who reports to whom
Shows who reports to whom
Associated with two underlying principles
Associated with two underlying principles
Unity of Command
Unity of Command
Scalar Principle
Scalar Principle
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8. Authority
Formal and legitimate right of a manager to
Formal and legitimate right of a manager to
make decisions and issue orders
make decisions and issue orders
Allocate resources to achieve organizationally
Allocate resources to achieve organizationally
desired outcomes
desired outcomes
Authority is distinguished by three characteristics
Authority is distinguished by three characteristics
Authority is vested in organizational positions, not
Authority is vested in organizational positions, not
people
people
Authority is accepted by subordinates
Authority is accepted by subordinates
Authority flows down the vertical hierarchy
Authority flows down the vertical hierarchy
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9. Responsibility
Flip Side of the Authority coin
The duty to perform the task or activity
an employee has been assigned
Managers are assigned authority
commensurate with responsibility
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10. Accountability
● Mechanism through which authority and
responsibility are brought into alignment
● People are subject to reporting and
justifying task outcomes to those above
them in the chain of command
● Can be built into the organization
structure
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11. Delegation
●Process managers use to transfer
authority and responsibility
●Organizations encourage
managers to delegate authority to
lowest possible level
Ethical Dilemma: A Matter of Delegation
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12. Delegation
Give Maintain Evaluate and reward
thorough feedback performance
instructions
Techniques for Delegation
Ensure that
Delegate the authority equals Select the right
whole task responsibility person
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13. Line and Staff Authority
Line Authority = individuals in management
positions have the formal power to direct and
control immediate subordinates
Staff Authority = granted to staff specialists in
their area of expertise
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14. Span of Management (also called
Span of Control)
Number of employees who report to a supervisor
– Traditional view = seven subordinates per manager
– Lean organizations today = 30+ subordinates
Supervisor Involvement
– must be closely involved with subordinates, the span
should be small
– need little involvement with subordinates, it can be
large
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15. Factors Associated With Less
Supervisor Involvement
Work is stable and routine
Work is stable and routine
Subordinates perform similar
Subordinates perform similarwork tasks
work tasks
Subordinates are concentrated in a single location
Subordinates are concentrated in a single location
Subordinates are highly trained
Subordinates are highly trained
Rules and procedure defining task activities are available
Rules and procedure defining task activities are available
Support systems and personnel are available for the
Support systems and personnel are available for the
manager
manager
Little time is required in nonsupervisory activities
Little time is required in nonsupervisory activities
Managers’ preferences and styles favor a large span
Managers’ preferences and styles favor a large span
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16. Tall versus Flat Structure
Span of Control used in an organization determines
whether the structure is tall or flat
Tall structure has a narrow span and more
hierarchical levels
Flat structure has a wide span, is horizontally
dispersed and fewer hierarchical levels
The trend has been toward wider spans of control
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17. Centralization versus Decentralization
Centralization – the location of decision
authority near top organization levels
Decentralization – the location of decision
authority near lower organization levels
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18. Centralization versus Decentralization
Greater change and uncertainty in the
environment are usually associated with
decentralization
The amount of centralization or
decentralization should fit the firm’s
strategy
In times of crisis or risk of company failure,
authority may be centralized at the top
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19. Departmentalization
The basis on which individuals are grouped into
departments and departments into the total
organization
• Five Approaches to Structural Design
1. Vertical Functional Structure
2. Divisional Structure
3. Matrix Structure
4. Team-Based Structure
5. Virtual Network Structure
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21. Vertical Functional Structure
Grouping of positions into departments
based on similar skills, expertise, and
resource use
● Information flows up and down
● Chain of command converges at the top
● Managers and employees are compatible
because of similar training and expertise
● Rules and procedures governing duties and
responsibilities
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22. Divisional Structure
CEO
Consumer Lighting Medical
Products Products Systems
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23. Divisional Structure
Departments are grouped based on similar
organizational outputs
● Each division is autonomous of the others in a
huge corporation or organization
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24. Divisional Structure Advantages
Efficient use of resources
Skill specialization development
Top management control
Excellent coordination
Quality technical problem solving
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25. Divisional Structure
Disadvantages
Poor communications
Slow response to external changes
Decisions concentrated at top
Pin pointing responsibility is difficult
Limited view of organizational goals by
employees
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26. Matrix Structure (Project-
based)
Employees ( ) are temporrily assigned to a specific
project team and have a permanent functional unit
CEO
Engineering Marketing Design
Project A
Manager
Project B
Manager
Project C
Manager
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27. General Motors’ IT Matrix Structure
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28. Matrix Structure
Utilizes functional and divisional chains of
command simultaneously in the same part of
the organization
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29. Matrix Advantages
More efficient use of resources than single
hierarchy
Adaptable to changing environment
Development of both general and specialists
management skills
Expertise available to all divisions
Enlarged tasks for employees
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30. Dual-Authority Structure in a
Matrix Organization
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31. Matrix Disadvantages
Dual chain of command
High conflict between two sides of matrix
Many meetings to coordinate activities
Need for human relations training
Power domination by one side of matrix
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32. Team Structure
Organization is made up of horizontal teams that
coordinate their activities and work directly with
customers to achieve the organization’s goals
Cross-functional teams – a group of employees from
various functional departments that meet as a team to
resolve problems
Permanent teams – a group of participants from
several functions who are permanently assigned to
solve ongoing problems of common interest
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33. Team Advantages
Same advantages as functional
structure
Reduced barriers among
departments
Quicker response time
Better morale
Reduced administrative overhead
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34. Team Disadvantages
Dual loyalties and conflict
Time and resources spent on
meetings
Unplanned decentralization
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35. Virtual Network Structure
Product Call center
development partner
partner (India)
(U.S.A.)
Core
Firm
Package
Accounting
design
partner
partner
(Canada)
(UK)
Assembly
partner
(Mexico)
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36. Virtual Network Structure
Disaggregates major functions to separate
companies that are brokered by a small
headquarters organization
OUTSOURCING
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37. Virtual Network Advantages
Global competitiveness
Work force flexibility
Reduced administrative overhead
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38. Virtual Network Disadvantages
No hands-on control
Loss of part of the organization severely
impacts remainder of organization
Employee loyalty weakened
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39. Task Forces, Teams, Project
Management
Task Force = temporary team/committee
designed to solve a short-term problem
involving several departments
Project Manager = responsible for
coordinating activities of several departments
on a full-time basis for the completion of a
specific project
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40. Reengineering
Radical redesign of business processes to
achieve dramatic improvements in cost,
quality, service, and speed
Process = organized group of related tasks
and activities that work together to transform
inputs into outputs and create value
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41. Factors Shaping Structure
Structure Follows Strategy
Structure Reflects the Environment
Structure Fits the Technology
Service Technology – technology characterized
by intangible outputs and direct contact between
employees and customers
Digital Technology – technology characterized
by use of the internet and other digital processes to
conduct or support business operations
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