ODD

Importance of Org. in Society:
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• Organiza(on design helps us explain what happened in the past, as well as what may happen in the
future, so that we can manage organiza;ons more effec;vely
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Current Challenges of Organiza;on:
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Globaliza(on
Intense Compe((on
Ethics and the Green Movement
Speed and Responsiveness
Social Business and Big Data
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Dimensions of Organiza;on Design:
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Structural Dimensions:
• Formaliza(on
• Specializa(on
• Hierarchy of Authority
• Complexity
• Centraliza(on
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Con;ngency Factors:
• Size
• Organiza(onal technology
• Environment
• Goals and strategy
• Culture
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Stakeholder Groups and What They Expected:
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Organic Vs Mechanistis
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Mechanis;c – characterized by machine-like standard rules and procedures with clear authority
Organic – design of organiza(on is looser, free-flowing, and adap(ve
Depends upon:
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Structure
Tasks/Roles
System Formality
Communica(on
Hierarchy versus Collabora(on
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Organization Structure
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3 Components of Org.Structure:
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Formal Reporting Relationships:
• Number of levels
• Span of control
Grouping of Individuals
• Creation of departments
Design of Systems
• Communication, coordination, and integration of efforts
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Vertical and Horizontal Information Sharing:
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Ver;cal and horizontal informa;on flow:
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– Tradi(onal organiza(on designed for efficiency?
• Centralized authority focused on top level decision-making
– Learning organiza(on which emphasizes communica(on and collabora(on
• Decentralized authority focused on shared tasks and decisions
Ver;cal:
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Ver;cal linkages coordinate ac(vi(es between the top and the boTom of the organiza(on
Hierarchical referral are the ver(cal lines which iden(fy the chain of command
Rules and Plans create ver(cal links
Reports, computer systems, and wriTen informa(on are ver;cal informa;on systems
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Horizontal:
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Horizontal linkage coordinates ac(vi(es across organiza(onal departments - not tradi(onally drawn on the
organiza(onal chart:
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Informa(on Systems
Liaison Roles
Task Forces
Full-Time Integrator
Teams
Departemantal Grouping:
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Func;onal Structure:
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Ac(vi(es grouped by common func(on
All specific skills and knowledge are consolidated
Promotes economies of scale
Slow response to environmental changes
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Prevalent approach but few companies can respond in today’s environment without horizontal
linkages
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Divisional Structure:
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Product structure or strategic business units
Divisions organized according to products, services, product groups
Good for achieving coordina(on across func(onal departments
Suited for fast change
Loses economies of scale
Lacks technical specializa(on
Geographic Structure:
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Organizing to meet needs of users/customers by geography
Many mul(na(onal corpora(ons are organized by country
Focuses managers and employees on specific geographic regions
Strengths and weaknesses similar to divisional organiza(on
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Matrix Structure:
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✓ Mul(focused with strong horizontal linkage
✓ Condi(ons for Matrix:
• Share resources across the organiza(on
• Two or more cri(cal outputs required: products and technical knowledge
• Environment is complex and uncertain
Allows
organiza(on
to meet dual demands
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✓ Largest weakness is that employees have two bosses and conflic(ng demands
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Horizontal Structure:
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Organiza(on around core processes
Processes refers to tasks and ac(vi(es
ShiY towards horizontal structure during reengineering
Eliminates ver(cal hierarchy and departmental boundaries
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Characteris(cs:
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Structure is created around cross-func(onal processes
Self-directed teams, not individuals, are dominant players
Process owners are responsible for en(re process
People on the team are given authority for decisions
Can increase organiza(on’s flexibility
Customers drive the organiza(on, measured by customer sa(sfac(on, employee sa(sfac(on, and
financial contribu(on
Culture is one of openness, trust, and collabora(on; focus on con(nuous improvement
Virtual Network and Outsorcing:
✓ Extend horizontal coordina(on beyond the boundaries of the organiza(on
✓ Most common strategy is outsourcing
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Contract out certain tasks/func(ons
Virtual
or modular structures subcontract most of its major func(ons to separate companies
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✓ The virtual network organiza(on serves as a central hub with contracted experts
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Hybrid Structure:
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Combina(on of various structure approaches
Tailored to specific needs
OYen used in rapidly changing environments
Greater flexibility
How Org. Adapt to Complexity:
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Organizations need the right fit between internal structure and the external environment
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Adding Positions and Departments
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Building Relationships
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Boundary-spanning roles
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Business intelligence
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Differentiation and Integration
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Organic vs. Mechanistic Management Process
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Planning, Forecasting, and Responsiveness
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The Changing Role of Management:
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In ecosystems, managers move beyond tradi(onal responsibili(es
Managers must think about horizontal processes
The old role of management relied on opera(on roles and boundaries
Collabora;ve roles are becoming more important for success
Popula;on Ecology
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Organiza(onal diversity and adapta(on within a popula(on of organiza(ons
Popula(on is a set of organiza(ons engaged in similar ac(vi(es
The theory notes that large, established organiza(ons oYen become dinosaurs
– They have difficulty adap(ng
– The changing environment determines survival or failure
Heavy investments can limit organiza(onal adapta(on
Model looks at organiza;onal form
Organiza(onal niche can help aid in the survival of an organiza(on
Entering Global Arena
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More companies are doing business globally
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Companies need top leaders who have a global outlook
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Advancements in technology and world communica(ons have changed the compe((ve landscape
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Steps of Interna;onal Evolu;on:
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Core Organiza;on Manufacturing Technology:
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Trend Toward Lean Services:
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• Customer expecta;ons are rising
• Expecta(ons have required that service firms must become lean, too
– Cut waste
– Improve customer service
• Adopt con(nuous improvement approach
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The Smart Factory
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• Also called computer-integrated manufacturing, flexible manufacturing systems, digital factories,
advanced manufacturing technology, and agile manufacturing
• Smart Factory subcomponents
– Computer-aided Design (CAD)
– Computer-aided Manufacturing (CAM)
– Robots
– 3-D Prin(ng (Addi(ve Manufacturing)
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Lean Manufacturing
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• Highly trained employees at every stage of produc(on
• Sigma Six
─ Cuts waste and improve quality
─ Incorporates technological elements
• Kaizen ─ con(nuous improvement
• Paved the way for mass customiza;on
– Using mass-produc(on technology to quickly and cost-effec(vely assemble individual goods for
customers
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Core Organiza;on Service Technology
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• Service technologies are different from manufacturing technologies and require different organiza(onal
design – educa(on, banking
• Intangible output
• Simultaneous produc(on and consump(on
• Labor and knowledge intensive
• Direct interac(on between customer and employee
• Importance of human element
• Quality of service cannot be directly measured
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3 Types of Interdepences
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Sociotechincal Systems
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Sociotechnical systems approach recognizes the interac(on of technical and human needs
An organiza(on func(ons best when the social and technical systems are designed to fit one another
People are resources and should be provided with appropriate skills, meaningful work and suitable
rewards.
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Informa;on Technology Evolu;on
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Transac;on Processing Systems (TPS)-automates business transac(ons
Data warehousing- use of huge databases
Business intelligence- high-tech analysis of data
Social business- using social media technologies
Big data analy;cs – examining massive sets of data
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Hirearchical Vs Decentralized
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Balanced Scorecard
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IT for Social Business
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Using IT for Social Business and Big Data analy;cs
• Social Business- using social media technologies
• Social Media
- company online pages, blogs, Facebook,
YouTube
- provides effec(ve sharing of tacit knowledge
- builds trus(ng rela(onships with consumers
- builds rapport between managers and
employees