Otdd Ppt 2.3 Copy

8/8/2019 Otdd Ppt 2.3 Copy

1/24


2/24

Management 8/e - Chapter 11 2

Study Question 1: What are the essentials of

organizational design?

Organizational design

Choosing and implementing structures that bestarrange resources to serve the organizations

mission and objectives.

A problem-solving activity that should be

approached from a contingency perspective.


3/24




Organizational effectiveness

Sustainable high performance in using resources to

accomplish mission and objectives.

Approaches:

Systems resource approach focuses on inputs.

Internal process approach focuses on transformation

process.

Internal process approach focuses on outputs.

Internal process approach focuses on environment.


4/24



organizational design? Short-run, medium-run and long-run criteria for

evaluating organizational effectiveness:

Short-run focus.

Goal accomplishment. Performance efficiency in resource utilization.

Stakeholder satisfaction.

Medium-run focus.

Adaptability in the face of changing environments.

Development of people and systems to meet new challenges.

Long-run focus.

Survival under conditions of uncertainty.


5/24




Bureaucracy

A form of organization based on logic, order, and the

legitimate use of formal authority.

Bureaucratic designs feature

Clear-cut division of labor.

Strict hierarchy of authority.

Formal rules and procedures.

Promotion based on competency.


6/24




Contingency perspective on bureaucracy asks thequestions:

When is a bureaucratic form a good choice for anorganization?

What alternatives exist when it is not a good choice?

Environment determines the answers to thesequestions.

A mechanistic design works in a stable environment

An organic design works in a rapidly changing anduncertain environment.


7/24




Structural characteristics associated with designalternatives:

Goal predictability versus adaptability.

Authority centralized versus decentralized.

Rules and procedures many versus few.

Spans of control narrow versus wide.

Tasks specialized versus shared.

Teams and task forces

few versus many.

Coordination formal and impersonal versus informaland personal.


8/24



organizational design? Mechanistic Designs

Predictable goals

Centralized authority

Many rules andprocedures

Narrow spans ofcontrol

Specialized tasks

Few teams and taskforces

Formal and impersonalmeans of coordination

Organic Designs Adaptable goals

Decentralized authority

Few rules andprocedures

Wide spans of control

Shared tasks

Many teams and task

forces Informal and personal

means of coordination


9/24


Study Question 2: How do contingency

factors influence organization design?

Checklist for identifying contingency factors in

organizational design: Does the design fit well with the major problems and opportunities

of the external environment?

Does the design support implementation of strategies and the

accomplishment of key operating objectives?

Does the design support core technologies and allow them to be

used to best advantage?

Can the design handle changes in organizational size and different

stages in the organizational life cycle?

Does the design support and empower workers and allow their

talents to be used to best advantage?


10/24




Environment and organizational design

Certain environment

Relatively stable and predictable elements.

Bureaucratic organizations and mechanistic designs

are appropriate.

Uncertain environment

More dynamic and less predictable elements.

Adaptive organizations and organic designs are

appropriate.


11/24




Strategy and organizational design

Structure follows strategy.

Stability strategy is supported by:

Bureaucratic organizations using mechanistic

designs.

Growth strategies are is supported by:

Adaptive organizations using organic designs.


12/24




Technology

The combination of knowledge, skills,

equipment, computers, and work methods

used to transform resource inputs intoorganization outputs.


13/24




Core manufacturing technologies:

Small-batch production.

A variety of custom products are tailor-made to order.

Mass production.

A large number of uniform products are made in an assembly-

line system.

Continuous-process production. A few products are made by continuously feeding raw

materials through a highly automated production system with

largely computerized controls.


14/24




Technology and organization design

The technological imperative

Technology is a major influence on organizational

structure.

The best small-batch and continuous process plants

have more flexible organic structures. The best mass-production plants have more rigid

mechanistic structures.


15/24




Core service technologies:

Intensive technology

Focuses the efforts of many people with special expertise onthe needs of patients or clients.

Mediating technology

Links together parties seeking a mutually beneficial exchange

of values.

Long-linked technology

Functions like mass production, where a client is passed from

point to point for various aspects of service delivery.


16/24



factors influence organization design? Organization size, life cycle, and design

Larger organizations tend to have more mechanistic

designs, but it is not always best. Organizational life cycle:

Birth stage small size, simple structure.

Youth stage rapid growth in size, simple structure

experiences stress.

Midlife stage growing to large size, more complex and

formal structure.

Maturity stage stabilizes at large size, mechanistic structure.


17/24




Coping with the disadvantages of large size:

Downsizing.

Reducing the scope of operations and number of employees.

Intrapreneurship.

The pursuit of entrepreneurial behavior by individuals and

subunits within large organizations.

Simultaneous structures.

Organizations that combine mechanistic and organic designs.


18/24




Human resources and good organizationdesign

Provides people with supporting structuresneeded for both high performance and worksatisfaction.

Produces a good fit between organization

structures and human resources.Allows the expertise and talents of organization

members to be unlocked and utilized.


19/24


Study Question 3: What are the major issues

in subsystems design?

Basics of subsystem design

Subsystem

A department or work unit headed by a manager.

Operates as a smaller part of the larger

organization.

Ideally, each subsystem supports othersubsystems, working toward interests of entire

organization.


20/24




Lawrence and Lorschs findings onsubsystems design

The total system structures of successful firmsmatch the challenges of their environments.

The subsystems structures of successful firmsmatch the challenges of their respective

subenvironments.Subsystems in successful firms worked well

with each other.


21/24




Managing subsystem differentiation:

Differentiation is the degree of difference that

exists among the internal components of anorganization.

Common sources of subsystems differentiation:

Time orientation

Objectives Interpersonal orientation

Formal structure


22/24




Managing subsystem integration:

Integration is the level of coordination achieved

among an organizations internal components.

Organization design paradox

Increased differentiation creates the need for greater

integration. Integration is more difficult to achieve as

differentiation increases.


23/24




Mechanisms for achieving subsystem integration:

Rules and procedures

Hierarchical referral Planning

Direct contact

Liaison role

Task forces Teams

Matrix organizations


24/24


Study Question 4: How can work processes be

reengineered?

Process reengineering

Systematic and complete analysis of work processes.

Design of new and better work processes. Work process

A related group of tasks that create a result of value

for the customer. (Michael Hammer)

Workflow Movement of work from one point to another in the

manufacturing or service delivery process.

Otdd Ppt 2.3 Copy

Documents

Transcript of Otdd Ppt 2.3 Copy