What is an organization?

An organization is a social group which distributes tasks for a collective goal.

The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.

what does an organization look like

Organization is first of all about

People

There are 4 types of organization:

Pyramids or hierarchiesCommittees or juriesMatrix organizationsEcologies

Type 1: Hierarchical

A hierarchy exemplifies an arrangement with a leader who leads other individual members of the organization. This arrangement is often associated with bureaucracy.

Organizations who apply this type, follow the:

Dilbert Principle

"leadership is nature's way of removing morons from the productive flow".

Dilbert strip of February 5, 1995

Type 2: Committees and Juries

These consist of a group of peers who decide as a group, perhaps by voting.

Best known organizations who like committees and juries, are governmental and non-profit organizations.

If you want to kill a good idea, organize a committee.

Death by committee

Type 3: Matrix organizations

This organizational type assigns each worker two bosses in two different hierarchies. 1.One hierarchy is "functional" and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field. 2.The other direction is "executive" and tries to get projects completed using the experts.

Risks here:•A conflict of loyalty between line managers and project managers over the allocation of resources.•Projects can be difficult to monitor if teams have a lot of independence.•Costs can be increased if more managers are created through the use of project teams.

Type 4: Ecologies

This organization has intense competition. Bad parts of the organization starve. Good ones get more work. Everybody is paid for what they actually do, and runs a tiny business that has to show a profit, or they are fired.

Is there a right structure?

There's no one "right" organizational structure, so it's important to understand how structure relates to what you want to achieve.

None of the organization designs are necessarily ideal, and they're very simplified versions of what exists in real life. In fact, it's common for a company to have a combination of elements of each structural type.

Question: What does your organization look like?

The 7 elements of McKinsey

How do you go about analyzing how well your organization is positioned to achieve its intended objective?

This is a question that has been asked for many years, and there are many different answers.

The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements”:

Hard Elements Soft ElementsStrategy

Structure

Systems

Shared ValuesSkillsStyleStaff

The 7 elements of McKinsey

Let's look at each of the elements specifically:

1.Strategy: the plan devised to maintain and build competitive advantage over the competition.2.Structure: the way the organization is structured and who reports to whom.3.Systems: the daily activities and procedures that staff members engage in to get the job done.4.Shared Values: these are the core values of the company that are evidenced in the corporate culture & the general work ethic.5.Style: the style of leadership adopted.6.Staff: the employees and their general capabilities.7.Skills: the actual skills & competencies of the employees working for the company.

The 7 elements of McKinsey

IMPORTANT: Placing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements.

The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements.

What are your values?

Most people have between 3 and 7 core values. If you find you have more than 7, see if some of them group together. If so, choose the one that best represents that group of values.

Core Values Exercise:

1.Identify the values, select maximum 72.Verify if the values are yours

Further home work:•Define your values•Share the values with the team

A summary

Using the information you have gathered, now examine where there are gaps and inconsistencies between the 7 elements. Remember you can use this to look at either your current or your desired organization.

1.Start with your Shared Values: Are they consistent with your structure, strategy, and systems? If not, what needs to change?2.Then look at the hard elements. How well does each one support the others? Identify where changes need to be made.3.Next look at the other soft elements. Do they support the desired hard elements? Do they support one another? If not, what needs to change?