View
216
Download
3
Category
Preview:
Citation preview
1
Engenharia e Desenho Engenharia e Desenho Organizacional:Organizacional:
o nexo do impacto das TI, dos o nexo do impacto das TI, dos novos desenhos organizacionais e novos desenhos organizacionais e
do do design sciencedesign science
Rodrigo Magalhães, PhDRodrigo Magalhães, PhD
Apresentação ao CEG - Instituto Superior Técnico
Fevereiro 2008
2
The turn to the social among computer The turn to the social among computer scientists and information systems scientists and information systems
designers in the middesigners in the mid--1980s was 1980s was accompanied by an intensification of accompanied by an intensification of
interest among social researchers in the interest among social researchers in the material grounds of socialitymaterial grounds of sociality
(Lucy Suchman, Human(Lucy Suchman, Human--Machine Reconfigurations, 2007:276)Machine Reconfigurations, 2007:276)
3
ObjectiveObjective
This presentation is aimed at proposing This presentation is aimed at proposing Organizational Design and Engineering, a new Organizational Design and Engineering, a new research / intervention programme inspired on research / intervention programme inspired on
design science, as the way forward in achieving design science, as the way forward in achieving the levels of agility and change that organizations the levels of agility and change that organizations
require in the Knowledge Economy.require in the Knowledge Economy.
5
• First wave of the engineering approach (1920s)
Dominated by Fredrick Taylor's theory of management. Time-and-motion studies (i.e. processes) achieved great success but the approach lacked the human dimension
• Second wave of the engineering approach (1990s)
Reengineering of processes inspired on Michael Hammer’s article of 1989. The ability to reduce costs is the goal. Automated activities are dependent on ERP and other packaged systems. The association with layoffs and unemployment made the BPR movement unpopular.
• Do we have a third wave in the 2010s ?
The return of engineering to organizations?The return of engineering to organizations?
6
The return of engineering to organizations?The return of engineering to organizations?
Factors contributing to the arrival of a third wave:
• The ongoing transformative power of IT in organizations
• Advances in computer science and ever improving capabilities of systems engineering
• New ideas on organizational modelling and architecture
Factor still missing for a successful third wave:
• The awareness of the causes for failure of the preceding waves, i.e. organizational design
7
The foundations of The foundations of organizational design:organizational design:
strategy, resources and strategy, resources and informationinformation--based assetsbased assets
8
The cross-sectional or short term approach:
Attractive industrystructure
Industry relativeposition
The outcome:
The longitudinal or long term approach:
Outline of Porter’s (1991) dynamic theory of strategy (adapted)
Organizational skills (or routines)Drivers
Value for the client
Low cost/ Differentiation
Organizational effectiveness
Competitive Success
StrategyStrategy
Activities/ Value System
Managerial Choice
(e.g. scale, cumulative learning, linkages with
other activities, ability to share other business activities, institutional
factors, etc)
(A category of organizational resources
which arises from performing activities over
time)
9
INTERNAL ANALYSIS
Strengths
Weaknesses
EXTERNAL ANALYSIS
Opportunities
Threats
Resource-based models
Environmental models
Models of competitive advantage
The resource-based approach “Sustained competitive advantage is achieved when a value creating strategy is implemented which is not simoultaneously being implemented and which cannot be duplicated by any current or potential competitor”(J. Barney, 1991)
Factors of production Markets
Products
StrategyStrategy
10
StrategyStrategy
Resources are the tangible and intangible assets which are tied semi-permanently to the firm and they can be classified under three categories:
physical capital resources (physical technology, a firm’s plant and equipment, its geographic location and its access to raw materials)
human capital resources (the knowledge of individual workers, namely, their skills, experience and contacts)
organizational capital resources (the formal and informal organizational structures as well as the relationships among individuals and groups within and outside the firm)In
sivi
ble
reso
urce
s
Source: J. Barney, 1991
11
StrategyStrategy
Invisible Resources are:
• Unattainable with money alone
• Time-consuming to develop
• Capable of multiple simultaneous uses
• Able to yield multiple, simultaneous benefits
Source: Itami and Roehl, 1987
Information and information flows are at the heart of invisible resources
12
StrategyStrategy
Environmental (e.g. production skills, customer information, channels for bringing in information
Information flows
Corporate (e.g. corporate image, brand image, influence over distribution or suppliers, marketing know-how
Internal (e.g. Management capability, morale of work force, ability to manage information, corporate culture)
Invisible Resources
Source: Itami and Roehl, 1987
14Source: VAN DER HEIJDEN, Scenarios: the art of strategic conversation (1996:274)
Organization: the relationship with strategyOrganization: the relationship with strategy
1. Strategy1. StrategyCoherent pattern of action which Coherent pattern of action which intervenes in a conscious intervenes in a conscious fashion in the permanent fashion in the permanent evolution of the organization evolution of the organization
3. (Strategic) 3. (Strategic) ConversationConversationA process of learning made up A process of learning made up of perception, conceptualization of perception, conceptualization and actionand action
2. Organization 2. Organization A community based on a A community based on a system of interactions which system of interactions which exist in strategic conversationexist in strategic conversation
15
We need an organization theory because some phenomena are more conveniently described in terms of organizations or parts of organizations than in terms of individual human beings who inhabit those parts (...)
Employing a more aggregate level of discourse is not a declaration of anti-reductionism, but simply a recognition that most natural systems do have hierarchical structure, and that itis often possible to say a great deal about aggregate components without specifying the details of activity within these components
Herbert Simon (1997: 230):
Organization: an aggregate level of discourseOrganization: an aggregate level of discourse
16
Organizational design:Organizational design:the articulation of the social the articulation of the social and the technical sides of and the technical sides of
organizationorganization
17
Classic Organizational DesignClassic Organizational Design
• Chandler (1962) asserts that organizational design includes:
(1) The lines of authority and communicationbetween offices and officers
(2) The information and data that flow through these lines of authority and communication
• Weick (2001) claims that the design of an organization determines the distribution of resources, authority, and information.
• Galbraith (1973) talks about organizations as information-processing networks
18
SOCIAL STRUCTURE PHYSICAL
STRUCTURE
TECHNOLOGY
CULTURE
ENVIRONMENT
ORGANIZATION DESIGN
Organization: the conceptual aggregatesOrganization: the conceptual aggregates
19
Organizational design dimensions:
• Formalization (the extent to which the organization relies on written rules and procedures to pre-determine the actions of employees
• Centralization (the location of decision-making authority in the hierarchy of the organization)
• Complexity (how many different job titles and levels of authority exist in the organization)
Classic Organizational DesignClassic Organizational Design
20
Organizational design decisions:
• Division of Labour or degree of specialization (how specialized should each job be?)
• Authority or degree of delegation (how much right to take decisions is given to each job?)
• Departamentalization or the basis upon which to group types of jobs (should jobs be grouped by function, by territory, by product, by customer or a mix of the above?)
• Span of Control or the basis upon which to decide on the number of jobs per group (how many jobs can a manger oversee?)
Classic Organizational DesignClassic Organizational Design
21
Traditional relationship between organizational design dimensions and decisions:
1. High specialization2. Delegated authority3. Territorial, customer or product departmentaliz.4. Narrow spans of control
High Complexity
1. High specialization2. Centralized authority3. Functional departmentalization4. Wide spans of control
High Centralization
1. High specialization2. Delegated authority3. Functional departmentalization4. Wide spans of control
High Formalization
DecisionsDimensions
Sour
ce: G
ibso
n, Iv
ance
vich
and
Don
nely
. Org
aniz
atio
ns (1
988)
Classic Organizational DesignClassic Organizational Design
23
• In social (and organization) theory the key distinction has been between Action and Structure
• Structure refers to determination or things that constrain action
• Action refers to the free will of individuals to act or to interact
• Organizational frameworks assume one or the other, but most do not assume a dialectic relationship between the two.
Social emergenceSocial emergence
24
Made up of invisible rules (of signification, legitimation and domination) which exist beyond individuals but which are shaped and reshaped by individuals’ actions
Structure Agents Action(Social System)
Reproduces
Enables
Giddens’ social theory based on the process of structuration
Made up of human agents (individuals and groups) and of their visible relatioships
Social emergenceSocial emergence
25
Stages of development in social theory:
Dialectic of emergence and social causation.
Mediation of ephemeral and
stable emergents
Bottom-up causation or “emergence”.
People as creative agents
Top down causation. Abstract,
impersonal collective entities.
People as “judgmental dopes”
Emphasis
Emergence Paradigm
Interaction Paradigm
Structure Paradigm
Structure Paradigm1950s - 1960s
Emergence Paradigm
1990s -
Interaction Paradigm1960s - 1990s
Source: Sawyer, 2005
Social emergenceSocial emergence
26
The emergence paradigm
IndividualIntention, agency, memory, personality
InteractionDiscourse patterns, colaboration, negotiation
Ephemeral emergentsContext, interactional frame, participation structure, relative role
Stable emergentsSub-cultures, conversational routines, shared social practices, collective
memory
Social structureWritten texts (procedures, laws, regulations), material systems and
infrastructures (urban design, communication and transport networks)
Sou
rce:
Saw
yer (
2005
)
Social emergenceSocial emergence
27
Context: a construct linking individual action with higher levels of structure
Context - a strip of time-space within which a gathering or an interaction takes place and where knowledge is created,
shared and exploited
Social emergenceSocial emergence
29
The transformative power of IT in organizationsThe transformative power of IT in organizations
IT Infrastructure
Real-Time Orga-nizations
“On request”application
portfolio
Processing of business
processes
Business & IT Strategy
Strategy, Processes, Applications
1980s 1990s 2010s 20--s
Consolidation and
Standardization
“On request”infrastructure
Dynamically provisioned
infrastructure
Source: Kuhlin and Thielmann (Ed), 2005
30
Eras of Organizational Design
IT infrastructure and organizational designIT infrastructure and organizational design
Era 1 – Self-contained designs
Era 2 – Horizontal designs with team and process-based emphasis
Era 3 – Organizational boundaries open up
31
Era 3 Organizational Design
Hollow organizationOutsourcing internal processes that support the organization’s mission
Modular organizationAssembling decomposable product modules provided by internal or external sub-contractors
Virtual organizationCreating a company-outside-a-company to respond to an exceptional opportunity, often temporary
IT infrastructure and organizational designIT infrastructure and organizational design
32
Definition of enterprise architecture:
The organizing logic for business processes and IT infrastructure reflecting the integration and standardization requirements of the company’s operating model
Era 3 of Organizational Design require sophisticated models known as Enterprise Architectures
IT infrastructure and organizational designIT infrastructure and organizational design
Source: Ross, Weill & Robertson (2006)
33
1980s 1990s 2010s 20--s
2. Standardized technology
3. Optimized
core architecture
4. Business
modularity architecture
Enterprise Architecture: stages of architecture maturity
IT infrastructure and organizational designIT infrastructure and organizational design
1970s
1. Business
silos
Source: Ross, Weill & Robertson (2006)
34
Strategic agilityStrategic implications
Defining, sourcing and funding business modules
Key IT governance issues
IT, business and industry leadersWho defines applications
Management of re-usable business processes
Key management capability
Speed to market. Strategic agilityBusiness objectives
Plug-and-play business process modules
IT Capability
Stage 4 of EA - Business modularity architecture
IT infrastructure and organizational designIT infrastructure and organizational design
Sou
rce:
Ros
s, W
eill
& R
ober
tson
(200
6)
35
IT engagement model
Foundation for execution
• Core business processes
• IT infrastructure
Strategic initiative Strategic initiative Strategic initiative
Operating modelDefines integration and standardization requirements
EnterpriseArchitecture
Strategy establishes
priorities
Foundation for execution provides oportunities for strategic learning
Defines core capabilities Updates and evolves architecture
IT infrastructure and organizational designIT infrastructure and organizational design
Sou
rce:
Ros
s, W
eill
& R
ober
tson
(200
6)
36
SOCIAL STRUCTURE PHYSICAL
STRUCTURE
TECHNOLOGY
CULTURE ENVIRONMENT
ORGANIZATION DESIGN
EA adress only one part of the organizational problem
EA
IT infrastructure and organizational designIT infrastructure and organizational design
38
• In The Sciences of the Artificial, Herbert Simon (1996:113) has proposed the “science of design is not only possible but has been emerging since the mid-1970s”
• The “science of design” should be an interdisciplinary study providing a common ground of intellectual endevour across arts, sciences and technology
• The “science of design” should be accessible to those involved in the creative activity of making the artificial world
ODE is a design scienceODE is a design science
39
• Organizations have a hybrid nature:
• They are artefacts, created by conscious design by their founders and subsequently changed by their managers
• But they are also natural systems developing naturally through social interaction between internal and external stakeholders
• The core mission of design science is to develop knowledge that can be used by professionals in the fieldto design solutions to their field problems
• Hence, organizations should be guided by design science
ODE is a design scienceODE is a design science
40
• A well designed map is crucial for the success of an expedition to the South Pole, but success is not guaranteed
• The quality of the people involved, the resources and the leadership will also play a part ...
ODE is a design scienceODE is a design science
Example:
41
ODE’s research model: a combination of explanatory and design sciences techniques in the same project
Technological ruleCausal modelTypical research output
Design sciences (Medicine, Engineering)
Explanatory sciences (Physics, Biology, Economics,
Sociology
Technological rule 1
Technological rule 2Causal model 1
Causal model 2
ODE is a design scienceODE is a design science
42
“Since OE is intended to create and keep alignment between (models of) business strategy, business processes and business support systems, OE is a design science, method-oriented approach to information systems research”
Braun, Wortmann, Hafner, Winter, 2005
St Gallen’s approach to OE: emphasis on alignment
ODE is a design scienceODE is a design science
43
“Organizational engineering aggregates multi-disciplinary concepts, methods and technology to model, develop and analyse various aspects of changing organizations”
Tribolet & Sousa, 2004
IST/CEO’s approach to OE: emphasis on change
ODE is a design scienceODE is a design science
44
Since alignment between business functions and systems is dynamic it cannot depend on abstract linkages between abstract models.
If alignment is considered as a process then human intervention has to be considered
If alignment depends on human intervention, then any conditions that enhance or inhibit such intervention must also be considered
Emergent contexts enhance or inhibit the activity of organizational actors
Alignment needs people
Our proposed approach to O(D)EOur proposed approach to O(D)E
45
The key requirements of design science are rigour and relevance
In order to be relevant O(D)E needs to offer support to the imperatives of new organizational design: integration, agilityand change.
While engineering can offer rigour in modelling, human-centered design can offer relevance in implementation
Hence, ODE should be not only about alignment-on-paperbut also about alignment-on-the-ground (through supportive organizational design).
Organizational change needs design
Our proposed approach to O(D)EOur proposed approach to O(D)E
46
Dealing with real outcomes (the basic model)
Technological rule
Interactions between people shaped or
mediated by technological rules
OrganizationalContext(s)
Constrain or EnableBuild or
Shape
Predicted Outcome
Real Organizational
Outcome
Recom
mended
design
Our proposed approach to O(D)EOur proposed approach to O(D)E
47
Designs are small structures that are amplified
Designs are large structures that are stabilized
Designs are relatively transientDesigns are relatively permanent
Traditional assumptionsemphasizing structure
and organization
Alternative assumptionsemphasizing action
and organizing
A design is constructed at a single point in time
Designing is continuously reconstructed
Designs produce order through intention
Designs produce order through attention
Design creates planned change
Design codifies unplanned change after the fact
Our proposed approach to ODE: Our proposed approach to ODE: ttowards a new theory of organizationalowards a new theory of organizational design?design?
Sou
rce:
Wei
ck (2
001)
49
Some references
ANAND, N.; DAFT, R. L. (2007). What is the Right Organization Design. Organizational Dynamics, 36 (4): 329-344
ANDERSEN, J. A. (2002). Organizational Design: two lessons to learn before reorganization, 5 (3/4): 343-358
BRAUN, C.; WORTMANN, F.; HAFNER, M.; WINTER, R. (2005). Method Cosntruction: a core approach to organizational engineering. Symposium on Applied Computing, Proceedings of the 2005 ACM symposium on Applied computing, Santa Fe, New Mexico
CROSS, N. (2001). Designerly Ways of Knowing: design discipline versus design science. Design Issues, 17 (3): 49-55
HEVNER, A. R.; MARCH, S. L.; PARK, J. (2004). Design Science in Information Systems Research. MIS Quarterly, 28 (1): 75-105
KUHLIN, B.; THIELMAN, H (Ed) (2005). The Practical Real-Time Enterprise: facts and perspectives. Springer: New York
McGRATH, R. G. (2006). Beyond Contingency: from structure to structuring in the design of the contemporary organization. In S. R. Clegg, C. Hardy, T. B. Lawrence and W. R. Nord, The Sage Handbook of Organization Studies. Sage: London
SAWYER, R. K. (2005). Social Emergence: societies as complex systems. Cambridge University Press: Cambridge
TRIBOLET, J; SOUSA, P. (2004). Editorial Message: Special Track on Organizational Engineering. ACM Symposium on Applied Computing, Nicosia, Cyprus; 14-17 March 2004: 1337-1338
Van AKEN, J. E. (2005) Management Research as Design Science: articulating the research products of Mode 2 knowledge production in management. British Journal of Management, 16: 19-36
50
Overall aim?Enhancing organizational agility and change through the exploration of organizational design and of all aspects of IT infrastructure
APPENDIX: proposal for a research programme in ODEAPPENDIX: proposal for a research programme in ODE
Why?ODE appers as the result of the radical change in organizational forms and the need to uncover the principles behind such change and behind the new designs themselves
How?Combining engineering modelling techniques (tasks, interaction, processes, etc) with social science empirical methods (observations, surveys, case studies, etc)
Recommended