Organization theory and design 02 2013

organization @TC 2013

2 โครงสร้างและการออกแบบองค์การ


หัวข้อบรรยาย/กรณีศึกษา 1 แนวคิดทฤษฎีองค์การ 2 โครงสร้างและการออกแบบองค์การ Focus on task performance and structure Focus on motivation Focus on adjustments to the external environment 3 หลักการการออกแบบองค์กรที่มีประสิทธิภาพ 4 Fundamentals of Organization Designพื้นฐานแนวคิดการออกแบบโครงสร้างองค์การ C 1 : Harvard Business Case / NYPD New 5 Designing Around the Customer C 2 : Harvard Business Case /Transformation at Ernst & Young United Kingdom


WORK DESIGN DECISIONS

1.  WHAT ARE THE TASKS TO BE PERFORMED?

2.  HOW SHOULD THEY BE COMBINED INTO JOBS?

3.  HOW SHOULD THE JOBS BE PERFORMED? ANALYSIS & DESIGN OF WORK METHODS STANDARDS OF PERFORMANCE

4.  HOW SHOULD PEOPLE RESPOND TO THE JOB? ATTITUDES JOB SATISFACTION MOTIVATION

5.  HOW TO STRUCTURE THE JOBS TO BE EFFICIENT & SATISFYING?


TWO-FACTOR THEORY HERZBERG (59) ASSUMPTIONS

TWO DIFFERENT TYPES OF FACTORS INFLUENCE US…HYGIENES & MOTIVATORS THE OPPOSITE OF SATISFACTION IS “NO SATISFACTION” THE OPPOSITE OF DISSATISFACTION IS “NO DISSATISFACTION” ONLY MOTIVATING FACTORS LEAD TO SATISFACTION HYGIENES AT BEST LEAD TO NO DISSATISFACTION

HYGIENES (EXTRINSIC) MOTIVATORS (INTRINSIC) WORKING CONDITIONS RESPONSIBILITY COMPANY POLICIES CHALLENGE OF WORK SUPERVISIOR MEANINGFUL WORK COWORKERS ACHIEVEMENT SALARY & BENEFITS ACCOMPLISHMENT STATUS SYMBOLS GROWTH OPPORTUNITIES IMPLICATIONS

ABUNDANT HYGIENES DO NOT MOTIVATE WORKERS, THEY ONLY PREVENT DISSATISFACTION ENRICH JOBS TO PROVIDE MOTIVATING, CHALLENGING WORK AND HIGH SATISFACTION

WEAKNESSES RESEARCH METHODOLOGY IS FLAWED DOESN’T RECOGNIZE INDIVIDUAL NEED DIFFERENCES…NOT EVERYONE WANTS ENRICHED JOBS OVEREMPHASIZES JOB SATISFACTION

HERZBERG’S VERTICAL LOADING FACTORS (ACHIEVEMENT, GROWTH, RECOGNITION, RESPONSIBILITY)

ACCOUNTABILITY—Held responsible for performance ACHIEVEMENT---Doing something worthwhile (Meaningful) FEEDBACK---Gets direct performance information WORK PACE---Able to set own work speed and rhythm CONTROL OVER RESOURCES---Controls how and when to do the job PERSONAL GROWTH & DEVELOPMENT---Opportunity to learn new skills

HACKMAN’S IMPLEMENTING CONCEPTS (Create a sense of MEANINGFULNESS, RESPONSIBILITY, & KNOWLEDGE)

COMBINE TASKS SKILL VARIETY FORM NATURAL WORK UNITS TASK IDENTITY ESTABLISH CLIENT RELATIONSHIPS TASK SIGNIFICANCE VERTICAL LOADING AUTONOMY OPEN FEEDBACK CHANNELS FEEDBACK SUCCESS IS MODERATED BY THE INDIVIDUAL’S “GROWTH-NEED” STRENGTH DOES THE INDIVIDUAL WANT AN “ENRICHED JOB?” ARE THEY HIGH “N-ACH?”


Job Design


SPECIALIZATION (Division of Labor)

ADVANTAGES FEWER SKILLS REQUIRED PER PERSON EASIER TO STAFF POSITIONS & TRAIN WORKERS JOBS CAN BE MASTERED IN LESS TIME PRODUCTIVITY & WORK OUTCOMES CAN BE INCREASED PRODUCTS & SERVICES ARE MORE UNIFORM MANAGERS CAN SUPERVISE A LARGER NUMBER OF WORKERS

DISADVANTAGES OVERSIMPLIFIED JOBS ARE REPETITIVE, BORING, STRESSFUL, FRUSTRATING SKILL DEVELOPMENT IS NOT ENHANCED --- NO CHALLENGES LEADS TO PRODUCTIVITY DECLINES, ABSENTEEISM, POOR QUALITY WORK


ALTERNATIVES TO JOB SPECIALIZATION

•  Job Rotation – Systematically moving employees from one job to another. Most

frequent use today is as a training device for skills and flexibility.

•  Job Enlargement – An increase in the total number of tasks performed.

•  Increases training costs, unions want workers paid more pay for doing more tasks, and work may still be dull and routine.

•  Job Enrichment –  Increasing both the number of tasks the worker does and the

control the worker has over the job.


ALTERNATIVES TO SPECIALIZATION - 2

•  Job Characteristics Approach (HACKMAN & OLDHAM, 76) –  Core Dimensions

•  Skill variety—the number of tasks a person does in a job. •  Task identity—the extent to which the worker does a complete or identifiable portion of the

total job. •  Task significance—the perceived importance of the task. •  Autonomy—the degree of control the worker has over how the work is performed. •  Feedback— the extent to which the worker knows how well the job is being performed.

–  Growth-Need Strength •  The desire of some people to grow, develop, and expand their capabilities that is their

response to the core dimensions.

•  Autonomous Work Teams –  An alternative to job specialization that allows the entire group to design the work system it will use.


JOB DESIGN THEORY HACKMAN & OLDHAM (76) JOB CHARACTERISTICS MODEL FIVE JOB DIMENSIONS PSYCHOLOGICAL STATES SKILL VARIETY TASK IDENTITY à MEANINGFULNESS TASK SIGNIFICANCE (Leads to high internal work motivation) AUTONOMY à PERSONAL RESPONSIBILITY

(Leads to high quality work & satisfaction) FEEDBACK à KNOWLEDGE OF RESULTS

(Leads to high satisfaction & low turnover) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - EFFECTIVENESS IS MODERATED BY EMPLOYEE GROWTH-NEED STRENGTH CALCULATE THE MOTIVATING POTENTIAL SCORE TO DETERMINE IF THE JOB NEEDS TO BE REDESIGNED ARE YOUR WORKERS MOTIVATED BY INTRINSIC WORK FACTORS AND A STRONG NEED FOR ACHIEVEMENT (AN

ENRICHED JOB)?


CRITICISMS OF JOB ENRICHMENT (JOB REDESIGN) •  HIGH COSTS

•  TRAINING, DUPLICATE EQUIPMENT, PLANT REDESIGN

•  SOME JOBS ARE ELIMINATED •  FEWER OPERATIVES, SUPERVISORS NEEDED

•  ASSUMES WORKERS WANT RESPONSIBILITY, ETC. •  WHAT ABOUT WORKERS WITH LOW “N-ACH?”

•  ENRICHMENT IS RELATIVE--EFFECTS MAY BE TEMPORARY •  DO WE NEED OCCASIONAL “BOOSTER SHOTS” TO KEEP GOING?

•  SOME JOBS CAN’T BE ENRICHED •  WHAT DO WE DO TO AVOID JEALOUSY?

•  USED AS A QUICK FIX FOR IMMEDIATE PROBLEMS •  HAVE WE REALLY CHANGED OUR PHILOSOPHY OF MGMT?

•  IMPLEMENTED CHANGES ARE OFTEN WEAK & MODEST •  COMPROMISES FROM WHAT WAS PLANNED •  INNOVATIONS ARE ERODED & VANISH OVER TIME


WHEN MIGHT REDESIGN WORK?

1.  WHEN NEW UNITS ARE FIRST ESTABLISHED NO PAST HISTORY TO DEAL WITH NEW FACILITIES AND WORKERS

2.  WHEN THE SYSTEM BECOMES UNSTABLE (Seizing the opportunity!)

TECHNOLOGICAL CHANGE CHANGE IN SENIOR MANAGEMENT NEW PRODUCT OR SERVICE INTRODUCED LEGISLATIVE OR REGULATORY CHANGES FLUCTUATIONS IN THE ECONOMY OR ENVIRONMENT

3. WHEN THE IMMEDIATE MANAGER WANTS IT LOCAL CHANGES (JUST WITHIN THE DEPARTMENT) MICRO REDESIGN

MANAGEMENT MUST BE COMMITTED TO A NEW PHILOSOPHY


FLEXIBILITY & WORKER CONTROL

WORK SCHEDULE FLEXIBILITY 1. COMPRESSED WORK WEEK WORKER FATIGUE ISSUE OF OVERTIME DIFFICULTIES IN WORK SCHEDULING 2. FLEXTIME SUPERVISION & COORDINATION IS MORE DIFFICULT ADEQUATE COVERATE OF WORK---HOW TO SCHEDULE? JOBS THAT REQUIRE ALL TO BE PRESENT 3. JOB SHARING / PART-TIME WORK COORDINATING WITH OTHER WORKERS INCREASED COST OF BENEFITS 4. TELECOMMUTING NO CONTACTS WITH OTHER WORKERS—NO COORDINATION NO SUPERVISION—NOT EASY TO GET HELP WHEN NEEDED HOW PRODUCTIVE ARE YOU WHEN WORKING AT HOME? ISSUE OF LIABILITY WHEN WORK IS DONE AT HOME


Organizational Structure


ORGANIZATIONAL STRUCTURE SIX DIMENSIONS •  WORK SPECIALIZATION (Division of Labor)

–  To what degree are activities subdivided into separate jobs?

•  DEPARTMENTALIZATION –  On what basis are jobs grouped together?

•  CHAIN OF COMMAND (Hierarchy of Authority) –  To whom do individuals and groups report?

•  SPAN OF CONTROL –  How many workers can a manager efficiently & effectively direct?

•  CENTRALIZATION / DECENTRALIZATION –  Where does discretionary (exceptional) decision making authority lie?

•  FORMALIZATION –  To what degree are written rules, regulations & procedures established?


ORGANIZATIONAL STRUCTURE IS STRONGLY INFLUENCED BY:

ENVIRONMENTAL UNCERTAINTY BURNS & STALKER (61) THOMPSON (67) DUNCAN (72)

ORGANIZATIONAL TECHNOLOGY WOODWARD (65) THOMPSON (67) PERROW (67)

INTERNAL INFORMATION-PROCESSING NEEDS LAWRENCE & LORSH (67) GALBRAITH (73)

MANAGERIAL STRATEGY CHANDLER (62)

ORGANIZATIONAL HISTORY & MATURITY GREINER (72) SCHWARTZ & DAVIS (81)


ORGANIZATIONAL RATIONALITY THOMPSON (67)

•  Seal off (protect) the “core technology” from environmental influences REDUCE UNCERTAINTY -- PROTECT THE “CORE”

•  Buffer the core technology by surrounding it with specialized input and output components

FORM DEPARTMENTS TO INTERFACE WITH THE ENVIRONMENT (SO THE “CORE” DOESN’T HAVE TO DEAL WITH THE ENVIRONMENT)

•  Smooth out the input and output transactions THE MORE INDEPENDENT THESE BUFFERS BECOME, THE GREATER THE NEED TO DEVELOP COORDINATING MECHANISMS ACROSS DEPARTMENTS

•  Anticipate and adapt to environmental changes THE ORGANIZATION MUST BE FLEXIBLE AND ADAPTABLE TO SURVIVE


Organic vs. Mechanistic Organization

Low High

§  Change Unlikely §  High Formalization §  Narrow Span of Control §  Tall Structure §  Centralized Authority in few top people §  Rigid Rules §  Many Specialists

§  Change Likely §  Low Formalization §  Wide Span of Control §  Flat Structure §  Decentralized and Diffused Authority throughout Organization §  Considerable Flexibility §  Many Generalists

Mechanistic Structure

Organic Structure

UNCERTAINTY


Basic Organization Principles





Organizational Design


Definitions

Organization Structure The way work is divided up. How work and responsibilities are clustered . Lines of reporting and accountability.

Organization Design Planning and fitting together the people, activities and technologies and other elements of the enterprise.


Why Does Organization Design Matter?

•  As business analysts, we often are: –  Improving or even re-engineering processes –  Introducing new technologies and associated systems into the

organization –  Introducing new jobs? Other ??


Design Parameter


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Parameters of Design :Structural Design

Job Specialization – number of tasks given a job and a worker’s control over them. Behavior formalization – the standardization of work processes by the imposition of

operating instructions, job descriptions, rules, regulations, etc. Training – the use of formal instructional programs to establish and standardize skills

and knowledge. Indoctrination – programs and techniques by which norms are standardized. Unit Grouping – choice of the basis by which positions are grouped together in units

(such as on an organizational chart). Unit Size – number of positions (or units) contained in a single unit (i.e., span of

control). Planning and Control Systems – standardizes outputs Liaison Devices – mechanisms used to encourage adjustment between units. Decentralization – diffusion of decision-making power.




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Mintzberg’s Six Parts of Organizations

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Mintzberg’s Six Parts of Organizations

Techno-structure: Analysts that plan and control the work of others…labeled as “staff.”

Support Staff: Provide various internal services, from a cafeteria or mailroom to a public relations office.

Operating Core: People performing the basic work through products or services.

Strategic Apex: Top Management Middle Line: Hierarchy of authority between operating core and strategic apex.

Ideology: Traditions, beliefs, culture.



Information Processing Theory


INFORMATION PROCESSING GALBRAITH (73)

TRADITIONAL COORDINATING MECHANISMS INFORMAL CONTACT RULES & PROCEDURES (Standard Operating Procedures) HIERARCHY (Exceptions) GOALS & TARGETS (Specify outcomes, not behaviors)

AS INFORMATION PROCESSING NEEDS INCREASE, THE ORGANIZATION MUST WORK HARDER TO STAY IN

CONTACT WITH ITS VARIOUS UNITS. STRATEGY 1 -- REDUCE THE AMOUNT OF INFORMATION PROCESSED

RELY ON SLACK ESTABLISH SELF-CONTAINED UNITS

STRATEGY 2 -- INCREASE CAPACITY TO HANDLE MORE INFORMATION

INSTALL MORE VERTICAL INFORMATION SYSTEMS STRUCTURE MORE LATERAL RELATIONSHIPS

SOME LATERAL COORDINATING MECHANISMS

LIAISON ROLES, TASK FORCES, STANDING COMMITTEES, CROSS-FUNCTIONAL TEAMS, MATRIX STRUCTURES