Upload
dwi-permana
View
222
Download
0
Embed Size (px)
Citation preview
8/4/2019 Ch10-Designing Adapti C31B8
1/34
Designing Adaptive Organizations
Chapter10
8/4/2019 Ch10-Designing Adapti C31B8
2/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
2
Organizing
Organization is the deployment of resources to
achieve strategic goals. It is reflected in
Division of labor into specific departments & jobs
Formal lines of authority Mechanisms for coordinating diverse organizational
tasks
Managers Challenge: Nissan
8/4/2019 Ch10-Designing Adapti C31B8
3/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
3
Designing Adaptive
Organizations
Organizing Principles and Concepts
Organizing the Vertical Structure
Using Mechanisms for HorizontalCoordination
Tailoring Various Elements of StructuralDesign to Organizational Situations
Topics
Chapter 10
8/4/2019 Ch10-Designing Adapti C31B8
4/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
4
Organization Structure
Defines how tasks are divided,
resources are deployed, anddepartments are coordinated
Set of formal tasks assigned
Formal reporting relationships
The design of systems to ensureeffective coordination of employeesacross department
8/4/2019 Ch10-Designing Adapti C31B8
5/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
5
The Organization Chart
The Home Depot is the world's largest home
improvement retailer currently operating
1,363 stores.
Visual representation
Set of formal tasks
Formal reporting relationships
Framework for vertical control
8/4/2019 Ch10-Designing Adapti C31B8
6/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
6
Work Specialization
Tasks are subdivided into individual jobs
Employees perform only the tasks relevantto their specialized function
Jobs tend to be small, but they can be
performed efficiently
Division of labor concept
8/4/2019 Ch10-Designing Adapti C31B8
7/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
7
Chain of Command
Unbroken line of authority that links all
persons in an organization Shows who reports to whom
Associated with two underlying principles Unity of Command
Scalar Principle
8/4/2019 Ch10-Designing Adapti C31B8
8/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
8
Authority
Formal and legitimate right of a manager tomake decisions and issue orders
Allocate resources to achieve organizationallydesired outcomes
Authority is distinguished by three characteristics
Authority is vested in organizational positions, not
people Authority is accepted by subordinates
Authority flows down the vertical hierarchy
8/4/2019 Ch10-Designing Adapti C31B8
9/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
9
Responsibility
The duty to perform the task or activityan employee has been assigned
Managers are assigned authority
commensurate with responsibility
Flip side of the authority coin
8/4/2019 Ch10-Designing Adapti C31B8
10/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
10
Accountability
Mechanism through which authority and
responsibility are brought into alignment People are subject to reporting and
justifying task outcomes to those above
them in the chain of command Can be built into the organization
structure
8/4/2019 Ch10-Designing Adapti C31B8
11/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
11
Delegation
Process managers use to transfer
authority and responsibility
Organizations encouragemanagers to delegate authority tolowest possible level
Ethical Dilemma: A Matter of Delegation
8/4/2019 Ch10-Designing Adapti C31B8
12/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
12
Techniques for Delegation
Givethoroughinstructions
Maintainfeedback
Evaluate and rewardperformance
Delegate thewhole task
Select the rightperson
Delegation
Ensure thatauthority equalsresponsibility
8/4/2019 Ch10-Designing Adapti C31B8
13/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
13
Line and Staff Authority
Line Authority = individuals in management
positions have the formal power to direct andcontrol immediate subordinates
Staff Authority = granted to staff specialists in
their area of expertise
8/4/2019 Ch10-Designing Adapti C31B8
14/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
14
Span of Management/
Span of Control Number of employees who report to a supervisor
Traditional view = seven subordinates per manager
Lean organizations today = 30+ subordinates
Supervisor Involvement
must be closely involved with subordinates, the span
should be small need little involvement with subordinates, it can be
large
8/4/2019 Ch10-Designing Adapti C31B8
15/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
15
Factors Associated With Less
Supervisor Involvement
Work is stable and routine
Subordinates perform similar work tasks
Subordinates are concentrated in a single location
Subordinates are highly trained
Rules and procedure defining task activities are available
Support systems and personnel are available for themanager
Little time is required in nonsupervisory activities
Managers preferences and styles favor a largespan
8/4/2019 Ch10-Designing Adapti C31B8
16/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
16
Tall versus Flat Structure
Span of Control used in an organization determines
whether the structure is tall or flat Tall structure has a narrow span and more
hierarchical levels
Flat structure has a wide span, is horizontallydispersed and fewer hierarchical levels
The trend has been toward wider spans of control
8/4/2019 Ch10-Designing Adapti C31B8
17/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
17
Centralization versus Decentralization
Greater change and uncertainty in the
environment are usually associated withdecentralization
The amount of centralization ordecentralization should fit the firms
strategy
In times of crisis or risk of company failure,authority may be centralized at the top
8/4/2019 Ch10-Designing Adapti C31B8
18/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
18
DepartmentalizationThe basis on which individuals are grouped into departments
Vertical functional approach. People are groupedtogether in departments by common skills.
Divisional approach. Grouped together based on acommon product, program, or geographical region.
Horizontal matrix approach. Functional and divisionalchains of command. Some employees report to two
bosses Team-based approach. Created to accomplish
specific tasks
8/4/2019 Ch10-Designing Adapti C31B8
19/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
19
DepartmentalizationThe basis on which individuals are grouped into departments
Network approach. Small, central hubelectronically connected to their otherorganizations that perform vital functions.Departments are independent, and can belocated anywhere.
Virtual approach.
Brings people togethertemporarily to exploit specific opportunitiesthen disbands
8/4/2019 Ch10-Designing Adapti C31B8
20/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
20
Five Approaches to Structural Design
8/4/2019 Ch10-Designing Adapti C31B8
21/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
21
Five Approaches to Structural DesignSlide 2
8/4/2019 Ch10-Designing Adapti C31B8
22/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
22
Vertical Functional Approach
Grouping of positions into departmentsbased on similar skills, expertise, andresource use Information flows up and down
Chain of command converges at the top
Managers and employees are compatible
because of similar training and expertise Rules and procedures governing duties and
responsibilities
8/4/2019 Ch10-Designing Adapti C31B8
23/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
23
Divisional Structure Advantages
Efficient use of resources
Skill specialization development
Top management control
Excellent coordination
Quality technical problem solving
8/4/2019 Ch10-Designing Adapti C31B8
24/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
24
Divisional Structure
Disadvantages
Poor communications
Slow response to external changes
Decisions concentrated at top
Pin pointing responsibility is difficult
Limited view of organizational goals byemployees
8/4/2019 Ch10-Designing Adapti C31B8
25/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
25
Horizontal Matrix Advantages
More efficient use of resources than single
hierarchy Adaptable to changing environment
Development of both general and specialists
management skills Expertise available to all divisions
Enlarged tasks for employees
8/4/2019 Ch10-Designing Adapti C31B8
26/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
26
Dual Authority Structure in a
Matrix Organization
8/4/2019 Ch10-Designing Adapti C31B8
27/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
27
Horizontal Matrix Disadvantages
Dual chain of command
High conflict between two sides of matrix
Many meetings to coordinate activities
Need for human relations training
Power domination by one side of matrix
8/4/2019 Ch10-Designing Adapti C31B8
28/34
8/4/2019 Ch10-Designing Adapti C31B8
29/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
29
Team Disadvantages
Dual loyalties and conflict
Time and resources spent onmeetings
Unplanned decentralization
8/4/2019 Ch10-Designing Adapti C31B8
30/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
30
Network Approach Advantages
Global competitiveness
Work force flexibility
Reduced administrative overhead
8/4/2019 Ch10-Designing Adapti C31B8
31/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
31
Network Approach
Disadvantages
No hands-on control
Loss of part of the organization severelyimpacts remainder of organization
Employee loyalty weakened
8/4/2019 Ch10-Designing Adapti C31B8
32/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
32
Task Forces, Teams, Project
Management
Task Force = temporary team/committeedesigned to solve a short-term probleminvolving several departments
Project Manager = responsible for
coordinating activities of several departmentson a full-time basis for the completion of aspecific project
8/4/2019 Ch10-Designing Adapti C31B8
33/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
33
Reengineering
Radical redesign of business processes toachieve dramatic improvements in cost,quality, service, and speed
Process = organized group of related tasksand activities that work together to transform
inputs into outputs and create value
8/4/2019 Ch10-Designing Adapti C31B8
34/34
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Factors Shaping Structure
Structure
Follows StrategyReflects the Environment
Fits the Technology
Service Technology
Digital TechnologyExperiential Exercixe: Organic versus
Mechanistic Organization Structure