organization theory and design 01 2013

organization @TC 2013

1 แนวคิดทฤษฎีองค์การ

organization @TC 2013

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

organization @TC 2013

หัวข้อบรรยาย/กรณีศึกษา

6 Organizing Across Borders C 3 : Harvard Business Case / Merloni Elettrodomestici Spa : Building for Profit 7 Making a Matrix Work C 4 : Harvard Business Case / Smashing the Cube : Corporate Transformation at Ciba-Geigy,Ltd. 8 Making a Matrix Work C 5 : Harvard Business Case /ABB’s Relay Business ; Building and Managing a Golbal Matrix 9 Solving the Centralization—Decentralization Dilemma C 6 : Harvard Business Case /Johnson & Johnson (A) 10 Solving the Centralization—Decentralization Dilemma C 7: Harvard Business Case /AES Honeycomb (A)

organization @TC 2013

หัวข้อบรรยาย/กรณีศึกษา 11 Organizing for Innovation C 8: Harvard Business Case / 3M Optical Systems : Managing Corporate Entrepreneurship 12 การสร้างและออกแบบ Cybernetics, Viable System C 9 : Harvard Business Case / Sun Hydraulics Corporation (A&B) 13 การสร้างและออกแบบ learning Organization/กระบวนการเรียนรู้ C 10 : Harvard Business Case / McKinsey & Company : Managing Knowledge and Learning 14 Control system C11: Harvard Business Case / Verizon 15 สรุปปิดการบรรยาย or guest speaker

organization @TC 2013

The Historical Evolution of Organizational Thought

Scientific Constructs

Bureaucratic Models

Human Dynamics

Empirical Models

Production Based

Knowledge Based

organization @TC 2013

Organization

organization @TC 2013

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Organizational Efficiency What is an “Efficient Organization?”

•  Executes the organization’s plan with minimum use of resources

•  Plans, produces and delivers products and services on time with planned levels of quality (near zero defects)

•  Operates at the correct level to gain economies of scale

•  Combines resources - labor, capital in the right proportions

•  Able to respond rapidly to changes in direction, plans & environment

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Organizational Effectiveness

What is an “Effective Organization?”

•  Clear goals

•  Able to anticipate new market directions

•  Able to respond before its competition

•  Capable of sustaining a competitive advantage when it has one

•  Identifies and nurtures its basic competencies

•  Continuously adaptive

•  Long-run viability and/or profitability

organization @TC 2013

Evolution of Organization Theory

organization @TC 2013

New approaches

organization @TC 2013 27

What is the basis of Sustainability?

•  The ability of an organisation to adapt and change in a creative co-evolution with its environment

•  The ability of an organisation to generate new ideas, to allow itself to experiment with them, and to evaluate them sufficiently maturely

•  In an organisation, a management that facilitates these processes, in a socio-economic system the underlying richness for this to happen

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Systems Theory (1960s)

•  Represents a new metaphor for organizations: biological rather than mechanistic

•  Acknowledges the organization as a living entity that adapts to its environment

•  Broader in scope than motivating employees - describes and explains organizational processes and structures: emphasis on both task and social needs

organization @TC 2013

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Systems Principles

•  Interdependence - all units affect each other

•  Openness - interacts with the environment

•  Feedback - adaptive (+) maintenance (-)

•  Wholeness - whole is more than sum of parts

•  Equifinality - More than one way to do a job

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Systems Theory Contributions

•  Illustrates central role of communication in organizations –  Communication is not just a management tool –  All feedback processes involve communication

•  Provides new assumptions for thinking about organizations –  There is not one best management approach –  Effectiveness depends on the fit between the organization and the environment

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Systems Theory Contributions

Contingency Theory (Woodward, 1958, Lawrence & Lorsch, 1969) Socio-technical Systems (Trist & Bamforth, 1951) •  Workers should be trained in all aspects of a task •  Teams should be formed that rotate tasks to reduce monotony (allow

autonomy) •  Compensate based on team effort •  Attention to social and task needs

organization @TC 2013

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organization @TC 2013

Sociotechnical production systems

organization @TC 2013

Sociotechnical production systems Tavistock Institute Swedish examples: Volvo Kalmar, SAAB Malmö MIT Studies Cellular Production

organization @TC 2013

• F. W. Taylor (1856-1915) – Taylor’s attitude towards workers was full of

negative bias [Taylor, 1911]: “..in the majority of cases this man deliberately plans to do as little as he safely can”

– Even though Taylor has been extensively criticized, it is a fact that he had great impact on the view of manufacturing and the way to run operations

A historic development

organization @TC 2013

•  Tavistock Institute –  The Tavistock Institute of Human Relations, a novel, interdisciplinary,

action orientated research organisation, was founded in London in 1946 with the aid of a grant from the Rockefeller Foundation. It was set up for the specific purpose of actively relating the psychological and social sciences to the needs and concerns of society. In sustaining this endeavour for more than fifty years, it has won international recognition.

Tavistock

organization @TC 2013

Tavistock

•  By I948 the British economy was in serious trouble. The pound had been devalued, productivity was low and there was a scarcity of capital for investment in new technology.

•  The government formed an Industrial Productivity Committee which had a Human Factors Panel. This made grants for research aiming to secure improved productivity through better use of human resources.

•  The Institute proposed three projects, all of which were accepted. –  The first focussed on internal relations within a single firm (from the board to the

shop floor) with the aim of identifying means of improving cooperation between management and labor and also between levels of management

–  The second focussed on organizational innovations that could raise productivity –  The third pioneered a new form of post-graduate education for field workers in

applied social research.

organization @TC 2013

Sociotechnical

•  A component of the second project, under Erie Trist, led to the discovery of self-regulating work groups in a coal mine - the first intimation that a new paradigm of work might be emerging along the lines indicated by the Institute's work with groups. It opened up the study of 'Socio-Technical Systems' which has become world-wide.

organization @TC 2013

organization @TC 2013

•  Volvo Kalmar –  The Kalmar plant might be the single

Volvo plant that is best known and that has contributed substantially to Volvo’s image as a humanistic and responsible car manufacturer.

–  The managing director of Volvo P. G. Gyllenhammar was a strong forerunner for humanistic production system and wanted a plant that should communicate this to the market.

–  The so well known star-shaped building plan contained 27 workstations in sequence with intermediate buffers.

Sociotechnical production systems

organization @TC 2013

•  Volvo Kalmar –  Originally the concept contained some

parallel workstations. This concept was however abandoned and the Kalmar plant came to be a quite traditional line where every workstation had a view through the window.

–  The assembly line in Kalmar was equipped with very expensive AGVs. These had ergonomic advantages as the workers could ride on them and do the assembly work stationary relative to the car even if the line was moving in a constant pace monitored by a computer.

Sociotechnical production systems

organization @TC 2013

organization @TC 2013

The “Big Picture” Social Technical Systems Systems

Craft Production Decentralized Enterprises Custom Manufacture

Mastery of Craft Specialized Tools

Mass Production Vertical Hierarchies Assembly Line Scientific management Interchangeable Parts

Knowledge-Driven Network Alliances Flexible Specialization

Work Team-Based Work Systems Information Systems

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Adapted from: “Knowledge-Driven Work: Unexpected Lessons from Japanese and United States Work Practices” (Oxford University Press, 1998)

organization @TC 2013

Sample Social System Transformation Initiatives

•  Socio-Technical Work Systems . . . . . . –  1950s-1980s

•  Employee Involvement/QWL. . . . . . . . . –  Late 1970s-1990s

•  Total Quality Management . . . . . . . . . . –  Early 1980s-1990s

•  Re-engineering . . . . . . . . . . . . . . . . . . . –  1990s

•  Six Sigma . . . . . . . . . . . . . . . . . . . . . . . –  1990s-present

•  Lean Production/Enterprise Systems . . –  1950s-present

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Semi-autonomous teams

EI/QWL groups (off-line)

Quality circles (off-line)

Work-out events (off-line)

Black belt let project teams (off-line)

Lean production teams/Integrated product & Process teams

organization @TC 2013

Social and Technical Systems Framework: Delivering Value to Multiple Stakeholders

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Social Interaction Processes

Capability &

Motivation

Structure &

Sub-Systems

Social Systems

+

Technical Systems

Methods (Processes)

Materials (Components & Supply Chain)

Machines (Equipment & New

Technology)

+

Outcomes for Multiple Stakeholders •  Customers •  Workforce •  Shareholders •  Suppliers •  Society

Feedback

organization @TC 2013

Focus on Social Systems

Structure & Sub-Systems •  Structure

–  Groups –  Organizations –  Institutions

•  Sub-Systems –  Communications –  Information –  Rewards & reinforcement –  Selection & retention –  Learning and feedback –  Conflict resolution

Social Interaction Processes

•  Leadership •  Negotiations •  Problem-solving •  Decision-making •  Partnership

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Social Interaction Processes

Capability &

Motivation

Structure &

Sub-Systems

+ Capability & Motivation §  Individual knowledge,

skills & ability §  Group stages of

development §  Fear, satisfaction and

commitment

organization @TC 2013

Focus on Technical Systems

Machines (Equipment & New Technology)

•  Equipment and machinery

•  Physical infrastructure •  Information technology •  Nano-technology, bio-

technology, and other frontiers of science

Methods (Processes) •  Job design/office design •  Work flow/process

mapping methods •  Value stream mapping •  Constraint analysis •  Statistical Process Control

(SPC) •  System optimization and

decomposition methods

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Materials (Components & Supply Chain)

§  Interchangeable parts and mass production systems

§  Just-In-Time delivery (JIT) systems

§  Synchronous material flow systems

§  e-commerce

Methods (Processes)

Materials (Components & Supply Chain)

Machines (Equipment & New

Technology)

+

organization @TC 2013

Exercise: Cellular Manufacturing Socio-Tech Analysis

Step 1: Group Formation and Stakeholder Analysis Form small groups of 2-3 people (individuals at remote locations may link by phone), study the “current state” and “desired state” illustrations on a hypothetical cellular manufacturing intervention (next slide), and list stakeholders involved in your phase of this intervention.

Note: Some groups will be assigned to “Preparing,” “Implementing,” and “Sustaining” phases of this intervention

Step 2: Social Systems Identify the most important social system changes in this work system that are relevant to your phase of the intervention.

Step 3: Technical Systems Identify the most important technical changes in this work system that are relevant to your phase of the intervention.

Step 4: Integration and Guiding Principles Discuss ways in which the social and technical changes are or are not interdependent. Derive 1-3 “Guiding Principles” for implementing a systems change of this type.

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organization @TC 2013

Exercise: Cellular Manufacturing

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Receiving, Incoming Inspection,

and Shipping

Heat Treat

MG

GL

D

M

M

G

G L D

D D

MC MC

MG GL D

MG

GL

D

MG

GL

D

MG

GL

D

M G

G L

D

M

M

G

G L D

D D

Injection Molding Center

Work Flow

Final Assembly

Center

Receiving, Incoming Inspection,

and Shipping

Heat Treat

Injection Molding Center

Component Subassembly Inspection and Test Center

Machining Center

M M

M M G

G G G

G G

L

L

L

L

L

L

D D D

D D

MC

MC D

1

4

2

3 5

10 7 6

8

9

12

13

11

Source: Lean Aerospace Initiative Fieldbook

Current State

Desired State

organization @TC 2013

Revisit the Social and Technical Systems Framework

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Social Interaction Processes

Capability &

Motivation

Structure &

Sub-Systems

Social Systems

+

Methods &

Processes

Materials &

Supply Chain

Equipment & New

Technology

Technical Systems

+

Outcomes for Multiple Stakeholders •  Customers •  Workforce •  Shareholders •  Suppliers •  Society

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