Lecture 3 Org Design 2014

8/12/2019 Lecture 3 Org Design 2014

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Overview

Week Lecture Topic(s)

1 1 - Plenary

2Group work

Chapter 12: Ethical Problem-Solving and Decision-Making

Group formation (max 5 to a group, select organisation and

get organised

2 1Plenary

2Group work

Chapter 13: Power and Politics

Consultancy on demand

3 1Plenary

2Group work

Chapter 15: Organisational Structure and Design

Report 1Decision & Politics Report on chosen organisation

4 1Plenary

2Group work

Article: What is Business Process Redesign and Why Should I

care? (8 pages)

Consultancy on demand

5 1Plenary2Group work Chapter 16: The Impact of Organisational Culture at WorkReport 2 Organisation & Culture Report

6 1Plenary

2Group work

Chapter 14: Leadership

Consultancy on Draft Final Report

7 1Plenary

2Plenary

Wrap up, Q&A and Exam Preparation

Hand in Final Report + Group Presentations (assessed)


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Learning Outcomes

Explainwhy significant changes in the nature of jobs and

organisational design are occurring as a result of

information technology

Describethe Fundamental trade-offs for BalancingOrganisational Design

Explainhow the issues of autonomy, control, and

integration affect decisions about centralised versus

decentralised authority in the design of organisations.

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Learning Outcomes (cont.)

Contrastthe characteristics, strengths, and weaknesses ofbureaucracy with those of organic, postmodern

organisations.

Statehow differences in span of control, hierarchical

levels, and size yield flatter and more lateral networked

organisations.

Comparethe similarities and contrast the differences

among quality circles, self-managed teams, and cross-

functional teams.

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Why do organisational designs change over

Time?

Technology drives changes in structuring work: Electronic business makes corporate boundaries

transparent and geography free by connecting employees,

vendors, and customers.

Technology encompasses the scientific knowledge,processes, and systems used to create products/services

and help people carry out tasks.

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http://www.youtube.com/watch?v=mOaCMJM4qQs


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Why do organisational designs change

over time?

Jobs shift from old industries to new industries


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Why do organisational designs change over

time?

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Because organisations need to realign strategy and structure to

support objectives. See the organisational STAR for change targets


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Why do organisational designs changeover time?

Technology creates a global market for job skills

In an economic sense, the worlds boundaries are

shrinking.

There are three universal work skills that providehigh value to consumers (Reich, 1991):

1. Problem-solving skills.

2. The skill to help consumers understand their needs and

the solution to their problems.

3. The skills to link problem solvers with problem identifiers.

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Purposes served by organisational

structure

An organisational structure:

is the hierarchical arrangement through which the

essential tasks of an enterprise are subdivided and grouped

to create the systems, decision centers, and behaviouralnetworks that carries out enterprise strategies.

more than the boxes and lines on an organisational chart

(the symbolic structure of boxed titles and lines that

represent positions and reporting of relationships).

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The Process of Organisational Design

Organisational designis the process managers go

through to create meaningful structures, decision and

information networks, and governance systems.

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Organisational design provides for:

The dividing and grouping of tasks.

Networks to convey information.

A structure for locating decision centers or

authority. Processes for coordination, control, and conflict

resolution.

The means to link key work units with appropriateexternal stakeholders.

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http://www.youtube.com/watch?v=LvyXVTb3f1Y

http://www.youtube.com/watch?v=R-m8grawp1k
http://www.youtube.com/watch?v=LvyXVTb3f1Yhttp://www.youtube.com/watch?v=R-m8grawp1khttp://www.youtube.com/watch?v=R-m8grawp1khttp://www.youtube.com/watch?v=R-m8grawp1khttp://www.youtube.com/watch?v=R-m8grawp1khttp://www.youtube.com/watch?v=LvyXVTb3f1Yhttp://www.youtube.com/watch?v=LvyXVTb3f1Y


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Shifting Control from Staff to Line (cont.)

Line positions:

are job assignments that directly contribute to creating

customer value by either designing products, producing

them, financing needed resources, marketing to create

demand, and/or selling and servicing the product.

Leaner-flatter organisations cut staff, limit their tasks.

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Shifting Control from Staff to Line

Staff positions:

are jobs that support line positions through

carrying out advisement and assistance in areas

such as legal counsel, human resources, strategicplanning, and accounting.

Historically thought of as overhead: activities.

With IT, the numbers employed as staff declines.

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Basic organisational design structures


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Organisational design by geography


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Organisational design by product line


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Hybrid organisations


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What are the fundamental trade-offs for balancing

organisational design?

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Centralisation and decentralisation.

Autonomy and Control.

Differentiation and integration.

Bureaucratic versus organic structures.

Wide versus narrow span of control.

Flat versus tall hierarchy.

Control with staff or line.


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Balancing centralisation & decentralisation

Centralisation

Structure that concentrates authority and decision

making toward the top of the organisation.More appropriate for large organisations in slow-changingindustries.

Decentralisation

A structure that disperses authority and decision

making to operating units throughout theorganisation.

Appropriate for organisations in complex, fast-changingenvironments requiring flexibility.

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Balancing autonomy and control

Autonomymeans granting power and responsibilityto followers to initiate innovation action that

improves processes and performance, with results

assessed against general goals.

Controllimits the authority given managers to shape

decisions and resource allocations by specifying

parameters and providing for higher-level reviews,often with approvals prior to proceeding.

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Balancing differentiation and integration

Differentiation:

the cognitive-emotional orientations people hold

toward a subpart of an organisationto ones

work unit be it a particular department, function,or discipline.

promotes specialisation or functional expertise,

with differences in goals, time horizons,

interpersonal style.

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B l i diff i i d i i


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Balancing differentiation and integration

(cont.)

Integration:

reflects the quality and form of collaboration

between work units to shift expectations to a big

picture perspective of the larger organisation. promotes the realisation that ultimately

coordination across subunits is of greater

importance than individual departments or

functions.

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T d ff t l


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Trade-offs among control,autonomy, and coordination

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CONTROL(centralisation)

AUTONOMY(decentralisation)

COORDINATION(teamwork)

Global

perspective

Local

responsiveness

ConsistencyFlexibility Synergy

Accountability


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Geometric Effects of Span-of-Control Ratios

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Exercise

A. Describe and argue the organisational

structure of RBS taking the following

dimensions into account:

Centralisation versus decentralisation

Control versus autonomy

Differentiation versus integration Span of control (approximately)

Line positions and staff positions

B. Draw an organisational chart for RBS up to thelevel of lecturer

C. Evaluate the effectiveness of the structure

presented


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Mechanistic versus Organic Structures

A mechanisticorganisation has a traditional look

and feel, highly structured and formalised, typically

with lots of silos between work units.

An organicorganisation has a looser look and feelthat relies on the adaptive capacities and

motivation of individuals.

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Bureaucracy

Bureaucracyis an efficiency-oriented system oforganisation that emphasises formalisation of roles

and rules to promote control.

The concept was first described by Max WeberA hierarchy of command and authority.

Specialisation and division of labor.

A system of governing rules and policies.

Promotion based on competence andtraining.

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Basic design dimensions

Standardizationis the extent to which workactivities are described and performed routinely in

the same way.

Complexity refers to the number of different typesof activities that occur in the organization.

Hierarchy of authority is the degree of vertical

differentiation across levels of management.


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Designing organisations


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Four options for participative team mngt

1. QUALITY CIRCLES: A group process involvingvolunteers in analysing problems andrecommending solutions.

2. SELF-MANAGED TEAMS: A work unit grantedauthority to take the decisions and actionsnecessary to produce a product or service.

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Four Options for Participative Team


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Four Options for Participative Team

Mngt

3. SOCIO-TECHNICAL SYSTEMS: A systems approachto enhance motivation and productivity bybalancing human and technical systems.

4. CROSS-FUNCTIONAL TEAMS: People from severalfunctions coordinate interrelated tasks.

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Lecture 3 Org Design 2014

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