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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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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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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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Basic organisational design structures
Organisational design by geography
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Basic organisational design structures
Organisational design by product line
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Basic organisational design structures
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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