Summary Chapter 3: Summary Chapter 3: The Structural FrameThe Structural Frame

Wendell W. Brown, Sr.Wendell W. Brown, Sr.

What is a Frame?What is a Frame?

Coherent set of ideas that enable you Coherent set of ideas that enable you to see and understand more clearly to see and understand more clearly what goes on day to day.what goes on day to day.

The Structural FrameThe Structural Frame

Oldest and most widely used ways of Oldest and most widely used ways of thinking about organizations. thinking about organizations.

Core Premise of the Structural Core Premise of the Structural perspectiveperspective

Clear, well-understood roles and Clear, well-understood roles and relationships and adequate relationships and adequate coordination are key to how well an coordination are key to how well an organization performs.organization performs.

ExampleExample

USS Kennedy vs. Rescue efforts at USS Kennedy vs. Rescue efforts at The World Trade CenterThe World Trade Center

Structural AssumptionsStructural Assumptions Organizations exist to achieve established goals and Organizations exist to achieve established goals and

objectives.objectives. Organizations increase efficiency and enhances performance Organizations increase efficiency and enhances performance

through specialization and a clear division of labor.through specialization and a clear division of labor. Appropriate forms of coordination and control ensure that Appropriate forms of coordination and control ensure that

diverse efforts of individuals and units mesh.diverse efforts of individuals and units mesh. Organizations work better when rationality prevails over Organizations work better when rationality prevails over

personal preferences and extraneous pressures.personal preferences and extraneous pressures. Structures must be designed to fit an organization’s Structures must be designed to fit an organization’s

circumstances (including its goals, technology, workforce, and circumstances (including its goals, technology, workforce, and environment).environment).

Problems and performance gaps arise from structural Problems and performance gaps arise from structural defiencies and can be remedied through analysis and defiencies and can be remedied through analysis and restructuring.restructuring.

Origins of The Structural Origins of The Structural PerspectivePerspective

Intellectual Roots of The Intellectual Roots of The Structural ViewStructural View

The work of industrial analysts bent The work of industrial analysts bent on designing organizations for on designing organizations for maximum efficiency.maximum efficiency.

Main TheoristMain Theorist

Frederick W. Taylor (1911) – father of Frederick W. Taylor (1911) – father of time – and – motion studies; he time – and – motion studies; he founded an approach that he labeled founded an approach that he labeled “scientific management.”“scientific management.”

Henri Fayol ([1919] 1949), Lyndall Henri Fayol ([1919] 1949), Lyndall Urwick (1937), Luther Gulick (Gulick Urwick (1937), Luther Gulick (Gulick and Urwick, 1937) – principles and Urwick, 1937) – principles focused on specialization, span of focused on specialization, span of control, authority, and delegation of control, authority, and delegation of responsibility. responsibility.

Monocratic BureaucracyMonocratic Bureaucracy

Fixed division of laborFixed division of laborHierarchy of officesHierarchy of officesSet of rules governing performanceSet of rules governing performanceSeparation of personal from official Separation of personal from official

property and rightsproperty and rightsTechnical qualifications ( not family ties Technical qualifications ( not family ties

or friendship) for selecting personnelor friendship) for selecting personnelEmployment as a primary occupation Employment as a primary occupation

and long-term career.and long-term career.

Main TheoristMain Theorist

Max Weber (Sociologist who wrote Max Weber (Sociologist who wrote around the beginning of the around the beginning of the twentieth century.)twentieth century.)

Blau and Scott (1962)Blau and Scott (1962)Perrow (1986)Perrow (1986)Thompson (1967)Thompson (1967) Hall (1963)Hall (1963)

Structural Forms and Structural Forms and FunctionsFunctions

Blueprint for formal expectations and Blueprint for formal expectations and exchanges among internal Players exchanges among internal Players (executives, managers, employees) (executives, managers, employees) and external constituencies. and external constituencies.

Enhances and constrains what an Enhances and constrains what an organization can accomplish.organization can accomplish.

Moeller Study (1968)Moeller Study (1968)

Explored the effects of structure on Explored the effects of structure on teacher morale in two school teacher morale in two school systems.systems.

One was structured loosely and One was structured loosely and encouraged wide participation in encouraged wide participation in decision makingdecision making

One was tightly controlled, with a One was tightly controlled, with a centralized hierarchy and a clear centralized hierarchy and a clear chain of command.chain of command.

Results of Moeller’s StudyResults of Moeller’s Study

Moeller found the opposite of what Moeller found the opposite of what he expected.he expected.

Faculty morale was higher in the Faculty morale was higher in the district with tighter structure.district with tighter structure.

Basic Structural TensionsBasic Structural TensionsThe Heart of Organizational The Heart of Organizational

StructureStructureHow to allocate work How to allocate work

(differentiation).(differentiation).How to coordinate roles and units How to coordinate roles and units

once responsibilities have been once responsibilities have been parceled out (integration).parceled out (integration).

How do you group people into How do you group people into working units, the task working units, the task

integrationintegration Functional Groups based on knowledge or Functional Groups based on knowledge or

skillskill Units created on the basis of time, as by Units created on the basis of time, as by

shift shift (day, swing, or graveyard)(day, swing, or graveyard)

Groups organized by products Groups organized by products (detergent versus (detergent versus bar soap)bar soap)

Groups established around customers or Groups established around customers or clients clients (hospitals, computer sales departments, or schools)(hospitals, computer sales departments, or schools)

Groupings around place or geographyGroupings around place or geography Groupings by processGroupings by process

Vertical CoordinationVertical Coordination

Higher levels coordinate and control Higher levels coordinate and control the work of subordinates through the work of subordinates through authority, rules and policies, and authority, rules and policies, and planning and control systems.planning and control systems.

Authority – a “boss” someone with formal Authority – a “boss” someone with formal authority.authority.

Rules and policies – Standard Operating Rules and policies – Standard Operating ProceduresProcedures

Planning and Control Systems – Performance Planning and Control Systems – Performance Control imposes outcome objectives without Control imposes outcome objectives without specifying how the results are to be achieved specifying how the results are to be achieved (increase sales by 10% this year) and Action (increase sales by 10% this year) and Action Planning specifies methods and time frames Planning specifies methods and time frames for decisions and actions (increase this for decisions and actions (increase this month’s sales by using a company wide sales month’s sales by using a company wide sales pitch).pitch).

Lateral CoordinationLateral CoordinationLateral TechniquesLateral Techniques

Formal and Informal MeetingsFormal and Informal MeetingsTask forcesTask forcesCoordinating rolesCoordinating rolesMatrix structuresMatrix structuresNetwork organizationsNetwork organizations

McDonald’s and HarvardMcDonald’s and Harvard

Two highly successful organizationsTwo highly successful organizationsContrasting structuresContrasting structuresOptimal blend of vertical and lateral Optimal blend of vertical and lateral

strategiesstrategies

McDonald’sMcDonald’sManagers and employeesManagers and employees

Limited discretion about how to do Limited discretion about how to do their jobstheir jobs

Work is controlled by technologyWork is controlled by technologyParent company has powerful systems Parent company has powerful systems

to ensure that food and service to ensure that food and service conform to standard specificationsconform to standard specifications

Big Mac taste the same around the Big Mac taste the same around the world.world.

Harvard UniversityHarvard UniversityProfessors and InstructorsProfessors and Instructors

Small Administrative group at the topSmall Administrative group at the top More geographically concentratedMore geographically concentrated All activities happen within a few miles of All activities happen within a few miles of

Cambridge, Mass.Cambridge, Mass. Employees in one of several schoolsEmployees in one of several schools Each school has a deanEach school has a dean Each school has its on endowmentEach school has its on endowment Professors have choice of classes they Professors have choice of classes they

teachteach Each school has its own calenderEach school has its own calender

Structural ImperativesStructural ImperativesTable 3.1 Pg 59Table 3.1 Pg 59

Size and age – Size and age – Complexity and formalization increase with size Complexity and formalization increase with size

and ageand age

Core process – Core process – Core processes or technologies must align with Core processes or technologies must align with

structurestructure

Environment – Environment – Stable environment rewards simpler structures: Stable environment rewards simpler structures:

uncertain, turbulent environment requires more complex, adaptable structureuncertain, turbulent environment requires more complex, adaptable structure

Strategy and goals – Strategy and goals – Variation in clarity and consistency of Variation in clarity and consistency of

goals requires appropriate structural adaptations.goals requires appropriate structural adaptations.

Information technology – Information technology – Information technology Information technology

permits flatter, more flexible, and more decentralized structure.permits flatter, more flexible, and more decentralized structure.

Nature of the workforce – Nature of the workforce – Most educated and Most educated and professional workers need and want greater autonomy and discretionprofessional workers need and want greater autonomy and discretion

Summary of Chapter 4: Summary of Chapter 4: Structure and Structure and RestructuringRestructuring

Wendell W. Brown, Sr.Wendell W. Brown, Sr.

Structural DilemmasStructural Dilemmas

Differentiation versus IntegrationDifferentiation versus Integration Gap versus OverlapGap versus Overlap Underused versus OverloadUnderused versus Overload Lack of Clarity Versus Lack of CreativityLack of Clarity Versus Lack of Creativity Excessive Autonomy versus Excessive Excessive Autonomy versus Excessive

InterdependenceInterdependence Too Loose versus Too tightToo Loose versus Too tight Goalless versus GoalboundGoalless versus Goalbound Irresponsible versus UnresponsiveIrresponsible versus Unresponsive

Structural ConfigurationsStructural ConfigurationsMintzberg’s FivesMintzberg’s Fives

Base – operating core – Base – operating core – the core is made up of workers who produce the core is made up of workers who produce or provide products or services to customers or clients.or provide products or services to customers or clients.

Directly above the base -Administrative Directly above the base -Administrative Component – Component – managers who supervise, control, and provide resources for the managers who supervise, control, and provide resources for the operators.operators.

At the top – Senior managers- At the top – Senior managers- in the strategic apex focus in the strategic apex focus on the outside environment, determine the mission, and shape the grand design.on the outside environment, determine the mission, and shape the grand design.

Alongside the administrative component – Alongside the administrative component – technostructure – technostructure – houses specialist and analyst who standardized, houses specialist and analyst who standardized, measure, and inspect outputs and processes.measure, and inspect outputs and processes.

Alongside the administrative component – Alongside the administrative component – Support staff – Support staff – performs tasks that support or facilitate the work of performs tasks that support or facilitate the work of othersothers

Five Structural ConfigurationFive Structural Configuration

Simple structure – Simple structure – two levels: the strategic apex and an two levels: the strategic apex and an operating level.(Mom and Pop operations)operating level.(Mom and Pop operations)

Machine Bureaucracy – Machine Bureaucracy – Important decisions are Important decisions are made by the strategic apex; day-to-day operations are handled by made by the strategic apex; day-to-day operations are handled by managers and standardized procedures. Large support staffs and a managers and standardized procedures. Large support staffs and a sizeable technostructure with many levels between apex and operating sizeable technostructure with many levels between apex and operating levels.levels.

Professional Bureaucracy – Professional Bureaucracy – operating core is operating core is large relative to its other structural parts. Few managerial levels exist large relative to its other structural parts. Few managerial levels exist between apex and operating levelbetween apex and operating level

Divisionalized Form – Divisionalized Form – the bulk of the work is done in the bulk of the work is done in quasi-autonomous unitsquasi-autonomous units

Adhocracy – Adhocracy – loose, flexible, self, renewing organic form tied loose, flexible, self, renewing organic form tied mostly through lateral means.mostly through lateral means.

Helgesen’s Web of InclusionHelgesen’s Web of Inclusion

Architectural form more circular than Architectural form more circular than heirarchical.heirarchical.

The web builds from the center out.The web builds from the center out.Action in one place ripples across Action in one place ripples across

others.others.The web’s center and periphery are The web’s center and periphery are

interconnectedinterconnected

Why Restructure?Why Restructure?

The environment shiftsThe environment shiftsTechnology changesTechnology changesOrganizations growOrganizations growLeadership changesLeadership changes

Miller and Friesen (1984)Miller and Friesen (1984)Troubled firms typically fell becauseTroubled firms typically fell because

The Impulsive FirmThe Impulsive FirmThe Stagnant BureaucracyThe Stagnant BureaucracyThe Headless GiantThe Headless Giant

Examples of How Restructuring Examples of How Restructuring worksworks

Citibank’s Back RoomCitibank’s Back RoomKodak’s Black and White DivisionKodak’s Black and White DivisionBeth Israel HospitalBeth Israel Hospital

Several Basic Principles of Several Basic Principles of Successful Structural ChangeSuccessful Structural Change

The change architects developed a new The change architects developed a new conception of the organizations goals and conception of the organizations goals and strategies.strategies.

They carefully studied the existing structure They carefully studied the existing structure and process so they understood how things and process so they understood how things worked. Many efforts at structural change worked. Many efforts at structural change fail because they start from an incomplete fail because they start from an incomplete picture of current processes.picture of current processes.

They designed the new structure in light of They designed the new structure in light of changes in goals, technology, and changes in goals, technology, and environment.environment.

Summary Chapter 5: Summary Chapter 5: Organizing Groups and Organizing Groups and

TeamsTeams

Wendell W. Brown, Sr.Wendell W. Brown, Sr.

Structural Configuration for a Structural Configuration for a Five Member TeamFive Member Team

One BossOne BossDual Authority – Dual Authority – creates a new level below the boss creates a new level below the boss

two individuals are given authority over specific areas of the two individuals are given authority over specific areas of the groups work.groups work.

Simple Hierarchy – Simple Hierarchy – Middle manager answers to Middle manager answers to

“the boss” then in turns supervises the workers or employees“the boss” then in turns supervises the workers or employees..Circle Network – Circle Network – where information flows where information flows

sequentially from one group member to another. Each can sequentially from one group member to another. Each can add or modify whatever comes around.add or modify whatever comes around.

All Channel Network – All Channel Network – Creates multiple Creates multiple connections so everyone can talk to one another. Information connections so everyone can talk to one another. Information flows freely. flows freely.

Determinants of Successful Determinants of Successful TeamworkTeamwork

What is the nature and degree of task-related What is the nature and degree of task-related interactions among individuals?interactions among individuals?

What is the geographic distribution of unit members?What is the geographic distribution of unit members? Given a group’s objectives and constraints, where Given a group’s objectives and constraints, where

does autonomy reside?does autonomy reside? How is coordination achieved?How is coordination achieved? Which word best describes the required structure; Which word best describes the required structure;

conglomerate, mechanistic, or organic?conglomerate, mechanistic, or organic? What sports expression metaphorically captures the What sports expression metaphorically captures the

task management: filling out the line-up card, task management: filling out the line-up card, preparing the game plan, or influencing the game’s preparing the game plan, or influencing the game’s flow?flow?

Team Structure and Team Structure and PerformancePerformance

Katzenbach and Smith (1993)Katzenbach and Smith (1993)Wrote a book called Wrote a book called The Wisdom of The Wisdom of

TeamsTeams Interviewed hundreds of peopl on Interviewed hundreds of peopl on

different teamsdifferent teamsThey drew a clear distinction They drew a clear distinction

between undifferiented “groups” and between undifferiented “groups” and sharply focused “teamssharply focused “teams

Katzenbach and Smith (1993) Katzenbach and Smith (1993) Research HighlightsResearch Highlights

High-performing teams shape purpose in response High-performing teams shape purpose in response to a demand or an opportunity placed in their path, to a demand or an opportunity placed in their path, usually by higher management.usually by higher management.

High-performing teams translate common purpose High-performing teams translate common purpose into specific, measurable performance goals.into specific, measurable performance goals.

High-performing teams are of manageable sizeHigh-performing teams are of manageable size High-performing teams develop the right mix of High-performing teams develop the right mix of

expertise.expertise. High-performing teams develop a common High-performing teams develop a common

commitment to working relationships.commitment to working relationships. Members of high performing teams hold Members of high performing teams hold

themselves collectively responsible.themselves collectively responsible.