Download - Chater 9 Designing Adaptive Organization
1
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 9
Prepared byDeborah Baker
Texas Christian University
Management4th Edition
Chuck Williams
DesigningAdaptiveOrganizations
2
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
What Would You Do?
Where do you start to fix a company that has a $100 million loss, falling ad sales, plummeting stock prices, and an unmanageable organizational structure?
Yahoo has done a poor job in establishing relationships with customers
Yahoo Headquarters, Sunnyvale, California
What structure should Yahoo adopt? What should you do about the informal culture?How can better decisions be made for the company?
3
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Organizational Structure
Organizational Structure
The vertical and horizontal configuration of departments, authority, and jobs within a company.
Organizational Process
The collection of activities that transform inputs into outputs that customers value.
4
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Organizational Structure
Exhibit 9.2
Process View of Microsoft’s Organization Process View of Microsoft’s Organization
5
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Designing Organizational Structures
After reading these sections, you should be able to:
1. describe the departmentalization approach to organizational structure.
2. explain organizational authority.
3. discuss the different methods for job design.
6
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Departmentalization
CustomerCustomer GeographicGeographic MatrixMatrix
FunctionalFunctional ProductProduct
11
7
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Functional Departmentalization
1.11.1
8
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Advantages Disadvantages
Functional Departmentalization
Work done by highly skilled specialists
Lowers costs through reduced duplication
Communication and coordination problems are lessened
Cross-department coordination can be difficult
May lead to slower decision making
Produces managers with narrow experiences
1.11.1
9
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Product Departmentalization
1.21.2
United TechnologiesUnited Technologies
CarrierCarrier
Hamilton Sundstrand
Hamilton Sundstrand
ChubbChubb
OtisOtis
Pratt & WhitneyPratt & Whitney
UTC PowerUTC Power
Adapted from Exhibit 9.4
--Administrative services--Communication & public relations--Customer service & support--E-Business--Engineering--etc…
SikorskySikorsky
10
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Advantages Disadvantages
Product Departmentalization
Managers specialize, but have broader experiences
Easier to assess work-unit performance
Decision-making is faster
Duplication of activities Difficult to coordinate
across departments
1.21.2
11
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Customer Departmentalization
U.S. Businesses
U.S. Businesses
LocalServiceLocal
ServiceSupply Chain
IntegrationSupply Chain
IntegrationLocal
ServiceLocal
Service
SprintCorporation
SprintCorporation
InternationalBusinesses
InternationalBusinesses
Long-DistanceService
Long-DistanceService
LogisticsNetwork
LogisticsNetwork
Long-DistanceService
Long-DistanceService
SolutionsSolutions WirelessServices
WirelessServices
DistributionCenters
DistributionCenters
Wireline &WirelessServices
Wireline &WirelessServices
BusinessSolutions
BusinessSolutions
ConsumerSolutions
ConsumerSolutions
SprintNorth Supply
SprintNorth Supply
Local TelecomDivision
Local TelecomDivision
(Partial Listing)
Adapted from Exhibit 9.5
1.31.3
12
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Advantages Disadvantages
Customer Departmentalization
Focuses on customer needs
Products and services tailored to customer needs
Duplication of resources Difficult to coordinate
across departments Efforts to please
customers may hurt the company
1.31.3
13
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Geographic Departmentalization
Exhibit 9.6
Co
ca-C
ola
En
terp
rise
sT
erri
tori
es o
f O
per
atio
n
Co
ca-C
ola
En
terp
rise
sT
erri
tori
es o
f O
per
atio
n
1.41.4
14
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Advantages Disadvantages
Geographic Departmentalization
Responsive to the demands of different market areas
Unique resources located close to the customer
Duplication of resources Difficult to coordinate
across departments
1.41.4
15
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Matrix Departmentalization
Adapted from Exhibit 9.7
CitiGroup InternationalCitiGroup International
North North AmericaAmerica
(excluding(excludingMexico)Mexico)
North North AmericaAmerica
(excluding(excludingMexico)Mexico)
Europe,Europe,Middle East,Middle East,
AfricaAfrica
Europe,Europe,Middle East,Middle East,
AfricaAfricaAsia PacificAsia PacificAsia PacificAsia Pacific
Global Corporate &Investment Bank
Global Corporate &Investment Bank
Global InvestmentManagement
Global InvestmentManagement
Global Consumer
Global Consumer
Smith BarneySmith Barney
Country Managers inSpain, UAE, Kenya, etc.
Country Managers inSpain, UAE, Kenya, etc.
Country Managers inChina, Australia, etc.
Country Managers inChina, Australia, etc.1.51.5
16
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Advantages Disadvantages
Matrix Departmentalization
Efficiently manage large, complex tasks
Pool of available resources
Requires high levels of coordination
Conflict between bosses Requires high levels of
management skills
1.51.5
17
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Organizational Authority
Delegationof Authority
Delegationof Authority
Degree ofCentralization
Degree ofCentralization
Chain ofCommand
Line versusStaff Authority
22
18
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Chain of Command
The vertical line of authority in an organization Clarifies who reports to whom Unity of command
workers report to only one boss matrix organizations violate
this principle
2.12.1
19
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Line versus Staff Authority
Line authority the right to command immediate subordinates
in the chain of command
Staff authority the right to advise but not command others
2.22.2
20
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Delegation of Authority
2.32.3
Delegation of Authority
The assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.
21
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Delegation of Authority
Adapted from Exhibit 9.8
2.32.3
22
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
How to be a More Effective Delegator
1. Trust your staff to be a good job
2. Avoid seeing perfection
3. Give effective job instructions
4. Know your true interests
5. Follow up on progress.
6. Praise the efforts of your staff.
7. Don’t wait to the last minute to delegate.
8. Ask questions, expect answers, assist employees.
9. Provide the resources you would provide if doing the assignment yourself.
10. Delegate to the lowest possible level.
Adapted from Exhibit 9.9
2.32.3
23
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Degree of Centralization
Centralization of authority primary authority is held by upper management
Decentralization significant authority is found in lower levels of
the organization
Standardization solving problems by applying rules, procedures,
and processes
2.42.4
24
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Job Design
SpecializedJobs
SpecializedJobs
Job Rotation, Enlargement,
Enrichment
Job Rotation, Enlargement,
Enrichment
JobCharacteristics
Model
JobCharacteristics
Model
33
25
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Job Specialization
A job that is a small part of a larger task or process Jobs are simple, easy to learn, and economical Can lead to low satisfaction, high absenteeism, &
employee turnover
3.13.1
26
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Job Rotation, Enlargement, and Enrichment
Job Rotation periodically moving workers from one
specialized job to another
Job Enlargement increasing the number of tasks performed
by a worker
Job Enrichment adding more tasks and authority to an
employee’s job
3.23.2
27
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Job Characteristics Model
A job redesign approach that seeks to increase employee motivation
Emphasizes internal motivation experience work as meaningful experience responsibility for work outcomes knowledge of results
3.33.3
28
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Job Characteristics Model
Exhibit 9.10
3.33.3
29
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
What Really WorksThe Job Characteristics Model
Task Identity10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 66%
Task Significance10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 69%
Skill Variety10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 70%
Job Satisfaction
3.33.3
30
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Autonomy10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 73%
Provide Feedback10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 70%
Job Satisfaction
3.33.3
What Really WorksThe Job Characteristics Model
31
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Job Satisfaction
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 69%
Low Growth Need Strength/Job Satisfaction
High Growth Need Strength/Job Satisfaction10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 84%
3.33.3
What Really WorksThe Job Characteristics Model
32
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Task Identity10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 63%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 68%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 72%
Workplace Absenteeism
Task Significance
Skill Variety
3.33.3
What Really WorksThe Job Characteristics Model
33
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Autonomy10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 74%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of success 72%
Workplace Absenteeism
Provide Feedback
3.33.3
What Really WorksThe Job Characteristics Model
34
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Job Redesign Techniques
Redesigning JobsRedesigning Jobs
Combining TasksCombining Tasks
Forming Natural Work UnitsForming Natural Work Units
Establishing Client RelationshipsEstablishing Client Relationships
Vertically Loading the JobVertically Loading the Job
Opening Feedback ChannelsOpening Feedback Channels
Adapted from Exhibit 9.10
3.33.3
35
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Designing Organizational Processes
After reading these sections, you should be able to:
4. explain the methods that companies are usingto redesign international organizational processes(i.e., intraorganizational processes).
5. describe the methods that companies are using to redesign external organizational processes (i.e., interorganizational processes).
36
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Intraorganizational Processes
ReengineeringReengineering EmpowermentEmpowerment BehavioralInformality
BehavioralInformality
44
37
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Reengineering
The fundamental rethinking and radical redesign of business processes
Intended to achieve dramatic improvements in performance
Change the orientation from vertical to horizontal
Changes task interdependence
4.14.1
38
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Reengineering and Task Interdependence
Exhibit 9.11
4.14.1
39
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Empowerment
A feeling of intrinsic motivation Workers perceive meaning in their work Employees are capable of self-determination
EmpoweringWorkers
EmpoweringWorkers
Permanently passing decision-makingauthority and responsibilities frommanagers to workers by giving themthe information and resources they need to make good decisions
Permanently passing decision-makingauthority and responsibilities frommanagers to workers by giving themthe information and resources they need to make good decisions
4.24.2
40
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Behavioral Informality Behavioral Formality
Behavioral Informality
Spontaneity Casualness Interpersonal familiarity
Routine & regimen Specific behavior rules Impersonal detachment
4.34.3
41
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Behavioral Informality
Popular ways to increase behavioral informality
Casual Dress and Open Offices
42
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Do the Right Thing
4.34.3
Don’t Scavenge That Office If Somebody Is Still in It
It’s roadkill in the animal kingdom: coworkers scavenge for office leftovers…often before an employee leaves
Do the right thing by maintaining the dignityof departing coworkers: wait until the office is empty
Don’t Scavenge That Office If Somebody Is Still in It
It’s roadkill in the animal kingdom: coworkers scavenge for office leftovers…often before an employee leaves
Do the right thing by maintaining the dignityof departing coworkers: wait until the office is empty
43
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Interorganizational Processes
ModularOrganizations
ModularOrganizations
VirtualOrganizations
VirtualOrganizations
55
44
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Modular Organizations
5.15.1
Exhibit 9.13
45
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Modular Organizations
Advantages Disadvantages
can cost less to run thantraditional organizations
lets organizations focuson core competencies
loss of control from outsourcing
may reduce their competitive advantage
5.15.1
46
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Virtual Organizations
5.25.2
Exhibit 9.14
47
Chapter 9Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Virtual Organizations
Advantages Disadvantages
let companies share costs
fast and flexible being the “best” should
provide better products
difficult to control the quality of partners
requires tremendous management skills
5.25.2http://www.agileweb.comWeb Link