Structural FrameBy: Melissa Stickland, Joey Briggs, Jennifer Wilker, Viola Gilbert and Chad Geary

Lenses- focus, filter some things and allow others to pass through, help us order experiences. Frames

Tools- Strengths and limitations. Wrong tool gets in the way; right tool makes the job easier. Frames -Possess a tool but know how to use it well.

The structural frame focuses on an organization's goals. Its main components are: -Organizations exist to attain goals, -An organization's structure should be designed to fit circumstances, -Specialization leads to peak performance, -Coordination and control are essential Problems that arise can solved by restructuring.

Structural Frame

1. Exist to achieve goals and objectives2. Work best when rationality prevails over agendas3. Increase efficiency through specialization and division of labor

Structural Assumptions

4. Have structures to fit goals and objectives5. Have coordination and controls to align work to goals and objectives6. Need restructuring to remediate problems and performance gaps

Frederick W. Taylor, father of time-and-motion studiesScientific ManagementGet the most out of every second

Origins of Structural Perspective

Max Weber"Monocratic Bureaucracy"Several major features of model:Fixed division of laborHierarchy of officesSet of rules governing performanceSeparation of personal from official property and rightsUse of technical qualifications for selecting personnelEmployment as primary occupation and long-term careerOrigins Continued...

Design issues of organizational structure: differentiationhow to allocate work & integrationhow to coordinate roles & unitsA job or position channels behavior by prescribing (job descriptions, procedures, routines, or rules) what someone is to door not doto accomplish a task Formal constraints can be burdensome, leading to apathy, absenteeism, and resistance, but they help ensure predictability, uniformity, and reliability

Basic Structural Tensions

Authorityintegrating the efforts of individuals, units, or divisions by designating someone formally in charge

Rules & policieswith standards & standard operating procedures limit discretion & help ensure predictability & uniformity

Planning & control systemsperformance control imposes output objectives without specifying how the results are to be achievedaction planning specifies methods & time frames for decisions & actions

Vertical Coordination

Meetings-formal & informal communicationTask Forces-collaboration among specialties or functionsCoordination Roles-use of persuasion or negotiation to help others integrate their effortsMatrix Structures-crosscutting coordination responsibilitiesNetworks-lateral communication devices

Lateral Coordination

Goals in mindEnvironmentTalents of workforceAvailable resources

Designing A Structure That Works

vsA Structural Odd Couple

For forty years after its founding in the 1950's the company was an unstoppable growth engine that came to dominate the fast-food industry

However, McDonald's is:Highly CentralizedMost decisions made from the topEmployees have limited discretion

McDonald's

Harvard University is also highly successful. However, unlike McDonald's, it is significantly more decentralized.

Each school has its own deanThey have fiscal autonomyEach Professor has enormous discretionThey control what courses they teachThey do their own researchHarvard University

Why do McDonald's and Harvard have such radically different structures?

Is one more effective than the other?

Questions to consider

There is no such thing as an ideal structureEvery organization needs to respond to a universal set of parameters called Structural Imperatives that include: Size and AgeCore processEnvironmentStrategy and goalsInformation TechnologyNature of the workforceThe Facts

Complexity and formality increase with size and age of an organizationSmaller organizations need less control or restraintBigger organizations will need tighter controls and more centralization1) Size and Age

Structure is ideally built around anorganization's basic method of transformingraw materials into finished products

Assembling a Big MacRelatively routine and programmedTask is clearMost problems are known in advance and success is high

2) Core Process

High-technology electronics firms confront a much higher degree of uncertainty New products may be obsolete in 6 months or lessUncertainty presses for new roles and flexible approaches to vertical coordination

to

Stable environments reward centralized structureUncertain, turbulent environments requires a more complex, decentralized structure

or3) Environment

Strategic decisions are future oriented, concerned with long-term direction

Major tasks of organizational leadership include:Determined long-range goalsObjectives of an organizationAllocation of resources necessary to carry out the goals4) Strategy and Goals

New technologies continue to revolutionize the amount of information available and the speed at which it travels

The information-based organization needs far fewer levels of management than the traditional command-and-control organizations

to5) Information Technology

A better-educated workforce expects and often demands more freedom in daily work routinesTrying to tell a Harvard professor what to teach is an exercise in futility In contrast, giving too much discretion to a youthful, low-skilled Mcdonald's worker could become a disaster 6) Nature of the Workforce

Operating Core(workers who provide service/teachers)Administrative Component(principals/foremen/middle management)Senior Managers (superintendent/schoolboard)Specialists(technicians/analysts)Support Staff(nurses/custodians/secretaries)

Structural ConfigurationMintzberg's five-sector logo

Start-up/mom & pop operationTwo Levels - Strategic apex & Operating levelVirtue - flexibility/adaptability/1 or 2 people run the showVice - boss too close to operations/authority may block changeSimple Structure

Important decisions are made at the strategic apexDay-to-day operations are controlled by managers & standardized procedures

Large support staffs & technostructure

Example: McDonalds

Challenges: 1. Motivate/satisfy workers without undermining consistency/uniformity 2. Constant tension between headquarters and local managers

Machine Bureaucracy

Operating core is larger than other structural parts

Few managerial levels exist between the strategic apex and the professors - creates a flat, decentralized profile.

Example: Harvard

Challenges: 1. Quality control and coordination2. Responds slowly to change Professional Bureaucracy

Quasi-autonomous units (multispecialty hospital) serve defined marketsDivision heads (presidents) are accountable to the corporate officeAs long as the division performs, they have free reinBenefits: 1. Offers economies of scale, resources, and responsiveness while controlling economic risksChallenges: 1. Headquarters may lose touch with operations 2. Headquarters wants oversight & divisional managers try to evade corporate control.

Divisionalized Form

Loose, flexible, and organic structure

Characteristics: 1. Dont believe in hierarchy, rule books, dress codes, etc2. Ambiguous authority structure3. Unclear objectives4. Contradictory assignments

Adhocracy

Organizational structure form more circular than a defined hierarchical pyramid (spider web)

Emphasis on lateral relationships rather than hierarchy

Leadership at the center rather than at the top

Web builds from the center out through a network of interconnections

Helgeson's Web of Inclusion

Restructuring must take into account structural configurations

Each component exerts distinct pressures.Strategic apex pushes for more alignment, centralization.Middle managers try to protect autonomy and room to run their own units.Technostructure pushes for standardization, believes in measurement and monitoring.Support staff prefers less hierarchy, more collaboration.Issues in Restructuring

The environment shifts (regulation/compliance)Example: Health Insurance Portability and Accountability Act (HIPPA)

Technology changesExample: Boeings shift from piston to jet enginesExample: Automotive mfg shift to hybrid cars

Organizations grow

Leadership changes

Why Restructure

Citibanks back room

Back room structure - machine bureaucracy (ex. McDonalds)Issues:Productivity, errors, expenses rising 20% per yearPhases:Phase 1 Implemented new computer system for control and forecastingPhase 2 Studied how the back rooms processes workedPhase 3 Broke pipeline into smaller lines (different product) with managers for each lineChallenges:Technical core strongly resisted the intrusion Making Restructuring Work

Emphasized customers and employeesHistoric Roots CompetitionLow moraleHigh costsThreatsDeclining customer serviceSix flowsNeed for Change

Top down managementPoor patient careHigh turn-over Change from pyramid system to inclusive webImplementing Care Teams

Structural Change

One person has authorityTop down managementProduction delaysSlow communicationFrustrated employees & customers

One Boss

Two individuals given authority over specific areas of the groups workReduces boss's controlSlows communicationsErodes moraleDecrease performanceDual Authority

Middle ManagementFrictionLimits access to the top

Simple Hierarchy

Circle Network

Multiple connectionsInformation flowsHigh moraleRequires effectivecommunication skillsAll Channel Network

Team SportsEvery competition calls for its own unique patterns of interactions

Unique team structures are requiredBaseballFootballBasketball

Teamwork and Interdependence

Individual goalsLoosely integratedIndividual efforts are mostly independentManager's decision are tacticalManagers come and goPlayers transfer with ease Baseball

Perform in close proximityEach play involves every playerEfforts are linked in prearranged planSpecial teamsIndividual efforts tightly coordinatedStrategic decisions made by head coachTactical decisions made by others (assistant coaches, players)Football

Operate in closer proximityRapid transitions (offense-defense)Individual efforts depends on othersSpontaneous, mutual adjustmentsMove in emerging patternNewcomers experience difficulty in adjustingIndividual "I" becomes collective "we" Basketball

What is the nature and degree of dealings among individuals?What is the spatial distribution of unit members?Given a group's objectives and constraints, where does authority reside?How is coordination achieved?Which word best describes the required structure; conglomerate, mechanistic or organic?What sports expression captures the task of management?

Determinants of Successful Teamwork

Katzenbach and SmithInterviewed hundreds of people on more than 50 teams (Motorola, HP, Girls Scouts) in developing their book The Wisdom of Teams

"A team is a small number of people with complementary skills, who are committed to a common purpose, set of performance goals and approach for which they hold themselves mutually accountable."

Team Structure and Top Performance

High-performing teams shape purpose in response to a demand or an opportunity placed in their path, usually by higher management.High-performing teams translate common purpose into specific, measurable performance goals.High-performing teams are of manageable size. (2 to 25 people)High-performing teams develop the right mix of expertise.High-performing teams develop a common commitment to working relationships.Member of high-performing teams hold themselves collectively accountable.

Characteristics of High-Quality Teams (Katzenbach and Smith)

Manage themselvesAssign jobs to membersPlan and schedule workMake productive service related decisionsTake action to remedy problemsSelf-Managing Teams

Examples of Self-Managing Teams

Classic Multi-decade Example