Designing Adaptive Organizations

Transcription

1 9 Designing Adaptive Organizations Copyright 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2 LEARNING OUTCOMES 1 Describe the departmentalization approach to organizational structure 2 Explain organizational authority 3 Discuss the different methods for job design 4 Explain the methods that companies are using to redesign internal organizational processes (i.e., intraorganizational processes) 5 Describe the methods that companies are using to redesign external organizational processes (i.e., interorganizational processes) 2

3 Organizational Structure Vertical and horizontal configuration of departments, authority, and jobs within a company Organizational process: Collection of activities that transform inputs into outputs valued by customers 3

4 Departmentalization Subdividing work and workers into separate organizational units responsible for completing particular tasks Functional Product Customer Geographic Matrix Simple Complex 4

5 Types of Authorities and Functions Authority Line: Right to command immediate subordinates in the chain of command Staff: Right to advise others who are not subordinates in the chain of command Function Line: Contributes in creating or selling the company s products Staff: Supports line activities 5

6 Delegation of Authority Assignment of authority and responsibility to a subordinate to complete a manager s tasks Transfer of full responsibility for the assignment to the subordinate Transfer of full authority over budgets, resources, and personnel Transfer of accountability 6

7 Degree of Centralization Centralization: Location of maximum authority at the upper levels of the firm Decentralization: Location of a significant authority in the lower levels of the firm Standardization: Solving problems by applying similar rules, procedures, and processes 7

8 Job Design Number, kind, and variety of tasks that individual workers perform in doing their jobs Types Job rotation Job enlargement Job enrichment Job specialization: Job composed of different parts of a complete task 8

9 Exhibit 9.9 Job Characteristics Model 9

10 Job Characteristics Skill variety Different activities performed in a job Task identity Degree to which a job requires the completion of a piece of work Task significance Impact of a job on people inside or outside the firm Autonomy Degree to which a job gives workers the opportunity to decide how and when to accomplish the job Feedback Information the job provides to workers about their work performance 10

11 Intraorganizational Process Activities within an organization that transform inputs into outputs valued by customers Mechanistic: Characterized by specialized jobs and responsibilities - Follows centralized authority and vertical communication Organic: Characterized by broadly defined jobs and responsibilities Decentralized authority and horizontal communication based on task knowledge 11

12 Reengineering and Task Interdependence Reengineering: Fundamental rethinking and radical design of business processes To achieve dramatic improvements in critical measures of performance Task interdependence: Level of collective action required to complete a piece of work Pooled Sequential Reciprocal 12

13 Empowering Workers Giving decision-making authority and responsibility to workers by providing resources needed to take effective decisions Empowerment: Motivational feeling making workers feel competent and capable of selfdetermination - Leads to changes in the organizational process 13

14 Interorganizational Process Activities among companies to convert inputs into outputs valued by customers Modular organizations: Outsources noncore business activities to outside companies - Cost effective - Cause loss of control - Reduce competitive advantage 14

15 Interorganizational Process Virtual organizations: Part of a network of several companies working together to solve customer problems or provide specific products - Allow sharing costs - Facilitate combining efforts - Fast and flexible - Show difficulty in controlling the quality of work done by network partners - Require excessive managerial skills 15

16 SUMMARY Departmentalization is a method of subdividing work and workers into separate organizational units Authority is the right to give commands, take action, and make decisions to achieve organizational goals Job design is the number, kind, and variety of tasks that individuals perform 16

17 KEY TERMS Organizational structure Organizational process Departmentalization Functional departmentalization Product departmentalization Customer departmentalization Geographic departmentalization Matrix departmentalization Simple matrix Complex matrix Authority Chain of command Unity of command Line authority Staff authority 17

18 KEY TERMS Line function Staff function Delegation of authority Centralization of authority Decentralization Standardization Job design Job specialization Job rotation Job enlargement Job characteristics model Internal motivation Skill variety Task identity Task significance Autonomy Feedback Mechanistic organization 18

19 KEY TERMS Organic organization Intraorganizational process Reengineering Task interdependence Pooled interdependence Sequential interdependence Reciprocal interdependence Empowering workers Empowerment Interorganizational process Modular organization Virtual organization 19

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