Organizational Design

Transcription

1 Defining Organizational Design 2 Organizational Design Entails the structuring of the various components of the organization into patterns appropriate to meet environmental demands Mantra: Structure aligns itself with context Universal Organization Designs 3 Bureaucratic Model 4 Bureaucratic Model Result of work of Max Weber Behavioral Model Based on formal system of authority Basic principles: - Division of labor - Consistent set of rules - Hierarchy of positions - Maintain social distance - Career progression based on technical expertise

2 5 6 Bureaucracies (cont) Behavioral Model Pros Work of P. Likert - Promotes efficiency - Promotion based on merit - Foundational Cons - Inflexibility - Neglect of human and social processes - Not adaptive to environment Organizations range from System 1 to System 4 - System 1 is cold, impersonal and formal - System 4 emphasizes importance of human resources Eight dimensions distinguish organizations Behavioral Model (cont) 7 System factors determine design: - Leadership - Motivation - Communication - Interaction - Decision Making - Goal setting - Control - Performance goals lack of trust hygiene downward closed top centralized top/individual centralized low/passive Leadership Motivation Communication Interaction Decision Process Goal Setting Control Process Performance Goals

3 System 4 9 Other Features of Organizations 10 Leadership Motivation Communication Interaction Decision Process Goal Setting Control Process trusting self-actualizing multi-directional open group process group process dispersed Integration - The degree to which the organization functions as a coordinated whole Differentiation - The degree to which the parts are specialized and differentiated Firms oscillate between extremes Performance Goals high/active Integration Differentiation Modern Model of OD Model Diagram Factors that co-produce organizational design Environment - Environment - Technology (Task) - Characteristics (Size, Life Cycle) - Strategy - People Strategy People Structure Technology & Task General Characteristics

4 13 14 Environment Technology Suggests that organizations "swim" in different environmental seas - Environments range in dynamics from placid to turbulent - Mechanistic organizations found in placid environments - Organic organizations found in turbulent environments Q: What are the underlying assumptions here? Processes that transform inputs into outputs Technologies are structured processes, not machines! Technologies escalate in complexity: - Unit or batch (suits) - Mass production (e.g., cars) - Continuous process (chemicals) Technology (cont) Socio-technical Design Woodward found that: - Mass production was associated with System 1 orgs - Unit and continuous process associated with system 4 orgs - Appropriate match helped determine organizational success Outgrowth of analysis of shipbuilding industries in Britain - Socio-technical design suggests that design should be structured to match technological processes - Joint social and technological design Modern theories suggest mutual structuration between technology and organization

5 17 18 Size Life Cycle Size is a mediating factor on organizations Size limits the effects of the technology-design coupling Information technologies can mitigate the effects of size on structure Surviving organizations go through four stages: - Entrepreneurial - Collectivity - Formalization - Elaboration of Structure The overall goals for an organization change throughout the life cycle Life Cycle (cont) Life Cycle (cont2) Entrepreneurial Stage - Emphasis on adaptation Collectivity Stage - Adaptation, Human Resources, Goal Achievement Formalization Stage - Internal Process Integration, Goal Achievement Elaboration of Structure Stage Since goals; i.e., strategies, change over time, structure must follow...

6 21 22 Strategy Strategic Examples Key insight: Structure (design) follows Strategy - Not the other way around!! Strategy identifies how an organization will adapt to and meet the demands imposed by the environment Competitive Strategies - Low cost producer - Niche market - Product differentiation Each requires a different design structure Strategy MUST be articulated before an organization structures itself People 23 Examples of Organizational Designs 24 People's values modify and shape structures Peoples personalities shape structures Structures also impact and condition organizational behaviors Functional (U-form) Conglomerate (H-form) Division (M-form) Matrix Hybrid

7 25 26 Summary end... Organizational structures are the product of design Designs are contingent on: - Environment - Technology (Task) - Characteristics (Size, Life Cycle) - Strategy - People