Quản trị kinh doanh - Chapter 10: Designing adaptive organizations

Designing Adaptive OrganizationsChapter 101OrganizingOrganization is the deployment of resources to achieve strategic goals.It is reflected inDivision of labor into specific departments & jobsFormal lines of authorityMechanisms for coordinating diverse organizational tasksManager’s Challenge: Nissan2Designing Adaptive OrganizationsOrganizing Principles and ConceptsOrganizing the Vertical StructureUsing Mechanisms for Horizontal CoordinationTailoring Various Elements of Structural Design to Organizational SituationsTopicsChapter 103Organization StructureDefines how tasks are divided, resources are deployed, and departments are coordinatedSet of formal tasks assignedFormal reporting relationshipsThe design of systems to ensure effective coordination of employees across department4The Organization Chart“The Home Depot is the world's largest home improvement retailer currently operating 1,363 stores.Visual representationSet of formal tasksFormal reporting relationshipsFramework for vertical control5Work SpecializationTasks are subdivided into individual jobsEmployees perform only the tasks relevant to their specialized functionJobs tend to be small, but they can be performed efficientlyDivision of labor concept6Chain of CommandUnbroken line of authority that links all persons in an organizationShows who reports to whomAssociated with two underlying principlesUnity of CommandScalar Principle7AuthorityFormal and legitimate right of a manager to make decisions and issue ordersAllocate resources to achieve organizationally desired outcomesAuthority is distinguished by three characteristicsAuthority is vested in organizational positions, not peopleAuthority is accepted by subordinates Authority flows down the vertical hierarchy8ResponsibilityThe duty to perform the task or activity an employee has been assignedManagers are assigned authority commensurate with responsibilityFlip side of the authority coin9AccountabilityMechanism through which authority and responsibility are brought into alignmentPeople are subject to reporting and justifying task outcomes to those above them in the chain of commandCan be built into the organization structure10DelegationProcess managers use to transfer authority and responsibilityOrganizations encourage managers to delegate authority to lowest possible levelEthical Dilemma: A Matter of Delegation11Techniques for DelegationGive thorough instructionsMaintain feedbackEvaluate and reward performanceDelegate the whole taskSelect the right personDelegationEnsure that authority equals responsibility12Line and Staff AuthorityLine Authority = individuals in management positions have the formal power to direct and control immediate subordinatesStaff Authority = granted to staff specialists in their area of expertise13Span of Management/Span of ControlNumber of employees who report to a supervisorTraditional view = seven subordinates per managerLean organizations today = 30+ subordinatesSupervisor Involvement must be closely involved with subordinates, the span should be smallneed little involvement with subordinates, it can be large14Factors Associated With Less Supervisor InvolvementWork is stable and routineSubordinates perform similar work tasksSubordinates are concentrated in a single locationSubordinates are highly trainedRules and procedure defining task activities are availableSupport systems and personnel are available for the managerLittle time is required in nonsupervisory activitiesManagers’ preferences and styles favor a large span15Tall versus Flat Structure Span of Control used in an organization determines whether the structure is tall or flatTall structure has a narrow span and more hierarchical levelsFlat structure has a wide span, is horizontally dispersed and fewer hierarchical levelsThe trend has been toward wider spans of control16Centralization versus DecentralizationGreater change and uncertainty in the environment are usually associated with decentralizationThe amount of centralization or decentralization should fit the firm’s strategyIn times of crisis or risk of company failure, authority may be centralized at the top17DepartmentalizationThe basis on which individuals are grouped into departmentsVertical functional approach. People are grouped together in departments by common skills.Divisional approach. Grouped together based on a common product, program, or geographical region.Horizontal matrix approach. Functional and divisional chains of command. Some employees report to two bossesTeam-based approach. Created to accomplish specific tasks18DepartmentalizationThe basis on which individuals are grouped into departmentsNetwork approach. Small, central hub electronically connected to their other organizations that perform vital functions. Departments are independent, and can be located anywhere. Virtual approach. Brings people together temporarily to exploit specific opportunities then disbands19Five Approaches to Structural Design20Five Approaches to Structural DesignSlide 221Vertical Functional ApproachGrouping of positions into departments based on similar skills, expertise, and resource useInformation flows up and downChain of command converges at the topManagers and employees are compatible because of similar training and expertiseRules and procedures governing duties and responsibilities22Divisional Structure AdvantagesEfficient use of resourcesSkill specialization developmentTop management controlExcellent coordinationQuality technical problem solving23Divisional Structure DisadvantagesPoor communicationsSlow response to external changesDecisions concentrated at topPin pointing responsibility is difficultLimited view of organizational goals by employees24Horizontal Matrix AdvantagesMore efficient use of resources than single hierarchyAdaptable to changing environmentDevelopment of both general and specialists management skillsExpertise available to all divisionsEnlarged tasks for employees25Dual Authority Structure in a Matrix Organization26Horizontal Matrix DisadvantagesDual chain of commandHigh conflict between two sides of matrixMany meetings to coordinate activitiesNeed for human relations trainingPower domination by one side of matrix27Team AdvantagesSame advantages as functional structureReduced barriers among departmentsQuicker response timeBetter moraleReduced administrative overhead28Team DisadvantagesDual loyalties and conflictTime and resources spent on meetingsUnplanned decentralization29Network Approach AdvantagesGlobal competitivenessWork force flexibilityReduced administrative overhead30Network Approach DisadvantagesNo hands-on controlLoss of part of the organization severely impacts remainder of organizationEmployee loyalty weakened31Task Forces, Teams, Project ManagementTask Force = temporary team/committee designed to solve a short-term problem involving several departmentsProject Manager = responsible for coordinating activities of several departments on a full-time basis for the completion of a specific project32ReengineeringRadical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speedProcess = organized group of related tasks and activities that work together to transform inputs into outputs and create value33Factors Shaping StructureStructure Follows StrategyReflects the EnvironmentFits the TechnologyService TechnologyDigital TechnologyExperiential Exercixe: Organic versus Mechanistic Organization Structure34