Post on 19-Jan-2021
transcript
Designing
Adaptive
Organizations
9
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LEARNING OUTCOMES
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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)
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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
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Departmentalization
• Subdividing work and workers into separate organizational units responsible for completing particular tasks • Functional
• Product
• Customer
• Geographic
• Matrix
• Simple
• Complex
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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
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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
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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
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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
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Exhibit 9.9 Job Characteristics Model
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Job Characteristics
• Different activities performed in a job
Skill variety
• Degree to which a job requires the completion of a piece of work
Task identity
• Impact of a job on people inside or outside the firm
Task significance
• Degree to which a job gives workers the opportunity to decide how and when to accomplish the job
Autonomy
• Information the job provides to workers about their work performance
Feedback
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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
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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
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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 self-determination
- Leads to changes in the organizational process
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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
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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
SUMMARY
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• 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
KEY TERMS
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• 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
KEY TERMS
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• 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
KEY TERMS
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• Organic organization
• Intraorganizational process
• Reengineering
• Task interdependence
• Pooled interdependence
• Sequential interdependence
• Reciprocal interdependence
• Empowering workers
• Empowerment
• Interorganizational process
• Modular organization
• Virtual organization
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