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New Organisational FormsNew Organisational Formsand CSCW (part 1)and CSCW (part 1)

M. Baptista NunesM. Baptista Nunes14/03/200014/03/2000

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Aims of this lectureAims of this lecture to investigate the impacts of the explosive

developments of ICT on organisational StructureStructure and DesignDesign;

to provide an overview and discuss new emergent forms of organisation:• Networked Organisation;• Boundary-less Organisation;• Virtual Organisation.

To provide an overview of CSCW and its role and importance in the new organisation.

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Organisation Organisation StructureStructure

“Structure is a means for attaining the objectives and goals of an organisation” (Drucker, 1974)

“Organisation Structure is the system of arrangements, the pattern or network of relations, between the various positions and their holders.”

(Buchanan and Huczynski, 1997:297)

“Organisation structure is more than boxes on a chart; it is a pattern of interactions and co-ordination that links the technology, tasks and human components of the organisation to ensure that the organisation accomplishes its purpose” (Duncan, 1979:59)

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Organisation Organisation StructureStructure

Organisation Structure is a framework for dividing, assigning and co-ordinating work.

Key elements of structure:

• Work specialisation and definition;• Departmentalisation;• Type and Levels of authority (hierarchy and chain of

command);• Concentration of authority and span-of-control.

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Organisation Organisation StructureStructure

Expression of structure:• Organisation Chart;• Job Descriptions;• Hierarchy; • Rules, Policies and Procedures;• Culture and Behaviour.

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Organisational FormOrganisational Form“The design of an organisation is an exercise in matching structures, systems and style of management, and the people employed, to the various activities of the organisation.”

(Mullins, 1997:566)

Organisational Design

Organisational Form

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Traditional Traditional Organisational FormsOrganisational Forms

Self-contained, integrated structures operating in stable environments.• Physically located in office buildings and production

plants, in which the organisation’s members work and where the required machines, equipment, materials and information can be found;

• Functional Structure;• Boundaries defined by the physical structures and

contractual relations;• Rigidly centralised bureaucracy;• Traditional pyramidal span-of-control.

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Challenges for the Challenges for the OrganisationOrganisation

Changes in the Competitive

Situation

Innovation Potential of

ICT

Value Changes with Labour, in Markets, and Society

Challenges for the Firm

New Organisational Forms

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Changes in the Changes in the Competitive SituationCompetitive Situation

Internationalisation of Markets; Innovation Dynamics with Products and

Processes; Globalisation Buyer Markets; Globalisation of Purchasing; Demographic Developments; Resource Decreases.

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Value Changes with Value Changes with Labour, in Markets, Labour, in Markets,

and Society and Society Attitude toward Environment; Age Demographics of Employees; Quality Demands on the Work Place; Market Behaviour; Globalisation of Standards; Globalisation of Legislation; Internationalisation of Customer, Buyer and

Supplier awareness.

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Information Information TechnologyTechnology

Falling costs of SW and HW and the advent of the PC Most knowledge, data and service workers (see last week) and managers now a have a PC on their desks;

Availability of user-friendly SW that allows easy, fast and efficient use of the IT infra-structures;

Increasing availability of of business information from both internal and external databases providing information essential to maintain a competitive market position;

The explosive development in communication technology and the increasing convergence of telecommunications and computing (ICT) which led to the Information Society.

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Innovation Potential Innovation Potential of ICTof ICT

gradual elimination of:• bureaucracy and manual processing of information;• individual functions;• layers of middle management;

internal integration of departments; diluting of organisational boundaries:

• Removal of geographical barriers and time limitations;• external integration with suppliers and customers;• creation and strengthening external links with

complementary organisations.

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Innovation Potential Innovation Potential of ICTof ICT

gradual elimination of:• bureaucracy and manual processing of information;

Centralised Decentralised• individual functions;• layers of middle management;

“Tall” “Flat” hierarchies internal integration of departments;

Functional Networked structures

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Innovation Potential Innovation Potential of ICTof ICT

diluting of organisational boundaries:• Removal of geographical barriers and time limitations;

Physical Virtual organisation• external integration with suppliers and customers;• creation and strengthening external links with

complementary organisations. Strict Boundary Boundary-less Organisation

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Decentralised Decentralised OrganisationOrganisation

Centralisation - refers to the concentration of authority and responsibility for decision making in the hands of managers at the top of an organisation.

Decentralisation - refers to authority and responsibility for decision making being dispersed more widely downwards and given the to operating units, branches and lower-level managers.

Decentralisation Empowering, Democratisation

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Decentralised Decentralised OrganisationOrganisation

Centralised• greater uniformity in

decisions;• more control;• fewer skilled

managers required;• Less extensive plan

and reporting procedures;

• Faster decision process.

Decentralised• Lower-level decisions are

easier;• Lower-level management

problems can be dealt on the spot;

• Greater motivation and better opportunities for lower-level managers;

• Top-level managers have more time for strategic planning.

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“Flat” Hierarchies

The combination of span of control and chain of command determines the overall pyramid shape and whether the hierarchical structure is “flat” or “tall” (Mullins, 1997:536).

“Flat” hierarchies broader span of control, few levels of authority.

“Tall” hierarchies narrower span of control, more levels of authority.

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“Flat” Hierarchies Advantages

• Savings on managerial costs;

• Improved communication;

• More participative styles of management;

• Greater involvement of staff;

• Improved organisational efficiency.

Disadvantages• Inhibit the flow of

effective communications between top management and the workforce;

• Reduce commitment and motivation levels;

• Lower-level managers face increased load;

• Deterioration of productivity;

• More vulnerable to fraud.

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Networked Structure

Networked organisation is a combination of:• functional departments provide stable base for specialised activities;• project teams that form and disband as required and are set up as

temporary units for the attainment of a particular task. • reliance on links between individuals, sub-units and outside

organisations;• “command-and-control”

“information-based”

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Networked Structure Advantages sharing of resources; more than one critical

orientation to the operations of the organisation;

organisational systems & processes capable of rapid response to changing conditions

integration and effective utilisation of diverse cultures, people, and talents

organisational involvement across organisational boundary

Disadvantages• Results in more complex

organisational structure;• Problems of co-ordination;• Political and authority

problems;• Functional groups may tend to

neglect their duties;• Reduce commitment and

motivation levels;• Loss of accountability;• Increased working load for

designated staff;• Deterioration of productivity.

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Boundary-less Organisations

Boundary-less Organisations represent “the dissolution of traditional organisational structures and boundaries in favour of the establishment of symbiotic arrangements with external partners” (Wigand et al., 1998:209).

Initially employees joined teams to work on specific projects regardless of their physical location or organisational membership - once the project is over, the team disbands.

Nowadays ...

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Boundary-less Organisations

Advantages sharing of resources is more

open, accurate and timely; strong leadership by shared

vision, collaboration and commitment.

organisational systems & processes capable of rapid response to changing conditions

integration and effective utilisation of diverse cultures, people, and talents;

Disadvantages• Results in more complex

organisational structure;• Problems of co-ordination;• Political and authority

problems;• Difficult to define boundaries

resulting in security risks to the firm;

• Dissolution of organisational culture and sense of community;

• Reduce commitment and motivation levels;

• Loss of accountability.

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Virtual Organisations

“Virtual Organisations represent a task and competence oriented approach in the design of an organisation”

(Wigand et al., 1998:364).Static and long-term

boundaries of:responsibility

physical locationfunctional allocation

Task specific and contingency allocation of Competence.

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Virtual Organisations

Advantages location independent

organisations; sharing of resources is more

open, accurate and timely; changing the time and spatial

dimensions of performance; increasing speed of

performance; rapid response to changing

conditions; integration and effective

utilisation of diverse cultures, people, and talents;

Disadvantages• Results in more complex

organisational structure;• Problems of management and

co-ordination;• Political and authority

problems;• Difficult to define boundaries

resulting in security risks to the firm;

• Dissolution of organisational culture and sense of community;

• Reduce commitment and motivation levels.

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Worth thinking about Worth thinking about … :-)))… :-))) “All this constant talk about technology is so

boring. It is only another tool and besides it is the management and performance of people that really matters.”

YES, but ... Technology is the tool which enables people to perform and

managers must have the skills and understanding to know how to make the best of technology within organisations.”

Different technologies determine different organisational structures and behaviours Technological determinism.Technological determinism.

This course follows a moderate technological determinism view , but … this is not the only approach !

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In Sum . . .In Sum . . .

Structure

Objectives

People

Technology

Environment

Organisations are complex systems ...