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TMO1180 - Strategic Organizational

Diagnosis and Design

1st lecture

Marko Rillo

Tallinn University of Technology

Tallinn School of Economics and Business Administration

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Marko Rillo - www.rillo.ee

2002-… 5MPC owner, trainer and consultant: Estonia (Estonian Telecom, Estonian Postal Services, MoF, Enterprise Estonia, Swedbank, Tele2 etc.), Finland, Bulgaria, Croatia, Denmark, Kosovo, Latvia, Netherlands, Romania

2001-02 AS Andmevara, CEO, member of board

1997-01 CFCU Estonia director

Finalising PhD in Management, University of St. Gallen, Switzerland -strategy process

Earlier: M.Sc Economics in Tallinn Univ. of Technology, IntBBA in EBS.

Visiting research in: INSEAD, IESE, Aarhus Business School, Lappeenranta Uni. of Tech., Uni. of Helsinki, Uni. of Tartu

Swimming, photography, hiking, music composition, Lecturing on management and strategic management - students in TUT, research on managerial issues

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Other Team Members

• Janno Veskimäe, former

member of board of Saku

Brewery, currently runs

businesses in Ukraine

• Hannes Veskimäe,

Swedbank - handles

projects with increased

business risk

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Your motivation and objective?

• Your experience so far:

– With practical experience?• Practicing manager?

• Analyst?

• Other?

– Full time student?

• When you "grow up"?

– Manager?

– Specialist?

– Consultant?

– Researcher?

• Why have you taken this

course ...?

– Looks cool

– More knowledge on org.

diagnostics

– Provides wider perspective

– Build up company

(strategy) structure,

processes

– $$$ £££ €€€

– Better English language

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Welcome!

• Organization - we focus on profit-making business

organizations

• Organizational design - specification of the

organizational form

• Organizational diagnosis - determine gaps between

current and desired performance

• Strategic - important because of long-term

performance of the organization

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This course is not a traditional

course! It is a collaborative project!

We only give you a framework, a book, a

couple of research papers and software.

And then it is up to your teams!

(we will only be asking questions)

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Course outline

• Lectures:

– Org. configuration theory

– Contingency theory

– Information processing view

– Novel organizational

configurations and

advanced design view

– Organizational change after

design choices

– Criticism of the theories

above

• Seminars

– Discussion on theories

– Analysis of case studies

– Preparation of the report

– Support of OrgCon

software to produce your

analyses

• Course project

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Oticon Case Study

www.oticon.com

www.demant.com

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Two types of course project

Executive style

• 2 real life business cases from

your own practice

Research style

• 1 research-style business case

analysis of a publicly listed

international firm, preferably

not a company from Estonian

origin

Images from: http://oil.otago.ac.nz/oil/centraltafe

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The Contents of the Course Project

Executive style 2 x 12(+-2) pages

• Executive Summary

• Background and description

• Summary of the Analysis

• Recommendation for Action

• Plan for Implementation

Research style 24 (+-2) pages

• Executive Summary

• Introduction of the Case

Organization

• Detailed analysis and

assessment of company

environment

• Analysis and assessment of

the design factors

• Explanation of past strategic

choices

• Conclusions

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Course Project Roles - Teams of 3-4

Students• Divide the tasks among yourselves, but do not try to

over-specialize:

– Informant / Company specialist

– Data collection specialist / Research specialist

– OrgCon specialist

– Planner

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Assessment of the Report

• Elaborate background

information

– Try to dig both in academic

as well as good quality

press sources

• Thorough analysis, but

short and consise findings

• Nice, professional layout

• Max points - if board

members of the global firm

would buy your suggestion

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When you choose your cases - don't be

boring - Microsoft, Apple, Google, Nokia,

Toyota ... are OUT!

There are 500 companies

in Fortune 500!

Read business magazines or finance

portals and come up with a case

company that is off the beaten track,

but still interesting!

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EcoMerc OrgCon software for analysis

• Seminars will be held at computer classes

• Download your software from http://ecomerc.com/orgcon9/setup.exe

• Each group will get a single 1-year license for your groupwork - send me your name and e-mail address: tudeng(at)rillo.ee

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Presenting to the Class

• Use attractive visual aids!

• 15-20 minute executive-style

presentation of your findings.

• Imagine yourself in

boardroom where your

presentation will serve as

basis for making significant

organizational changes.

• Be well prepared for rapid

interruptions or (not as) rude

(as in real life) comments!

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Familiarize yourself with ...

• Study program - has the most important background information

• Using EBSCO etc sources for data collection

• Course textbook available at the TUT Library - 8 copies can be borrowed, 2 can be used on location: share them, scan and copy the most important parts - you will need it already for the next week seminar!

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What else is important?

• Collaboration - try to

establish diverse groups

and co-operate

• At the end of the course -

we'll do 360!

• Any questions?

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Timetable and groups

Group1 - practical:

• Maigi Lasn

• Ervin-Erik Kaasik

• Erik Mällo

• Maris Nettan

Group2 - practical:

• Liisa Eichler

• Kristi Tamm

• Mariliis Topp

• Mari Kurig

Group3 - theory:

• Madis Talmar

• Joonas Pärenson

• Ahto Orumets

Group7 - practical:

• Tõnis Viiroja

• Raul Siimut

• Kärt Klein

Group4 - ?:

• Janno Rillo

• Silver Priks

• Maris Jõgisoo

Group5 - Audi

• Rivo Saarna

• Alvar Veersalu

• Raiko Kaasiku

Friday at 18:00-20:15 Saturday at 14:30-16:45

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Click "Like" on the Course Page in

Facebook

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TRADITIONAL CONTINGENCY

THEORY

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Traditional - Two types of variablesContingency variables Organizational design variables

Size (number of employees) Functional specialization, Role specialization, Standardization,

Documentation, Centralization, Vertical span

Change in size (number of employees) Number of divisions, Division of labour, Extent of regulations, Delegation to

personnel, Delegation of budget, Decentralization, Number of hierarchical

levels

Complexity of operations technology,

automaticity, workflow rigidity, specificity

of evaluation and continuity of throughput)

Structure: Role specialization, Standardization of procedures, Formalization,

Number of hierarchical levels

Complexity of production Technology, Relationship of wage costs to other costs, Management system

Complexity of operations technology

(automaticity, workflow rigidity, specificity of

evaluation and continuity of throughput)

Structure, Role specialization, Standardization of procedures, Formalization

Task uncertainty (largest impact),

task interdependence and units

Co-ordination mechanisms (impersonal, personal or impersonal)

Dynamism of environment Stability of organization structure, Elaborateness of organizational design,

Ratio of vertical communication to horizontal/diagonal, Prestige attached to

possession of networks, knowledge and experience

Uncertainty of the environment (Measured

as clarity of information, uncertainty

of causal relationships and the time span of

definitive feedback)

Differentiation: Goal orientation, Time orientation, Interpersonal orientation

Integration: Influence of integrators, Reward system for integrators, Modes

of conflict resolution

Based on: Lawrence & Lorch (1967) and Bill McKelvey (1982) Organizational Systems. Taxonomy, Evolution,

Classification

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Key Terms in Org. Design

Pugh, Hickson, Hinings, Turner (1968) Dimensions of Organization Structure

• Formalization - the degree to which the organization has official rules, regulations, and procedures

• Centralization - the degree to which decisions are made at the top of the organization

• Specialization - the degree to which jobs are narrowly defined and depend on unique expertise

• Standardization - the degree to which work activities are accomplished in a routine fashion

• Complexity - the degree to which many different types of activities occur in the organization

• Hierarchy of Authority - the degree of vertical differentiation across levels of management

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Key Traditional Design Choices

• Simple Structure - a centralized form of organization that emphasizes the upper echelon & direct supervision

• Machine Bureaucracy - a moderately decentralized form of organization that emphasizes the technical staff & standardization of work processes

• Professional Bureaucracy - a decentralized form of organization that emphasizes the operating level & standardization of skills

• Adhocracy - a selectively decentralized form of organization that emphasizes the support staff & mutual adjustment among people

• Divisional Form - a moderately decentralized form of organization that emphasizes the middle level & standardization of outputs

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Five Traditional Structural

Configurations of OrganizationStructural

Configuration

Prime

Coordinating

Mechanism

Key Part of

Organization

Type of

Decentralization

Simple structure Direct supervision Upper echelon Centralization

Machine

bureaucracy

Standardization of

Work Processes

Technical staff Limited horizontal

decentralization

Professional

bureaucracy

Standardization

of skills

Operating level Vertical & horizontal

decentralization

Adhocracy Standardization

of outputs

Middle level Limited vertical

decentralization

Divisional form Mutual adjustment Support staff Selective

decentralization

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And You Meed to Manage 4 Basic

Contextual Variables• Size

• Technology

• Strategy & Goals

• Environment

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Example: Size Contingencies ...

Basic Design Small Large

Dimensions Organizations Organizations

Formalization

Centralization

Specialization

Standardization

Complexity

Hierarchy of authority

Less

High

Low

Low

Low

Flat

More

Low

High

High

High

Tall

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Example of Relationships

Key

1 Formalization 4 Standardization

2 Centralization 5 Complexity

3 Specialization 6 Hierarchy of Authority

Craft

1. Moderate

2. Moderate

3. Moderate

4. Low-moderate

5. High

6. Low

Routine

1. High

2. High

3. Moderate

4. High

5. Low

6. High

Nonroutine

1. Low

2. Low

3. Low

4. Low

5. High

6. Low

Engineering

1. Moderate

2. Moderate

3. High

4. Moderate

5. Moderate

6. Moderate

Few Exceptions Many Exceptions

Ill-defined &

Unanalyzable

Well-defined &

Analyzable

Pro

ble

m A

nal

yzab

ility

Built from C. Perrow, “A Framework for the Comparative Analysis of Organization,” American Sociological Review, April 1967, 194-208

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Context of the organization

Correct size

Current technology

Perceived environment

Current strategy & goals

Influences how manager perceive structural needs

Structural dimensions

Level of formalization

Level of centralization

Level of specialization

Level of standardization

Level of complexity

Hierarchy of authority

Which characterize the organizational processes

Which influence how well

the structure meets its

Purposes

Designate formal lines

of authority

Designate formal

information-

processing patterns

Differentiation & Integration

Which influence how well

the structure fits the

Context of the organization

The Relationship among Key

Organizational Design Elements

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INTRODUCTION TO MULTIPLE

CONTINGENGY THEORY

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Principles of Conventional Organizational

Configurational Approach• Broad strategy-structure-environment fit or congruence

• Organization is conceptualized as a system of configuration whose major

components include 1) strategy, 2) people, 3) structure, and 4)

management processes

• Overall organizational performance is heavily dependent on the quality

of alignment of the organization's components as well as the external fit

between the organization and its environment

• The process of achieving fit is dynamic, and both organization's internal

as well as external fit should be continually monitored and adjusted

• All of the basic organizational configurations from the older hierarchical

forms to modern multi-firm networks have particular strengths and

limitations - there is no all purpose organizational design

Snow, C.C., Miles, R.E., & Miles, G. (2006) “The Configurational Approach to Organization Design: Four

Recommended Research Initiatives” in Information and Organization Design Series, Volume 6, Part 1:, 3-18.

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Compatibility of Structure and

Environment - Large Firms

• Lex Donaldson: longitudinal study of UK, US, FR, GE and

JP large MNCs over the period 1950-80:

– 3/4 of companies cannot understand pressure of environment

that creates a need to change their structure within 10 years

– Those who did it in time gained 1/3 higher performance!!!

Donaldson (1987, 2001)

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Asset Losses from Misfits - 224 Danish SMEs (limitation of the study: 1 informant / firm)

• Situational, contingency, and the combination of

proposed misfits do diminish performance

• Any misfit significantly diminishes performance

in a nonlinear fashion i.e. lack of any misfits

leads to significantly better performance

Richard M. Burton and Jørgen Lauridsen and Børge Obel, Return on Assets Loss from Situational and Contingency

Misfits, Management Science, Vol. 48, No 11, November 2002, pp.1461 – 1485

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Configuration Approach to Organizational Design

(Burton-DeSanctis-Obel) - 14 variables

1. Goal

2. Strategy

3. Environment

4. Configuration

5. Complexity

6. Geographic Distribution

7. Knowledge Exchange

8. Task Design

9. People

10. Leadership Style

11. Climate

12. Co-ordination / Control

13. Information Systems

14. Incentives

2 types of variables:

• Contingency variables - given

variables

• Design variables - subject to

managerial decision

Underlying logic: environment,

complexity, geographic distribution

etc have impact on the way how

you establish your organisation

structure, processes and systems

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1. Efficiency2. Defender3. Varied4. Functional5. Tall6. International7. Informated8. Complicated9. Factory10. Manager11. Internal process12. Machine13. Data-driven14. Skill Pay

1. No dominant goal2. Reactor3. Calm4. Simple5. Blob6. Local7. Ad hoc communications8. Orderly9. Shop10. Maestro11. Group12. Family13. Event-driven14. Personal Pay

1. Efficiency & Effectiveness2. Analyzer3. Turbulent4. Matrix5. Symmetric or complex hybrid6. Transnational7. Network8. Knotty9. Office10. Producer11. Rational Goal12. Mosaic or Clan13. Relationship-driven14. Profit Sharing

1. Effectiveness2. Prospector3. Locally Stormy4. Divisional5. Flat6. Multi-Domestic7. Cellular8. Fragmented9. Laboratory10. Leader11. Developmental12. Market13. People-driven14. Bonus-based

1. Goal2. Strategy3. Environment4. Configuration5. Complexity6. Geographic Distribution7. Knowledge Exchange8. Task Design9. People10. Leadership Style11. Climate12. Co-ordination / Control13. Information Systems14. Incentives

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1. Goal - Which is the dominant priority?

• All organizations value both efficiency and effectiveness to some degree

• Efficiency is a primary focus on inputs, use of resources, and costs, i.e. focusing on minimizing the costs of producing goods or services.

• Effectiveness is a focus on outputs, products or services, and revenues, i.e. focusing on generating revenues or seizing leading-edge innovation in the marketplace

• Ambidextrous - both efficient and effective

EfficiencyEfficiency &

Effectiveness

No dominant goal

Effectiveness

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2. Strategy - Strategic behavior of the organization based on a modified Miles & Snow classification

• Reactor - organization whose top management frequently perceives change but seldom makes adjustments of any sort until forced to do so by environmental pressures

• Defender - managers are experts in their organization's limited area of operation but do not search outside their domains for new opportunities. Resulting from narrow focus they seldom need to make major adjustments in their technology, structure, or methods of operation

• ...

Defender Analyzer

Reactor Prospector

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2. Strategy - Strategic behavior of the organization based on a modified Miles & Snow classification

• Prospector - organization that continually searches for opportunities and experiments with potential responses to emerging environmental trends. Organization is often the creator of change and uncertainty to which its competitors must respond

• Analyzer with innovation - has innovations that take place concurrently with regular production. It has a dual technology core.

• Analyzer without innovation -maintains an emphasis on its ongoing products, has limited innovation related to the production process but generally not the product

Defender Analyzer

Reactor Prospector

Organization that

combines the strategies

of the defender and the

prospector. moves into

the production of a new

product or enters a new

market after viability has

been studied

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3. Environment

... is everything that is outside

the organization • The industry, its size and competitiors

• Actual customers

• Suppliers: raw materials, services, and the labor market

• Financial resources, including the stock market, banks, and private investors

• The evolution of the techniques of production

• Regulation, taxes, services, and the political system in general

• Economic factors, such as inflation rates, exchange rates

• Sociological factors: values, beliefs, education, religion, work ethic, and special current trends, ex. environmental movements and women's rights

Measures for the external

environment are• Complexity - number of variables in

the environment and their interdependency. It refers to factors that can influence the operations and outcome of the organization

• Uncertainty - lack of knowledge about the value of a given variable or of the magnitude of the short term risk

• Equivocality - generic confusion and lack of understanding, i.e. when you do not know what kind and type impact an external event may have

• Hostility - measure of how benign or malevolent the environment is

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3. Environment

• Calm - not much changes

• Varied - lots of complex external effects impact organization, however - these are mostly manageable

• Locally stormy - lots of external effects impact organization, but the actual impact is mostly unknown

• Turbulent - usually prone to hypercompetition (dynamics, rapid change and adaptation, short product life cycles, creative destruction (D'Aveni, 1994, p. 154))

Varied Turbulent

CalmLocallyStormy

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4. Configuration

• Simple - flat hierarchy and a singular head for coordination, control and decision-making

• Divisional - composed of sub-units centered on groupings of products, markets, and/or customers

• Functional - well-defined departmental structure with employees organized into departments, each with a specific function (administration, human resources, finances, production, manufacturing, marketing, sales...)

• Matrix - dual hierarchy; it incorporates the essential functional and divisional configurations in an organization simultaneously

Functional Matrix

Simple Divisional

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5. Complexity

• Horizontal differentiation

relates to the specialization

within an organization

• Vertical differentiation relates

to the number of hierarchical

levels in an organization

• Spatial differentiation relates

to the geographic dispersion

of activities within the

organization

• Degree of horizontal,

vertical, and spatial

differentiation

• As organizational

complexity increases, so

does the difficulty of

coordinating activities and

the requirement for

information processing

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5. Complexity

• Blob - low hierarcy, few job titles

• Tall - high vertical differentiation, low horizontal differentiation (hierarchy is high, but people deal with the same issue)

• Flat - low vertical differentiation, high horizontal differentiation (hierarchy is low, but people deal with may different things)

• Complex hybrid - high hierarchy, lots of job titles

TallSymmetricor complex

hybrid

Blob Flat

Hierarchy

No.of titles

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6. Geographic Distribution

• Local - thats obvious • Global - centralized and controlled

largely by corporate office. High pressure to lower costs, low pressure for local adaptation

• Multi-domestic - emphasis is differentiating products and services to adapt to local markets. Adaptation pressure high, cost lowering pressure low, authority is decentralized

• Transnational - both high costs for adaptation and force to keep costs down - optimization of efficiency, adaptation, and learning. Assets and capabilities are dispersed to the most beneficial location for a specific activity

International / Global

Transnational

LocalMulti-

Domestic

Pressure to low costs

Pressure to

adapt

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7. Knowledge Exchange

Amount of information - volume

of data that an organization

collects, processes, and stores• To some extent, this dimension is a

function of firm size; larger organizations tend to have greater information processing demands.

• If tasks are repetitive and executed hundreds or thousands of times throughout the day (such as in a large retail chain or a bank), then amount of information that must be processed is high.

• If tasks are one-time tasks, relatively few and may be general, fragmented or knotty then the amount of information to be processed is lower.

Tacit / explicit information• Tacit knowledge is characterized by

causal ambiguity and difficulty of codification (Choo, 1998; Polyani, 1966).

• Tacit information is not readily articulated as a set of facts or rules and so is difficult to transfer (Sorenson et al., 2004).

• This is in contrast to explicit knowledge, which can be expressed formally as a system of symbols and facts, and therefore more readily communicated (Nonaka & Takeuchi, 1995).

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7. Knowledge Exchange - Measures in OrgCon

• To what extent is the vital knowledge of the firm codifiable (1) or non codifiable (5), in the sense that it does not lend itself to being explicitly captured, processed and stored? ___

• Could most of the important information that is exchanged within the firm be readily recorded on paper or in a computer system (1= yes, 5= no)?___

• Does the information exchanged within the organization require interpretation in order to be meaningful (1= not much interpretation required, 5= highinterpretation required)? ___

• Is information relatively easy to understand and explain (1), or are there subtleties to understanding the information, requiring specialized experience or expertise to fully “make sense” of the information (5)? ___

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7. Knowledge Exchange

• Ad hoc - information exchange takes place on the basis of need

• Informated - lots of information -strict systems of formal reporting are in place, mostly explicit information

• Cellular - information exchange is grouped by the teams, mostly tacit information

• Network - lots of information that is both explicit and tacit, high requirements for all individuals to process information

Informated Network

Ad hoccommunications

Cellular

ROY B. 1998. Using Agents to Make and Manage Markets

Across a Supply Web. Complexity, 3:31-35.

Amount of info

Tacitness

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8. Task Design

• Orderly - highly dividible and highly repetitive tasks

• Complicated - not verydividible, but highly repetitivetasks

• Fragmented - highly divisible, but not very repetitive

• Knotty - not divisible, notrepetitive tasks - most difficultto coordinate as adjustments toboth connectedness and non-repetitiveness are requiredsimultaneously

Complicated Knotty

Orderly Fragmented

Repetitive

Divisible

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9. People

• Shop - low number of

people, no need for

professionalization

• Factory - lots of people,

low need for

professionalization

• Laboratory - low number of

people, high need for

professionalization

• Office - high both

Factory Office

Shop Laboratory

Number of people

Prof. need

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10. Leadership Style

• Maestro - little delegation of decision making, acceptsuncertainty

• Manager - little delegation of decision making, avoidsuncertainty

• Leader - accepts uncertainty, delegates decision making

• Producer - avoidsuncertainty, delegatesdecision making.

Manager Producer

Maestro Leader

Uncertainty avoidance

Delegation

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11. Climate

• ... characterizes the beliefs and attitudes held by

individuals about their organization.

• ... is a relatively enduring quality of an organization

that is experienced by employees and influences

their behavior.

• ... is organizational characteristic, not a

characteristic of individual. However, individuals are

the source of information on climate

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11. Climate

Direct measures of the internal

climate are

• Level of trust

• Level of conflict

• Employee morale

• Rewards

• Resistance to change

• Leadership credibility

• Level of scapegoating

Internal climate indicators can

be indirectly inferred from

• Employee turnover

• Absenteeism

• Presence of discussion groups, brainstorming groups, and other reflective and/or information mechanisms

• Presence of mediating committees and consensus building activities

• Number of complaints filed to various mediating committees, and unions

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11. Climate

• Group - friendly place to work where people share a lot of themselves. It is like an extended family. organization is held together by loyalty or tradition.

• Internal process climate - formalized and structured place to work. Procedures govern what people do. Maintaining a smooth running organization is important.

• Developmental - dynamic, entrepreneurial and creative place to work. People "stick their necks out" and take risks. emphasis is "being on the leading edge"

• Rational goal - results oriented organization. The leaders are hard drivers, producers, and competitors. They are tough and demanding. The glue that holds the organization together is the emphasis on winning.

Internalprocess

Rational Goal

Group Developmental

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12. Co-ordination / Control

• Family - informal, ad hoccoordination mechanisms

• Machine - formal, highlycentralized coordination

• Market - decentralized control, mainly determined on "whatsells on market and what not"

• Clan - highly decentralized and formalized, but morehomogenous approach thanmosaic

• Mosaic - heterogenousdecentralized and formalizedcoordination mechanisms

MachineClan /

Mosaic

Family Market

Formalization

Decentraliz.

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13. Information Systems

• Event-driven - whensomething happens, then wedo something

• Data-driven - we look at advanced datasets and derive our actions based on elaborate backgroundinformation in hand

• People-driven - individualschoose which information isdelivered

• Relationship-driven -

Data-drivenRelationship-

driven

Event-drivenPeople-driven

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14. Incentives

• Personal pay - every employeehas individual salary

• Skill pay - salary system isbuild up on the basis of competencies

• Bonus-based - salary system isdetermined by the extent of achievement of immediateobjectives

• Profit sharing - salary system isdetermined by achievement of long-term objectives

Skill PayProfit

Sharing

Personal Pay

Bonus-based

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Strategic Organizational Diagnosis and

Design Fit

4 types of fit:

• contingency fit,

• strategic fit,

• design fit

• total design fit

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Strategic Fit

• Requires that organization's situation is internally

consistent

• Strategic facts that give answers to the "if"

questions must make sense together

• Ex. dynamic and uncertain environment and routine

technology do not fit together, routine technology is

not viable in the long run something must be

changed change routine technology into less

routine technology, because you cannot change the

environment

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Design Fit

• For each design property and form "if-then" propositions must fit and be inbalance

• Ex. "organization must be decentralized" can be driven by a number of contingencies:– Leadership style, Climate, Size, Environment, Technology and Strategy all

can ideally suggest decentralization

– However, some of them can provide conflicting suggestions, ex. leadershipstyle suggests centralization, but organizational size - decentralization

– The idea is to weigh certainty factors of individual elements to decide upondesign fit

• Equifinality (Doty et.al. 1993) suggests that multiple acceptable properties of the organizational structure are ok, but not all combinations are acceptable:– Ex. centralization may be high or low as well as formalization may be high or

low, but only 2 of the 4 suggested configurations provide acceptabledesign fit

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Overall Fit

• Contingency fit - strategic fit and design fit must fit

together

• Total fit - the entire model must be consistent,

especially with the actual strategic situation

– This is the most complex, because strategic situation of

an organization is dynamic ("You cannot step twice into

the same river" - Heraclitus) you need to constantly

modify your design choices

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Groupwork - Choose a Company and Assess if

its Design Components are Properly Set up!

• Goal– No common goal

– Efficiency

– Effectiveness

– Both

• Strategy– Reactor

– Defender

– Prospector

– Analyzer

• Environment– Calm

– Varied

– Locally Stormy

– Turbulent

• Configuration– Simple

– Functional

– Divisional

– Matrix

• Knowledge Exchange– Ad hoc communications

– Informated

– Cellular

– Network

• People– Shop

– Factory

– Laboratory

– Office

• Leadership Style– Maestro

– Manager

– Leader

– Producer

• Climate– Group

– Internal process

– Developmemtal

– Rational Goal

• Co-ordination / Control– Family

– Machine

– Market

– Mosaic or clan

• Information Systems– Event-driven

– Data-driven

– People-driven

– Relationship-driven

• Incentives– Personal pay

– Skill pay

– Bonus-based

– Profit sharing

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Homework

• Register in Facebook

• Read through course program (incl requirements)

• Download and install OrgCon software

• Borrow textbook from the library and make copies

Any questions: tudeng@rillo.ee!