Management Chapter 12
What are the advantages and disadvantages of bureaucratic model?
-advantages: efficiency in function, prevention of favoritism, and recognition of and requirement for expertise -disadvantages: organizational inflexibility and rigidity, neglect of social and human processes, and belief in one best way to design organizations
hybrid designs
-based on two or more common forms of organization design- may have a mixture of related divisions and a single unrelated division -most organizations use a modified form of organization design that permits them to have sufficient flexibility to make adjustments for strategic purposes.
competing effectively in global markets
-create an international division? -establish an international operating group -make international operations an autonomous sub unit?
business level strategies
-defender -prospector -analyzer
organizational size (ashton studies)
-defined as the total number of full-time or full-time equivalent employees
generic competitive strategies
-differentiation -cost leadership -focus
matrix design disadvantages
-employees are uncertain about reporting relationships -managers may view design as an anarchy in which they have unlimited freedom -the dynamics of group behavior may lead to slower decision making, one-person domination, compromise decisions, or a loss of focus -more time may be required for coordinating task related activities
matrix design advantages
-enhances organizational flexibility -creates high motivation and increased organizational commitment for team members -gives team members opportunity to learn new skills -provides an efficient way for the organization to use its human resources -uses team members as bridges to their departments for the team -useful as a vehicle for decentralization
the environment (burns and stalker)
-forms of the organizational environment: stable environments that remain constant over time. unstable environments subject to uncertainty and rapid change. organizational designs: 1. mechanistic organizations are similar to bureaucratic or system 1 models; found most frequently in stable environments 2. organic organizations are flexible and informal models; usually found in unstable and unpredictable environments
matrix design
-has two overlapping bases of departmentalization -employees in the matrix belong to their departments and the project team -a matrix is useful when there is strong environmental pressure, there are large amounts of info to be processes, and there is pressure for shared resources.
core technology
-is the conversion processes used to transform inputs into outputs
divisional or M form design
-multiple businesses in related areas operating within a larger organizational framework -results from a strategy of related diversification -activities are decentralized down to the divisional level -design advantage is in opportunities for coordination and sharing of resources -successful M form organizations can out perform U form and H form organizations
conglomerate or H-form design
-organization is a set of unrelated businesses with a general manager for each business -holding company design is similar to product departmentalization -coordination is based on the allocation of resources across companies in the portfolio -design has produced only average to weak financial performance; has been abandoned for other approaches
functional of U-form design
-organizational members and units are grouped into functional departments such as marketing and production -coordination is required across all departments -design approach resembles functional departmentalization in its advantages and disadvantages
corporate-level strategies
-single product strategy -related or unrelated diversification -portfolio approach to managing strategy business units
the ashton studies research found:
-small firms tend to focus on their core technology -large firms have more job specialization, standard operating procedures, rules and regulations, and are more decentralized
emerging organization design issues
-the team organization -the virtual organization -the learning organization -the international/ global organization
woodward's basic forms of technology
-unit or small-batch -large batch/mass production -continuous process
separate international division
CEO- production, marketing, finance, international division CEO- north american operations, european operations, asian operations
Renesis Likert
He said that organizations that pay attention to work groups and interpersonal processes are more effective than bureaucratic organizations
bureaucratic model
Max Weber. -a logical, rational, and efficient organization design based on a legitimate and formal system of authority. -characteristics: 1. a division of labor with each position filled by an expert 2. a consistent set of rules ensuring uniformity in task performance 3. a hierarchy of positions that creates a chain of command 4. impersonal management with the appropriate social distance between superiors and subordinates 5. employment and advancement based on technical expertise, and employees protected from arbitrary dismissal
organizational dimensions (lawrence and lorsch)
differentiation: the extent to which the organization is broken down into sub units integration: the degree to which the various sub units must work together in a coordinated fashion
joan woodward
initially sought a correlation between organization size and design; instead she found a potential relationship between technology and design
organizational function
major functions of the organization can influence an organization's design
organizational design
organizational life cycle, technology, environment, size
Organization design concept
organizations are not designed and then left intact. Organizations are a continuous state of change Designs for larger organizations are extremely complex and have many nuances and variations
organizational life cycle:
organizations progressively evolve as they grow and mature- birth, youth, midlife, and maturity
Organization Design
the structural elements and the relationships among the elements used to manage the organization. It's a means to implement strategies and plans to achieve organizational goals.
