Ch 9- The Adaptive Organization

The mechanistic organization emphasizes flexibility and is less rigid than the organic structure.

False

Large organizations cons

- difficulty managing relationships - difficult to coordinate and control

Ways to downsize

- eliminate functions, hierarchical levels, entire units - replace full-time workers with temporary/part-time

7 Principles of ISO 9001

1. Customer focus 2. leadership 3. involvement of ppl 4. process approach 5. improvemnent 6. evidence-based decision making 7. relationship management

Concurrent engineering

A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers' needs.

Customer Relationship Management

A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns.

ISO 9001

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers.

Which of the following statements about types of economies is true?

An organization's large size often creates scale economies and economies of scope.

Ordinary Capabilities

Basic administrative and operational functions needed (doing basic things right)

Formal Organizational Structure

Departments, positions, functions, authority, and reporting relationships as depicted on a firm's organizational chart.

economies of scope

Economies in which materials and processes employed in one product can be used to make other related products

Dynamic Capabilities

Higher-level strategic capabilities (compared with ordinary capabilities) that aid rapid adaptation. (doing the right things at the right time)

Just-in-time (JIT)

Manufactures in very small lots and delivers them to the next stage in the process precisely at the time needed

Flexible Factories

Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling. (customers need fast turnaround on small orders, teams focus on one product at a time)

Informal Organizational Structure

The focus is on the employees, their relationships, and the informal power that is inherent within those relationships. Has its own leaders and communication channel (grapevine)

lean manufacturing

Operations that eliminate unnecessary steps in the production process and continually striving for improvement (quality, speed, and flexibility over cost-efficiency and hierarchy)

The best alliances are true partnerships that meet these criteria:

Relationship: positive working relationship Metrics: measure how they will succeed, not just end result Differences: embrace differences Control: encourage collaborative behavior Management: manage internal stakeholders

Time-based competition (TBC)

Strategies aimed at reducing the total time needed to deliver a good or service.

Six Sigma Quality

Systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction

Managers must stay focused on the strategic triangle:

The company itself The Competition The Customer

core capability

The knowledge, expertise, or skill that underlies a company's ability to be a leader in providing a range of goods or services

Downsizing

The planned elimination of positions or jobs

Generic Value Chain

The range of activities that result in delivering a product or service to the customer

Value Chain

The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.

Computer-integrated manufacturing

The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes.

mechanistic organization

a form of organization that seeks to maximize internal efficiency - formal, rigid structure w/ clear reporting relationships between bosses and subordinates plus rules and regulations ensuring that employees do basic work activities in standard ways

continuous process

a process that is highly automated and has a continuous production flow

mass customization

a strategy that uses technology to deliver customized services on a mass basis

The feedback has also shown that a large percentage of the customers come with children. If Mex Magic is to be truly responsive to its market environment while maximizing profits, Ricardo should

add child-friendly entrees that include fries or chips instead of guacamole.

An organization's strategy and size influence its

agility, adaptability, and structure

Total Quality Management (TQM)

an integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services

Organic Structure

an organizational form that emphasizes flexibility

The advantages of a small organization include

being able to move fast.

Franz wants to balance the strategic triangle for his company. To do this, he must consider the company, the customer, and the

competition

Decentralization

delegating decision-making authority to the lower levels of management in a company

With the cost of warehouse space and maintaining inventory increasing, Parker has decided to change the operation of his company to a "just-in-time" (JIT) mode, whereby manufacturing is initiated only upon customer order and only in very small lots, minimizing the company's warehouse and inventory costs. However, Parker is nervous about the change because he knows that JIT offers costs savings only when the costs of storing product are greater than the costs of

delivering inventory

Larger size helps create

economies of scale economies of scope

Strategic Alliances

formal relationship for joint pursuit of mutual goals

Centralized organizations

high-level executives make most decisions and pass them down to lower levels for implementation

A ________organization can often create scale economies and economies of scope, which leads to advantages such as lower operating costs, greater purchasing power, and easier access to capital.

large

Decentralized Organizations

lower level managers make important decisions

The point of designing and structuring a responsive, agile organization is to enable it to

meet and exceed expectations of its customers

Darius, the company president, has received a large volume of negative emails from customers concerned with allegations of unfair labor practices at these facilities, and therefore the company is reviewing its entire process. When Millie reviews the process of producing the actual sportswear, the part of the value chain she is most likely to look at is

operations

Nimble and small firms may

outmaneuver big bureaucracies

In order to fulfill senior management's aim of adopting a method to analyze the causes of defects in products that need to be eliminated to improve customer satisfaction, the company might consider a quality initiative such as

six sigma

In an Adaptive Organization:

structures and systems are designed well, people can perform and deliver results as needed, the organization is flexible and agile enough to succeed in a changing world

large batch

technologies that produce goods and services in high volume

small batch technologies

technologies that produce goods and services in low volume

Logistics

the movement of resources into the organization (inbound) and products from the org (outbound)