MGMT 300

Team-Based - Disadvantages

-Dual loyalties and conflict -Time and resources spent on meetings -Unplanned decentralization

Vertical Functional - Advantages

-Efficient use of resources -In-depth skills specialization and development -Top manager direction and control

Negotiation

-Group has power over implementation -Group will lose out in the change

Cooperation

-Horizontal coordination mechanisms -Customers, partners -Open innovation

Chain of Command

an unbroken line of authority that links all employees in an organization and shows who reports to whom

Cross-functional team

furthers horizontal coordination by including members across the organization

Three innovation strategies

• Exploration • Cooperation • Innovation roles

Communication and education

-Change is technical -Users need accurate information and analysis to understand change

Innovation roles

-Idea champions -New venture teams -Skunkworks -New venture fund

Open innovation (external focus)

extending the search for and commercializing new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry

Flat structure

has a wide span, is horizontally dispersed, and has fewer hierarchical levels

Matrix Structure

has dual lines of authority. The functional hierarchy of authority runs vertically, and the divisional hierarchy of authority runs horizontally

Use implementation tactics (when to use them?)

o Top management support o Communication and education o Participation o Negotiation o Coercion

Horizontal linkage model (internal focus)

people from several departments meet frequently in teams and task forces to share ideas and solve problems

Line departments

perform primary business tasks (e.g., Sales, Production)

Project manager

person responsible for coordinating activities of several departments for the completion of a specific project

New-venture fund

provides resources from which individuals and groups can draw to develop new ideas, products, or businesses

Reverse innovation

refers to creating innovative low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries

Disruptive innovation

refers to innovations in products, services, or processes that radically change an industry's rules of the game for producers and consumers

Creativity

refers to novel ideas that meet perceived needs or offer opportunities. Creative organizations have an internal culture of playfulness, freedom, challenge, and grass-roots participation

Team-Based Structure

refers to the entire organization is made up of horizontal teams to accomplish the organization's goals. Managers can delegate authority and push responsibility to lower levels

Work specialization/Division of labor

sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs

Staff departments

support line departments (e.g., Marketing, Labor relations, Research, Accounting, Human Resources)

Skunkworks

variation of a new-venture team in which a separate small, informal, highly autonomous, and often secretive group focuses on breakthrough ideas for the business

Three elements for implementing change

• Create a sense of urgency (the need for change) • Conduct Force-field Analysis • Use implementation tactics (when to use them?)

Four types of innovation roles

• Idea champion • New-venture team • Skunkworks • New-venture fund

Key structural coordination mechanisms

• Task force • Cross-functional team • Project manager

Five characteristics of vertical structure

• Work specialization/Division of labor • Chain of Command • Span of management/control • Centralization • Decentralization

Restraining Forces

barriers to change

Tall structure

has narrow span of control and more levels in the hierarchy

Exploration

involves designing the organization to encourage creativity and the initiation of new ideas

Bottom-up approach

means encouraging new flow of ideas from lower levels and making sure they get heard and acted upon by top executives. Some companies also use internal innovation contests

Centralization

means that decision authority is located near the top of the organization

Decentralization

means that decision authority is pushed downward to lower organization levels

Divisional Structure

occurs when departments are grouped together based on similar organizational outputs. Divisions are created as self-contained units with separate functional departments for each division

Driving Forces

problems or opportunities that provide motivation for change

Idea incubators

provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics

Virtual Network Structure

the firm subcontracts most of its major functions to separate companies

Vertical Functional Structure

the grouping of positions into departments based on similar skills, expertise, work activities, and resource use

Crowdsourcing (external focus)

using internet to to tap into ideas globally and let hundreds of thousands of people contribute to the innovation process

Four elements of exploration

• Creativity • Bottom-up approach • Internal contests • Idea incubators

Four cooperation mechanisms

• Horizontal linkage model (internal focus) • Open innovation (external focus) • Crowdsourcing (external focus) • Innovation by acquisition (external focus)

Coercion

-A crisis exists -Initiators clearly have power -Other implementation techniques have failed

Top management support

-Change involved multiple departments or reallocation of resources -Users doubt legitimacy of change

Divisional - Disadvantages

-Duplication of resources across divisions -Less technical depth and specialization -Poor coordination across divisions

Divisional - Advantages

-Fast response, flexibility in unstable environment -Fosters concern for customers needs -Excellent coordination across functional departments

Matrix - Disadvantages

-Frustration and confusion from a dual chain of command -High conflict between two sides of the matrix -Many meetings; more discussion than action

Virtual Network - Disadvantages

-Lack of control; weak boundaries -Greater demands on managers -Weaker employee loyalty

Matrix - Advantages

-More efficient use of resources than a single hierarchy -Flexibility, adaptability to a changing environment -Interdisciplinary cooperation; expertise available to all divisions

Conduct Force-field Analysis

Change is a result of the competition between driving and restraining forces

Create a sense of urgency (the need for change)

Communicate a need for change - disparity between existing and desired performance levels

Relational coordination

Frequent, timely, problem-solving communication carried out through employee relationships of shared goals, shared knowledge, and mutual respect

Difference between product change and process/technology change

Product change - a change in the organization's product or service outputs Technology change - a change in the organization's production process

Team-Based - Advantages

-Reduces barriers among departments; increased compromise -Shorter response time; quicker decisions -Better morale; enthusiasm from employee involvement

Participation

-Users need to feel involved -Design requires information from others -Users have power to resist

The 3 elements of organizational structure?

1) The set of formal tasks assigned to individuals and departments 2) Formal reporting relationships 3) The design of the systems to ensure effective coordination

Idea champion

a person who sees the need for and champions productive change within the organization

Task force

a temporary team or committee formed to solve a specific short-term problem involving several departments

New-venture team

a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation

Innovation by acquisition (external focus)

acquiring innovative startup companies

Span of management/control

also called span of control, is the number of employees reporting to a supervisor

Virtual Network - Advantages

-Can draw on expertise worldwide -Highly flexible and responsive -Reduced overhead costs

Vertical Functional - Disadvantages

-Poor communication across functional departments -Slow response to external changes;lagging innovation -Decisions concentrated at top of hierarchy, creating delay

Advantages and disadvantages of each structure

1. Vertical Functional 2. Divisional 3. Matrix 4. Team-Based 5. Virtual Network

Conditions under which each structure is utilized

1. Vertical Functional 2. Divisional 3. Matrix 4. Team-Based 5. Virtual Network

Five types of organization structure/departmentalization/design

1. Vertical Functional 2. Divisional 3. Matrix 4. Team-Based 5. Virtual Network

Key features of each structure

1. Vertical Functional 2. Divisional 3. Matrix 4. Team-Based 5. Virtual Network