OTD part 2
IT and impact on communication and coordination
IT has greatly increased the coordination both within and between units. it also has permitted an increase in the complexity of work and reduced the amount of time needed to complete a task can have Just in time
IT and impact on decision making
IT is assisting lower level decision making rather than executive decision making IT provides data but human interpret so lower level more routine
Karl Weich and enactment theory
Intangible nature of OG Before : tangible and solid so interpreted and studied Now: OG created by the observer : enactment : a process where structure and processes take form through the actions of individuals
strategy
compromises an organisation's goals and how resources are to be allocated in order to achieve those goals the structure of the organisation must support the achievement of these plans
(structural innovation common in the OG ) teamwork
coordinate themselves, share knowledge more efficiently and improve communication flows teams have drawbacks too: one dominant person may infleunce the whole team and conflict can reduce performance.
the organizational structure tends to change towards greater ...
coordination, improving responses to environmental change and the usage of teams paradigm shift: proposes continual and revolutionary changes
extent of IT usage
firms which are extensive IT users tend to have a decentralised decision making and a greater reliance on workforce subjective incentives
division of labor
first systematic analysis of modern organizational life started in the 18th century functional specialization: a job is broken down into simple and repetitive tasks Adam Smith: concluded that it provided efficiencies
resource-dependancy theory
helps to understand and explain how dependence on scarce resources influences an organisation and its actions to increase the chance of survival dependence=more uncertainty usually known direction but not magnitude of uncertainty
institutional theory
helps to explain how external forces in the environment, including formal and informal forces, past actions and societal pressures-influence organisation structure and practices, need tp adapt to institutional pressures in environment
Adhocracy definition
high level of coordination which permits the undertaking of huge and complex one-off projects. formalisation is very low great flexibility and responsiveness dynamic and complex support staff dominant
the 4 types of technology (Perrow)
his 2 dimensions combine and form: 1. routine technology: have few exceptions and are easy to analyse (mass production) 2. engineering technology: has a very large number of exceptions but can be handled in a rational and systematic manner (construction, accountants) 3. craft technology: deals with a limited set of exceptions but with relatively difficult problems that are hard to analyze (custom tailors, artists) 4. non-routine technologies: many exceptions and at the same time by diffuclt-to-analyse problems (research activities) Can combines 4 technos into single routine-nonroutine dimension (diagonal line)
inability to adapt to change
lagging behind tech= overstaffing bureaucracies suffer from reluctance to reduce their workforce and do not adjust to market realities
low to moderate uncertainty Duncan
large number of dissimilar external elements which change only slowly structural elements: centralised, formalised and mechanistic strucutre, differentiated into many departments to meet environmental standards, large numbers of boundary spanners, programmed coordination and use of planning for integration ex: banks, oil companies, retail chains
innovation and size
large organisation, slower with innovation but more complex innovation more technological and more focus in socializing new employees
army and church
largest organization until the growth of industrial firms, their structures and practices provided a template for most og. these first og had problems in maintaining discipline among the workforce and to determine if they were making money or not (accounting just appeared) but also managing cultures was hard.
structure must
support the implementation of a strategy
IT and formalisation
one one hand IT is highly suited to increase formalisation but on the other it can simplify the retrieval and storage of information (reduces need for routine)
weaknesses of simple structure
only applicable for small organisation all the power is concentrated in one person risky strucutre work against effectiveness if bad manager
boundary spanners in organisation
organisation with boundary spanners focus on the production of goods and services thus maintaining contact with their customers would only distract the employees
institutional theory
organisational responses are often repetitive and products of past actions and practices, these practices are often the result of social pressures to conform to standards
The strategic-constituencies approach
organizational effectiveness: satisfying the demands of those important parts ( constituencies) of the environement from which it requires support to continue to exist. success= ability to appease the individuals, groups and institutions, the constituencies, on which organization depends for its continued operation, focus only on those that threaten survival
actual VS perceived environemnt
measures of characteristics of actual and perceived environment are not highly correlated it is percpetions and not reality that lead to the decisions that managers make regarding organisational design
Informal ways in which organisation may be structured
metaphors are used, using something familiar of human norm to us to describe an organisation may provide rich and powerful description but generally, lack the precision to allow organisational comparison metaphor depends on who you are to the og
Technological uncertainty (Thompson)
more environmental didnt see the technology as an imperative of structure but rather thought that technology determined the selection of a strategy for reducing uncertainty
explanation of Perrow's technology classification model
more routine=more highly structured, no routine= flexibility most routine technology can be accomplished best through standardized coordination and control, high formaliastion non routine techn. demand flexibilty, decentralized, can't write rules because interaction constantly moving engineering technology should have decisions centralized but should maintain flexibilty through low formalization craft technology requires that problem-solving be done by those with specialized knowledge (decentralization) THE MORE ROUTINE THE TECH IS THE MORE HIGHLY STRUCTURED THE OG SHOULD BE
weakness of machine bureaucracy
poor at adapting to change and unresponsive to environment specialisation creates subunit conflicts (creating silos; follow the unit goals instead of the OGs) obsessive concern following the rules, no room for modification
executive or management committee
the own management team of the chief executive, its purpose is to assist and advice the chief executive in running the company. assists in facilitating the communication and cooperation amongst top management. very powerful, being a member= status and power.
routine technology p.29
routiness is the most common theme in research into technology, routine tech is positively related to low complexity and high formalisation and with centralisation ( only if formalisation is low too)
organic structure if ...
scarce, dynamic and complex
low uncertainty Duncan
small number of easily understood environmental elements which change slowly structural elements: centralised with high formalisation mechanistic, no need to gather info few departments coordination by programs and planning mechanistic ex: cement manufacturers, breweries, bakeries
organisation conform to 5 basic configurations
simple structure machine bureaucracy professional buraucracy divisional strcuture sahhocracy - depending on which part dominates when og grows must decentrate operations and more managers.
features of a service industry
simultaneous production and consumption customers are part of the production process the output of the service industries is often intangible, no inventory
when should we use simple structure
small number of employees informal communication is effective if the og is in its formative years, can meet the needs of an og, can give clear direction during crisis management is likely to resort to centralised decision making
management thinker/writer 2 charles Handy
stresses the need for innovation and flexibility but emphasises the human side of the og and advocates a far softer role for the competition promotes OG as places where people would like to work as well as being competitive firms greater understanding of organisational behavior Tribes (corporte culture) and gods of corporate world ( attributes of individuals) : employees identify what tyoe of person they are and seek organisation that complement their talent
Ralph Davis and rational planning
structure was the logical outcome of the organisation objectivrs, a firm's primary objective is economic servic. has to provide economic value. management plans the og objectives which defines at the same time the dev of the structure, the flow of authority and other relationships.
virtual organisation
subcontracts many of the tasks that were previously undertaken inhouse compromises network of smaller organisations each contributing to a part of the production process boundaries are often fuzzy, supply chain management is key
problems of the stakeholder approach
the separation of the strategic constituencies from the external environment is very hard to do ( how to separate the strategic constituencies from the almost strategic constituencies, where do you draw the line? ) identfying the expectations that the constituencies hold for the og is difficult constituencies often have contradictory and unpredictable demands. the assumption thay an og basic goal is to survive might be wrong, og are often established to be sold at some point and sometimes have to merge.
size and vertical differentiation
the size has a significant influence on vertical differentiation that is the number of layers of management between the lowest level employees and the top management team you would expect a positive relationship but the effect is still unclear
the greatly exaggerated death of bureaucracy
they are still everywhere, specialization of labour is still a fundamental law in bs=usinesses, mass production, formalisation ensured by regulations and hierarchy is still present
organisation size
total nbr of employees within a certain organisation
1900-1930: classical theorists
tried to identify universal principles and management techniques, desire to reduce costs of production so one of their main aims was to improve the productive efficiency of organisations. suggests that the ideal organisation is a closed system and it can be seen as rational with predictible outcome. tried to optimize production processes through analysis and scientific methods
gender in OG
women object their exclusion from management teams feminist studies focus on analysis of language and case studies
4 most important contributors to understanding the role of technology in organisation, linking technology to aspects of the organisational structure
woodward perrow thompson galbraith
problem of silos
-another compromise that comes up is between creating clearly defined departments whilst promoting cross-organisational communication: the problem of silos. to solve this issue, coordinators are created for liaison between departments and rewards are focused on group rather than individual effort. management would like to maintain close control over the OG but this is not possible in most cases which is why they have to make compromises. - dependent on other parts
the functions of structure
. Implement strategy (= an organisation's goals and the courses of action and the allocation of resources necessary for it to achieve them) · Define areas of responsibility (can be identified in the organisational chart; performance and resources are evaluated/allocated based on responsibility areas) · Provide control mechanisms (maintains the unity of purpose of the organisation; helps to give direction, prioritize important tasks, and increase decision-making efficiency) · Facilitate the flow of production (through creating organisational forms, promoting efficiency and using the latest technologies; increases competitiveness) · Promote coordination and information flows (the structure must facilitate the necessary information flows to support the flow of production) · Monitor and respond to environmental change (all organisations need to build within their structure the capacity to monitor environmental change and to respond appropriately to them) · Maintain and promote organisational knowledge (structure determines the way specialised tasks within the organisation are coordinated and brought together and information and knowledge distributed)
2 different underlying dimensions in the evolution of organizational theory
1. 1st dimensions reflects the fact that organizations are systems (open VS closed systems) 2. 2nd dimension: deals with the ends of organizational structure: rational/ strategic perspective = structure is a vehicle for effectively achieving objectives; the social perspective: the structure is the result of conflicting interests of the og constituents who want power and control
Realities of power in different aspects
1. Classical OG theorists ignored power issues by concentrating on the scientific structuring of jobs and they had the implicit assumption that all power should reside with the management of the OG 2. the behavioural theorists thought that power issues could be bypassed by creating more people friendly OG and by dev power to wrk grps and other structures lower in their OG 3. The contingency theorists did not take power into account
rANGE OF FORMALISATION
1. can vary between and within organisation 2. the greater the professionalization of a job, the less likely it is to be formalised 3. formalisation differs with the level of the employee or manager and the work of their department 4. the kind of work in which people are engage influences the degree of formalisation
Major source of Change in government policy
1. deregulation and privatization (less tarrifs...) 2. promotion of competition (bc of globalization) 3. growth of globalization (thanks to government policies) 4. introduction of technological innovations (faster communication and more information) 5. demands for profitability (shareholders, if not happy they can sell) 6. commodification of markets (difficult to differentiate products, lead to pricing wars, best to have the lowest costs) 7. end of the public service mentality (governments started charging people for services which have been free) 8. changes in the expectations and society values (more women and disabled and diversity)
Weber 7 principles which when applied would lead to rational and efficient operations
1. division of labour o rob specialization, simple well defined tasks 2. well defined authority hierchy, multi level formal strcuture 3. high formalisation, uniformity 4. impersonal nature 5. employment decisions based on merit, performance, qualifications and competence 6. career tracks for employees, expected to stay in OG; commitment in return for tenure 7. distinct seperation of members personal lives and organisational lives
the 14 principles of organisation (Fayol)
1. division of work (specialization, Smith) 2. authority: this allows a manager to give orders, in order to be effective authority=responsability 3. discipline: employees need to obey and understand the rules of the organisation 4. unity of direction: each group of activities that have the same objective should be directed by one manager and one plan 5. subordination of individual interests: the interests of the og as a whole are more important individual interests 6. remuneration: workers must be pid a fair wage 7. centralisation: the degree to which subordinates are involved in decision-making, find optimal degree 8. scalar chain: the line of authority from top management to the lower ranks: communication should follow these lines, cross-communication only allowed if supervisors know about it. 9. order: people and materials should be in the right place at the right time 10. equity: managers should be kind and fair 11. stability of tenure of personnel: high turnover is inefficient 12. initiative: employees who are allowed to be creative will exert more effort 13. esprit de corps: team spirit 14. unity of command: receive orders only from only one supervisor.
downsides of bureaucracy
1. goal displacement 2. inappropriate application of rules and regulations: hard to respond to change and not flexible 3. employee alienation, distance between self and work 4. concentration of power in seniors 5. inability to adapt to change, too stable and established practices 6. overstaffing 7. tendancy towards large size and low productivity, espacially large admin component = low productvity 8. non member frustration 9. less flexibilty
4 questions facing any organization in the BSA
1. how important financial providers perceive us? (financial perspective) 2. how do customers see us? (customer perspective) 3. what must we excel at? process driven (internal perspective) 4. can we continue to improve and create value? (innovation and learning perspective)
why many organisations use job spécialisation?
1. in highly complex organisation not a single person can perfirm all required tasks, phisical limit 2. limitations of knowledge acts as constraints , more skills are required more specialised 3. to have highly trained workers do tasks requiring lower level skills is a waste to the organisation, workers work on what they are good at 4. special knowledge may be required in order to respond to local conditions or the needs of particular groups of customers 5. is is mainly used for efficiency: simplify training, skills increase through repetition and concentration As specialisation increases, so does complexity bc requires most sophisticated and expensive methods of coordination and control
3 types of technologies (Thompson)
1. long-linked technology: fixed sequence of connected steps, sequentially interdependent, need coordination (mass production) 2. mediating technology: process of linking together different clients in need of each other's services: pooled interdependence (banks) dercrease uncertainity by increasing the nbr of clients 3. intensive technologies: utilisation of a wide range of customised responses, depending on the nature and variety of the problems, reciprocal interdependence ( hospitalism, treatment isnt preprogrammed but the skills are)
5 parts to any organisation, common elements in organization
1. operating core: employees who perform the basic work related to the products and services 2. strategic apex: top level managers who are charge with the overall responsibility for the organisation 3. middle line: managers who connect the operating core to the strategic apex 4. the technostructure: analysts who have the responsibility for developing programs, procedures and rules which standardise work 5. support staff: provide indirect support for the organisation
main coordination devices
1. programmed coordination: common management techniques such as planning, goal setting, scheduling, developing various types of standard operating procedures, techniques to cope with familiar/ anticipated situations 2. individual coordination: involves the appointment of a person whose main task is to coordinate the work of others 3. informal coordination: mutual adjustment, voluntary action of those who need to cooperate with others, not possible to anticipate
configurations
5 categories which are complex clustering of elements that are internally cohesive and where the presence of some elements suggests the reliable occurrence of others each organisation has unique structure but grouped according to characteristics
7 major organizational design strategies that can be associated with different capabilities to process information
1. rules and programs 2. hierarchical referral 3.goal setting 4. if 1 to 3 not effective use 4 to 7 : creation of slack resources 5. creation of self contained tasks, reduce complexity. 4 and 5 reduce the need for information processing 6. Investment in vertical information systems: computers 7. creation of lateral relations: group., teams. project manager position 6 and 7 increase the capacity to process information --> Might have different ones present in different parts of the og
contribution of organisation units, most important contribution and conclusions
1. the recognition of the existence of multiple specific environments, all with different degress of uncertainty 2. an organisation subunit is successful if it meets the demands of its corresponding sub-environments 3. the degree of environment uncertainty is of very high importance when selecting the rigth structure for the organisation. more complex=more differentiation 4. right balance between differentiation and integration
Douglas McGregor Theory X and Theory Y
2 vues of human beings: X is negative (employees dislike work, avoid it and have to be punished and coerced so formal direction is important) and theory Y is positive (can like work , self direction and seek responsibility, can be creative and not only the managers) He says managers should follow theory Y assumptions
Organisational effectiveness criteria
3o criteria: overall effectiveness, productivity, efficiency, profit, quality, accidents, growth, abstenteeism, turnover, job satisfaction, motivation, morale, control, conflict/cohesion, flexibilty/adaption, planning and goal setting, goal consensus, internalisation of organisational goals, role and norm congruence, managerial interpersonal skills, managerial tasks skills, information management and communication, readiness, utlisation of environemetn, evaluations by external entities, stability, value of human resources, participation and shared influence, training and development emphasis, achievement emphasis some are conradictory
Impact on structure : The case for technology and OG size
Both important, established patterns OG size = nbr of enployees Beginning of big tech change
Critical theory and postmodernism
CT: OGs = were arenas of exploitation and marginalization, so they introduced a new concept of progress rather than mechanisms of production PM: wants to progress from the ideas of modernism, wants to redefine equality, reinviting power RS and reducing the role of science in relation to symbolism, more a philosophy than an actual disciplinary approach, rejects the modern world based in selective assessment of what it considers disadvantageous but hasn't formulated what is better OG theory is prominent in critical and postmodernism bc OG are more powerful than individuals, have hierchies reduce equality, consume lots of resources, major influence in shaping society For then exploitation and marginalization and existing order needs to be destroyed before establishing a new one
IT and impact on middle manager
IT had replaced the manages who were primarily information conductors and on the other hand due to this change the amount of decision middle manager can make also increased
4 types of environment (Duncan)
High uncertainty moderate to high low to moderate low
The complexity of decision making : James March and Charles Lindblom
James March: businesss is constraint by the problems of coordinating the flow of info, constantly changing env. and limitations in the capacity to process store and utilise information OG faced a "garbage can of choices" in which the decision making process was not closely linked to the decision being made Charles Lindblom: decision making in OG was too complex and too influenced by political considerations for rationality to prevail.
Centralisation
Keeping all of the important decision-making powers within head office or the centre of the organisation, formal authority is in an ind, unit or level so lower levels have no input into their work
Lateral arabesque (Peter principle)
Lateral arabesque is the process in which incompetent managers are moved between positions at the same level in the OG and often get longer job titles in the processes
Agency theory
Looks at relationships between people with conflicting interests and asymmetrical knowledge
OB vs organisational therory
OB examines the actions of individuals through fields of study as leadership, motivation and team work OT is concerned with organisation-wide features as culture and organisational change
assumption of the goal attainment approach
OG are deliberate, rational and goal seeking entities and goals should satisfy: the Og should have goals and they should be publicly known and clear general consensus and agreement to these goals processes used to attain these goals need to be measurable the goals should should have deadlines
assumptions of the system approach
OG are made of interrelated subparts, if one of thee parts perform poorly this will negatively affect the whole system effectiveness also requires successful interaction with environmental constituencies survival requires a steady stream of incoming resources consumed in production resources= intabgible+ tangible maintain good realtion with outside stakeholders
The balanced Scorecard Approach
OG can be very complex and confusing technology has played a large role in the complexity of companies env. are constantly changing demands on the og are always present in the short term, even the management team might not be able to tell whether the company is performing well so bc of this complexity it is good for the OG to be able to concentrate its energy on a few, easy measures that are simple to achieve while integrating the 3 other approaches ( ends, means, processes)
Organisational economics
OG can mediate exchange between members more easily cheaply than markets do bc transaction costs when determining the scale, scope and price of a task
1950 to 1970?: the unmanageable organisation and decision making
OG still acted as closed systems and administration became more complex bureaucracies and decision making became difficult So were concerned in improving manageability and decision making processes : 2 fundamental approaches: 1. Populist approches (use humor and mockery to draw the readers attention) 2. Academic approaches(seek specific underlying themes which lack general appeal and require more knowledge to interpret)
Herbert Simon and the principles of backlash
OG theory needed to go beyond oversimplified principles bc most classical principals contradicted each other and need to go behind superficial and over simplification
1980- present : symbolic interpretive perspectives
OG: social construct, it members define the OG, how participants interpret language and symbols, meaning to RS between people and how they influence the interactions between people Sense of meaning and belonging
Chester Barnard and cooperative systems
OG=coopérative systems made up of tasks and people, managers need to organize around the requirements of tasks and need of the people. For him the authority doesn't flow from up to down but the response of subordinate determines the authority: introduce informal organisation : manager roles were to facilitate communication and stimulate workers
in search of excellence
Peters and Waterman: Organisational culture had a significant impact on effectiveness
Enactment
Process where stuctures and processes take form through the actions of individuals
March and Simons cognitive limits to rationality
Recognizes the limits of rationality and acknowledge the presence of conflicting interests Theories like critical theory and postmodernism emerged
1980 to present- paradigm proliferation
Refers to the emergence of a number of frameworks to use when analyzing organisations, applied research for cause and effect Theories written for specialized academic audience Philosophy was also involved to create a more theoretical approach : many theories were incapable of empirical testing Must bear in mind the influence of the researchers political orientation, political nature of an og: lots of variation
Warren Bennis and death of bureaucracy
Replaced centralisés decision making and impersonal submission to authority and narrow division of labour by decentralized and democratic structures organisés around flexible groups : flexible adhocracies are the ideal og form.
the most popular and appropriate governance structure
SH elect the board of directors which in turn appoints a manager for the company, this top manager sits on the board and is the chief executive officer. an number of senior managers als sit on the board= executive directors. the other on the board: independent directors as they come from outside the company and represnet SH interests the chair of the board of the company is selected from the independent directors. once the board has determined the main challenge the chief executive builds its own management team. the board then adopts an oversight role, approving major capital expenditures, monitoring processes against the company's plans and goals. they also aprove or modify proposals brought to them by the chief executive. they are not involved in day to day management.
SUMMARY of Divisional Structure
Specialisation HIGH Formalisation HIGH WITHIN DIVISIONS Centralisation LIMITED DECENTRALISATION Environment SIMPLE AND STABLE General structural classification MECHANISTIC
SUMMARY of Professional Bureaucracy
Specialisation HIGH Formalisation LOW Centralisation LOW Environment COMPLEX AND STABLE General structural classification MECHANISTIC
SUMMARY of Machine Bureaucracy
Specialisation HIGH FUNCTIONAL Formalisation HIGH Centralisation HIGH Environment SIMPLE AND STABLE General structural classification MECHANISTIC
SUMMARY of Adhocracy
Specialisation HIGH SOCIAL Formalisation LOW Centralisation LOW Environment COMPLEX AND DYNAMIC General structural classification ORGANIC
SUMMARY of Simple Structure
Specialisation LOW Formalisation LOW Centralisation HIGH Environment SIMPLE AND DYNAMIC General structural classification ORGANIC
1960 to 1980 : contingency study
Studies the structure of OG to determine the most appropriate structural form, the open systems perspective is used to achieve rational goals in these studies as structures depend on environmental factors The role of technology and organization size became more important in determining the appropriate structure for an OG
Organic strucure
Task definition flexible Communication lateral Formalisation low Influence expertise Control diverse
mechanistic structure
Task definition rigid Communication vertical Formalisation high Influence authority Control centralised
formalisation
The degree to which jobs and procedures within the organisation are standardised.
employee alienation
The distance an employee feels between themselves and their work. when this perceived distance increase, commitment will decrease as people will feel irrelevant
Impact on structure : Miles and Snow and the strategic imperative
The successful implementation of the chosen strategy required an appropriate organizational structure to be adopted, need for strategic imperative: OG structure should reflect the strategy the company adopts
Impact on structure: Katz and Kahn's environmental perspective
Their book : social psychology of organization And provided the advantages of an open systems perspective and the need for OG to adapt to changing environment, see which structure is best for which environment
The Tavistock Institute and sociotechnicam systems
Work was very tedious and lacked opportunity for advancement. So STS were an approach to organizing (to make work more interesting and challenging) by improving the quality of working life Promoted principles by which jobs should be designed (reducing short and repetitive cycle work and increase work involvement) OG are still regarded as closed systems but they stress the social aspects of the systems
Parkinson's laws
Work expands to fill the time available for its completion (work contract are a specific length for a reason) In meeting time spent on any item on an agenda is in inverse proportion to its importance
strengths of machine bureaucracy
ability to perform standardized activities in highly efficient manner minimisation of duplication of personnel and equipment no need for talented people which are more expansice lower costs of production bc standard rules can be a replacement for good managers, no need to innovate
strengths of adhocracy
ability to respond rapidly to change and innovation facilitation of the coordination of diverse specialists good for complex, technical tasks (non-programmed) speed and flexibility
capacity
ability to support growth
Herbert Simon - satisficing
accept the first adequate alternative rather than attempting to develop an optimal solution because not enough time, political influence ... the assumption of rationality in decision making was misplaced Administrative man: describe anyone content to adopt a course of action that is good enough Impossible to process all info so the admin. Man strives for sufficient solutions.
bureaupathic behavior
adherence to rules and regulations by individuals to protect themselves from making errors, happends when rules are too strict unadaptive and unimaginative thinking
professional bureaucracy
allows professional staff to use their experience and expertise to solve complex but well defined problems makes use of decentralisation and internalised standards instead of external formalisation defined by highly skilled professional, high complexity, decentralisation and the use of internalised professional standards tackle unique problems many of them exists as partnerships where all partners are equal can have managing partner operating core dominant complex and stable
when should we use adhocracy
associated with strategies of diversity, change, complexity and/or high risk constant change unique solutions temporary organisation
assumptions of strategic constituencies approach
assumes og to exist within an env. where various important groups pressure on the organisation, as the company tries to please those groups or constituencies, it becomes a political arena in which different interests compete for control over managers set goals that represent the interst of teh consittuencies that control resources necessary to survive
the goal attainment approach
based on audience, explain existence of organisation not indications of purpose effectivenss is judged by whether it has achieved its goals, focuses on the ends while downplaying the means of getting there (profit, quality outcome..)
overstaffing and tendency towards large size and low productivity
bureaucracies are often too big and too expensive ro run too many people are doing too many unnecessary things and there are usually enormous resistance to changing that
Effectiveness of the Organization
can be efficient but not effective, hard to see effective but not efficient company all business functions make OG more effective an appropirate OG determines to a large extent whether an GO is effective but hard to define
strength of professional bureaucracy
can perform specialized tasks with the same relative efficiency as machine bureaucracy professionals need autonomy to do their job efficiently operating core dominant
dynamic ennvirment
change fast
never mind
check Louis quizzlet for chapter 9 (ask for it if you want it)
third landmark contribution: Duncans complexity and change framework
classfied environments along 2 dimensions: the first one is the rate of change of the environments, can be static or dynamic and the second one is environmental complexity duncan doesnt see environment as uniform
size and centralisation
common sense would say that they are inversely related but research find mixed findings as size grows, specialisation, formalisation and vertical span increased but at a declining rate whereas centralisation tended to decrease at a declining rate as well
environmental complexityy
complex VS simple the greater number of elements there are in an environment, the more complex the environment complex: decentralization and coordination (based on perception)
High uncertainty environment (Duncan)
complex and dynamic large number of unpredictable elements structural elements: decentralized, organic structure, many different departments, extensive use of boundary spanners, extensive integration mechanisms and use of coordination and liaison roles extensive planning and forecasting ex: telecommunication companies, aerospace
Organization Structure Dimensions
complexity, formalization, centralisation and some basic organisational configurations, when changes are made to an organisations structure it is called : restructuring.
divisional structure defintion
decision making is decentralized product diversity and spatial dispersion are often high characterized by a set of self-contained autonomous units coordinated by central headquarters middle management is dominant costs increases and efficiency decreases
organisational effectiveness: no operational definition
def. depends on a lot of dimensions, formerly: was defined as whether a firm achieved its goals or not (goal attainment approach) but goals can differ between employees and managers... survival approach: hard to see when an OG really dies bc can also remake, merge, reorganise themselves.. so what does it say about their effectiveness? bc some og survive long periods but nor effective, survival and cooperate death: difficult concept
organisational effectiveness
degree to which an OG attains its short ends and long term means goals, the selection of which reflects strategic consituencies, the self interest of the evaluator and the life stage of the organisation
environmental complexity
degree to which environment is concentrated on a few elements and elements are related
manager concept
developed when modern industrial firms started to rise. before that managerial tasks were seen as by-product of certain positions
uncertainty
difference between the amount needed and the amount that you have
small OG
different issues than medium and large organisation their managers have a more limited set of structural options bc smaller size so fewer resources are available to the OG organisation reflects the owner's personality
problems with the goal attainment approach
different stakeholders might have different goals key decision makers are hard to determine share holders want fast returns but mangement want long term relationship goals can be influenced by standards of social desirability are the og stated goals really its goals? when is a goal really achieved? (sustainability=subjective) goals should be classified on their importance but how is that decided? especially when goals are incompatible
solutions to large OG
divisionalization (dividing the company into manageable parts) so easier to identify costs and revenues, less communication needed decentralisation : decisions closer to the problem Outsourcing so less staff structuring to facilitate change allocating responsibilities physically separating different areas of work: apply adequate management styles procedures to reduce complexity manage best wehn they divide themselves into smaller units formal mechanisms to promote adaptation to change are also necessary for large organisation
IT and influence on structure
doesn't have a direct impact but tends to moderate other variables, it facilitated both centralisation and decentralisation and both an increase and decrease in the number of middle managers facilitates an increase and decrease in OG size and a concentration and dispersion of operations more widely used by those who are involved in routine data processing and design work and less by those who are involved in conceptual work supports communities of practice and communication technology have the ability to bring widely dispersed practitioners who are active in the same field into closer contact
weakness of the divisional structure
duplication of activities and resources cooperation can be difficult autonomy of divisions breed resentment between the division managers there could be competition between the products of the same company
high formalisation
easier to predict behavior, clear job description, organisation rules, procedures...more regulated behaviour of employees formalisation is inversly related to the level in an organisation : if higher in the hierarchy, perform less repetitive tasks
large scale subcontracting
economic and behavioral, specialists subcontracts have grater knowledge and expertise, fixed costs are reduced and costs can be reduced as the company are only connected by temporary contracts.
The Peter principle
every employee within a hierarchy tends to rise to his or her level of incompetence Because if lifetime employment managers would be promoted until incompetent
environment
everything outside the organisations boundaries, generic environement
static environments
evolve slowly over time stable: centralize and formalization
stability
extent of unpredictable change in the environment
strengths of the simple structure
fast decision making, flexible operations, little maintenance costs, clear accountability (bc lack of layers) unambiguous goals, easy to see how you contribute low complexity so get info fast
Problems with the systems approach
focus on effectiveness of means rather than OG effectiveness the 2 major drawbacks of the systems approach are realted to the measurement and to the question of whether the means really matte some ratios may be easy to measure but other things that are relevant to the effectiveness such as quality of management and the rate of innovation are not. second issue: related to the emphasis on the means rather than the ends, makes little sense to be a very efficient producer of a product for which there is no demand environment changes very quickly and measurements might lose or gain importance
Woodward (initial thrust)
focus on manufacturing industries, on production technology tried to identify a link between technology and the most appropriate organizational structure 3 different categories of firm: (increasing in techno complexity) q 1. unit production ( technology where units are custom-made and work is non-routine) 2. mass production (technology where units are produced in large batches or even in masses) 3. Process production (technological process is highly controlled, standardised and continuous processing is the standard, heavy automation)
The systems approach
focuses on means, effectivenss=ability to acquire inputs, process them, channel the outputs and to maintain stability and balance in the system, focuses on the way in which goals are achieved and not whether or not they are. look at the long term survival (maintain itself, interact with environment, acquire resources)
strengths of divisional structure
focuses on results-division managers are responsible for what happens to their products and services clear accountability for the performance of each division focus on outcomes, not processes head office is free from day to day operating details so can focus on long-term each division is autonomous, it can be sold or disposed of with minimal effect on the entire OG good to train middle managers spreads risks ( one bad decision doesn't affect everything)
Elton Mayo and the Hawthorne studies:
focusses on the human aspects of the job and discovered the observers effect: behave differently if you are watched. had to include the effects on work groups, employee attitudes and relationships. ( by studying the effects of level of lighting on productivity he found that social norms of group is a key determinant of work behavior)
Frederick Taylor and Scientific Management
for him there's one best way of doing business which could increase productivity: 4 principles of scientific management: 1. using scientific determination to determine each element of a job 2. the scientific selection and training of workers 3. the cooperation of management and workers to accomplish objectives 4. a more equal division of responsability between managers and workers with managers planning and supervising and workers doing the execution
information technology
generic term covering the application of computerised information-processing techniques to organizational operations
Problems with large size organization
growth of bureaucracy turning information into knowledge bc lots of data to deal with adapting to changing technologies long time frames for action or feedback need for accurate costing information managing over a wide geographic area, cultures, local conditions... bounded rationality
machine bureaucracy defintion
handles complexity well as it allows formalisation the standardisation of processes and practices and is highly centralised technostructure is dominant
fact random
hard to isolate technology, thus seeing it causes structure: sector and size may influence the bIgger the size the less impact of technology bc differentiate operations into smaller units
The behaviouralists 1930-1960
human relation school motivations and actions of the employees' impacts effectiveness: recognize the social nature Humanists proposed classifications which advanced the understanding of workplace behavior OG are far from being rational and predictable and the point of inquiry should move from a management perspective to a lower level employee perspective
Henry Fayol and principles of organisation
identifies the functions that a manager should perform: he didnt focus on the lowest level of organization like taylor, he developed general principles applicable to all levels of management.
How to put into practice the BSA?
identify just a few goals of each of the 4 perspectives, the measures developed for each goal should be easy to understand and contribute to the process of determining whether the goal has been achieved or not BSA: performance in several areas at the same time and how results were achieved
formalisation and size
if formalisation increases so does the size: as more people are hired, tasks are split up between employees to benefit from the advantages of specialisation and in order to do this formalisation is increased
Problems of BSA
if what is being measured is not very important, the utility of the approach may be limited ideally, top management and major stakeholders would be involved in the process of identifying the goals but its often a subjective process influenced by political agendas the importance of certain aspects changes over time, relevance of the balanced scorecard will decrease as a result the BSA assumes a steady state with too benign view of the environment worst case scenarios which companies often have buffers to survive are not taken into consideration, long term survival depends on it
The effect of information technology on vertical differentiation
impact on the span of control and the extent of vertical differentiation in organizations the use of computers has removed the need for large number of managers who acted as communication channels computers combined with high level of education in the workforce has allowed many tasks to be undertaken by the workers themselves and not by the management more responsibilities at lower levels and more informations
the middle management
implements the plans of top management and turn business plans into reality, closer to the workforce, communication channel, filter information for theri won political benefits, the lowest level of management=day to day decisions,
boundary spanners
in manufacturing people who interact with customers ( ex. automotive industry) so client dont interrupt the production process
Max Weber and Bureaucracy
in order to fight arbitrariness and favoritism and make organisation fairer: ideal type og structure: division of labour, clear authority hierachy, high formalisation, detailed rules and regulations and impersonal relationships. most efficient
issues of goal attainment approach can be reduced by:
include all stakeholders when identifying the goals, including goals on the basis of behaviour of organisation members, increase realignement of counterpart goals (decrease incompatible goals), seperate short term from the long term goals, set practical and feasible goals (measurable, verifiable) and goals are dyanmic and changebale rahter than fixed
reasons leading to downsizing
increased competition computerisation and automation technological obsolescence declinning profitability snd return on assets changing roles of middke management limitation of size advantages (less can be more) changes in strategy (less diverse, less managers, reduce bc no core skills) changes in structure, less head office rise of outsourcing: easier and cheaper bc specialist no always bc of crisis or overstaffing: change in governemnt policy, lower tariffs, low growth rate less people needed because of technology downsizing decisions are made by external consultants and might not be always appropriate
management thinker/writer 3 Ricardo Semler
industrialist who turned much of the management practices over to his employees, they could determine their pay, hours, responsibilities... many of decision making tasks can be undertaken at lower lecel workforce divided in teams of 10 or less many subcintractors
(structural innovation common in the OG ) market controls
instead of traditional hierarchal control ion which a manger subjectively assess performance, performance is measured by referencing profit or loss of an acitivity compared to its budget. parts of the organisation are thus controlled by reference to markets, focus on environement responsiveness and serving customers.
Advantages of BSA
involves several people, promote collective ownership of goals it brings together in a single report many areas of importance to an organisations competitiveness, looks at short term AND long term goals it forces the management to consider all important operational issues together puts into perspective the use of financial measures as a means of information to managers : solves the problem of only using financial measrues as backward-looking ( cant measure everything with money) BSA are also used in non-profit sectors
technological imperative p.29
is best supported by job-level research and is most likely to apply to only small organisations and to those structural arrangements at or near operating core bc its the part that is influenced mostly by the tech. the company uses
A criticism of Taylorism was that _________.
it treated employees as parts of a machine, the deskilling of work took away much of their pride, independence of workers decreased and management gained more power, shift of power from worker to managers, higher centralization
domain of an organisation
its niche that is has staked out for itself with respect to products or services offered and markets served the domain will determine what the specific environment of the organisation is
IT and costs
less rent costs bc now dont have to be physically present mire decentralized and have more lateral information to make even more decisions
social contract (structural innovation common in the OG )
lifetime employment was in bureaucracies now not the case anymore, downsizing, merging and bankruptcy happening more instead its about lifetime employabilitiy, employees have to keep their skilld and knowledge up to date so that other employement can be sought if the need arises
boundary spanners (structural innovation common in the OG )
links organisation and environment, individuals who have the task of keeping track of the env. identify environemental changes and represent the OG
resulting benefits of downsizing
lowered overheads (need to reduce costs) so better competitive position less bureaucracy faster decision-making, few people smoother communications (fewer employees and barriers) greater entrepreneurship (more decentralisation, more innovation) increased productivity
bureaucracy revised
machine bureaucracy is similar to Max Weber one but some elements have changed and innovation has taken place in these fields : responding to market needs, improving decision-making, facilitating communication flows, focusing on customers and using technology to lower costs.
When should I use machine bureaucracy
most efficient when matched with large size, a stable environment and a technology that permits the routine work mass production predictable, formalized procedures if managing complex is inefficient then better to divide into units
management thinker/writer 4 Micheal Hammer
most prominent supporters of re-engineering, seeks to arrange the organisational strucutre, builds the organisational structure around multidisciplinary processes, series of self contained tasks focused on role specialization
Task uncertainty (Galbraith)
need to process info= main definition of structure the structure of an OG depended on the extent to which it had process information need to process information derived from the degree of task uncertainty: if it is greater then the amount of info is also greater An og would adopt a structure that allows to process information in a way conform to its needs and at an acceptable level of organizational performance
how to put in practice the strategic constituencies approach
needs to identify and keep close track of the most important consituencies of any og, constantly changing, and the og must respond accordingly very large og with multiple env. will need to conduct a more formal review of their env. and the relative importance of each player, ask management then combine in 1 list goal and system complement each other. respond innovatively to environmental pressures. the company looks at each constituency and hwo much they depend on it need to identify the expectations that the identified constituencies hold for the OG the og effectiveness is assessed in terms of its ability to satisfy these goals
is bureaucracy dead? + definition
no max weber was the one who introduced the term he was interested in how to manage large industrial organizations. separation of ownership and management
concentration of power
not necessarily a downside but can hinder social trends to equalise power among employees in og Bureaucracy generates an enormeous degree of power in the hands of a very few
Horizontal differentiation
occupational grouping considers the degree to which jobs differ based on the nature of the tasks in the organization the larger number of different occupations within an organization that requires specialized knowledge and skills, the more complex the OG. this is because of diverse skills and orientations make it more difficult for employees to communicate and managers to coordinate, job specialization reinforces differences between people.
Simple structure definition
often adopted by small businesses or go in their phases highly centralised, with low formalisation but with little ability to handle high complexity strategic apex dominant
emerging organisational innovations
og that tend to specialise in a small number of things, emphasize teamwork, promote coordination and form networks of suppliers and distributors lots of structural innovations are common in these new organisations.
specific environment
part of the environment that is most relevant to the organisation as opposed to the general environment which involves the conditions that potentially have an impact of the organisation its directly relevant for goals, unique for each organisation
drawbacks to the definition of organisation size
part time or holiday season workers can distort the result no distinction between different industries size is not = to efficiency
downsizing
planned elimination of jobs or positions usually bc of technology can save a oG from bankruptcy increase effiency but rarely reach the goal they set themsleves at the beginning of the downsizing process attempt in making a nimbler and more resonsive organisation
corporate governance
private companies can do whatever as long its legal. system of rules, practices and processes by which a company is directed and controlled, how a compagny should be managed. the style of management must be congruent with the needs of the organisation and the risks that it faces.
coordiation
process of integrating the objective and activities of the seperate units of an organisation in order to achieve organisational goals efficiently where adequate coordination is absent, efficiency is lost as staff duplicate work, lose time while they are waiting for the work of others
mass production
production of items not for basic needs, somebody decided what and how to produce and provided capital equipment out of mass production departments were formed (accounting, research and dev...) which improved flows of information and innovation people started to work for wages and not self employed anymore low skill assembly workers
other industrial innovations in the 19th century
railways ( posed lots of challenges in construction and equipements, timetables and schedules were introduced and a workforce culture to reinforce strict timekeeping) and mass production
Reasosns for decentralization
reduce the probability of information overload, quick response to new info quicker response to changing conditions more detail input on the decision some decision requires the input of many different specialists can act as a motivator to employees by allowing them to participate in the decision-making process creates training opportunities for lower-level managers
management thinker/writer 5 Jack Welch
reduced the tardiness of bureaucratic practices by reducing the numbers of layers of management and decreasing the nbr of employees, leads to increase in productivity decentralized decision-making to make sure decisions were made with the customer in mind and pointed out that the quality of management was a company's most valuable asset.
Why is formalisation important ?
reduces variability, manages risks and less thinking for the employee so economic benefits bc the empoyers can pay less
Complexity
refers to the degree of differentiation that exists within an OG that is how many different parts of the organisation exist
vertical differentiation
refers to the depth of an organization and is measured by the number of layers of management between the lowest-level employees and the chief executive the more layers there is the harder it is to coordinate the decisions and it creates administrative bottlenecks
technological imperative p.29
refers to the idea that once a technology becomes available, it becomes difficult to avoid using it
technology definition
refers to the information, equipment, techniques and processes that transform inputs into outputs physical and mental its applicable to all kind of organization but technology becomes hard to measure, no generalized universal way of measuring it but some has been developed such as extent of automation or interdependence, but depending on which youuse you get different result for the same OG
structural compromises
restructuring to respond to changing environmental aspects can be very hard, even with a matrix its implementation is confusing and creates management problems. and another compromise that comes up is between creating clearly defined departments whilst promoting cross-organisational communication: the problem of silos. to solve this issue, coordinators are created for liaison between departments and rewards are focused on group rather than individual effort. management would like to maintain close control over the OG but this is not possible in most cases which is why they have to make compromises.
the balance scorecard approach BSA
seeks to balance the various demands on the OG with its capabilities, suggest a framework in which the key goals that are necessary for the og to survive are identified and measured it is "balanced" bc the measures are aimed at identifying areas where unfrotunate compromises have been made, the most important goal of this approach is to ensure that areas that are imporatnt to the OG are accommodated within decision making align og with env. and measuremetn system to check on goals
formalisation techniques
selection process of employees: can they fit the job? role requirements rules, procedures and policies: steps, no room to think and guidelines+constraints. socialisation: adaptation process by which individuals learn the values, norms and expected behaviour patterns for the job and the organisation training: learn preferred behaviour and attitudes: reduces variability in behaviour rituals: processes by which members prove their trustworthiness
The stakeholder approach
similar to strategic consultancy one: instead of only the constituencies it recognizes the importance of all stakeholders even those without political power bc they are still impacted by an og decision
Moderate to high uncertainty (Duncan)
simple and dynamic few environmental elements but each element changes often and unpredictability structural elements: decentralised with an emphasis on teamwork, constant environemental monitoring with boundary spanners high levels of coordination in order to promote imitation and innovation production facilities often mechnistic ex: fashion, music industry, computer games
facts (Lol sorry)
some organisations are much more dependent on their environment than others research suggets that a dynamic environment has much more influence on structure than a static environment does when operating in a dynamic environment, firms differentiate themselves into parts based on the needs of each environmental segment. high environemtal uncertainty tends to lead to higher complexity in the organisation structure an organiation that deals with volatile environment typically monitors this environment by creating specialist units facing each environmental segment. stable environment lead to high formalisation as they create a minimal need for rapif response, and they profit from economies of scale that standardise their activities. the more complex the environment, the more decentralised the structure. it is difficult for a single management team to understand a highly complex environment. their information processing capacity become overloaded, and as a solution. decisions are divided into subsets and are delegated to others. this creates the opportunity to respond differently to different sub-environment. on the other hand, if the environment is extremly hostile, this leads an organisation, at least temporarily, to centralise its structure. top management oversees decision-making direclty to ensure it responds coherently, consistently and quickly.
the size imperative
some says that size is a big determinant of structure bc some structures are not compatible with size stand for its causal nature: the structure is determined by size but others have challenged these findings mostly on methodological grounds: the relationship could work the other way around, size could be a consequence of structure instead
how to put in practice of the system approach
systems dont neglect goals, question appropriateness of goals selected and measures for assessing progress it looks at factors such as the ability to ensure continuous reception of inputs into the system, and the distribution of products and services, the flexibility of the og and efficiency of turning inputs into outputs these measures may be benchmarked against the industry or other specefic and competitors OG engaged in similar activities important relationships can be converted into ratios to measure organisational effectiveness (output/input, transformation/output..) another way to measure performance is the added value approach (difference between final products and the absorbed inputs) : the higher added value the better the performance ( John Kay)
weaknesses of adhocracy
tendency for social stress and psychological tension between members as some employees are not capable to deal with such hectic and unstable environemnt can be inefficient
weakness of professional bureaucracy
tendency for subunit conflicts to develop bc pursue own narrow objectives specialists are constrained by the rules of their profession hard to adapt to change
the organisation and environmental uncertainty
the 3 studies can be grouped into 3 dimensions of environments: capacity (abundant/scarce) volatitlity (stable/dynamic) complexity (simple/complex)
IT and impact of communication technologies
the amount of people we can communicate with has increased, it also has the effect on flattening the organisation, facilitating the wider geographic spread, decreasing costs of communication and faciliating communications between organisations q
environment an structure
the appropriate structure reduces environmental uncertainity each og faces different degrees of envirnmental uncertainty
spatial dispersion
the degree to which jobs are dispersed geographically(some in asia and the others in europe) the more dispersed the og units are the bigger the difficulties are that areas like communication, coordination and control a high level of spatial dispersion leads to greater amounts of time and effort managing differences in time zones, env, behavioural patterns... harder problem solving
goal displacement
the displacement of organizational goals by subunit or personal goals. because rules and standard procedures are so important they become objective rather than the emds they were designed to serve, thus incorrectly becoming employees priority. the level of acceptable performance is standardised and people thus only do the bare minimu,
size and effect on structure
the effect of the size of an OG on its structure dimishes as organisations become larger
Woodward's findings
the effectiveness of the organisations was related to the fit between those 3 categories of technology and strucutre. examples: 1. the degree of vertical differentiation increases with technical complexity 2. the administrative component varied direclty with the type of technology: the more complex technology is the more administration and support staff is needed --> effectiveness depends on techno-structure fit. for each category. on technology scale (mass, process, unit) and for each structural component there was an optimal range around the median point that encompassed the positions of more effective firms: the optimal amount of technology and structure for each type of business
4 approaches to the study of organisational effectiveness
the goal attainment approach, the systems approach, the strategic constituencies approach and the balanced scorecard approach
Thompson framework
the most effective structural elements for each of the.3 technologies: 1. medium: long linked tehcnology: moderate complexity and formalisation, extensive planning low: mediating techn: low complexity and high formalisation : rules and regulations for each category of customers high: intensive tech: high complexity and low formalisation, mutual adjustement
burns and stalker argument
the most effective structure is one that adjusts to the requirements of the environment which means an og structure should be mechanistic in a stable, certain environment and if the environment is turbulent the OG structure should be organic, the organizations cannot simply pick one structure that will suit them best under different circumstances, different structures are required and an organization needs to keep track of its environment to respond accordingly
span of control
the number of subordinates that a manager can supervise effectively, the smaller it is the taller the organisation
effects of downsizing
the surving employees do not feel safe anymore, become narrow minded, self absorbed and risk averse the skills of those remaining in organisation may not be able to replace those who have been dispensed with if the company wants to grow or bring new product have to employ again no resources allocated to prepare for the future so can be more expansive at the end.
Social construction of reality
the use of background assumptions and life experiences to define what is real Fit the symbolic interpretive spectrum Human relationships were built through a process between people and a common interpretation of shared history and experience
1st landmark contribution to research about the environment : Burns and Stalker
they identified 2 different structures: 1. Mechanistic structures: high complexity, formalisation and centralisation; job specialization, improve processes, hierarchy, emphasis internal processes organic structures: flexible, adaptive structures with emphasis on lateral communication, non-authority based influence and loosely defined responsibilities, commitment to firm, information and advice instead of instructions and decisions
boundary spanners and managing environmental uncertainty
they represent organisation to the environment they have expertise to filter the environment and process the information into a form which is useful for the organisation, so less interruptions to work they protect the core from disruption help manage env. uncertainty: experts in understanding and interpret environmental segments
second landmark contribution: Lawrence and Lorsch
they want to align the internal environments of firms with their respective external environments they split up the organization into subunits and split the environment into corresponding units
oops its not done still more content
this is for chapter 9 about power bullshit stuff
how characteristics of the service industry have an impact on their structure?
those who provide the services come into direct contact with the customers, service providers have good interpersonal skills, the decision making has to be more decentralised than in manufacturing bc need to customize service industries tend to be smaller and more geographically dispersed
knowledge based technology (perrow)
took a broader view at technology by looking at knowledge first instead of production technology. 2 underlying dimensions of knowledge technology: 1. task variability: refers to the number of exceptions encountered in performing a task, variety-predictability continuum 2. Problem analysability: refers to the type of search procedures followed to find successful methods for adequately responding to task exceptions: from well-defined and analysable ( variety-predictability) to ill-defined and unanalysable ( intuition, prior experience) he saw technology as actions to make changes to an object
levels of management can be classified in 3 main areas
top management (responsible to create a strategy for an og ) 2. middle management (responsible for implementing plans of seniors managers, supervising lower level managers serve as a conduit for information management) 3. lower level management (concerned with the day-to-day tasks of supervising the production of goods and services)
(structural innovation common in the OG ) Adhocracies
use the features of adhocracies into traditional structures flexible, adaptable and informal forms of OG imporve communication and facilitate innovation most well know adc: matrix but the most common feature is the implementation of coorditnators.
populist ecologists
view the environmental as having a limited carrying capacity, the environment selects the organisations that are best adapted to their environment to survive. these ecologists therefore seek to identify the processes through which this selection occurs and how organisations can effectively adapt to their environments
management thinker/writer 1 : Tom Peters
want to find the most appropriate organizational form the business environment is becoming more unpredictable and competitive so need to improve communication, become more innovative and respond to environmental changes quicker advocates reduction of management layers and self-managed teams
management thinkers
want to reach mass market and not the same as academic researches they seek to make organisation more productive by using resources more effectively
boundary spanners
what links the environment with the organisation
large organisation
when additional employees have no significant effect on the structure 1500-2000 employees so large when more than 2000 high formalization, especially at low level, many managers, many buyers and high job specialization economies of scale offsets costs of a higher number of employees less risks and more capital so easier to apply uniform standards
when should we use divisional structure?
when product and market diversity is a priority, most common for large OG not too complex and not too dynamic group by: product, geo area and customer
advantagee of centralization
when under threat, some activities are carried out more effictevely when centralised (financial, strategic or legal decisions) consistent with interests of whole organisation
hierarchies VS market
whichever dominates reflects cheapest way to run markets worse than hierarchy at handling uncertainity and risk, cost of running hierarchy=lower
who's the best :PPPPP
you duh !!! keep working
