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
