3 ho basics of structure and design

8/13/2019 3 HO Basics of Structure and Design

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Basics of Structure and

DesignBusiness Organisation 2012

Robert Westwood


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Reading

Daft et al (2010) Chapter 3

n ngs, . rgan sa on. n . es woo .

Clegg (eds) Debating Organisation: Point-Counterpoint in

Organisation Studies. $p2%&'22. ford* Bla+well

-nro, R. (2003) Disorganisation. !n R. Westwood " #.

Clegg (eds) Debating Organisation: Point-Counterpoint in

Organisation Studies. $p23'2/%. ford* Bla+well


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ObjectivesAfter completing this module you should be able to:

8

Define and understand organisational structure8Appreciate and describe how structure affects processes

and behaviour

8now what type of factors help to determine and change

organisational structure8!nderstand the core elements of

organisational structure:

comple"ity# centralisation and formalisation

8now how some generic configurations of organisation are

formed

8Describe changes and trends in organisational forms and

configurations


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Organisation as $orld%&a'ing

rganisation is the +aring ot of order fro an

otherwise +haoti+, in+hoate world of fl and transien+e.

We ipose or ins+ribe order on disorder

We, literall, ae or world throgh the +onstr+tion

of order and organisation

Chia, Robert (2003a) ntolog* rganiation as 4World'-aing5. !n R.!.

Westwood and #. Clegg (eds) Debating Organization: Point-

Counterpoint in Organization Studies. $p. /'113. ford* Bla+well.

6ote the two readings also


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(ell: A )rotological Organisation

Circles of Hell in Dantes Inferno


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Defining and clarifying structure


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Organisational Structure

All organisations have to ma'e provision for the continuingactivities directed towards the achievement of aims*

Regularities in activities such as tas' allocation# supervision

and coordination are developed* +uch regularities constitute

the organisation,s structure# and the fact that these activitiescan be arranged in various ways means that organisations can

have differing structures


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Structure and Performance

An effective and appropriate structure is vital to

organisational performance and success*

Organisations need to adapt their structures asconditions change

An effective structure depends upon ma'ing the rightchoices and decisions and achieving an effectiveconfiguration


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Complexityvertical and horizontaldifferentiation, personnel ratios

Basic -lements of +tructure

Formalisation

Centralisation


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Differentiation and .ntegration

-"tent of hierarchical structure

+tructural /omple"ity

Degrees of specialisation of tas' or function

orms of departmentation

(ow much 3ob4tas' definition

-"tent and 5ature of .ntegration5ature and e"tent of interdependence betweenprocesses4units

!se of lin'ing devices


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he !xistence, !xtent an Deployment of "olicies,

"rocedures, and #ules $hich %uide, Direct and&or

ormalisation


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/entralisation

he degree to (hich formal authority to ma)ediscretionary choices is concentrated in an

individual, unit or level, thus permitting

employees minimum input into their (or)*


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he strategic choice of organisational

structure+

7 -anageent theor sggests that organisational str+tres are the

reslt of high'leel rationaldesign pro+esses, whi+h attept to best

match a parti+lar organisational str+tre to the contingencies that the

organisation fa+es.

7 Brns and #taler (1/81), for instan+e, is a +lassi+ tet in this regard,

whi+h arged that*

rganisational str+tres follow the enironent in whi+h the

operate. 9hose that operate in stable, +ertain, rotine enironents (shold)

adopt a mechanistic, or traditional brea+rati+, str+tre.

9hose that operate in nstable, n+ertain and dnai+ enironents

(shold) adopt a ore organic, fleible, flid or looser str+tre.


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A Reminder

Vertical

Structure

Horizontal

Structure

Mechanistic System

Paradigm

rgani+ #ste

$aradig

RoutineTasks

RigidCulture

Competitive

Strategy

Formal

Systems

AdaptiveCulture

EmpoweredRoles

CollaborativeStrategy

Shared

Information

Organizational Changein the service of

performance andsurvival

Stable !nvironment

!fficient "erformance

urbulent !nvironment

earning Organization

Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change

(Boston, Mass.: Harvard Business School) 2001


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+i6e of

Organisation

External contingencies and their effect on choice of

organisational structure.

More professional orcreative workers may needand want greater autonomyand discretion: tightlybureaucratic structuresmay not suit.

Complexity increases withsize (numbers ofemployees) and requiresmore formalization,

standardization andformalization: so a morebureaucratic structuremay be needed.

#tr+tre 7echnology

-nvironment

7he natureof the

wor'force

Organizations with moreroutinized technologies aremore suited to bureaucraticstructures.

Stable, certain and predictableenvironments suit simple andbureaucratic structures,turbulent environments requiremore adaptable structures

such as matrix structures.


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Organisational structure

and the shaping of the individual

Organisational structures have an immediateand direct impact on people in the organisation

Structures are constraining but also enabling

organisational structures can function in subtleways to change and shape the individuals who

.

Such that these individuals police and controlthemselves in the organisationally desired way.

McKinlay (2002), for example, provides an

excellent historical discussion of the ways thatthe a bureaucratic notion of career helped tochange bank workers in just such a way.

McKinlay, A. Dead Selves: The birth of the

modern career.Organization, 2002, 9, 595614.


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Organization Design 'lternatives9hree es indi+ators of organiation design

Re8uired wor' activities

Reporting relationships

% Functional grouping

- Divisional grouping

- Multi-focused grouping

- Horizontal grouping

- Virtual network grouping


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Departmental %rouping Options

Functional Divisional Multifocused

HorizontalGrouping

Virtual NetworkGrouping


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Functional vs* DivisionalStructure -!xample


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Functional Structure

+trengths

:llows e+onoies ofs+ales within fn+tional

$ea'nesses

#low response tie toenironental +hanges

epar en s ;nables in'depth

nowledge and silldeelopent

;nables organiations to

a++oplish fn+tionalgoals

!s best with onl one or afew prod+ts

a +ase e+ s ons opile on top, hierar+hoerload


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Divisional Structure

+trengths

#ited to fast +hange innstable enironent


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.ulti-Focused Structures

rganiing to eet needs of sers=+stoers b geograph, aret+hannel, aret segent.

-an ltinational +orporations are organied b +ontr or

aret

!t is also parti+lar +oon in large nonprofit organiations in

ters of geograph

>o+ses anagers and eploees on spe+ifi+ geographi+ regions or

aret +hannels or segents

#trengths and weanesses siilar to the standard diisional

organiation


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Matrix structure


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.atrix Structure

+trengths

:+hiees +oordination to eetdal deands

$ea'nesses

Dal athorit +ase+onfsion

e e s ar ng o an

resor+es a+ross prod+ts

#ited to +ople de+isions andnstable enironent

$roote fn+tional and prod+t

sill deelopent

Best in edi'siedorganiations with ltipleprod+ts

6eed good interpersonal sillsand etensie training

9ie +onsing

6eed +oon nderstanding

aong parti+ipants Re?ires great effort to

aintain power balan+e


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1. Restructuring and downsizing

2. Horizontal, Process & Re-engineering designs and

/ontemporary 7rends and orms

organ sa ons

High performance organisations

3. Boundarless and !irtual organisations

". #etwor$ed and %odular organisation


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/orizontal Structure

Organi6ation around core processes* ey characteristics:

' #tr+tre is +reated arond +ross'fn+tional pro+esses

' #e ' ire+te teas are t e asis o organiation esign an

perforan+e

' $ro+ess owners are responsible for entire pro+ess

' $eople on the tea are gien athorit for de+isions

' Can in+rease organiation5s fleibilit

' Cstoers drie the horiontal +orporation.' 9he +ltre prootes openness, trst and +ollaboration.


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/orizontal Structure

+trengths

$roote fleibilit and rapid

response to +hanges

$ea'nesses

Deterining +ore pro+esses

is diffi+lt and tie

>o+s on the prod+tion and

delier of ale

;a+h eploee has a broader

iew of organiation goals

$rootes a fo+s on teaworand +ollaboration

!proes ?alit of life for

eploees

+onsing

Re?ires an +hanges

9raditional anagers a

bal when the hae to gie

p power and athorit

Re?ires signifi+ant trainingof eploees

Can liit in'depth sill

deelopent


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Sample /orizontal&"rocess

Structure


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"rocess team design


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0irtual, Boundary-less or 1et(or)Structures

;tends the +on+ept ofhoriontal +oordination and+ollaboration beond thebondaries of the organiation.

9he irtal networorganiation seres as a +entralhb with +ontra+ted eperts

;nabled b new te+hnolog

@irtal in sense of a

+oni+ation networ for

@irtal in the sense of a

teporar +oales+en+e of

eleents to prse a proAe+t

sb+ontra+t ost of its aAorfn+tions to separate +opanies

Coon ariant is outsourcing


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0irtual, Boundary-less or 1et(or)Structures

+trengths

;nables organiations to

obtain talent and resor+es

$ea'nesses

-anagers do not hae

hands'on +ontrol oer anwi e wor wi e

ies a +opan iediates+ale and rea+h withot hge

inestents

;nables the organiation to

be highl fleible andresponsie to +hanging

needs

Red+es adinistratie +ost

a+tiities and eploees

Re?ires a great deal of tie

to anage relationships

Ris of organiational failre

;ploee loalt and

+orporate +ltre ight be

wea


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/ybrid Structure

rganiations often se a hbrid str+tre that+obines +hara+teristi+s of arios str+tre

approa+hes tailored to spe+ifi+ needs

ne +oon tpe is the +obination of the

fn+tional and diisional str+tres.


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Core

'

Semi-periphery

Periphery

rced

Casu

#ei'peripherse$eripher>n+tionalfleibilit

Part-time, contractedJob-sharing

Outsou

al

Sub-contractors

Agency temporaries


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Evolution of Organisational FormsProduct/Market strategy Organisation structure Core activity and control

system

1800> Single product or

serviceLocal/regional markets

Agency Personal direction and

control

1850> Limited, standardisedproduct/service line

Functional Centralised, differentiatedinto functional units,formalisation.,

markets

1900> Diversified, changingproduct/service line

National, international

Divisional Corporate policies anddivisional profit centres

1950> Standard andinnovative productsand services

Stable and changingmarkets

Matrix Temp teams and lateralallocation devices

2000> Product or servicedesign

Global, changingmarkets

Dynamic network Temporary networkstructures, shared info,

mutuality andcollaboration


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1ext opic - 2* 3ob Design and

the .eaning of $or)

Daft et al (2010) Chapter 3

#inger, . " Dal, #. (2000) 4High $erforan+e $artnering b

#elf -anaged 9eas in -anfa+tring5. Engineering

Management Journal, 12()* /'1&. EHarle Daidson Case

Gnights, D. " -+Cabe, D. (2000). Bewit+hed, bothered and

bewildered* 9he eaning and eperien+e of teaworing for

eploees in an atoobile fa+tor. uman !elations, &3(11),

11'1&1%

-orin, ;.-. (200) 49he eaning of wor in odern ties5,

paper presented at the 10th World Congress on Han

Resor+es -anageent, Rio de aneiro, Brail, :gst, 20th,

200.

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