andre 15
TRANSCRIPT
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8/4/2019 Andre 15
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2007 Prentice Hall
Organizational Behavior:An Introduction to
Your Life in Organizations
Chapter 15
Designing Effective Organizations
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2007 Prentice Hall
Preview
Who designs organizations and, in general, what dothese designers do?
What are the major factors influencing organizationaldesign?
What do managers actually design? How can you predict whether an organizational design
will be effective?
What are some unconventional approaches to
organizational design? How can you identify the fundamental organizational
types and anticipate their strengths and weaknesses?
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Who designs organizations and, ingeneral, what do these designers
do? Organizational design is the way in whichan organization divides its labor intodistinct tasks and then achieves
coordination of these tasks
Answer the question: What is the optimalcombination of organizational
characteristics to achieve organizationalgoals?
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The three historical factors thatdrive organizational design
1. Who was the founder? The founders influenceon company design and culture may last fordecades
2. What characterized organizational design
during the historic period in which the companywas founded?
3. What has been the historic size of thecompany?
An organizations history, culture, values andentrenched ways of doing things are referredto as its administrative heritage
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The three business factors(constraints) that drive
organizational design The environment in which it does business
The work that it performs
The people it employs
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What type of work does thecompany do?
Work can be characterized as programmed (sostandardized that it can be described with aformula) or nonprogrammed (work that iscreative).
Unit work: perform custom work, producingindividualized units
Mass production: produce hundreds of
thousands of identical or nearly identical items Continuous production: continues around the
clock and has to be constantly monitored
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Who are the employees?
Formal organizations require people whothrive on formality
Flexible organizations require people whothrive on change
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The theory of organizational design
Specialization is differentiating the tasksindividuals do in order to produce better work
Formalization is the means by which an
organization determines who, when and howtasks are performed
Centralization is the degree to whichorganizational members participate in decisionmaking
The factors are synergistic
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The practice of organizationaldesign
Inputs to the model are the organizationalconstraints of environment, type of work, andpeople
Output to the model is organizationaleffectiveness, usually efficiency, quality ofoutput, quality of work culture or responsiveness
Throughputs are five design variables: decisionmaking, structure, control & motivation, workdesign and organizational culture
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How synergy is reduced
If one or more design factors defy the logicof the rest of the organization
Examples:
a highly creative, energetic employee ends upin a highly programmed, scheduled job
a company emphasizes the design
characteristics suitable to a flexibleorganization while trying to compete on costand quality
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Should you adopt the contingentdesign or the fashionable design?
Contingency theory of organizationaldesign: the idea that organizations shouldbe designed to meet their unique
constraints, states that not allorganizations should be enterprises
Fashionable design: ideal design formodern times-- the organic/learning/highperformance/new organization, e.g. theenterprise
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What are some unconventionalapproaches to organizational
design? Theory of equifinality: given the sameconstraints, there is more than one way todesign organizations to achieve effectiveness
The subjective side of organizational design:Metaphor and the collective paradigm: whatactually causes the creation, maintenance andchange of organizations is the invisibleagreement in consciousness of theorganizations members, known as themembers collective paradigm, sometimesdescribed using metaphors
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The bureaucracy
A highly systematized organization aimed atefficiency
Daily work is planned, programmed, prescribed,
scheduled, and directed by the book Often found in mature markets in which demand
for their product is well established or perhapseven falling
Efficiency and, often, quality are the mainstrategies on which they compete
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The enterprise
Adapt quickly in business environmentsthat are dynamic, complex, and uncertain
Daily work is extemporaneous,improvised, spontaneous, and directed bydiscussion and teamwork
Goals and results are custom-designedand creative/innovative
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The hybrid organization
An organization which is comprised ofdistinct elements, some of which arebureaucratic and some of which are
enterprising, with one overarching culture Designed to meet the different constraints
on its subunits
Highly adaptive organizations whosedesigns match the different types of workperformed
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Apply what you have learned
World Class Company: IDEO ProductDevelopment
Advice from the Pros
Gain Experience
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2007 Prentice Hall
Summary Who designsorganizations and, in general, what
do these designers do? Organizational designers are typically topmanagers or consultants
They look for optimal combinations oforganizational characteristics to achieveorganizational outcomes
S
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Summary What are the majorfactors influencing organizational
design? Three primary factors in the companys historyaffect its design: the personality and values offounder, the era in which the company was
founded, and the historic size of the company. Company designs are also affected by such
constraints as: the companys (external)
environment, the nature of its employees, and
the type of work that it does
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Summary What do managersactually design?
Theoretically, designers consider formalization,centralization, and specialization whendesigning their organizations
Typically, when one of these changes, theothers should also change.
In practice, organizational designers focus onfive factors (called design variables): decisionmaking, structure, control and motivation, workdesign, and organizational culture
S H di
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Summary How can you predictwhether an organizational design
will be effective? In a synergistic organizational design differentelements of the company interact together in acoherent pattern
Examples of synergistic designs arebureaucracies and enterprises
According to contingency theory, as long as itsorganizational design fits its organizationalconstraints, either a bureaucracy or anenterprise can be effective
S Wh
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Summary What are someunconventional approaches to
organizational design? Theory of equifinality argues that there aremany designs that can be effective
The collective paradigm states that whilethe effects of organizational constraints ondesign are important, it is only throughchanges in the collective consciousness of
organizational members that organizationdesign changes can really be made
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Summary How can you identify thefundamental organizational types and
anticipate their strengths and weaknesses?
A bureaucracy is a highly systematizedorganization aimed at efficiency
Classic bureaucracies differ from professional
bureaucracies An enterprise is a highly flexible organizationthat adapts quickly in dynamic businessenvironments
A hybrid is an organization comprised of distinctelements, some of which are bureaucratic andsome of which are enterprising