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Organizational Agility
Chapter Nine
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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9-2
Learning Objectives
LO 1 Discuss why it is critical for organizations to be responsive.
LO 2 Describe the qualities of an organic organization structure
LO 3 Identify strategies and dynamic organizational concepts that can improve and organization’s responsiveness
LO 4 Explain how a firm can be both big and smallLO 5 Summarize how firms organize to meet customer
requirementsLO 6 Identify ways that firms organize around different
types of technology
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9-3
The Responsive Organization
Mechanistic organization A form of
organization that seeks to maximize internal efficiency.
Organic structure An organizational
form that emphasizes flexibility
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9-4
Two Ways to Describe an Organization
Figure 9.1(a)
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9-5
Two Ways to Describe an Organization
Figure 9.1(b)
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9-6
Strategic Alliances
Strategic alliance A formal
relationship created among independent organizations with the purpose of joint pursuit of mutual goals.
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9-7
The Learning Organization
Learning organization An organization skilled at creating, acquiring, and
transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.
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9-8
The High-Involvement Organization
High-involvement organization A type of organization in which top management
ensures that there is consensus about the direction in which the business is heading
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9-9
Being Big and Small
Downsizing The planned
elimination of positions or jobs
Rightsizing A successful effort
to achieve an appropriate size at which the company performs most effectively
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9-10
Downsizing
Survivor’s syndrome Loss of productivity
and morale in employees who remain after a downsizing.
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9-11
Customer Relationship Management
Customer relationship management (CRM) A multifaceted process focusing on creating two-
way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns.
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9-12
Total Quality Management
Total quality management (TQM) An integrative approach to management that
supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services.
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9-13
Reengineering
Reengineering Revolutionizing key organizational systems and
processes to answer the question: “If you were the customer, how would you like us to operate?”
Processes are redesigned from scratch as if the organization was just starting out
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9-14
Organizing for Speed: Time-Based Competition
Time-based competition (TBC) Strategies aimed at
reducing the total time needed to deliver a good or service.
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9-15
Time-Based Competition
Logistics The movement of
the right goods in the right amount to the right place at the right time