MIS 524, Chapter 31 Assignment 2 How Is Your Organization Structured?

MIS 524, Chapter 32 The Big-Small Solution Simple Org’nal Design Complex Local Global Stable Environment Dynamic Certain Uncertain Hierarchical; It’s easy to grow big Entrepreneurial; It’s necessary to remain small Networked; combines factors from both solutions What does YOUR organization strive for?

MIS 524, Chapter 33 The “Situation” The Environment US When the environment is slow, predictable, and relatively weak, we have the time to develop and use rules that have established local validity The Environment US When the environment is fast, unpredictable and strong, we must continually innovate and take risks and act holographically What is YOUR organization’s environment like?

MIS 524, Chapter 34 How Has Your Organization Responded to Its Environment? Simple Org’nal Design Complex Local Global Hierarchical Stable Environment Dynamic Certain Uncertain Entrepreneurial The more complex the Organization, the larger is the set of rules and the more important those rules become for stable environments. The threat is INTERNAL The more dynamic and uncertain the environment, the more an organization values agility; rules weigh down action. The threat is EXTERNAL How does YOUR organization respond to it’s environment?

MIS 524, Chapter 35 Cybernetics Revisited EnvironmentThe Business Operating and Innovating 1 st Levels of Management of The Business Managing and Learning Higher Levels of Management of The Business Leading and Engaging Complexity requires additional levels of checking and fixing; these cost time and make mistakes. The organization is a function of the environment; meeting complexity means developing agile levels of management with strong communication (or immediately shared values) What is YOUR organization’s internal structure like?

MIS 524, Chapter 36 Operating and Innovating Precision Execution Speed, Safety Goal-setting, “Immensity” Close Communication, Nimbleness Quick Response, “Smallness” Information Channels, Change Orientation, Freedom within Coordination, Flexibility, Innovation Which values does your organization put most emphasis on? Why? Which values does your organization put most emphasis on? Why? How easy is it to do this?

MIS 524, Chapter 37 Managing and Learning Planning, Prediction, Budgeting, Allocation, Control, Policies, Responsibility, Authority, Efficiency Learning from customers, Risk-taking, ad-hockery, Real-time sharing, Effectiveness Integration, Learning- by-doing, Rapid Analysis and Response, Interaction and Collaboration Which values does your organization put most emphasis on? Why? How easy is it to do this?

MIS 524, Chapter 38 Leading and Engaging Complexity Reduction, Employee self-interest, Rule-directed Leadership Risk-taking, Engaging, Charisma, Culture, Value-promulgation, Belief-orientation Mediated contact, Simulated shared values, Empowered teams Which values does your organization put most emphasis on? Why? How easy is it to do this?

MIS 524, Chapter 39 ControlIntegration Communication How They Cope “I hope the environment remains pacified!” “If I keep moving fast enough, it won’t catch me!” “I’ll keep track of what I’m doing and what the environment is doing, too” How does YOUR organi- zation cope?

MIS 524, Chapter 310 NOW Your organization has particular goals It lives in a particular environment Hence it has developed particular organizational structures And it copes in characteristic ways with particular processes So what would it do if it finds the environment changing?

MIS 524, Chapter 311 So… Which of these most closely describes your company?  Bureaucracy  Entrepreneurship  Networked Organization

MIS 524, Chapter 312 Bureaucracy/Hierarchy Since environment is weak and predictable, procedures can be developed for decision making. Local decision making is too expensive and risky to the whole. Since complexity is managed, org can grow to enormous size Individuals are hired for specific expertise or skills, not necessarily for common culture or organizational buy-in

MIS 524, Chapter 313 Entrepreneurship Since environment is strong and unpredictable, no procedures can be developed for decision making. Local decision making is the only feasible way to make decisions. Everyone shares knowledge, culture, information, goals; org can only grow so far, usually small Individuals are hired for specific expertise with communication skills and org’l buy-in. Charismatic leadership helps but is not necessary. Everyone knows pretty much everything

MIS 524, Chapter 314 “Networked” is a Simulation COMBINES features of bureaucracy and entrepreneurship Bureaucracy: Goal is to contend with complexity by simplifying, proceduralizing, substituting data for trust to lower risk Entrepreneurship: Goal is to take advantage of opportunities; risk is taken for granted.

MIS 524, Chapter 315 Is This Fish out of (the) Water? Click Here