2. HAS 3260 Session Eight Organizing, Culture & Design

3. Organizing and effective department. Then (1920s - 1930s) –Organizations getting bigger and more formal. –Pressure on supervisors to coordinate activities better and maintain tight control. –Formal bureaucratic structures flourished. Now (1980…….) –Globalization. –Rapid technological advancements. –Diversity in the work force. –Socioeconomic changes/conditions.

4. What is organizing? Formal –Arranging and grouping jobs –Allocating resources –Assigning work –Developing work rules and procedures Informal –Alliances among groups and individuals which are outside the formal structure. –More detail in Chapter 12

5. Responsibility Department- alization Authority Unity of Command Span of Control Work Specialization Basic Organizing Principles

6. Work Specialization “ Breaking a job down into a number of steps completed by different individuals.” Classical View –Division of labor increases economic efficiencies –Prevents high-skilled workers from performing tasks with low-skill requirements. Contemporary View –May increase economic efficiency but not an unending source of increased productivity. –Risk of boredom, stress, fatigue –Eventual emergence of poor quality, low productivity, higher absenteeism & turnover.

7. Span of Control Narrow spans create tall organizations with a large number of vertical levels Wide spans create flat organizations with fewer vertical levels The 1970s Narrow Spans Contemporary Organizations Wide Spans

8. What are the differences between a tall and a flat organization of system?

9. Unity of Command An employee should have one and only one supervisor to whom he or she is directly responsible. Can you work for two masters?

10. Authority ( The right inherent in a supervisory position to give orders and expect them to be followed) Flows from a person’s position, not his or her characteristics. Requires obedience because of managerial position. Types of authority relationships: –Line: Supervisor directs works and makes decisions. –Staff: Gives advice but it doesn’t have to be obeyed. –Functional: Rights over individuals outside one’s own direct area of responsibility.

11. AuthorityResponsibility Formal Position Obligation Opportunity for Abuse Frustration and Powerlessness

12. Something to Think About

13. Where are Decisions Made? Centralization Decentralization Try asking for a discount on the price of a hamburger at McDonald’s if you pay cash or ask them to hold the pickles and ketchup.

14. Grouping employees Accounting Human Resources Manufacturing Research and Development Quality Control Tide Detergent Sure Deodorant Crest Toothpaste Jif Peanut Butter Folgers Coffee Functional Departmentalization Product Departmentalization

15. Eastern Region Southern Region Midwestern Region RockyMountain Region Western Region Tide Detergent Sure Deodorant Crest Toothpaste Jif Peanut Butter Folgers Coffee Functional Departmentalization Product Departmentalization

16. CastingPressTubeFinishing Inspect, Pack and Ship Process Departmentalization

17. Design Engineering Manufacturing Contract Administration Purchasing Alpha Project Beta Project Gamma Project Omega Project Design Group Design Group Design Group Design Group Manufacturing Group Manufacturing Group Manufacturing Group Manufacturing Group Contracts Group Contracts Group Contracts Group Contracts Group Purchasing Group Purchasing Group Purchasing Group Purchasing Group Matrix

18. Compare! How is a matrix organization different from “classical” functionally departmented organizations?

19. Mintzbergs 5 basic parts of Orgs. Strategic Apex Middle Line Technostructure Support Staff Operating Core

20. Mintzberg’s Five designs P. 139 Simple structure Machine bureaucracy Professional bureaucracy Divisionalized Form Adhocracy

21. Movement toward Simpler Employee Groupings Large Organizations –Highly complex and formalized –Centralized Decision making –Rigid, multileveled –Bureaucratic and inefficient Small Organizations –Simple structure –Manager and Owner usually one in the same –Flexible –Accountability is clear

22. Simple Structure Weaknesses Becomes inadequate as organization grows Decision making becomes slower, eventually comes to a standstill. If the owner/manager dies or gets injured, the entire business comes to a standstill.

23. Horizontal Structure Use of teams Cross trained employees Focus is on the entire work to be completed rather than individual tasks. Control shifts to supervisors and employees.

24. Job Description What one does Duties, work conditions, operating responsibilities How and why the job is done Provides a standard against which performance is measured. Purpose: –Employee feedback –Wage determination/adjustment –Need-for-training decisions –Helps employees learn their job and clarifies expectations.

25. Empowering through Delegation Empowerment: Increased involvement through greater participation in decisions that control one’s work and by expanding responsibility for work outcomes. Delegation: –Allocation of duties –Delegation of authority –Assignment of authority –Creation of accountability

26. Relationship between job design and reengineering Reengineering: radically new ways of thinking about organizations. Objective: Eliminate or prevent the erection of barriers that separate employees and consumers Three Separate but related phases: –Rethink –Redesign –Retool

27. Sociotechnical Systems model Considers every organization to be made up of people with various competencies (the social system) using tools, techniques, and knowledge (the technical system) to produce goods or services valued by customers.

28. Case Study Trouble in the copy center What do you think about Arnold’s decisions and behavior? Why did the copy center’s employees react as they did? Why did the center’s employees not help the receptionist? If you were the vice president for administration what would you do?

30. FactFact 1: As each bird flaps its wings, it creates an uplift draft for the bird following, By flying in a “V” formation, the whole flock adds a greater flying range than if one bird flew alone. LessonLesson 1: 1: People who share a common direction and sense of community can get where they’re going quicker and more easily because they are traveling on the strength of one another.

31. Fact 2: Whenever a goose falls out of formation, it suddenly feels the drag and resistance of trying to fly alone and quickly gets back into formation to take advantage of the lifting power of the bird immediately in front. Lesson 2: If we have as much sense as geese, we will stay in formation and be willing to accept help when we need it and give help when it is needed.

32. Fact 3: When the lead goose gets tired, it rotates back into the formation, and another goose flies in the point position. Lesson 3: Geese instinctively share the task of leadership and do not resent the leader.

33. Fact 4: The geese in formation honk from behind to encourage those up front to keep up their speed. Lesson 4: We need to make sure our honking from behind is encouraging and not something else.

34. FactFact 5: When a goose is sick, is wounded or is shot down, two geese drop out of formation and follow it down to earth to help and protect it. They stay with their disabled companion until it is able to fly again or dies. They then launch out on their own or with another formation and catch up with the flock. LessonLesson 5: If we have as much sense as geese, we, too, will stand by one another in difficult times and help the one who has dropped out to regain his place in the formation.

35. Chapter 9 Organizational Culture and Design Planning Ahead –What is organizational culture? –What are current directions in organizational cultures? –What is organizational design? –What are current directions in subsystems and work process design?

36. The Nature of Organizational Culture Organizational Culture is a systems of shared beliefs and values that develop within an organization and guides the behavior of its members

37. Organizational Culture What Strong Cultures Can Do –Strong cultures are clear, well defined widely shared among members –encourage positive work behaviors –performance oriented –emphasize teamwork

38. Organizational Culture Elements of Organizational Culture –Observable culture stories heroes rites and rituals symbols

39. Organizational Culture Core Culture –Consists of core values that influence the behavior of organizational members –Values are publicized in formal statements of mission and purpose

40. Directions in Organizational Cultures Leadership and Organizational Culture –Criteria of core values relevance pervasiveness strength

41. Directions in Organizational Cultures Symbolic Managers –someone who uses symbols well to establish and maintain desired organizational culture use language metaphors tell key stories and encourage others to tell them tell about organizational heroes use symbolic rites and rituals

42. Directions in Organizational Cultures Characteristics of multicultural organizations: –Pluralism –Structural integration –Information network integration –Absence of prejudice and discrimination –Minimum intergroup conflict

43. Directions in Organizational Culture Ethical Organizational Cultures –Ethical Climate shared set of understandings about what is considered ethically correct behavior establish clear guidelines to employee management and policies stand behind expectations of ethical behavior

44. Organizational Design Organization Design –Process of aligning structures and culture to best serve mission and objectives shift from –vertical to horizontal structure –authority driven to task driven

45. Organizational Design Bureaucratic Designs –Bureaucracies based on –logic –order –legitimate use of formal authority

46. Organizational Design Bureaucracies –feature clear-cut division of labor strict hierarchy of authority formal rules and procedures promotion based on competency

47. Organizational Design Mechanistic Designs –highly bureaucratic –more centralized authority –many rules and procedures –precise division of labor –narrow spans of control –formal means of coordination

48. Organizational Design Adaptive Designs –operate with minimum of bureaucratic features –encourage worker empowerment –based on team and network structures –operate with organic designs

49. Contingencies in Organizational Design Strategy –“structure follows strategy” stable strategy is supported by –bureaucratic organizations using mechanistic designs growth oriented strategy is supported by –adaptive organizations using organic designs

50. Contingencies in Organizational Design Size –Larger organizations tend to be more bureaucratic –Simultaneous structures combined mechanistic and organic designs

51. Subsystems Design and Work Process Subsystem –department or work unit headed by a manager –operates as smaller part of larger organization –serves the needs of larger organization –ideally each subsystem supports other subsystems

52. Subsystems Design and Work Process Differentiation –degree of difference between internal components of the organization –sources of differences time orientation objectives interpersonal orientation formal structure

53. Subsystems Design and Work Process Integration –level of internal coordination –becomes harder to achieve with increased differentiation

54. Work Processes Work Process –related group of tasks that create value for the customer Process reengineering –systematic, complete analysis of work processes and –design of new and better processes

55. Work Processes Reengineering core processes –Process value analysis identify core processes map core processes in respect to workflows evaluate all tasks for core processes search for ways to eliminate unnecessary tasks search for ways to eliminate delays, errors, misunderstandings search for efficiencies in how work is shared and transferred