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Contemporary Trends in Organization Design
Chapter Thirteen Contemporary Trends in Organization Design ©2001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e
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Factors Associated with Organizational Excellence
Corporate Culture Climate of trust Sharing information Productivity through people Long-term view Valuing adaptation and learning Organization Design Simple form, lean staff Empowerment to increase entrepreneurship Horizontal structure and collaboration Electronic technology, e-commerce Balanced measurement and control Top Management Leadership vision Bias toward action/ change/learning Foundation of core values Facilitating knowledge management Strategic Orientation Close to the customer Fast response Clear business focus and goals Establishing inter-organizational linkages
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Four Stages of International Evolution
Domestic II. International III. Multinational IV. Global Strategic Orientation Domestically oriented Export-oriented, multidomestic Stage of Development Initial foreign involvement Competitive positioning Explosion Structure Domestic structure plus export department Domestic structure plus international division Worldwide geographic, product Matrix, trans-national Market Potential Moderate, mostly domestic Large, multidomestic Very large, multinational Whole world Sources: Based on Nancy J. Adler, International Dimensions of Organizational Behavior (Boston: PWS-KENT, 1991), 7-8; and Theodore T. Herbert, “Strategy and Multinational Organization Structure: An Interorganizational Relationships Perspective,” Academy of Management Review 9 (1984):
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Matching Organizational Structure to International Advantage
When Forces for Global Integration are . . . And Forces for National Responsiveness are . . . Strategy Structure Low Export International Division High Globalization Global Product Structure Multidomestic Global Geographic Structure Globalization and Multidomestic Global Matrix Structure
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Domestic Hybrid Structure with International Division
CEO Human Resources Corporate Finance Research & Development Electrical Products Division Scientific Products Division Medical Products Division International Division Europe (Sales) Brazil (Subsidiary) Mid East (Sales) Staff (Legal, Licensing)
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Partial Global Product Structure Used by Eaton Corporation
Chairman Law & Corporate Relations Engineering President Finance & Administration International Regional Coordinators Global Automotive Components Group Global Industrial Group Global Instruments Product Group Global Materials Handling Group Global Truck Components Group Source: Based on New Directions in Multinational Corporate Organization (New York: Business International Corp., 1981).
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Global Geographic Division Structure
CEO Pacific Division European Division Latin American Division Canadian Division Corporate Staff Long-term Planning Product Coordinators
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Global Matrix Structure
International Executive Committee Country Managers Germany Norway Argentina/ Brazil Spain/ Portugal Business Areas Power Transformers Transportation Industry Local Companies
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The Empowerment Continuum
Mini-Enterprise Units High Self-Directed Teams Cross- functional Teams Responsible For Decision Process and Strategy Quality Circles Participation Groups Make Decisions Degree of Empowerment Suggestion Programs Participate In Decisions Job Redesign/ Enrichment Give Input Have no Decision Discretion Low Employee Skills Required Few Many and Complex Sources: Based on Robert C. Ford and Myron D. Fottler, “Empowerment: A Matter of Degree,” Academy of Management Executive 9, no. 3 (1995): 21-31; Lawrence Holpp, “Applied Empowerment,” Training (February 1994): ; and David P. McCaffrey, Sue R. Faerman, and David W. Hart, “The Appeal and Difficulties of Participative Systems,” Organization Science 6, no. 6 (November-December 1995):
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Stages of Organizational Decline
Blinded Inaction Faulty Action Crisis Dissolution
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Creating a Learning Organization
Workbook Activity Aspects of the ideal learning organization Typical behaviors of this aspect Results of these behaviors Blocks to achieving these results Measures of progress EXAMPLE: Employees feel the work they do has meaning They display energy and enthusiasm when they work The team is more motivated and new ideas are generated There is a lack of clarity on how tasks help fulfill mission Employees talk about how they are fulfilling an important mission 1. 2. 3. 4. 5. 6.
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