Post on 31-Dec-2015
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Chapter 5Chapter 5Chapter 5Chapter 5
Designing Organizations Designing Organizations for Performance for Performance ExcellenceExcellence
Factors Affecting Work Factors Affecting Work Organization Organization
Company and organizational guidelinesCompany and organizational guidelines Management styleManagement style Customer influencesCustomer influences Company sizeCompany size Diversity and complexity of product lineDiversity and complexity of product line Stability of the product lineStability of the product line Financial stabilityFinancial stability Availability of personnelAvailability of personnel
Problems With the Problems With the Functional StructureFunctional Structure
Separates employees from Separates employees from customerscustomers
Inhibits process improvementInhibits process improvement Functional organizations often Functional organizations often
have a separate function for have a separate function for qualityquality
Redesigning Redesigning Organizations for Organizations for Performance ExcellencePerformance Excellence Focus on processesFocus on processes Make quality everyone’s jobMake quality everyone’s job Recognize internal customersRecognize internal customers Create a team-based organizationCreate a team-based organization Reduce hierarchyReduce hierarchy Use steering committeesUse steering committees Develop an agile organizationDevelop an agile organization Redesign work systemsRedesign work systems
Types of ProcessesTypes of Processes
Value-creation processesValue-creation processes – those – those most important to “running the most important to “running the business”business”– Design processesDesign processes – activities that – activities that
develop functional product specificationsdevelop functional product specifications– Production/delivery processesProduction/delivery processes – those – those
that create or deliver productsthat create or deliver products Support processesSupport processes – those most – those most
important to an organization’s value important to an organization’s value creation processes, employees, and creation processes, employees, and daily operationsdaily operations
Make Quality Everyone’s Make Quality Everyone’s JobJob
Recognize that all jobs involve Recognize that all jobs involve “managing quality”“managing quality”
Eliminate the quality department Eliminate the quality department – Example: Texas Nameplate Example: Texas Nameplate
CompanyCompany
Recognize Internal Recognize Internal CustomersCustomers
““Chains of customers” conceptChains of customers” concept Process mapping to identify Process mapping to identify
internal customer-supplier internal customer-supplier relationshipsrelationships
Create links between internal Create links between internal customers and external supplierscustomers and external suppliers
Six Sigma Project TeamsSix Sigma Project Teams
ChampionsChampions – senior managers who – senior managers who promote Six Sigmapromote Six Sigma
Master Black BeltsMaster Black Belts – highly trained experts – highly trained experts responsible for strategy, training, responsible for strategy, training, mentoring, deployment, and results.mentoring, deployment, and results.
Black BeltsBlack Belts – Experts who perform technical – Experts who perform technical analyses analyses
Green BeltsGreen Belts – functional employees trained – functional employees trained in introductory Six Sigma toolsin introductory Six Sigma tools
Team MembersTeam Members – Employees who support – Employees who support specific projectsspecific projects
Reduce HierarchyReduce Hierarchy
Eliminate layers of middle Eliminate layers of middle managementmanagement
Empower frontline workersEmpower frontline workers Benefits include improved Benefits include improved
communicationcommunication Risks include impact on morale Risks include impact on morale
and loss of valuable experienceand loss of valuable experience
Develop Agile Develop Agile OrganizationsOrganizations
Faster reaction to competitive Faster reaction to competitive challenges and changing challenges and changing customer demandscustomer demands
Simplification of work processes Simplification of work processes and rapid changeoversand rapid changeovers
Redesign Work Systems Redesign Work Systems for High Performancefor High Performance
Job descriptions
Employee Involvement
Suggestion systems
Empowerment
Training and Education Teamwork and
Cooperation
Compensation and recognition
Health and safety
Flexibility
Innovation
Knowledge and skill sharing
Organizational alignment
Customer focus
Rapid response
Enhancing Work DesignEnhancing Work Design
Job enlargementJob enlargement – expanding – expanding workers’ jobsworkers’ jobs
Job rotationJob rotation – having workers – having workers learn several tasks and rotate learn several tasks and rotate among them among them
Job enrichmentJob enrichment – granting more – granting more authority, responsibility, and authority, responsibility, and autonomyautonomy
Case StudiesCase Studies
Boeing Airlift and Tanker Boeing Airlift and Tanker ProgramsPrograms
VA HospitalsVA Hospitals Solar Turbines, Inc.Solar Turbines, Inc. General Electric BayamonGeneral Electric Bayamon The San Diego ZooThe San Diego Zoo
Comparisons to Comparisons to Organizational TheoryOrganizational Theory
Structural Contingency TheoryStructural Contingency Theory– Mechanistic vs. organicMechanistic vs. organic– Choice depends on organizational Choice depends on organizational
environment and technologyenvironment and technology Institutional TheoryInstitutional Theory
– Structure legitimizes purpose, even Structure legitimizes purpose, even if they may not provide valueif they may not provide value
– ISO 9000 and Six SigmaISO 9000 and Six Sigma