Designing Adaptive Organizations - Transtutors€¦ · Copyright ©2016 Cengage Learning. All...

Designing

Adaptive

Organizations

9

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copied or dupl icated, or posted to a publ icly accessible website, in whole or in part.

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2 Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly acce ssible website, in whole or in part. MGMT8 | CH3

1 Describe the departmentalization approach to organizational structure

2 Explain organizational authority

3 Discuss the different methods for job design

4 Explain the methods that companies are using to redesign internal organizational processes (i.e., intraorganizational processes)

5 Describe the methods that companies are using to redesign external organizational processes (i.e., interorganizational processes)


Organizational Structure

• Vertical and horizontal configuration of departments, authority, and jobs within a company

• Organizational process: Collection of activities that transform inputs into outputs valued by customers


Departmentalization

• Subdividing work and workers into separate organizational units responsible for completing particular tasks • Functional

• Product

• Customer

• Geographic

• Matrix

• Simple

• Complex


Types of Authorities and Functions

• Authority • Line: Right to command immediate subordinates

in the chain of command

• Staff: Right to advise others who are not subordinates in the chain of command

• Function • Line: Contributes in creating or selling the

company’s products

• Staff: Supports line activities


Delegation of Authority

• Assignment of authority and responsibility to a subordinate to complete a manager’s tasks • Transfer of full responsibility for the assignment

to the subordinate

• Transfer of full authority over budgets, resources, and personnel

• Transfer of accountability


Degree of Centralization

• Centralization: Location of maximum authority at the upper levels of the firm

• Decentralization: Location of a significant authority in the lower levels of the firm • Standardization: Solving problems by applying

similar rules, procedures, and processes


Job Design

• Number, kind, and variety of tasks that individual workers perform in doing their jobs

• Types • Job rotation

• Job enlargement

• Job enrichment

• Job specialization: Job composed of different parts of a complete task


Exhibit 9.9 Job Characteristics Model


Job Characteristics

• Different activities performed in a job

Skill variety

• Degree to which a job requires the completion of a piece of work

Task identity

• Impact of a job on people inside or outside the firm

Task significance

• Degree to which a job gives workers the opportunity to decide how and when to accomplish the job

Autonomy

• Information the job provides to workers about their work performance

Feedback


Intraorganizational Process

• Activities within an organization that transform inputs into outputs valued by customers • Mechanistic: Characterized by specialized jobs

and responsibilities

- Follows centralized authority and vertical communication

• Organic: Characterized by broadly defined jobs and responsibilities

• Decentralized authority and horizontal communication based on task knowledge


Reengineering and Task Interdependence

• Reengineering: Fundamental rethinking and radical design of business processes • To achieve dramatic improvements in critical

measures of performance

• Task interdependence: Level of collective action required to complete a piece of work • Pooled

• Sequential

• Reciprocal


Empowering Workers

• Giving decision-making authority and responsibility to workers by providing resources needed to take effective decisions • Empowerment: Motivational feeling making

workers feel competent and capable of self-determination

- Leads to changes in the organizational process


Interorganizational Process

• Activities among companies to convert inputs into outputs valued by customers • Modular organizations: Outsources noncore

business activities to outside companies

- Cost effective

- Cause loss of control

- Reduce competitive advantage


Interorganizational Process

• Virtual organizations: Part of a network of several companies working together to solve customer problems or provide specific products

- Allow sharing costs

- Facilitate combining efforts

- Fast and flexible

- Show difficulty in controlling the quality of work done by network partners

- Require excessive managerial skills

SUMMARY


• Departmentalization is a method of subdividing work and workers into separate organizational units

• Authority is the right to give commands, take action, and make decisions to achieve organizational goals

• Job design is the number, kind, and variety of tasks that individuals perform

KEY TERMS


• Organizational structure

• Organizational process

• Departmentalization

• Functional departmentalization

• Product departmentalization

• Customer departmentalization

• Geographic departmentalization

• Matrix departmentalization

• Simple matrix

• Complex matrix

• Authority

• Chain of command

• Unity of command

• Line authority

• Staff authority

KEY TERMS


• Line function

• Staff function

• Delegation of authority

• Centralization of authority

• Decentralization

• Standardization

• Job design

• Job specialization

• Job rotation

• Job enlargement

• Job characteristics model

• Internal motivation

• Skill variety

• Task identity

• Task significance

• Autonomy

• Feedback

• Mechanistic organization

KEY TERMS


• Organic organization

• Intraorganizational process

• Reengineering

• Task interdependence

• Pooled interdependence

• Sequential interdependence

• Reciprocal interdependence

• Empowering workers

• Empowerment

• Interorganizational process

• Modular organization

• Virtual organization

Designing Adaptive Organizations - Transtutors€¦ · Copyright ©2016 Cengage Learning. All...

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