Organizational Design: Structure, Culture, and Control |
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Автор: Anne Fuller, California State University. Чтобы познакомиться с картинкой полного размера, нажмите на её эскиз. Чтобы можно было использовать все картинки для урока экономики, скачайте бесплатно презентацию «Organizational Design: Structure, Culture, and Control.ppt» со всеми картинками в zip-архиве размером 4092 КБ.
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1 | Organizational Design: Structure, | 27 | operationally independent Each leader of |
Culture, and Control. | SBUs report to the corporate office | ||
2 | Part 3 Strategy Implementation. 11–2. | Examples: Zappos is an SBU under Amazon | |
3 | Zappos: Success through customer | Skype is an SBU under Microsoft Paypal is | |
service Customer service all in-house No | an SBU under eBay Companies using M-form | ||
scripts or timed calls Flat Organizational | structure GE, Honda. 11–27. | ||
Structure = Flexibility Job rotation = | 28 | Organizing the Diversified Firm. The | |
trained talent 4 weeks of orientation | multidivisional organization, as | ||
training Including 2 weeks on customer | documented by Alfred D. Chandler in | ||
service phones. Chapter Case 11. Zappos: | Strategy and Structure, was pioneered in | ||
An Organization Designed to Deliver | the 1920s by pioneering firms such as: | ||
Happiness. 11–3. | DuPont, General Motors, Sears and Standard | ||
4 | Zappos’ Core Values. EXHIBIT 11.1. | Oil; By 1967, two-thirds of Fortune 500 | |
11–4. | Companies are multidivisional. | ||
5 | 11–5. | 29 | |
6 | LO 11-1 Define organizational design | 30 | Organizing the Diversified Firm. Three |
and list its three components. LO 11-2 | key features of organizational structure: | ||
Explain how organizational inertia can | 1. The division of tasks; 2. The depth of | ||
lead established firms to failure. LO 11-3 | the hierarchy (span of control); 3. The | ||
Define organizational structure and | extent of authority delegation (how much | ||
describe its four elements. LO 11-4 | decentralization?). 11–30. | ||
Compare and contrast mechanistic versus | 31 | Typical M-Form Structure. EXHIBIT | |
organic organizations. LO 11-5 Describe | 11.7. Functional Structure. Matrix | ||
different organizational structures and | Structure. 11–31. | ||
match them with appropriate strategies. LO | 32 | ||
11-6 Describe the elements of | 33 | Multidivisional Structure. Use with | |
organizational culture and explain where | various corporate strategies Related | ||
organizational cultures can come from the | diversification Co-opetition among SBUs | ||
how they can be changed. LO 11-7 Compare | Transfer core competences across SBUs | ||
and contrast different strategic control | Centralized decision making Unrelated | ||
and reward systems. 11–6. | diversification Decentralized decision | ||
7 | How to Organize for Competitive | making Competing for resources. 11–33. | |
Advantage. Organizational design Goal is | 34 | Matching Corporate-Level Strategy. | |
to translate strategies into realized ones | EXHIBIT 11.8. | ||
Structure Processes Procedures Structure | 35 | 11–35. | |
follows strategies Structure must be | 36 | 11–36. | |
flexible Yahoo failed to make changes to | 37 | Evolutionary Stability of the | |
their organizational structure. Jerry | Multidivisional Form. Parable of the Two | ||
Young ousted in 2008. 11–7. | Watchmakers 10,000 parts Watchmaker #1 | ||
8 | needs to put all parts together or the | ||
9 | watch falls apart and he needs to start | ||
10 | Organizational inertia Resistance to | all over with his 10,000 parts. Watchmaker | |
change Often leads to failure because of | #2 has developed 100 subsystems of 100 | ||
the environmental dynamics: competition, | parts. This is the “principle of | ||
technology, strategy…etc. Organizational | near-decomposability” (I.e., a system that | ||
strategy and structure are not static… But | contains localized sub-systems). | ||
rather are dynamic! A tightly-coupled and | 38 | Evolutionary Stability of the | |
coherent activity system that works well | Multidivisional Form. Hierarchical systems | ||
in a static environment may be subject to | (containing sub-systems) will evolve much | ||
problems of inertia in a dynamic | more rapidly from elementary constituents | ||
environment. Organizational Inertia and | than will non-hierarchic systems | ||
the Failure of Established Firms. 11–10. | containing the same number of elements. In | ||
11 | Organizational Inertia. EXHIBIT 11.2. | organization theory this is called the | |
11–11. | effectiveness of “loose coupling.” The | ||
12 | LO 11-1 Define organizational design | advantage of “loose coupling” is that if | |
and list its three components. LO 11-2 | there is poor performance in division 2 it | ||
Explain how organizational inertia can | does not lead to failure of the entire | ||
lead established firms to failure. LO 11-3 | system. 11–38. | ||
Define organizational structure and | 39 | Effectiveness of Multidivisional Form. | |
describe its four elements. LO 11-4 | Effective Divisionalization involves: | ||
Compare and contrast mechanistic versus | Identification of separable economic | ||
organic organizations. LO 11-5 Describe | activities within the firm; Giving | ||
different organizational structures and | quasi-autonomous standing to each division | ||
match them with appropriate strategies. LO | (usually of a profit center nature); | ||
11-6 Describe the elements of | Monitoring the efficiency performance of | ||
organizational culture and explain where | each division; Awarding incentives; | ||
organizational cultures can come from the | Allocating cash flow to high yield uses; | ||
how they can be changed. LO 11-7 Compare | and Performing strategic planning | ||
and contrast different strategic control | (diversification, acquisition, and related | ||
and reward systems. 11–12. | activities). 11–39. | ||
13 | The Key Elements of Organizational | 40 | Weaknesses of Multidivisional Form. |
Structure. Organizational structure | Dysfunctional Aspects of the | ||
determines Work efforts of individuals and | Multidivisional: Emphasis on short-term | ||
teams Resource distribution Key building | perspective; Loss of economies of scope; | ||
blocks Specialization Formalization | Duplication of R&D, marketing, etc.; | ||
Centralization Hierarchy. 11–13. | Emphasis on financial manipulation instead | ||
14 | The Key Elements of Organizational | of developing firm capabilities and | |
Structure. Specialization: degree to which | resources; and Large conglomerates may | ||
a task is divided Division of labor | have excessive political power. | ||
Example: U.S. Military (Army, Air Force, | 41 | Matrix Structure. A combination of | |
Navy, Marines) Formalization: codified | functional and M-form structure Creation | ||
rules and formal procedures Detailed | of dual line of authority and reporting | ||
written rules and policies Examples: NASA, | lines Each SBU receives support both | ||
McDonald’s. 11–14. | horizontally and vertically Very versatile | ||
15 | The Key Elements of Organizational | Enhanced learning from different SBUs. | |
Structure. Centralization: where the | 11–41. | ||
decision is made Centralized decision | 42 | Typical (Global) Matrix Structure. | |
making ? slow response time and reduced | EXHIBIT 11.9. 11–42. | ||
customer satisfaction Example: BP’s | 43 | ||
Mexican Gulf Oil Spill Hierarchy: formal, | 44 | ||
position-based reporting lines Tall | 45 | Matching Global Strategy and | |
structure vs. flat structure Tall | Structure. EXHIBIT 11.10. | ||
structure? higher degree of centralization | 46 | LO 11-1 Define organizational design | |
Flat structure ? lower degree of | and list its three components. LO 11-2 | ||
centralization Span of control. 11–15. | Explain how organizational inertia can | ||
16 | W. L. Gore & Associates: | lead established firms to failure. LO 11-3 | |
Informality and Innovation. Bill Gore | Define organizational structure and | ||
articulated 4 core values Fairness to each | describe its four elements. LO 11-4 | ||
other Freedom to grow knowledge and skills | Compare and contrast mechanistic versus | ||
Ability to make one's own commitments | organic organizations. LO 11-5 Describe | ||
Consult with others before taking action | different organizational structures and | ||
W. L. Gore is organized in an informal and | match them with appropriate strategies. LO | ||
decentralized manner Empowered employees | 11-6 Describe the elements of | ||
(no job titles, no job descriptions, | organizational culture and explain where | ||
informal team organization, soft reporting | organizational cultures can come from the | ||
lines) Face-to-face communication All | how they can be changed. LO 11-7 Compare | ||
associates are shareholders of the | and contrast different strategic control | ||
company. STRATEGY HIGHLIGHT 11.2. 11–16. | and reward systems. 11–46. | ||
1–16. | 47 | Organizational Culture: Values, Norms, | |
17 | Assembling the Pieces: Mechanistic vs. | and Artifacts. Organizational culture | |
Organic Organizations. Organic | Collectively shared values and norms | ||
organizations Low degree of specialization | Value: what is considered important Norms: | ||
and formalization Flat structure | appropriate employee behaviors and | ||
Decentralized decision making Uses virtual | attitudes Artifacts: expression of culture | ||
team due to information technology | in items such as physical design, stories, | ||
Examples: Zappos, W. L. Gore, and many | and celebrations Socialization Internalize | ||
high-tech firms Mechanistic organizations | organization’s value and norms through | ||
High degree of specialization and | interactions Think of Zappos’ core values | ||
formalization Tall hierarchy Centralized | GM’s culture became strategic liability. | ||
decision making Example: McDonald’s. Video | 11–47. | ||
on Web 2.0 Changing workplace. 11–17. | 48 | Where Do Organizational Cultures Come | |
18 | Mechanistic vs. Organic Organization. | From? Founder imprinting Founders defined | |
EXHIBIT 11.3. | and shaped the culture Apple (Steve Jobs) | ||
19 | LO 11-1 Define organizational design | Disney (Walt Disney) Microsoft (Bill | |
and list its three components. LO 11-2 | Gates) Wal-mart’s “low cost” culture by | ||
Explain how organizational inertia can | Sam Walton Recruit people that fit the | ||
lead established firms to failure. LO 11-3 | culture Zappos vs. GE. 11–48. | ||
Define organizational structure and | 49 | How Does Organizational Culture | |
describe its four elements. LO 11-4 | Change? Core competency? core rigidity | ||
Compare and contrast mechanistic versus | Culture no longer has good fit with the | ||
organic organizations. LO 11-5 Describe | environment Cultural change is needed | ||
different organizational structures and | Cultural change Brings new leadership | ||
match them with appropriate strategies. LO | Mergers and acquisitions. 11–49. | ||
11-6 Describe the elements of | 50 | Organizational Culture. Culture must | |
organizational culture and explain where | be valuable, rare, inimitable, and | ||
organizational cultures can come from the | non-substitutable (RBV) Causal ambiguity | ||
how they can be changed. LO 11-7 Compare | and social complexity Organizational | ||
and contrast different strategic control | culture is an important resource Southwest | ||
and reward systems. 11–19. | Airlines Friendly and energized employees | ||
20 | Matching Strategy and Structure. | work collaboratively Zappos Deliver WOW | |
Simple structure Small firms with low | through service. 11–50. | ||
complexity Top management makes all | 51 | Carly Fiorina appointed CEO of HP in | |
important strategic decisions Low degree | 1999 Engineered acquisition of Compaq in | ||
of formalization and specialization A | 2002 Carly Fiorina needed the acquisition | ||
basic organizational structure Examples: | to initiate structural and cultural change | ||
small advertising, consulting, accounting, | in HP to overcome inertia Board of | ||
and law firms. 11–20. | Directors fired her in 2005 Hired Mark | ||
21 | Changing Organizational Structures and | Hurd who was himself fired in 2010… | |
Increasing Complexity as Firms Grow. | Continued turnover at top of HP; Mark Hurd | ||
EXHIBIT 11.4. | was replaced by Leo Apotheker, who in turn | ||
22 | Functional Structure. Functional | was replaced by Meg Whitman in September | |
structure Groups of employees with | 2011. Carly Fiorina at HP: Cultural Change | ||
distinct functional areas The areas of | via Shock Therapy. STRATEGY HIGHLIGHT | ||
expertise correspond to distinct stages in | 11.4. 11–51. 1–51. | ||
the company value chain activities | 52 | Organizational Culture. Cultural | |
Example: College of Business, Finance | impact on employee behavior Motivates | ||
Department , … etc. Recommended with | employees by appealing to their ideas | ||
narrow products/services Matches well with | Strengthen employee commitment, | ||
business-level strategy Cost leadership ? | engagement, and effort Culture is vital to | ||
Mechanistic organization Differentiation ? | an organization Stronger founder | ||
Organic organization Integration strategy | imprinting leads to higher performance | ||
? Ambidextrous organization. | Effective alignment allows development and | ||
23 | Typical Functional Structure. EXHIBIT | refines organizational core competency. | |
11.5. 11–23. | 11–52. | ||
24 | Matching Business Level Strategy and | 53 | LO 11-1 Define organizational design |
Structure. EXHIBIT 11.6. | and list its three components. LO 11-2 | ||
25 | USA Today: one of the widest print | Explain how organizational inertia can | |
circulations in U.S. USA Today.com, a new | lead established firms to failure. LO 11-3 | ||
independent SBU under Gannett Although | Define organizational structure and | ||
attracted readers and advertising dollars, | describe its four elements. LO 11-4 | ||
USA Today.com lost key editorial talent | Compare and contrast mechanistic versus | ||
due to uneven resource distribution | organic organizations. LO 11-5 Describe | ||
Integration of USA Today and USA Today.com | different organizational structures and | ||
to eliminate duplication of resources and | match them with appropriate strategies. LO | ||
reduce waste. STRATEGY HIGHLIGHT 11.3. USA | 11-6 Describe the elements of | ||
Today: Leveraging Ambidextrous | organizational culture and explain where | ||
Organizational Design. 1–25. | organizational cultures can come from the | ||
26 | Functional Strategy: Drawbacks. Lacks | how they can be changed. LO 11-7 Compare | |
effective communication channels across | and contrast different strategic control | ||
departments Lack of linkage between | and reward systems. 11–53. | ||
functions Often solved the problems by | 54 | Strategic Control and Reward Systems. | |
having cross-functional teams It cannot | Internal governance mechanisms Culture | ||
effectively address a higher level of | Sanctions Input controls Rules and | ||
diversification. 11–26. | standard operating procedures Budgets | ||
27 | Multidivisional Structure. | Behavior guidelines Output controls | |
Multidivisional structure Consists of | Result-oriented ROWEs (results only work | ||
several distinct SBUs Each SBU is | environment). Dan Pink’s RSA Video. 11–54. | ||
Organizational Design: Structure, Culture, and Control.ppt |
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