Chapter 9 Designing Adaptive Organizations

2. MGMT3 Chuck Williams Chapter 9Designing Adaptive Organizations Designed & Prepared byB-books, Ltd.

3. Organizational Structure The vertical and horizontal configuration of departments, authority, and jobs within a company. Organizational Process The collection of activities that transform inputs into outputs that customers value. Organizational Structure

4. Organizational Structure Process View of Microsoft’s Organization

5. Functional Product Customer Geographic Matrix Departmentalization 1

6. Functional Departmentalization 1.1

7. Work done by highly skilled specialists Lowers costs through reduced duplication Communication and coordination problems are lessened Advantages Disadvantages Functional Departmentalization • Cross-department coordination can be difficult • May lead to slower decision making • Produces managers with narrow experiences 1.1

8. United Technologies Carrier Chubb Hamilton Sundstrand Otis Pratt & Whitney Sikorsky --Administrative services --Communication & public relations--Customer service & support --E-Business--Engineering--etc… UTC Power Product Departmentalization 1.2

9. Customer Departmentalization 1.3 Source: “Company Structure,” About Swisscom, available online at http://www.swisscom.ch [accessed 14 November 2009].

10. Focuses on customer needs Products and services tailored to customer needs Advantages Disadvantages Customer Departmentalization • Duplication of resources • Difficult to coordinate across departments • Efforts to please customers may hurt the company 1.3

11. Geographic Departmentalization 1.4 Source: “Territories of Operation, 2007 Annual Report,” Coca-Cola Enterprises, available online at http://www.cokecce.com/brochures/cce_2007/index.html#territories [accessed 7 September 2008].

12. Responsive to the demands of different market areas Unique resources located close to the customer Advantages Disadvantages Geographic Departmentalization • Duplication of resources • Difficult to coordinate across departments 1.4

13. Matrix Departmentalization 1.5 Source: “Corporate Info: Structure,” P&G, available online at http://www.pg.com/jobs/corporate_structure/four_pillars.shtml [accessed 8 August 2008].

14. Efficiently manage large, complex tasks Pool of available resources Advantages Disadvantages Matrix Departmentalization • Requires high levels of coordination • Conflict between bosses • Requires high levels of management skills 1.5

15. Chain ofCommand Line versusStaff Authority Delegationof Authority Degree of Centralization Organizational Authority 2

16. Chain of Command • The vertical line of authority in an organization • Clarifies who reports to whom • Unity of command • matrix organizations violate this principle • workers report to only one boss 2.1

17. Line versus Staff Authority • Line authority • the right to command immediate subordinates in the chain of command • Staff authority • the right to advise but not command others versus 2.2

18. Delegation of Authority Delegation of Authority The assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible. 2.3

19. Job Characteristics Model • A job redesign approach that seeks to increase employee motivation • Emphasizes internal motivation • experience work as meaningful • experience responsibility for work outcomes • knowledge of results 3.3

20. Job Characteristics Model 3.3

21. Beyond the Book Biz Flix: Rendition Do you think the scene shows line authority or staff authority between these two men? Take Two Video Click

22. Job Redesign Techniques Redesigning Jobs Combining Tasks Forming Natural Work Units Establishing Client Relationships Vertically Loading the Job Opening Feedback Channels 3.3

23. Intraorganizational Processes Reengineering Empowerment 4

24. Reengineering • The fundamental rethinking and radical redesign of business processes • Intended to achieve dramatic improvements in performance • Change the orientation from vertical to horizontal • Change task interdependence 4.1

25. Reengineering and Task Interdependence 4.1

26. Empowerment EmpoweringWorkers Permanently passing decision-makingauthority and responsibilities frommanagers to workers by giving themthe information and resources they need to make good decisions • A feeling of intrinsic motivation • Workers perceive meaning in their work • Employees are capable of self-determination 4.2

27. Behavioral Informality Beyond the Book Behavioral Informality Behavioral Formality • Spontaneity • Casualness • Interpersonal familiarity • Routine & regimen • Specific behavior rules • Impersonal detachment

28. Beyond the Book Behavioral Informality Popular ways to increase behavioral informality Casual Dress and Open Offices

29. Interorganizational Processes Modular Organizations VirtualOrganizations 5

30. Modular Organizations 5.1

31. Virtual Organizations 5.2