صفحه 1:
PowerPoint Presentation
to Accompany Chapter 11 of
Management, 8/e
John R. Schermerhorn, Jr.
Prepared by: Michael K. McCuddy
Valparaiso University
Published by: John Wiley & Sons, Inc.
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صفحه 2:
Planning Ahead — Chapter 11 Study
Questions
~ What are the essentials of organizational design?
* How do contingency factors influence organization
design?
~ What are the major issues in subsystems design?
~ How can work processes be reengineered?
Management 8/e - Chapter
11
صفحه 3:
۱5 Study Question 1: What are the
a. essentials of
organizational design? ———_____
» Organizational design
- Choosing and implementing structures
that best arrange resources to serve the
organization’s mission and objectives.
- A problem-solving activity that should be
approached from a contingency
perspective.
Management 8/e - Chapter
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صفحه 4:
۱5 Study Question 1: What are the
- » cssentials of
$ organizational design? سس
~ Organizational effectiveness
Sustainable high performance in using
resources to accomplish mission and objectives.
Approaches:
» Systems resource approach — focuses on inputs.
* Internal process approach — focuses on transformation
process.
» Internal process approach — focuses on outputs.
» Internal process approach — focuses on environment.
Management 8/e - Chapter
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صفحه 5:
۱5 Study Question 1: What are the
: » cssentials of
$ organizational design? سس
» Short-run, medium-run and long-run criteria
for evaluating organizational effectiveness:
~ Short-run focus.
* Goal accomplishment.
» Performance efficiency in resource utilization.
» Stakeholder satisfaction.
~ Medium-run focus.
» Adaptability in the face of changing environments.
» Development of people and systems to meet new
challenges.
~ Long-run focus.
» Survival under conditions of uncertainty.
Management 8/e - Chapter
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صفحه 6:
۱5 Study Question 1: What are the
- » cssentials of
$ organizational design? سس
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» Bureaucracy
~ A form of organization based on logic, order,
and the legitimate use of formal authority.
~ Bureaucratic designs feature ...
* Clear-cut division of labor.
* Strict hierarchy of authority.
» Formal rules and procedures.
* Promotion based on competency.
Management 8/e - Chapter
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صفحه 7:
۱5 Study Question 1: What are the
: » cssentials of
$ organizational design? سس
# ~ Contingency perspective on bureaucracy
asks the questions:
~ When is a bureaucratic form a good choice for an
organization?
~ What alternatives exist when it is not a good
choice?
~ Environment determines the answers to
these questions.
~ Amechanistic design works in a stable
environment
~ An organic design works in a rapidly changing and
uncertain environment.
Management 8/e - Chapter
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صفحه 8:
۱5 Study Question 1: What are the
: » cssentials of
2 $ organizational design? —__
® ~ Structural characteristics associated
with design alternatives:
Goal — predictability versus adaptability.
- Authority — centralized versus decentralized.
Rules and procedures — many versus few.
Spans of control — narrow versus wide.
~ Tasks — specialized versus shared.
Teams and task forces — few versus many.
~ Coordination — formal and impersonal versus
informal and personal.
Management 8/e - Chapter
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صفحه 9:
۱5 Study Question 1: What are the
: » cssentials of
$ organizational design? ل سس
@ > Mechanistic Designs ~ Organic Designs
~ Predictable goals ~ Adaptable goals
~ Centralized authority ~ Decentralized
~ Many rules and authority
procedures ~ Few rules and
~ Narrow spans of procedures
control ~ Wide spans of control
~ Specialized tasks ~ Shared tasks
~ Few teams and task ~ Many teams and task
forces forces
~ Formal and ~ Informal and
impersonal means of personal means of
coordination coordination
Management 8/e - Chapter
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صفحه 10:
= ® Study Question 2: How do
§ . contingency factors influence
$ organization design? سس
® ~ Checklist for identifying contingency
factors in organizational design:
Does the design fit well with the major problems and
opportunities of the external environment?
Does the design support implementation of strategies
and the accomplishment of key operating objectives?
Does the design support core technologies and allow
them to be used to best advantage?
Can the design handle changes in organizational size
and different stages in the organizational life cycle?
Does the design support and empower workers and
allow their talents to be used to best advantage?
Management 8/e - Chapter
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صفحه 11:
= ® Study Question 2: How do
§ . contingency factors influence
$ organization design? سس
© ~ Environment and organizational design
~ Certain environment ...
* Relatively stable and predictable elements.
۰ Bureaucratic organizations and mechanistic
designs are appropriate.
~ Uncertain environment ...
* More dynamic and less predictable elements.
» Adaptive organizations and organic designs are
appropriate.
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= ® Study Question 2: How do
§ . contingency factors influence
* organization design? ———__—
» Strategy and organizational design —
~ Structure follows strategy.
~ Stability strategy is supported by:
~ Bureaucratic organizations using mechanistic
designs.
~ Growth strategies are is supported by:
~ Adaptive organizations using organic designs.
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= ® Study Question 2: How do
- contingency factors influence
~The combination of knowledge, skills,
equipment, computers, and work
methods used to transform resource
inputs into organization outputs.
Management 8/e - Chapter
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= ® Study Question 2: How do
§ . contingency factors influence
* organization design?
~ Core manufacturing technologies:
~ Small-batch production.
* A variety of custom products are tailor-made to order.
~ Mass production.
» A large number of uniform products are made in an
assembly-line system.
~ Continuous-process production.
» A few products are made by continuously feeding raw
materials through a highly automated production
system with largely computerized controls.
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= ® Study Question 2: How do
§ . contingency factors influence
۰ $ organization design? ب
» Technology and organization design —
~ The technological imperative
° Technology is a major influence on
organizational structure.
The best small-batch and continuous process
plants have more flexible organic structures.
* The best mass-production plants have more
rigid mechanistic structures.
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= ® Study Question 2: How do
3. contingency factors influence
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~ Core service technologies:
~ Intensive technology
» Focuses the efforts of many people with special
expertise on the needs of patients or clients.
~ Mediating technology
» Links together parties seeking a mutually beneficial
exchange of values.
~ Long-linked technology
Functions like mass production, where a client is
passed from point to point for various aspects of service
delivery.
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® Study Question 2: How do
§ . contingency factors influence
ل _«ووزومل ممتتنهعنجهوته و
@ ~ Organization size, life cycle, and design —
۰ ~ Larger organizations tend to have more mechanistic
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designs, but it is not always best.
~ Organizational life cycle:
* Birth stage — small size, simple structure.
* Youth stage — rapid growth in size, simple structure
experiences stress.
* Midlife stage — growing to large size, more complex and
formal structure.
* Maturity stage — stabilizes at large size, mechanistic
structure.
Management 8/e - Chapter
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= ® Study Question 2: How do
§ . contingency factors influence
fs organization design? ———
~ Coping with the disadvantages of large
size:
~ Downsizing.
» Reducing the scope of operations and number of employees.
Intrapreneurship.
* The pursuit of entrepreneurial behavior by individuals and
subunits within large organizations.
Simultaneous structures.
* Organizations that combine mechanistic and organic designs.
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= ® Study Question 2: How do
§ . contingency factors influence
$ organization design? سس
© ~ Human resources and good
organization design —
~ Provides people with supporting structures
needed for both high performance and
work satisfaction.
~ Produces a good “fit” between organization
structures and human resources.
~ Allows the expertise and talents of
organization members to be unlocked and
utilized.
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۰
تاه هد Question 3: What are the
© major issues in subsystems design?
5 ~ Basics of subsystem design ...
هي ~ Subsystem —
2 ° A department or work unit headed by a
2 manager.
* Operates as a smaller part of the larger
organization.
~ Ideally, each subsystem supports other
subsystems, working toward interests of
entire organization.
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8
6 Study Question 3: What are the
= ® major issues in subsystems design?
» Lawrence and Lorsch’s findings on
subsystems design ...
~ The total system structures of
successful firms match the challenges of
their environments.
~ The subsystems structures of successful
firms match the challenges of their
respective subenvironments.
~ Subsystems in successful firms worked
well with each other.
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8
6 Study Question 3: What are the
© major issues in subsystems design?
» Managing subsystem differentiation:
~ Differentiation is the degree of
difference that exists among the
internal components of an organization.
~ Common sources of subsystems
differentiation:
° Time orientation
* Objectives
* Interpersonal orientation
° Formal structure
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6 Study Question 3: What are the
© major issues in subsystems design?
5 » Managing subsystem integration:
@ _~ Integration is the level of coordination
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achieved among an organization’s
internal components.
~ Organization design paradox —
«Increased differentiation creates the need for
greater integration.
* Integration is more difficult to achieve as
differentiation increases.
Management 8/e - Chapter
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Study Question 3: What are the
major issues in subsystems design?
* Mechanisms for achieving subsystem
integration:
~ Rules and procedures
~ Hierarchical referral
~ Planning
~ Direct contact
~ Liaison role
~ Task forces
~ Teams
~ Matrix organizations
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6B Study Question 4: How can work
® processes be reengineered?
~ Process reengineering
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۰ ~ Systematic and complete analysis of work
۰ processes.
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~ Design of new and better work processes.
~ Work process
~ “A related group of tasks that create a result of
value for the customer.” (Michael Hammer)
* Workflow
~ Movement of work from one point to another in
the manufacturing or service delivery process.
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6B Study Question 4: How can work
® processes be reengineered?
~ Steps in reengineering core processes:
~ Identify core processes.
Map core processes in respect to workflows.
Evaluate all tasks for core processes.
Search for ways to eliminate unnecessary tasks
or work.
Search for ways to eliminate delays, errors, and
misunderstandings.
Search for efficiencies in how work is shared and
transferred among people and departments.
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صفحه 27:
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هه هه ۵۵