BA 550 2 Org Design.ppt
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Transcript BA 550 2 Org Design.ppt
ORGANIZATION
MANAGEMENT
Organizational Design
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
McKinsey 7-S Model
Strategy
The Hard S’s
Structure
The hard elements are factual
and easy to identify. They can be
Systems
found in strategy statements,
Style
corporate plans, organization
charts, and other documentation
Staff
Skills
Superordinate goals
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
The Soft S’s
The soft elements
are difficult to
describe since they
are continuously
developing and
changing. They are
highly determined by
the people at work in
the organization.
7-S Model – The Hard S’s
Strategy
Actions a company plans in response to or in anticipation of
changes in its external environment
Structure
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Basis for specialization and coordination, influenced
primarily by strategy and by organization size and diversity
Systems
Formal and informal procedures that support the strategy
and structure (Systems are more powerful than they are
given credit)
Organizational Structure
Organization Chart
formal
reporting relationships
levels in hierarchy
spans of control
departmentalization
Systems to facilitate:
coordination
communication
integration
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Structural Designs
Functional Structure
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Can adapt functional structure
with horizontal linkages
Divisional Structure
Geographical Structure
Matrix Structure
Horizontal Structure /
Product Line Structure
Hybrid Structure
CEO
Vice President
Fianance
Chief
Accountant
Budget
Analyst
Vice President
Manufacturing
Plant
Maintenance
Superintendent Superintendent
Director
Human Resources
Training
Specialist
Benefits
Administrator
Other Organizational Forms
Joint Ventures
Licensing agreements
Strategic Alliances
Consortia
Virtual organizations
Global (transnational) Work Teams
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Virtual Teams
Virtual Teams are characterized by:
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Distributed
locations of team members
Use of information technology to accomplish tasks
Effective when:
Communication & collaboration skills are high.
Trust among team members is high
Organizations are increasing their use of
virtual teams
Potential for improvement in virtual team
management is huge
Information Linkages
Vertical Information Linkages
Hierarchy
Rules
and plans (i.e. budget)
Horizontal Information Linkages
Information
Liaison
systems
role
Task force
Integrator role (i.e. Project manager)
Cross-functional teams
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Ladder of Mechanisms for
Horizontal Linkage and Coordination
Teams
Amount of Horizontal
Coordination Required
H IGH
Full-time Integrators
Task Forces
Direct Contact
LOW
Information Systems
LOW
HIGH
Cost of Coordination in
Time and Human Resources
Systems – various elements
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Communications practice and system
Management reporting system
Approval process
Planning/budgeting system
Rewards system including appraisal
“Rules”
From Tasks to Structure
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Tasks define jobs
Jobs define skills required
Skills (and other considerations) define
staff
Over
time skills change as staff gains
knowledge and experience, and as technology
and corporate infrastructure mature
Collection of jobs basis for structure
Job design considerations
Do they have the necessary skills and
knowledge to fulfill proposed / expanded
job requirements?
What are the needs of the incumbent or
the rest of your workforce in general?
Monetary
Growth
Socialization
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
7-S Model – The Soft S’s - 1
Style / Culture
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
The culture of the organization, consisting of
Organizational culture: the dominant values, beliefs and
norms which develop over time and become relatively
enduring features of organization life
Management style: what managers do rather than what they
say (where they spend their time and attention, what they
allow, what they reward, etc)
Staff
Skills
Shared values /
Superordinate goals
7-S Model – The Soft S’s - 2
Style / Culture
Staff
The people/human resource management – ways of shaping
basic management values, processes used to develop
managers, ways of introducing new employees and
managing careers, socialization processes
Skills
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Distinctive competencies – what the company does best,
ways of developing or shifting competencies
Shared values / Superordinate goals
Guiding concepts, fundamental ideas around which a
business is built – simple, usually stated at abstract level,
have great meaning inside the organization, although
outsiders may not see or understand them
Organizational Culture
Culture is to organizations what
personality is to individuals
All companies have cultures
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Culture
by default
Culture by design – thoughtful choices
based on values and core beliefs
How does a company consciously create
its culture?
From Gray & Larson “Project Management:
The Managerial Process”
Types of Organizational Cultures
Control cultures –
Drive for predictability and order
Collaboration cultures –
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Pursue close relationship with customers
Competence cultures –
Pursue excellence and innovation
Cultivation cultures –
Pursue life enrichment for customers and employees
Organizational Culture
Observable Evidence:
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Symbols
Ceremonies
Stories
Behaviors
Language
Dress
Underlying Roots:
Values,
Assumptions, Beliefs, Attitudes, Feelings
Culture in practice
Conflict management
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Relationship or interpersonal conflict
Task / process conflict
Functional vs. dysfunctional conflict
Factors: goal incompatibility, limited resources,
differences
Power – the capacity to influence behavior
Positional power: rewards/consequences, control
of resources, information and decision control
Personal power: expert, referent (based on
identification and admiration)
Politics – the use of power to influence decisions
Management vs. Leadership
Planning &
budgeting
vs.
Setting the
direction
Organizing &
staffing
vs.
Aligning people
Controlling &
problem solving
vs.
Motivating people
Management is about coping with complexity
Leadership is about coping with change
Management vs. Leadership
Some managers (but not all) are leaders
Some leaders (but not all) are good managers
A manager gets work done through the efforts
of other people
Includes
planning, organizing, motivating, and
controlling
A leader creates and realizes a vision
Communicates
that vision and moves the
organization toward that vision
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Effective organizations
achieve a harmony
between these seven
elements; if one
element changes, then
this will affect all the
others
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
The 7-S Model can be a
valuable tool to initiate
change processes and
to give them direction;
i.e. determine current
state and ideal state of
each element, and
develop action plans to
close the gaps
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
In change processes,
many organizations
focus their efforts on
the hard S’s; however,
the soft factors can
make or break a
successful change
process. All factors
must be accounted for.
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
Interrelated
Equilibrium
Foundation of
corporate culture
Levers available to
management
Executing Change –
Seven Key Considerations
Strategic Intent
Substance
Scale
Scope/Breadth
Speed
Sequence
Style
Style
Scope
Substance
Strategic
Intent
Speed
Scale
Sequence
Strategic Intent
Precise
Large
Organization-wide
Fast
Sequence
Hard – Soft
Hard S’s
Speed
Slow
Speed
Scope/Breadth
Isolated
Soft – Hard
Style
Top Down
Substance
Scope
Strategic
Intent
Scale
Small
Broad
Substance
Soft S’s
Style
Bottom Up
Scale
Sequence
Strategic Intent
Precise
Obsolete
Fast
Sustainable?
Sequence
Hard – Soft
Big bang
Organization-wide
Can distract
Speed
Slow
Low momentum
Strategic
Intent
Speed
Scale
Sequence
Large
High risk
Scope/Breadth
Isolated
Not absorbed
Hard S’s
Quick
Substance
Scope
Scale
Small
Low risk
Broad
Confusion
Substance
Soft S’s
Long term
Style
Soft – Hard
Inflexible?
Style
Top Down
Coercive
Bottom Up
Participation
Coherent
Robust
Assignment
Read BA 550 class packet:
Turning
Great Strategy into Great Performance
Governance and Strategy Implementation
Case brief – Americhem
Last names beginning with A – M
Complete proposal on term project