CH09

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CH09

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  1. Chapter 9Designing Adaptive Organizations

    Slide 1 - Chapter 9Designing Adaptive Organizations

    • © 2015 Cengage Learning
    • MGMT7
  2. © 2015 Cengage Learning

    Slide 2 - © 2015 Cengage Learning

    • 9-1 describe the departmentalization approach to organizational structure
    • 9-2 explain organizational authority
    • 9-3 discuss the different methods for job design
    • 9-4 explain the methods that companies are using to redesign internal organizational processes (i.e., intraorganizational processes)
    • 9-5 describe the methods that companies are using to redesign external organizational processes (i.e., interorganizational processes).
  3. Structure and Process

    Slide 3 - Structure and Process

    • Organizational structure
    • Organizational process
    • © 2015 Cengage Learning
  4. Thomson Reuters

    Slide 4 - Thomson Reuters

    • © 2015 Cengage Learning
  5. Process View of Microsoft’s Organization

    Slide 5 - Process View of Microsoft’s Organization

    • © 2015 Cengage Learning
  6. Departmentalization

    Slide 6 - Departmentalization

    • Functional
    • Product
    • Customer
    • Geographic
    • Matrix
    • © 2015 Cengage Learning
    • 9-1
  7. Functional Departmentalization

    Slide 7 - Functional Departmentalization

    • Advantages
    • allows work done by highly qualified specialists
    • lowers costs by reducing duplication
    • makes communication and coordination easier
    • Disadvantages
    • cross-department coordination can be difficult
    • may lead to slower decision making
    • © 2015 Cengage Learning
    • 9-1
  8. Functional Departmentalization

    Slide 8 - Functional Departmentalization

    • © 2015 Cengage Learning
    • 9-1
  9. Product Departmentalization

    Slide 9 - Product Departmentalization

    • Advantages
    • allows people to specialize in one area of expertise
    • makes it easier to assess performance
    • makes decision making faster
    • Disadvantages
    • duplication
    • coordination across different product departments
    • © 2015 Cengage Learning
    • 9-1
  10. Product Departmentalization: UTC

    Slide 10 - Product Departmentalization: UTC

    • © 2015 Cengage Learning
    • 9-1
  11. Customer Departmentalization

    Slide 11 - Customer Departmentalization

    • Advantages
    • focuses organization on customer needs
    • allows companies to specialize products and services to customer needs
    • Disadvantages
    • duplication of resources
    • workers might please customers but hurt business
    • © 2015 Cengage Learning
    • 9-1
  12. Customer Departmentalization: Swisscom AG

    Slide 12 - Customer Departmentalization: Swisscom AG

    • © 2015 Cengage Learning
    • 9-1
  13. Geographic Departmentalization

    Slide 13 - Geographic Departmentalization

    • Advantages
    • helps companies respond to different markets
    • reduces costs by locating unique resources closer to customers
    • Disadvantages
    • duplication of resources
    • difficult to coordinate departments
    • © 2015 Cengage Learning
    • 9-1
  14. Geographic Departmentalization: AB InBev Company

    Slide 14 - Geographic Departmentalization: AB InBev Company

    • © 2015 Cengage Learning
    • 9-1
  15. Matrix Departmentalization

    Slide 15 - Matrix Departmentalization

    • Advantages
    • allows companies to efficiently manage large, complex tasks
    • gives much more diverse set of expertise and experience
    • Disadvantages
    • requires a high level of duplication
    • confusion and conflict between project bosses
    • requires much more management skill
    • © 2015 Cengage Learning
    • 9-1
  16. Matrix Departmentalization: Procter & Gamble

    Slide 16 - Matrix Departmentalization: Procter & Gamble

    • © 2015 Cengage Learning
    • 9-1
  17. Chain of Command

    Slide 17 - Chain of Command

    • Chain of command
    • Unity of command
    • © 2015 Cengage Learning
    • 9-2
  18. Authority

    Slide 18 - Authority

    • Line authority
    • Staff authority
    • Line function
    • Staff function
    • © 2015 Cengage Learning
    • 9-2
  19. Delegation

    Slide 19 - Delegation

    • © 2015 Cengage Learning
    • 9-2
  20. Degree of Centralization

    Slide 20 - Degree of Centralization

    • Centralization of authority
    • Decentralization
    • Standardization
    • © 2015 Cengage Learning
    • 9-2
  21. Advantages of Decentralization

    Slide 21 - Advantages of Decentralization

    • Develops employee capabilities
    • Faster decision making
    • More satisfied employees and customers
    • Better employee performance
    • © 2015 Cengage Learning
    • 9-2
  22. Job Specialization

    Slide 22 - Job Specialization

    • Job comprises a smaller part of a larger task
    • Easy to learn
    • Low variety
    • High repetition
    • © 2015 Cengage Learning
    • 9-3
  23. Job Rotation, Enlargement, Enrichment

    Slide 23 - Job Rotation, Enlargement, Enrichment

    • Rotation
    • Enlargement
    • Enrichment
    • © 2015 Cengage Learning
    • 9-3
  24. Job Characteristics Model

    Slide 24 - Job Characteristics Model

    • 9-3
    • © 2015 Cengage Learning
  25. Internal Motivation

    Slide 25 - Internal Motivation

    • Experience work as meaningful
    • Experience responsibility for work outcomes
    • Knowledge of results
    • © 2015 Cengage Learning
    • 9-3
  26. Core Job Characteristics

    Slide 26 - Core Job Characteristics

    • Skill variety
    • Task identity
    • Task significance
    • Autonomy
    • Feedback
    • © 2015 Cengage Learning
    • 9-3
  27. To Increase Internal Motivation

    Slide 27 - To Increase Internal Motivation

    • Combine tasks
    • Natural work units
    • Establish client relationships
    • Vertical loading
    • Open feedback channels
    • © 2015 Cengage Learning
    • 9-3
  28. Intraorganizational Processes

    Slide 28 - Intraorganizational Processes

    • The collection of activities that take place within an organization to transform inputs into outputs that customers value.
    • © 2015 Cengage Learning
    • 9-4
  29. Reengineering

    Slide 29 - Reengineering

    • “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”
    • © 2015 Cengage Learning
    • 9-4
  30. Reengineering and Task Interdependence

    Slide 30 - Reengineering and Task Interdependence

    • 9-4
    • © 2015 Cengage Learning
  31. Empowerment

    Slide 31 - Empowerment

    • Empowering workers
    • Empowerment
    • © 2015 Cengage Learning
    • 9-4
  32. Modular Organization

    Slide 32 - Modular Organization

    • 9-5
    • © 2015 Cengage Learning
  33. Modular Organizations

    Slide 33 - Modular Organizations

    • Advantages
    • reduced costs
    • Disadvantages
    • loss of control
    • noncore activities that are outsourced may become source of advantage
    • suppliers to whom work is outsourced can become competitors
    • © 2015 Cengage Learning
    • 9-5
  34. Virtual Organizations

    Slide 34 - Virtual Organizations

    • 9-5
    • © 2015 Cengage Learning
  35. Virtual Organizations

    Slide 35 - Virtual Organizations

    • Advantages
    • shared costs
    • fast and flexible
    • Disadvantages
    • difficult to control quality of work done by partners
    • requires tremendous managerial skills
    • © 2015 Cengage Learning
    • 9-5
  36. Modern Shed

    Slide 36 - Modern Shed

    • Describe how Modern Shed functions as a modular organization.
    • What are the advantages and disadvantages of Modern Shed’s organizational structure?
  37. Modern Shed

    Slide 37 - Modern Shed