1-Organizing for Success

8/8/2019 1-Organizing for Success

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Chapter TitleChapter Title

Organizing for

Success

(Based on Chapter 8 ofExploring Corporate Strategy by Johnson, Scholes & Whittington)


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11-2

Organizational Configuration

Structure

Processes

Relationships

Configuration

Structure


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11-3

Three Key Challenges

Three key challenges for organizations in the 21st

century:

1. Speed of change and increased level of uncertainty in

the business environment2. Importance of knowledge creation & knowledge

sharing

3. Rise of globalization


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Seven Basic Structural Types

1. Functional

2. Multi-divisional

3. Holding

4. Matrix5. Transnational

6. Team

7.

Project


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11-5

Functional or U-Form Structure


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Multidivisional orM-Form Structure

Williamsons Structures: U-Form, M-Form and H-Form


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11-7

Conglomerate or H-Form Structure


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11-8

Matrix Design

By Davis & Lawrence


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11-9

Transnational Structure


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Team Based Structure

Attempts to combine both horizontal and vertical

coordination through structuring people into cross-

functional teams


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11-11

Project Based Structure

Teams are created, undertake the work and are then

dissolved


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11-12

Comparison of Structures


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11-13

Goold & Campbell Design Tests

Based on organizations objectives and constraints:

Market Advantage Test

Parenting Advantage Test

PeopleT

est Feasibility Test

Based on good general design principles:

Specialized Cultures Test

Difficult Links Test Redundant Hierarchy Test

Accountability Test

Flexibility Test


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11-14

Types of Control Processes


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11-15

Types of Control Processes

Direct Supervision Direct control of strategic decisions

by one or a few individuals

Planning Processes Plan and control allocation of

resources and monitor their utilization

Self-Control By direct interaction and coordination

among individuals without supervision

Cultural Processes Concerned with organizational norm

and standardization of norms

Performance Targeting Focus on output such as

product quality, revenues or profits (Balanced Scorecard)

Market Processes Formalized system of contracting for

resources


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Relationships

Relating Internally and Externally


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Relating Over Strategy - 1

Strategic Planning Style


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Financial Control


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11-19


Strategic Control


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11-20


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Relating Externally

Outsourcing

Strategic Alliances

Networks

Virtual Organization


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11-22

Configurations

Stereotypical Configurations

Reinforcing Cycles & Implications for Change

Managing Dilemmas in Configurations


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11-23

Stereotypical Configurations

Mintzbergs Structures


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11-24

Mintzbergs Five Configurations

1. Simple Structure: Entrepreneurial setting - relies on direct supervisionfrom the strategic apex, the CEO.

2.Machine Bureaucracy: Large organizations - relies on standardization

of work processes by the techno-structure.

3. Professional Bureaucracy: The professional services firm - relies on

the professionals' standardization of skills and knowledge in the

operating core.

4. Divisionalized Form: Multi-divisional organization - relies on

standardization of outputs; middle-line managers run independentdivisions.

5. Adhocracy: Project organizations - highly organic structure with little

formalization; relies on mutual adjustment as the key coordinating

mechanism within and between these project teams.


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Reinforcing Cycles Example 1


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Reinforcing Cycles Example 2


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11-27

Configuration Dilemmas


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Organizational Structures ofthe Future: Overall Themes

Revolutionary changes in how workis organized

have been triggered by

New strategic priorities

Rapidly shifting competitive conditions

Tools oforganizational design include

Empowered managers and workers

Reengineered work processes

Self-directed work teams

Rapid incorporation ofInternet

technology

Networking with outsiders

The future

structure

will be . . .


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Characteristics ofOrganizations of the Future

Extensive use ofInternet technology

and e-commerce business practices

Fewer barriers between

Different vertical ranks Functions and disciplines

Units in different geographic locations

Company and its suppliers, distributors,

strategic allies, and customers

Capacityforchange and rapid learning

Collaborative efforts among people in different

functions and geographic locations

Change &Learning

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1-Organizing for Success