Welcome!
Organisation Design
Dr. Satyendra Singh
Professor, Marketing and International Business
University of Winnipeg, CANADA
https://sites.google.com/view/drsatsingh
s.singh@uwinnipeg.ca
Objectives
① Organization
② Principles of organization
③ Organization structure
④ Organization models
⑤ Restructuring and re-engineering
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① Organization
Organization or structuring − getting work done by dividing it
Job specialization − dividing tasks into smaller jobs
Departmentalization − to do the specialized tasks
Organizations changing fast → manage change eg restructuring
Economies of scale (supply side) vs scope (demand side)
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3-phase change management process
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② Principles of Organization — Fayol
Unit of command − each worker report one boss
Hierarchy of authority − workers know who to report, manager has the right to give order
Division of labor − based on specialization eg marketing, HR, operation…
Team interest over personal
Degree of centralization – decision-making power vested most in top mgmt.
Clear command of channels – workers should accessible
Order – people and material should be placed in proper location
Equity – managers treat workers and peers with respect and justice
Esprit de corps – managers should create team spirit, unity and moral
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Principles of Organization — Weber
Job description
− responsibilities, activities, qualification, skills for the role
Written rules
− wear safety equipment, inform hazard, use of tools…
Procedure, regulations, policies
− to guide decisions, achieve rational outcomes
Staffing, promotion
− based on qualification, experience, performance, motivation…
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③ Organization Structure
Henry Mintzberg
No single structure → success of organization
Most organization are slow and rigidy
Flexible structure → changing business climate
Centralized authority
Advantage – ↑efficient, ↑distribution, ↑corporte image
Disadvantage – ↓responsive, ↓empowerment, ↑ conflict, ↓moral
Decentralized authority
Advantage – ↑adaptation, ↑empowerment, ↑ decision making
Disadvantage – ↓efficient, ↓ top mgmt control, ↓corporate image
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Span of Control
Span of control – Optimum # of subordinate supervision
#? → job complexity, need for coordination, geographically close
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↓manager-to-employee ratio
Easy to manage small groups
Easy to complete tasks
All employees report to 1 or few employees are empowered
Departmentalization – division in smaller units by functions
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↑ Skills development ↓ Narrow specialization
↑ Economies of Scale ↓ creativity, like mindedness
↑ Coordination ↓ Identify with department
↓ Communication (silo)
↓ responsiveness
④ Organization Models
(1) Line, (2) Line-and-staff, (3) Matrix style organizations and (4) Self-managed teams
(1) Line organization – manager has the direct control over subordinates, military-type orgn
Advantage – clear authority, easy to understand, one supervisor per employee…
Disadvantage – inflexible, few specialists for advice, long line of communication…
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(2) Line-and-staff Organization
The structure distributes responsibilities from upper to lower level employees
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(3) Matrix-Style Organization
The structure brings different specialist from different department for a special project
Still with your own department, so double reporting. Conflict.
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(4) Cross Functional Self-Managed Teams
Same as matrix except long-term basis
Managing Interactions
Networking – technology, electronic data interchange (EDI)…
Virtual organization (real time) – flexible, contract, remote, outsourcing…
Transparency – information can be shared, by law…
Benchmarking – Key Performance Indicators (KPI) for progress and benchmarking…
Core competences – expert, efficient, better than others
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⑤ Restructuring for Empowerment
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Restructuring – Redesigning, ↑effective, ↑efficient to serve its customers
The traditional organization lends itself to a style of leadership where division of labor, chain of command and top-down communication dominates.
The inverted organization increasingly operates with empowered employees playing a more prominent role in taking the ownership of success.
Business Process Re-engineering
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Re-engineering – The fundamental rethinking and radical redesign of organizational processes to achieve dramatic improvements in critical measures of performance
Total Quality Management – ↑customer satisfaction, all dept responsibility
Continuous improvement – constantly improving to meet evolving customer needs
Focusing on the Customer – Poka-Yoke (foolproof!)
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Continuous Improvement: make never-ending improvements to critical processes
Data driven
Employee empowerment: giving workers responsibility and training
Team Approach
Suppliers/Partners: encourage partnership and long term relationships
Fail-safe (poka-yoke): designing in elements that prevent errors
A philosophy that �involves everyone �in an organization in a continual effort to improve quality and achieve customer satisfaction
Poka-yoke (ポカヨケ) is a Japanese term that means "mistake-proofing".
Questions?�s.singh@uwinnipeg.ca