Organization design - Fashion or fit

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Organization design - Fashion or fit

  1. 1. ORGANIZATION DESIGN: FASHION OR FIT GROUP 8 (SECTION D)
  2. 2. ROADMAP1. Why organizations fail?2. Components of an organization3. Context of an organization4. Five basic Configurations5. OD – a diagnosis tool?6. Fashion Vs fit
  3. 3. MAIN PROBLEM IN ORGANIZATIONAL DESIGN• Assumption that all organizations are alike • Ex: A hospital or an University has a totally organizational design when compared to a factory floor• Assumption that effectiveness drives design and coherence amongst the components when it’s other way round
  4. 4. COMPONENTS OF ORGANIZATION • Take Strategic Decisions w.r.t.Top management organization Operating core • Basic work of an organization Middle line • Intermediate management • Operational Design of core activity ofTechnostructure organization • Every other service other required for an Support Staff organization
  5. 5. ILLUSTRATION OF COMPONENTS IN A RESTAURANT Owner- Top Management Watchman, Cashier, sweeper – Head Chef - Technostructure Manager – middle management Support Staff Cooks, Waiters – Operating core Note: Not all organizations need all these parts.
  6. 6. CONFIGURATION AND CONTEXT Organization Structure c o h e Organization r e Effectiveness n c e Organization Context
  7. 7. PARAMETERS OF CONTEXT• Size & Age• Technological Dependence• Environmental factors • Simple/Complex • Stable/Unstable• Power • External • Internal
  8. 8. PARAMETERS OF STRUCTURE• Standardization• Formalization• Hierarchy
  9. 9. 5 CONTEXTS – 5 STRUCTURES Context MutualDirect Supervision Standardization of Standardization of Standardization of Adjustment ex: anex: Small grocery work ex: assembly skills ex: outputs ex: Car airplane store line hospital, school company manufacturer Structure Machine Professional DivisionalizedSimple Structure - Adhocracy - no bureaucracy - bureaucracy – form – middle line CEO distinctions technostructure operating core managers
  10. 10. FEW EXAMPLESSimple Structure – Sharmaji canteenMachine bureaucracy – Mc Donald’sProfessional bureaucracy – MDIDivisionalized form – GodrejAdhocracy – Intel
  11. 11. EXAMPLES FROM CASE STUDIESSimple Structure – Celestial Seasonings,Machine bureaucracy – AcmeProfessional bureaucracy – OmegaDivisionalized form - ABBAdhocracy – W.L.Gore and associates
  12. 12. SIMPLE STRUCTURE• Characteristics • Less standardization, formalization • Minimal planning, training or liaison • Very less middle management • They buy than make• Advantages • Lean and flexible • Operates in dynamic and complex environment
  13. 13. • Highly centralized – rapid innovation in simple kind happens• Not suitable for complex innovation• Generally young and small• They often die young because of heavy obsession of its leaders• Under severe pressure organizations revert back to this structure
  14. 14. MACHINE BUREAUCRACY• Off spring of industrialization• High standardization – low skilled, highly specialized jobs• Elaborate administration with many analysts which in turn leads to horizontal decentralization• Conflicts out of rigid departmentalization and hierarchy is required to oversee it
  15. 15. • Stable environment or stabilize the environment around by vertical integration• Size drives organization to bureaucratize and vice versa• Mass production• External controls encourage bureaucratization and centralization• Ex govt agencies
  16. 16. • Dull and repetitive work, alienated employees, obsession with control, massive size and inadaptability
  17. 17. CONCLUSIONA configuration according to the context of theorganization should be chosen but competency thatcontrasts its configuration should not be expected

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