What is an organization?An organization is a social group whichdistributes tasks for a collective goal.The word itself is derived from the Greek wordorganon, itself derived from the better-knownword ergon - as we know `organ` - and it means acompartment for a particular job.
what does an organization look likeOrganization is first of all about PeopleThere are 4 types of organization:Pyramids or hierarchiesCommittees or juriesMatrix organizationsEcologies
Type 1: HierarchicalA hierarchy exemplifies an arrangement with a leaderwho leads other individual members of the organization.This arrangement is often associated with bureaucracy.Organizations who apply this type, follow the:Dilbert Principle "leadership is natures way of removing morons from the productive flow". Dilbert strip of February 5, 1995
Type 2: Committees and JuriesThese consist of a group of peers who decide as a group,perhaps by voting.Best known organizations who like committees andjuries, are governmental and non-profit organizations.If you want to kill a good idea,organize a committee. Death by committee
Type 3: Matrix organizationsThis organizational type assigns each worker two bosses in twodifferent hierarchies.2.One hierarchy is "functional" and assures that each type of expertin the organization is well-trained, and measured by a boss who issuper-expert in the same field.3.The other direction is "executive" and tries to get projectscompleted using the experts. Risks here: •A conflict of loyalty between line managers and project managers over the allocation of resources. •Projects can be difficult to monitor if teams have a lot of independence. •Costs can be increased if more managers are created through the use of project teams.
Type 4: EcologiesThis organization has intense competition. Bad parts ofthe organization starve. Good ones get more work.Everybody is paid for what they actually do, and runs atiny business that has to show a profit, or they are fired.
Is there a right structure?Theres no one "right" organizational structure, so itsimportant to understand how structure relates to whatyou want to achieve.None of the organization designs are necessarily ideal, and theyrevery simplified versions of what exists in real life. In fact, itscommon for a company to have a combination of elements of eachstructural type.Question: What does yourorganization look like?
The 7 elements of McKinseyHow do you go about analyzing how well your organization ispositioned to achieve its intended objective?This is a question that has been asked for many years, and there aremany different answers.The McKinsey 7S model involves seven interdependent factors whichare categorized as either "hard" or "soft" elements”: Hard Elements Soft Elements Strategy Shared Values Structure Skills Style Systems Staff
The 7 elements of McKinseyLets look at each of the elements specifically:•Strategy: the plan devised to maintain and build competitiveadvantage over the competition.•Structure: the way the organization is structured and who reportsto whom.•Systems: the daily activities and procedures that staff membersengage in to get the job done.•Shared Values: these are the core values of the company that areevidenced in the corporate culture & the general work ethic.•Style: the style of leadership adopted.•Staff: the employees and their general capabilities.•Skills: the actual skills & competencies of the employees workingfor the company.
The 7 elements of McKinseyIMPORTANT:Placing Shared Values in the middleof the model emphasizes that thesevalues are central to thedevelopment of all the othercritical elements.The original vision of the companywas formed from the values of thecreators. As the values change, sodo all the other elements.
What are your values?Most people have between 3 and 7 core values. If you find you havemore than 7, see if some of them group together. If so, choose theone that best represents that group of values.Core Values Exercise:5.Identify the values, selectmaximum 76.Verify if the values are yoursFurther home work:•Define your values•Share the values withthe team
A summaryUsing the information you have gathered, now examine where thereare gaps and inconsistencies between the 7 elements. Rememberyou can use this to look at either your current or your desiredorganization.3.Start with your Shared Values: Are they consistent with yourstructure, strategy, and systems? If not, what needs to change?4.Then look at the hard elements. How well does each one supportthe others? Identify where changes need to be made.5.Next look at the other soft elements. Do they support the desiredhard elements? Do they support one another? If not, what needs tochange?