1. The document discusses 3 themes: organizational structure, information systems and e-business, and managing change and innovation. 2. Within each theme, it outlines key learning objectives and concepts. For organizational structure, it examines structure types and their relationship to performance, as well as factors that influence organizational design like size and life cycle stage. 3. For information systems and e-business, it explores how technology is transforming value creation and the roles of systems like ERP, CRM, and knowledge management. 4. For managing change and innovation, it covers models of change, the forces that drive and restrain change, sources of resistance, and how to support innovation within an organization.

1. PGDBA101 Strategic Leadership and Management Skills
BUSINESS ORGANIZATION
DR DOUGLAS NISBET

2. Learning Themes
There are 3 themes in this Topic:
1. Organisational Structure
2. Information Systems and e-Business
3. Managing Change and Innovation

3. Learning Objectives – Theme 1
After studying this topic you should understand the
following:
• Structure and performance of organizationss
• Elements in structure: the design options
• Dividing work into functions and divisions
• Coordinating work: alternative ways
• Mechanistic and organic structures
• Learning organizations

4. Structure and performance
Figure 10.1 Alternative structures and performance

5. Structure of a unit in a large business
Figure 10.2 The structure within a BAE aircraft factory (www.baesystems.com)

6. Developing structure in a small business
Figure 10.3 The organisation structure at Multi-show Events

7. Grouping work into functions and divisions
Figure 10.5 Five types of structure

8. Coordinating work
If divide work, then need to coordinate it by:
• Direct supervision
• Hierarchy
• Standard inputs or outputs
• Rules and procedures
• Information systems (see Siemens)
• Direct personal contact
What method of coordination works best?

9. Mechanistic and organic structures
Table 10.4 Characteristics of mechanistic and organic systems
Source: Based on Burns and Stalker (1961)

10. Strategies and structures
Figure 10.8 Relationship between strategies and structural types

11. Contingencies – technology
What structure best supports technologies used to
transform inputs, in manufacturing or services?
• For example, production line or custom-made?
• For example, information systems enable different
ways of delivering services, and prompt a search
for new structures to support relevant behaviour?
• Chapter 18 (Managing Operations and Quality)
shows other ways of designing transformation
processes using different technologies

12. PROPERTIES
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13. Contingencies – size and life cycle
What structure best supports an organisation as it
grows (number of staff)?
• Birth – informal, little division of labour, organic
• Youth – decisions shared more widely, specialists
employed
• Mid-life – extensive division of responsibility, with
rules for coordination
• Maturity – mechanistic, perhaps divisions,
selling some units that no longer fit
Problem of managing the transitions

14. Learning organizations
Figure 10.10 Clusters of learning organisation features
Source: Pedler et at. (1997)

15. Learning Objectives – Theme 2
After study of this theme you should understand:
• The importance of Information Systems (IS) and e-business
• How convergence transforms how people add value
• How value depends on technology and organisation
• About operating and management systems and applications –
enterprise resource planning, customer relations, knowledge
and e-business

16. Management depends on information
Figure 12.1 The role of Information systems in organizations
Source: Boddy et al. (2005)

17. Stages in using the Internet
Figure 12.3 Stages in using the Internet

18. Co-creation (or Wikinomics)
Figure 12.2 Traditional delivery and customer participation

19. Computer-based IS
Figure 12.4 The elements of a computer-based IS
Source: Boddy et al. (2009a)

20. Operating and management systems
Figure 12.5 Types of information system

21. How the Internet changes the links
Figure 12.6 Reinventing the supply chain

22. Customer Relationship Management (CRM)
Figure 12.7 Communications methods and message

23. Enterprise Resource Planning (ERP) systems
Figure 12.8 Anatomy of an enterprise system

24. Knowledge Management (KM) systems
• Potential benefits
– Improve way an organisation creates, captures and uses
knowledge
– Relates to inputs, transformation and outputs
– Examples of BP and Buckman Labs
• Difficulties include
– Most valuable knowledge is tacit (shared understanding,
often unwritten): IS best suited
to explicit, codified knowledge
– Do rewards structures encourage people to share
knowledge?

25. IS, strategy and organisation
Figure 12.9 How information systems can change competitive forces: Porter’s model
Source: Adapted and reprinted by permission of Harvard Business Review. Exhibit adapted from Strategy and the Internet, Harvard Business Review, vol. 79, no. 3, pp. 63–78 by M. E.
Porter, Copyright © 2001 by Harvard Business School Publishing Corporation; all rights reserved

26. Conclusion to Theme 2
• Developing technologies have moved IS from the
background to the foreground of managing
• Focusing on the technical aspects of computer-
based systems will usually add less value than
attending to the strategic, human and
organisational aspects
• Models presented enable you to question
whether the assumptions behind a proposal are
right for the context, to explore alternatives and
to recognise limitations

27. Learning Objectives - Theme 3
Managing Change and Innovation is an important part of
Organising Business and after studying this theme you should
understand about:
• Initiating change – interaction with context
• Four models of change
• Driving and restraining forces
• Forms and sources of resistance
• Innovation

28. An overview of the themes
Figure 13.1 A model of the change process

29. The life cycle illustrated
Figure 13.4 A project life cycle
Source: Lock (2007) p. 8

30. Models of change – emergent
• Change takes place in an uncertain context,
and unrealistic to expect outcomes to be close
to plan
• Success depends on
– Learning during the project
– Adapting to changing conditions
– Managing interest groups
• Plan, but be ready to change

31. Models of change – participative
• Change relies on those affected being willing
to cooperate with the change
• Success depends on
– Developing ownership and commitment
– Consulting widely for ideas
– Seeking consensus
• A democratic process
– Suited to which conditions?

32. Models of change – political
• Change often threatens established interests,
who will oppose it
• Success depends on
– Building power sources
– Creating alliances and coalitions
– Manipulating information to support position
• A political process
– Suited to which conditions?

33. Kurt Lewin – driving and restraining forces
Figure 13.5 Driving and restraining forces

34. Innovation
Figure 13.7 Sources of innovation

35. The Process of innovation
Figure 13.8 A model of the innovation process
Source: Based on Tidd and Bessant (2009)

36. Organisational support factors
• Strategy – innovation is explicitly called for in
the corporate strategy
• Structure – roles and jobs are defined to aid in
innovative behaviour
• Style – management empowers the workforce
to behave innovatively
• Support – IT systems are available to support
innovative behaviour

37. Conclusion on Theme 3
• External and internal forces driving change
• Managing it depends on having a model of the
process – such as the interaction model
• Four perspectives offer complementary models
– which is best for the situation
• Innovation can be used as a tool to enhance what
the company offers to the market