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BMG 320/03
Organisational Theory and Design
Flexible · Affordable · Accessible
the people’s university
the people’s university
Flexible · Affordable · Accessible
1
Unit 4
Internal Design Elements
Flexible · Affordable · Accessible
the people’s university
the people’s university
Flexible · Affordable · Accessible
2
4.1 Manufacturing and Service Technologies
Manufacturing technologies include traditional manufacturing
processes and contemporary applications, such as flexible
manufacturing and lean manufacturing
Service organisations accomplish their primary purpose through
the production and provision of services, such as education,
health care, transportation, banking, and hospitality
A service is an intangible product that does not exist until it is
requested by the customer. It cannot be stored, inventoried, or
viewed as a finished good. If a service is not consumed
immediately upon production, it will disappear.
Strategy, structure and technology need to be aligned when
competitive conditions change.
Today’s increased global competition means more volatile
markets, shorter product life cycles, and more sophisticated and
knowledgeable consumers
Manufacturing companies can adopt new technologies to
support the strategy of flexibility
the people’s university
Flexible · Affordable · Accessible
4.2 Impact of Technology on Job Design
Job design includes the assignment of goals and tasks to be
accomplished by employees.
Research has indicated that mass production technologies tend
to produce job simplification, which means that the variety and
difficulty of tasks performed by a single person are reduced.
The consequence is boring, repetitive jobs that generally
provide little satisfaction.
Job rotation -Means moving employees from job to job to give
them a greater variety of tasks
Job enrichment -The job provides greater responsibility,
recognition, and opportunities for growth and development
Job enlargement - An expansion of the number of different tasks
performed by an employee. Fewer workers are needed with the
new technology, and each employee has to be able to perform a
greater number and varietyof tasks.
the people’s university
Flexible · Affordable · Accessible
4.3 Organisation Size, Lifecycle and Decline
LARGE ORGANISATION
Economies of scale
Global reach
Vertical hierarchy
Mechanistic structure
Complex
Stable market
Organisation can provide longevity, benefits and promotions
SMALL ORGANISATION
Responsive
Flexible
Flat structure
Organic structure
Simple
Niche Market
Encourages entrepreneurship & innovation
the people’s university
Flexible · Affordable · Accessible
Organisational Life Cycle
the people’s university
Flexible · Affordable · Accessible
Organisational Life Cycle
Entrepreneurial stage :
- Emphasis is on creating a product or service and surviving
- Organisation is informal and non-bureaucratic
- Growth comes from new product or service
- Control is based on the owner’s personal supervision.
Leadership Crisis – As the organization starts to grow, the large
number of emplNext oyees start to cause problems and
management issues.
Solution
:
Adjust the structure of the organization to accommodate
continued growth or
Hire strong managers to manage the organization.
the people’s university
Flexible · Affordable · Accessible
Collectivity stage:
- Clear goals and direction developed
- Departments are established with hierarchy of authority,
job assignments
- Communication and control are mostly informal
- employees start to identify with the mission of the
organization and spend
hours helping the company grow.
Crisis: Need for Delegation
A crisis can take place when top management who were
successful because of their strong leadership and vision, do not
want to give up responsibility.

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BMG 32003Organisational Theory and DesignFlexible ·

  • 1. BMG 320/03 Organisational Theory and Design Flexible · Affordable · Accessible the people’s university the people’s university Flexible · Affordable · Accessible 1 Unit 4 Internal Design Elements Flexible · Affordable · Accessible the people’s university the people’s university Flexible · Affordable · Accessible 2
  • 2. 4.1 Manufacturing and Service Technologies Manufacturing technologies include traditional manufacturing processes and contemporary applications, such as flexible manufacturing and lean manufacturing Service organisations accomplish their primary purpose through the production and provision of services, such as education, health care, transportation, banking, and hospitality A service is an intangible product that does not exist until it is requested by the customer. It cannot be stored, inventoried, or viewed as a finished good. If a service is not consumed immediately upon production, it will disappear. Strategy, structure and technology need to be aligned when competitive conditions change. Today’s increased global competition means more volatile markets, shorter product life cycles, and more sophisticated and knowledgeable consumers Manufacturing companies can adopt new technologies to support the strategy of flexibility the people’s university Flexible · Affordable · Accessible 4.2 Impact of Technology on Job Design Job design includes the assignment of goals and tasks to be accomplished by employees. Research has indicated that mass production technologies tend to produce job simplification, which means that the variety and difficulty of tasks performed by a single person are reduced. The consequence is boring, repetitive jobs that generally provide little satisfaction. Job rotation -Means moving employees from job to job to give them a greater variety of tasks Job enrichment -The job provides greater responsibility,
  • 3. recognition, and opportunities for growth and development Job enlargement - An expansion of the number of different tasks performed by an employee. Fewer workers are needed with the new technology, and each employee has to be able to perform a greater number and varietyof tasks. the people’s university Flexible · Affordable · Accessible 4.3 Organisation Size, Lifecycle and Decline LARGE ORGANISATION Economies of scale Global reach Vertical hierarchy Mechanistic structure Complex Stable market Organisation can provide longevity, benefits and promotions SMALL ORGANISATION Responsive Flexible Flat structure Organic structure Simple Niche Market Encourages entrepreneurship & innovation the people’s university Flexible · Affordable · Accessible Organisational Life Cycle
  • 4. the people’s university Flexible · Affordable · Accessible Organisational Life Cycle Entrepreneurial stage : - Emphasis is on creating a product or service and surviving - Organisation is informal and non-bureaucratic - Growth comes from new product or service - Control is based on the owner’s personal supervision. Leadership Crisis – As the organization starts to grow, the large number of emplNext oyees start to cause problems and management issues. Solution : Adjust the structure of the organization to accommodate continued growth or Hire strong managers to manage the organization. the people’s university
  • 5. Flexible · Affordable · Accessible Collectivity stage: - Clear goals and direction developed - Departments are established with hierarchy of authority, job assignments - Communication and control are mostly informal - employees start to identify with the mission of the organization and spend hours helping the company grow. Crisis: Need for Delegation A crisis can take place when top management who were successful because of their strong leadership and vision, do not want to give up responsibility.