A comparison of four different organizational models for co-operative pursuit of goals. Emphasis is on distinguishing "enterprise" as a specific configuration rather than as a catch-all synonym for "business".
One of my most favorite publications The Economist recently published a report entitled
“Designing Effective Collaborations” based on some recent research and yours truly,
was interviewed for this insightful report on how to build value and alignment.
A must summer read…
This article defines two ways to design strategic alliances: the control approach and the trust approach. It shows what each approach entails and when it is useful.
The purpose of organization is to influence effectiveness, and the logic behind that is practiced through the model of organization. This notebook compiles a common logic behind all models of organization.
One of my most favorite publications The Economist recently published a report entitled
“Designing Effective Collaborations” based on some recent research and yours truly,
was interviewed for this insightful report on how to build value and alignment.
A must summer read…
This article defines two ways to design strategic alliances: the control approach and the trust approach. It shows what each approach entails and when it is useful.
The purpose of organization is to influence effectiveness, and the logic behind that is practiced through the model of organization. This notebook compiles a common logic behind all models of organization.
Chapter 10Organisational Structure and Strategic Control.docxketurahhazelhurst
Chapter 10
Organisational Structure
and Strategic Control
Prepared by Rajeev Sharma
Charles Darwin University
Learning objectives
Distinguish between the basic principles that determine the structural characteristics of complex human organisations
Discuss the role and importance of structural building blocks for structural arrangements
Examine the differences between mechanistic and organic structural features
Distinguish between specialisation, coordination and cooperation
Learning objectives
Apply principles of hierarchy in organisational design to specific tasks and business environments
Illustrate and discuss types of organisational structure and their strengths and weaknesses
Apply principles of organisational design
understand the role of information systems for coordination and how these can be applied
Introduction
The design of organisational structure and management control system is the key component of strategy implementation
The formulation of strategy should not be separated from its implementation
It is widely accepted now that ‘organisation structure should follow strategy’
Refer to page 317
The design of organisational structure and management control system is the key component of strategy implementation.
Hence, the view of strategy formulation and strategy implementation as a sequential process is summed up in the adage ‘structure follows strategy’.
Having established that how companies organise themselves is fundamental to their strategy and their performance, the goal of this chapter is to introduce the key concepts and ideas necessary to understand and design companies’ structures and systems, as well as possible changes to them
4
Principles of organisational design
The modern organisational design should incorporate key design principles or building blocks
It is widely acknowledged that modern organisation has evolved from a purely functional to a highly adaptable design
Modern organisations have emerged from two key influences:
Line and staff structure
Multidivisional corporations
Refer to page 317
Before considering organisational design issues, it is important to discuss the key principles including the notion of line and staff
It is important to acknowledge the history of organisational design development. Work of Alfred Candler is worth consideration here
5
line and staff structure
Historically, most organisations were small and operated from a single plant or office.
With advancement in transportation and communication, organisations commenced operating over a wider area
These geographically dispersed units were managed by an administrative headquarter.
This organisational form was known as line and staff structure
Refer to page 318
Discuss the evolution of geographically dispersed organisation and how they led to the creation of line and staff structure. Also highlight the features of this structure including the fact that employees were either line, allocated to operational tasks within ...
Evaluating an M&A strategy to expand impact and enhance outcomesGrant Thornton LLP
While organizational objectives can be achieved by establishing one-off partnerships and informal collaborations, some not-for-profits have elected
to expand impact by formalizing relationships via an M&A (Mergers & Acquisitions) strategy.
The classification of an organization typically refers to categorizing it based on factors such as its structure, purpose, industry, or legal status. It helps define the nature and characteristics of the organization. Sure, organizations can be classified in various ways:
1. **Legal Structure:**
- Sole Proprietorship
- Partnership
- Corporation
- Limited Liability Company (LLC)
- Nonprofit Organization
2. **Purpose:**
- For-profit organizations
- Nonprofit organizations
- Government organizations
3. **Industry:**
- Manufacturing
- Services
- Healthcare
- Technology
- Education
4. **Size:**
- Small and Medium-sized Enterprises (SMEs)
- Large Corporations
5. **Structure:**
- Hierarchical
- Flat/Organic
- Matrix
6. **Geographic Scope:**
- Local
- National
- International
7. **Ownership:**
- Publicly traded
- Privately held
Each classification provides insights into different aspects of an organization's identity and operations. Certainly, let's delve a bit deeper into some of these classifications:
1. **Legal Structure:**
- **Sole Proprietorship:** Owned by a single individual. Simple structure, but the owner is personally liable.
- **Partnership:** Owned by two or more individuals who share profits and liabilities.
- **Corporation:** A separate legal entity from its owners, providing limited liability to shareholders.
- **Limited Liability Company (LLC):** Blends aspects of a corporation and a partnership, offering liability protection and flexibility.
2. **Purpose:**
- **For-profit organizations:** Aim to generate profits for owners/shareholders.
- **Nonprofit organizations:** Exist for a mission or cause, with any surplus reinvested in the organization.
3. **Industry:**
- **Manufacturing:** Produce physical goods.
- **Services:** Provide intangible products.
- **Healthcare, Technology, Education:** Specific sectors with unique characteristics.
4. **Size:**
- **SMEs:** Smaller in scale, often more locally focused.
- **Large Corporations:** Global entities with complex structures and diverse operations.
5. **Structure:**
- **Hierarchical:** Traditional with clear lines of authority.
- **Flat/Organic:** Fewer layers of management, fostering collaboration.
- **Matrix:** Employees report to multiple managers based on projects or functions.
6. **Geographic Scope:**
- **Local, National, International:** Reflects the extent of operations.
7. **Ownership:**
- **Publicly traded:** Shares available to the public, often listed on stock exchanges.
- **Privately held:** Ownership is private, not publicly traded.
These classifications are tools for understanding and analyzing the diverse landscape of organizations, each with its unique characteristics and implications.
Inclusion is the Equity of Diversity 04.19.23.pdfMalcolm Ryder
In a society that contains multiple cultures, the ideas of multi-culturalism and diversity appear to be the same goal, but social behaviors have their own systems outside of culture that predispose inclusion or exclusion at any level of community. This description navigates and categorizes the constellation of terms and dynamics presumed to characterize equitable inclusivity in a heterogeneous culture.
A Semantic Model of Enterprise Change.pdfMalcolm Ryder
This presentation is a distillation of language used to describe the scope and configuration of change managed at the enterprise level. Its goal was to find a way to drastically reduce the vocabulary necessary to model managed change, and to have the model be far more intuitively familiar.
More Related Content
Similar to Strategic structures for aligning Cooperation_the Enterprise.pdf
Chapter 10Organisational Structure and Strategic Control.docxketurahhazelhurst
Chapter 10
Organisational Structure
and Strategic Control
Prepared by Rajeev Sharma
Charles Darwin University
Learning objectives
Distinguish between the basic principles that determine the structural characteristics of complex human organisations
Discuss the role and importance of structural building blocks for structural arrangements
Examine the differences between mechanistic and organic structural features
Distinguish between specialisation, coordination and cooperation
Learning objectives
Apply principles of hierarchy in organisational design to specific tasks and business environments
Illustrate and discuss types of organisational structure and their strengths and weaknesses
Apply principles of organisational design
understand the role of information systems for coordination and how these can be applied
Introduction
The design of organisational structure and management control system is the key component of strategy implementation
The formulation of strategy should not be separated from its implementation
It is widely accepted now that ‘organisation structure should follow strategy’
Refer to page 317
The design of organisational structure and management control system is the key component of strategy implementation.
Hence, the view of strategy formulation and strategy implementation as a sequential process is summed up in the adage ‘structure follows strategy’.
Having established that how companies organise themselves is fundamental to their strategy and their performance, the goal of this chapter is to introduce the key concepts and ideas necessary to understand and design companies’ structures and systems, as well as possible changes to them
4
Principles of organisational design
The modern organisational design should incorporate key design principles or building blocks
It is widely acknowledged that modern organisation has evolved from a purely functional to a highly adaptable design
Modern organisations have emerged from two key influences:
Line and staff structure
Multidivisional corporations
Refer to page 317
Before considering organisational design issues, it is important to discuss the key principles including the notion of line and staff
It is important to acknowledge the history of organisational design development. Work of Alfred Candler is worth consideration here
5
line and staff structure
Historically, most organisations were small and operated from a single plant or office.
With advancement in transportation and communication, organisations commenced operating over a wider area
These geographically dispersed units were managed by an administrative headquarter.
This organisational form was known as line and staff structure
Refer to page 318
Discuss the evolution of geographically dispersed organisation and how they led to the creation of line and staff structure. Also highlight the features of this structure including the fact that employees were either line, allocated to operational tasks within ...
Evaluating an M&A strategy to expand impact and enhance outcomesGrant Thornton LLP
While organizational objectives can be achieved by establishing one-off partnerships and informal collaborations, some not-for-profits have elected
to expand impact by formalizing relationships via an M&A (Mergers & Acquisitions) strategy.
The classification of an organization typically refers to categorizing it based on factors such as its structure, purpose, industry, or legal status. It helps define the nature and characteristics of the organization. Sure, organizations can be classified in various ways:
1. **Legal Structure:**
- Sole Proprietorship
- Partnership
- Corporation
- Limited Liability Company (LLC)
- Nonprofit Organization
2. **Purpose:**
- For-profit organizations
- Nonprofit organizations
- Government organizations
3. **Industry:**
- Manufacturing
- Services
- Healthcare
- Technology
- Education
4. **Size:**
- Small and Medium-sized Enterprises (SMEs)
- Large Corporations
5. **Structure:**
- Hierarchical
- Flat/Organic
- Matrix
6. **Geographic Scope:**
- Local
- National
- International
7. **Ownership:**
- Publicly traded
- Privately held
Each classification provides insights into different aspects of an organization's identity and operations. Certainly, let's delve a bit deeper into some of these classifications:
1. **Legal Structure:**
- **Sole Proprietorship:** Owned by a single individual. Simple structure, but the owner is personally liable.
- **Partnership:** Owned by two or more individuals who share profits and liabilities.
- **Corporation:** A separate legal entity from its owners, providing limited liability to shareholders.
- **Limited Liability Company (LLC):** Blends aspects of a corporation and a partnership, offering liability protection and flexibility.
2. **Purpose:**
- **For-profit organizations:** Aim to generate profits for owners/shareholders.
- **Nonprofit organizations:** Exist for a mission or cause, with any surplus reinvested in the organization.
3. **Industry:**
- **Manufacturing:** Produce physical goods.
- **Services:** Provide intangible products.
- **Healthcare, Technology, Education:** Specific sectors with unique characteristics.
4. **Size:**
- **SMEs:** Smaller in scale, often more locally focused.
- **Large Corporations:** Global entities with complex structures and diverse operations.
5. **Structure:**
- **Hierarchical:** Traditional with clear lines of authority.
- **Flat/Organic:** Fewer layers of management, fostering collaboration.
- **Matrix:** Employees report to multiple managers based on projects or functions.
6. **Geographic Scope:**
- **Local, National, International:** Reflects the extent of operations.
7. **Ownership:**
- **Publicly traded:** Shares available to the public, often listed on stock exchanges.
- **Privately held:** Ownership is private, not publicly traded.
These classifications are tools for understanding and analyzing the diverse landscape of organizations, each with its unique characteristics and implications.
Inclusion is the Equity of Diversity 04.19.23.pdfMalcolm Ryder
In a society that contains multiple cultures, the ideas of multi-culturalism and diversity appear to be the same goal, but social behaviors have their own systems outside of culture that predispose inclusion or exclusion at any level of community. This description navigates and categorizes the constellation of terms and dynamics presumed to characterize equitable inclusivity in a heterogeneous culture.
A Semantic Model of Enterprise Change.pdfMalcolm Ryder
This presentation is a distillation of language used to describe the scope and configuration of change managed at the enterprise level. Its goal was to find a way to drastically reduce the vocabulary necessary to model managed change, and to have the model be far more intuitively familiar.
Being simple-minded about complexity does not help to understand it nor to work with it successfully. This breakdown abstracts and compiles the many aspects of recognizing, creating, and managing with complexity as is consistent across many different domains of effort.
As examples of wheels not needing to be reinvented, medicine and technical support both have profound and extensive practice knowledge in seeing through symptoms to causes, for problem-solving. That experience feeds back lessons learned into future designs of environments, processes and products or services - but also into problem-solving itself. This discussion arranges various aspects of that learning into a practical reference for maturing the decision-making capability needed on demand. This arrangement is work in progress.
We accept that everyone has Bias, and the study of that is exhaustive if not complete. But we continue to ask Why we have bias; the answer is that we need it.
Debating about design in the social media of business seems aimed at designing Design itself; but the results so far are not very persuasive. This is a significant knowledge management problem.
Change Management now requires a new perspective on management itself, to cope with the new normal of increasingly frequent and varied demand for change.
Alignment of Value and Performance - Reference modelMalcolm Ryder
Performance is meaningless unless it also amounts to needed value. The activity that generates this relationship is visible in a hierarchy of logical dependencies. The vocabulary for this visibilty is already very common; here it is also fully disambiguated.
As opposed to execution, delivery, and other common terms of progression, "production" is a perspective that directly relies on designing continuous value-driven activity, not on achieving a single prescribed outcome. Enabling active capability is the management concern, and value creation is the experience.
Management's relationship to complexity is clarified in this short piece based on revisiting basic definitions. No special domain expertise is required but the argument applies to all domains.
A meeting is a group behavior, and the value of the meeting will depend on why people will do what they do with it. This framework explains the cause and effect linkages occurring within a meeting that actually is needed instead of merely held.
Not all workgroups are teams, and teams may not be enough to cover the work needed to meet requirements. This framework identfies the scale of workgroup and scope of requirements that distinguishes one type of workgroup from another.
Waterfall was never so much of a development management method addressing a customer demand issue. Rather, it is a build management method addressing a product management issue. See how.
The future of work depends on the future of managed change. This overview identifies why work, as arranged by organizations, is modified both in practice and policy but must become focused primarily on why the worker works.
The design and redesign of organizations today more regularly pursues agility, but very often it thinks that a given model will cause it, rather than discovering its best model from knowing what agility needs. This discussion surveys the underpinning archihtecture of agility, from which to cultivate or discover a site's appropriate model(s).
Managed Change efforts overall still fail at 66% to 75% of the time. This means that the prevailing perspective on how to "make" change is defeating most other factors. Here's why.
Diagramming of the key conditions and initiatives and objectives that combine to produce organizations that are holisiticaly designed for change. Consolidates the strategy, architecture and knowledge analyses from the systems thinking and design thinking perspectives.
Website concept, structure, content and functionality created by Malcolm Ryder in voluntary support of business development by a startup consulting firm.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
How to Implement a Real Estate CRM SoftwareSalesTown
To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
2. Enterprise or Not
An “enterprise” can have business
outcomes as its common purpose
but it is not necessarily business that
characterizes an enterprise.
In fact, to most clearly define an
“enterprise”, it is also necessary to
know what it is NOT. In that regard,
the fundamental distinction has
nothing to do with “systems”, nor
“complexity”, nor “scale”.
An enterprise model of organization is
a strategic choice for pursuit of a
purpose. But its basic differentiation
from other models stems from the
role of a central authority.
Supervisory authority aligns the tactics
of multiple parties under centrally
declared governance, priorities, and
goals. Without this, the organizational
configuration is not an enterprise.
3. Enterprise Coordination for Purpose
• An enterprise is a structural model for coordinating multiple
organizations to a common purpose under a single supervisory
management authority.
• An enterprise is characterized by its creation, sustainability, and
portfolio of opportunity.
• The role of the authority over the included parties is to direct and
leverage combinations of their otherwise independent autonomy,
production and contribution.
5. Other co-operative models (non-enterprise)
Other models of multi-party co-operation are coalitions, consortia, and federation.
Each has a distinctive strategic objective and a distinct kind of commitment to
cooperation.
a Coalition, like an alliance, is
defined by a common mission
of the parties under their
respective independent
management. It expects to be
situationally effective.
A Federation, like a
community, coheres
primarily with contracts
for mutual support
among parties. It expects
to generate synergy.
a Consortium, like a
collaboration, comes together to
share the division of
responsibilities for a specified
set of multiple requirements
(which can be resources or
actions). It expects to offer
capacity.