Organisation & Structures

1. Organisation & Structures

2. Organisational Structure • Appropriate structure is assumed to reduce the degree of conflict • types of organisational structures and their degree of appropriateness has been under a considerable debate

3. Definition of an organisation • An organisation is an approach/mechanism/tool to accomplish a variety of goals.(individually or in groups) • To group people and other resources to produce goods and services • An organisation therefore embodies the collective knowledge, values and vision of people who are consciously (and sometimes unconsciously) attempting to attain their desires or values. • An organisation is a response to and a means for creating value to satisfy a business need.

4. People behave the way they are treated Autocratically run organisations suffer from: • Low productivity • Poor quality • High absenteeism • High staff turnover

5. Bureaucratic organisations Often lot of time wasted on non-value adding activities For example: • enforcing rules • documenting policies that reduce initiative and free thinking • developing standards instead of promoting continuous improvement • excessive discipline, instead of motivation • meetings that focus on differences instead of commonality • checking other people’s work • supervising people closely

6. Organisational aspects In defining an organisation, management need to consider: • decision making - who makes what decisions • degree of co-ordination required between: • elements of total supply chain • information flows and control • negotiation with suppliers and customers • allocation of resources - labour, equipment, budgets etc. • definition of roles and performance measures

7. How an organisation generate value for their stakeholders Organisation's Outputs Organisation's Conversion Process Organisation's Inputs Organisations release outputs to its environment - finished goods - Services - Dividends - Salaries - Value for shareholders Organisations transform inputs and adds value to them - Machinery - Computers - Human skills & abilities Organisations obtain input from its environment - Raw material - Money & Capital - Human resources - Information & Knowledge - Customers of Service Org. Organisation's Environment Customers Shareholders Suppliers Distributors Government Competitors Sales of outputs allow to Obtain new supplies of input

8. Differentiation Integration Centralisation Decentralisation Standardisation Mutual adjustments Tall Flat Formal Informal Mechanistic Organic Replicative Innovative Inexpensive Expensive Example Organisational design Attempts to find the optimum (or best fit) between: Product Development Marketing Assembly&Manufacturing Mass Production

9. Characteristics of organisational model • communication • adaptability • performance measures to achieve logistics objectives • emphasis on customer service • staff empowerment

10. Targets of organisation modelling • Reduce the resistance of the organisation against natural and efficient working processes • Meet the requirements of all stakeholders and generate value for all stakeholders • Enable the company to define working processes which are matching the identified optimum profile and ensure a organisational fit • Determine clear and visible organisation structures to avoid employees confusion

11. CEO Manager Manager Group Leader GroupLeader Employee Employee Employee Employee Functional (Hierarchical) Organisation • Traditional functional thinking flourishes • authority rests with functional managers/directors • difficult to breakdown barriers • customer service can be seen as a ‘low priority’

12. Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Matrix Organisations at different levels Proj.Mgr. Proj.Mgr. Proj.Mgr. Proj.Mgr. Lightweight Team Leader Balanced Matrix Strong Team Leader

13. Resource Manager Team 1 Project A Team 2 Team 3 Project B Team 4 Project Structure

14. Organisational design Best Fit & related Organisation structures Differentiation Centralisation Standardisation Tall Formal Mechanistic Replicative Inexpensive Integration Decentralisation Mutual adjustments Flat Informal Organic Innovative Expensive Hierachical Functional Matrix Balanced Matrix Team Matrix Project

15. Tier1 Collaboration Scenarios - Hierarchical Workflow Organisation structure OEM OEM distribute Tasks and work Tier1 delivers results Control through the OEM OEM positions the Tier1-n Supplier as lower part of of his Organisational hierarchies Tier 1-n

16. Advantages OEM steer & manage the project according to their policies & rules Clear assignment of Tasks and duties to all suppliers Management of data based on the IT infrastructure and applications used by the OEM Disadvantages The Tier1-n supplier is only indirectly involved in the success of the project Information exchange between suppliers is controlled the OEM Lack of transparency for the supplier Supplier ‘forced’ to use systems & processes dictated by the OEM Collaboration Scenarios - Hierarchical

17. Collaboration Scenarios - Project organisation Workflow Organisational structure OEM Tier 2 Tier n OEM Project Structure: Common work of all involved project partners TIER 1 OEM is organising his Task as Project Equivalent positioning from Supplier and OEM in a common Project Tier 1-n

18. Advantages Team-based involvement of the Tier1-n supplier into the project Open communication among all involved partners Establishment of real Team approach Equal project partners with complementary skills Higher commitment of all involved partners to achieve results All involved organisations continue to use their internal systems and tools and arrange a practical working approach in the project team Simple Working scenarios, use of ASP as IT-Technology Disadvantages Loss of control for the OEM Collaboration Scenarios – Project organisation

19. Appointment of project co-ordinator/team leader/product manager Important attributes: • has ‘clout’ • good team player • good track record • excellent communication skills • ability to influence people • organised • worked in a variety of areas • successfully completed projects in the past

20. Interaction enhancement methods Need to consider the following points when examining methods to enhance interactions between different functions of an organisation • to examine the degree of interaction required • to identify the difficulties in achieving this that are inherent in the situation • to evaluate the costs of alternative integrating mechanisms

21. Functional Model • Traditional functional thinking flourishes • authority rests with functional managers/directors • difficult to breakdown barriers • customer service can be seen as a ‘low priority’

22. Product team model • Responsible for co-ordination and overall performance monitoring of contracts/orders • help functional groups to resolve conflict • existence of ‘internal’ contracts between product groups

23. Logistics Champion model • Does not have a separate logistics function identifiable on the organisation chart • one director responsible for overall coordination and has power to pull resources together as and when required • Customer service considered top priority

24. Integration mechanisms Need to consider various factors when selecting the appropriate integration mechanisms: • Differentiation • cross-functional requirements • uncertainty • intensity and frequency of two-way information flow • complexity

25. Coordination mechanisms (Mintzberg) Six Types: • Direct supervision • Mutual adjustment • Standardisation of work processes • Standardisation of skills/knowledge • Standardisation of output • Standardisation of ideology

26. Talkers & Reflectors Talkers generate and discuss ideas brainstorm Reflectors like to ponder not eager to share until sure think before, etc Planners and Adaptors Planners orderly fashion Adaptors Spontaneous go-with-the-flow style Team members & their style

27. Detail specialists & visionaries Detail Specialists give & receive factual data when communicating Visionaries or possibility thinkers gather data & quickly establish interactions and patterns Thinkers & Feelers Thinkers considers pros & cons of facts Feelers subjective or value based decision making Strive for co-operation and harmonious working conditions Team members & their style continued

28. Undertake team building as needed Technique No 1 • Negotiate a code of conduct with team members Technique No 2 • Take a problem-solving approach involving team members Technique No 3 • Provide constructive feedback to the group

29. FEEDBACK 10 - GOLDEN RULES • Do it with care • Give your full attention • Get an invitation • Deal directly with issues • Effective feedback • Do not clutter the feedback with personal judgements • Do it at an appropriate time • Make sure that the ideas are actionable • Check and clarify the feedback • Involve the recipient(s)

30. Team building - action plan WHAT WHO WHEN • All agree to be on time AllImmediate • $1 fine for late comers • Complete first draft design MikeSet date • Agree to listen to each other AllImmediate • Adopt "round robin" to give AllImmediate everyone a chance to speak