ORGANIZATION SYSTEM, STRUCTURE, AND CULTURE

1. ORGANIZATION SYSTEM, STRUCTURE, AND CULTURE

2. Organisational Structure • Organisational structure describes: • Who is responsible for what • Patterns of communication and knowledge exchange • Skills required to move up the organisation • Types of structure • Emphasis on one structural dimension • Functional; Multidivisional; Holding • Mixture of structural dimensions • Matrix; Transnational; Team; Project

3. Functional Departmentalization • Advantages • Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations • Coordination within functional area • In-depth specialization • Disadvantages • Poor communication across functional areas • Limited view of organizational goals Figure 10.2a

4. Product Departmentalization + Allows specialization in particular products and services + Managers can become experts in their industry + Closer to customers – Duplication of functions – Limited view of organizational goals Figure 10.2c Source: Bombardier Annual Report.

5. Geographical Departmentalization • Advantages • More effective and efficient handling of specific regional issues that arise • Serve needs of unique geographic markets better • Disadvantages • Duplication of functions • Can feel isolated from other organizational areas Figure 10.2b

6. Team-based Structure • Combines both horizontal and vertical co-ordination through cross functional teams • Often built around business processes • Contains mixture of specialists • Advantages • Good for knowledge sharing • Flexible • Highly motivated • Disadvantages • Complexity • Difficulties of control • Problems of scaling up

7. The Organization’s Culture • Organizational Culture • A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other. • “The way we do things around here.” • Values, symbols, rituals, myths, and practices • Implications: • Culture is a perception. • Culture is shared. • Culture is descriptive.

8. Benefits of a Strong Culture • Creates a stronger employee commitment to the organization. • Aids in the recruitment and socialization of new employees. • Fosters higher organizational performance by instilling and promoting employee initiative.

9. Organizational Culture • Sources of Organizational Culture • The organization’s founder • Vision, mission, and values • Past practices of the organization • The way things have been done • The behavior of top management • Continuation of the Organizational Culture • Recruitment of like-minded employees who “fit” • Socialization of new employees to help them adapt to the culture

10. Three Dot.Com Companies • What competitive advantages do these companies have? • How do you describe these companies’ cultures and structure? How do these companies develop their cultures? • What are the advantanges and disadvantages of these cultures?

11. The Old and New Ways – Examples from Three Dot.com Companies The old way The new way • Security Opportunity • Detachment Total commitment • Hierarchy We’re all equal • Work and fun don’t mix Pamper me • It’s just a job It’s so much more

12. The Learning School

13. What Is Learning? • Accumulation of knowledge (What are they?) • Creation of meanings (What do they mean?) • Transformation of perspectives and behaviors (What should I do? Or change?)

14. Process of Learning • Cognitive: Collect, processing information (rational thinking) • Social: observation and follow others (socially acceptable ways to do things) • Reflexive: reflection of one own experiences to create new meanings (what have I done? What should I have done?)

15. Quote “Every plan looks good on paper --- until we meet the enemies” (US former President Bush – about the war in Iraq)

16. The Knowledge Spiral To Tacit Explicit Socialization (Discuss with your friends) Externalization (Write it down) Tacit From (Think - reflect) Internalization (training) Combination Explicit

17. Organization Learning Framework Level Process Inputs/Outcomes Individual Group Organization Intuiting • Experience • Images • Metaphors Interpreting • Language • Cognitive map • Conversation Integrating • Shared understand. • Mutual adjustment • Interactive Institutionalizing • Routines • Systems • Rules

18. Case: Toyota Production System • Describe the Toyota Production System? • Why is that so hard to copy? • Any ideas of why it has recent recall? What do you predict Toyota's future?