New Organisational Forms and CSCW (part 1)

1. New Organisational Formsand CSCW (part 1) M. Baptista Nunes 14/03/2000

2. Aims of this lecture • to investigate the impacts of the explosive developments of ICT on organisational Structure and Design; • to provide an overview and discuss new emergent forms of organisation: • Networked Organisation; • Boundary-less Organisation; • Virtual Organisation. • To provide an overview of CSCW and its role and importance in the new organisation.

3. Organisation Structure “Structure is a means for attaining the objectives and goals of an organisation” (Drucker, 1974) “Organisation Structure is the system of arrangements, the pattern or network of relations, between the various positions and their holders.” (Buchanan and Huczynski, 1997:297) “Organisation structure is more than boxes on a chart; it is a pattern of interactions and co-ordination that links the technology, tasks and human components of the organisation to ensure that the organisation accomplishes its purpose” (Duncan, 1979:59)

4. Organisation Structure Organisation Structure is a framework for dividing, assigning and co-ordinating work. Key elements of structure: • Work specialisation and definition; • Departmentalisation; • Type and Levels of authority (hierarchy and chain of command); • Concentration of authority and span-of-control.

5. Organisation Structure Expression of structure: • Organisation Chart; • Job Descriptions; • Hierarchy; • Rules, Policies and Procedures; • Culture and Behaviour.

6. Organisational Form “The design of an organisation is an exercise in matching structures, systems and style of management, and the people employed, to the various activities of the organisation.” (Mullins, 1997:566) Organisational Form Organisational Design

7. Traditional Organisational Forms Self-contained, integrated structures operating in stable environments. • Physically located in office buildings and production plants, in which the organisation’s members work and where the required machines, equipment, materials and information can be found; • Functional Structure; • Boundaries defined by the physical structures and contractual relations; • Rigidly centralised bureaucracy; • Traditional pyramidal span-of-control.

8. Challenges for the Organisation Value Changes with Labour, in Markets, and Society Changes in the Competitive Situation Innovation Potential of ICT Challenges for the Firm New Organisational Forms

9. Changes in the Competitive Situation • Internationalisation of Markets; • Innovation Dynamics with Products and Processes; • Globalisation Buyer Markets; • Globalisation of Purchasing; • Demographic Developments; • Resource Decreases.

10. Value Changes with Labour, in Markets, and Society • Attitude toward Environment; • Age Demographics of Employees; • Quality Demands on the Work Place; • Market Behaviour; • Globalisation of Standards; • Globalisation of Legislation; • Internationalisation of Customer, Buyer and Supplier awareness.

11. Information Technology • Falling costs of SW and HW and the advent of the PC  Most knowledge, data and service workers (see last week) and managers now a have a PC on their desks; • Availability of user-friendly SW that allows easy, fast and efficient use of the IT infra-structures; • Increasing availability of of business information from both internal and external databases providing information essential to maintain a competitive market position; • The explosive development in communication technology and the increasing convergence of telecommunications and computing (ICT) which led to the Information Society.

12. Innovation Potential of ICT • gradual elimination of: • bureaucracy and manual processing of information; • individual functions; • layers of middle management; • internal integration of departments; • diluting of organisational boundaries: • Removal of geographical barriers and time limitations; • external integration with suppliers and customers; • creation and strengthening external links with complementary organisations.

13. Innovation Potential of ICT • gradual elimination of: • bureaucracy and manual processing of information; Centralised Decentralised • individual functions; • layers of middle management; “Tall” “Flat” hierarchies • internal integration of departments; Functional Networked structures

14. Innovation Potential of ICT • diluting of organisational boundaries: • Removal of geographical barriers and time limitations; Physical Virtual organisation • external integration with suppliers and customers; • creation and strengthening external links with complementary organisations. Strict Boundary Boundary-less Organisation

15. Decentralised Organisation • Centralisation -refers to the concentration of authority and responsibility for decision making in the hands of managers at the top of an organisation. • Decentralisation - refers to authority and responsibility for decision making being dispersed more widely downwards and given the to operating units, branches and lower-level managers. • DecentralisationEmpowering, Democratisation

16. Centralised greater uniformity in decisions; more control; fewer skilled managers required; Less extensive plan and reporting procedures; Faster decision process. Decentralised Lower-level decisions are easier; Lower-level management problems can be dealt on the spot; Greater motivation and better opportunities for lower-level managers; Top-level managers have more time for strategic planning. Decentralised Organisation

17. “Flat” Hierarchies • The combination of span of control and chain of command determines the overall pyramid shape and whether the hierarchical structure is “flat” or “tall” (Mullins, 1997:536). • “Flat” hierarchies  broader span of control, few levels of authority. • “Tall” hierarchies  narrower span of control, more levels of authority.

18. Advantages Savings on managerial costs; Improved communication; More participative styles of management; Greater involvement of staff; Improved organisational efficiency. Disadvantages Inhibit the flow of effective communications between top management and the workforce; Reduce commitment and motivation levels; Lower-level managers face increased load; Deterioration of productivity; More vulnerable to fraud. “Flat” Hierarchies

19. Networked Structure • Networked organisation is a combination of: • functional departments  provide stable base for specialised activities; • project teams  that form and disband as required and are set up as temporary units for the attainment of a particular task. • reliance on links between individuals, sub-units and outside organisations; • “command-and-control” “information-based”

20. Advantages sharing of resources; more than one critical orientation to the operations of the organisation; organisational systems & processes capable of rapid response to changing conditions integration and effective utilisation of diverse cultures, people, and talents organisational involvement across organisational boundary Disadvantages Results in more complex organisational structure; Problems of co-ordination; Political and authority problems; Functional groups may tend to neglect their duties; Reduce commitment and motivation levels; Loss of accountability; Increased working load for designated staff; Deterioration of productivity. Networked Structure

21. Boundary-less Organisations • Boundary-less Organisations represent “the dissolution of traditional organisational structures and boundaries in favour of the establishment of symbiotic arrangements with external partners” (Wigand et al., 1998:209). • Initially employees joined teams to work on specific projects regardless of their physical location or organisational membership - once the project is over, the team disbands. • Nowadays ...

22. Advantages sharing of resources is more open, accurate and timely; strong leadership by shared vision, collaboration and commitment. organisational systems & processes capable of rapid response to changing conditions integration and effective utilisation of diverse cultures, people, and talents; Disadvantages Results in more complex organisational structure; Problems of co-ordination; Political and authority problems; Difficult to define boundaries resulting in security risks to the firm; Dissolution of organisational culture and sense of community; Reduce commitment and motivation levels; Loss of accountability. Boundary-less Organisations

23. Virtual Organisations • “Virtual Organisations represent a task and competence oriented approach in the design of an organisation” (Wigand et al., 1998:364). Static and long-term boundaries of: responsibility physical location functional allocation Task specific and contingency allocation of Competence.

24. Advantages location independent organisations; sharing of resources is more open, accurate and timely; changing the time and spatial dimensions of performance; increasing speed of performance; rapid response to changing conditions; integration and effective utilisation of diverse cultures, people, and talents; Disadvantages Results in more complex organisational structure; Problems of management and co-ordination; Political and authority problems; Difficult to define boundaries resulting in security risks to the firm; Dissolution of organisational culture and sense of community; Reduce commitment and motivation levels. Virtual Organisations

25. Worth thinking about … :-))) • “All this constant talk about technology is so boring. It is only another tool and besides it is the management and performance of people that really matters.” YES, but ... • Technology is the tool which enables people to perform and managers must have the skills and understanding to know how to make the best of technology within organisations.” • Different technologies determine different organisational structures and behaviours Technological determinism. • This course follows a moderate technological determinism view , but … this is not the only approach !

26. In Sum . . . Organisations are complex systems ... Environment Structure Objectives Technology People