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Describe the four characteristics common to all organizations. PowerPoint PPT Presentation


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Designing Effective Organizations. Learning Objectives. Describe the four characteristics common to all organizations. Explain the difference between closed and open systems, and contrast the military/mechanical, biological, and cognitive systems metaphors for organizations.

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Designing Effective

Organizations

Learning Objectives

  • Describe the four characteristics common to all organizations.

  • Explain the difference between closed and open systems, and contrast the military/mechanical, biological, and cognitive systems metaphors for organizations.

  • Describe the four generic organizational effectiveness criteria.

  • Explain what the contingency approach to organizational design involves.

  • Discuss Burns and Stalker’s findings regarding mechanistic and organic organizations.

  • Describe new-style and old-style organizations, and list the keys to managing geographically-dispersed employees in virtual organizations.

Chapter Fifteen


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What is an Organization?

15-1

  • Organization: system of consciously coordinated activities of two or more people.

  • Unity of command principle: each employee should report to a single manager.

  • Organization chart: boxes-and-lines illustration showing chain of formal authority and division of labor.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Sample Organization Chart for a Hospital

15-2 Figure 15-1

Board of Directors

StrategicPlanningAdvisor

LegalCounsel

Chief ExecutiveOfficer

Cost-ContainmentStaff

President

ExecutiveAdministrativeDirector

ExecutiveMedicalDirector

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Sample Organization Chart for a

Hospital (Cont.)

15-3 Figure 15-1

ExecutiveAdministrativeStaff

ExecutiveMedicalDirector

Dir.OfHumanResources

Dir.OfPatient& PublicRelations

Dir.OfNutrition& FoodServices

Dir.X-Ray &LabServices

Dir.OfOut-PatientServices

ChiefPhysician

Dir.OfAdmissions

Dir.OfAccounting

Dir.OfSurgery

Dir.OfPharmacy

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Span of Control

15-4

  • Span of control: the number of people reporting directly to a given manager.

  • Staff personnel: provide research, advice, and recommendations to line managers.

  • Line Managers: have authority to make organizational decisions.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Closed System:“A self-sufficient entity, closed to the surrounding environment.” (For example, a battery-powered clock.)

Open system:“Depends on constant interaction with the surrounding environment for survival.” (For example, the human body.)

Needed: Open-System Thinking

15-5

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Organizations as Military/Mechanical

Bureaucracies

15-6

  • Bureaucracy: Max Weber’s idea of the most rationally efficient form of organization.

  • Weber’s Bureaucracy: four factors should make bureaucracies the epitome of efficiency

    • Division of labor

    • A hierarchy of authority

    • A framework of rules

    • Administrative personality

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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The Organization as an Open System:

The Biological Metaphor

15-7 Figure 15-2

Goals and Values Subsystem

Technical Subsystems

Inputs

Outputs

Managerial Subsystem

Psychological Subsystem

Structural Subsystem

Feedback

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Generic Effectiveness Criteria

15-8

  • “No single approach to the evaluation of effectiveness is appropriate to all circumstances or for all organization types.”

    • Goal accomplishment

    • Resource acquisition

    • Internal processes

    • Strategic constituencies satisfaction

      • Strategic constituency: any group of people with a stake in the organization’s operation or success.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Goal Accomplishment

Resource Acquisition

Internal Processes

Strategic Constituencies Satisfaction

Four Dimensions of Organizational

Effectiveness

15-9 Figure 15-3

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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The Contingency Approach to Designing

Organizations

15-10

  • Contingency approach to organization design: creating an effective organization-environment fit.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Mechanistic versus Organic

Organizations

15-11

  • Mechanistic organizations: “Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication.” (Tend toward centralized decision-making.)

  • Organic organizations:“Flexible networks of multitalented individuals who perform a variety of tasks.” (Tend toward decentralized decision making.)

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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New

Old

Dynamics learning

Stable

Information rich

Information is scarce

Global

Local

Small and large

Large

Product/customer oriented

Functional

Skills oriented

Job oriented

Team oriented

Individual oriented

Involvement oriented

Command/control oriented

Lateral/networked

Hierarchical

Customer oriented

Job requirements oriented

New-Style versus Old-Style

Organizations

15-12 Table 15-1

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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Skills & Best Practices: How to Manage

Globally-Dispersed Employees

15-13

  • The three keys are: sharing knowledge, building trust, and maintaining connectedness

  • Other steps include:

    • Hire carefully

    • Communicate regularly

    • Practice “management by walking around”

    • Conduct regular audits

    • Use technology as a tool, not a weapon

    • Achieve a workable balance between online and live training

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill

McGraw-Hill/Irwin


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