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ORGANIZATION MANAGEMENT. Organizational Design. Strategy Structure Systems Style Staff Skills Superordinate goals. McKinsey 7-S Model. Strategy Structure Systems

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organization management

ORGANIZATION MANAGEMENT

Organizational Design

mckinsey 7 s model
Strategy

Structure

Systems

Style

Staff

Skills

Superordinate goals

McKinsey 7-S Model
7 s model the hard s s
Strategy

Structure

Systems

The hard elements are factual and easy to identify. They can be found in strategy statements, corporate plans, organization charts, and other documentation

7-S Model – The Hard S’s
7 s model the hard s s4
Strategy

Actions a company plans in response to or in anticipation of changes in its external environment

Structure

Basis for specialization and coordination, influenced primarily by strategy and by organization size and diversity

Systems

Formal and informal procedures that support the strategy and structure (Systems are more powerful than they are given credit)

7-S Model – The Hard S’s
7 s model the soft s s
Style / Culture

Staff

Skills

Shared Values / Superordinate Goals

The soft elements are difficult to describe since they are continuously developing and changing. They are highly determined by the people at work in the organization.

7-S Model – The Soft S’s
7 s model the soft s s 1
Style / CultureThe culture of the organization, consisting of

Organizational culture: the dominant values, beliefs and norms which develop over time and become relatively enduring features of organization life

Management style: what managers do rather than what they say (where they spend their time and attention, what they allow, what they reward, etc)

Staff

Skills

Shared values / Superordinate goals

7-S Model – The Soft S’s - 1
7 s model the soft s s 2
Style / Culture

Staff

The people/human resource management – ways of shaping basic management values, processes used to develop managers, ways of introducing new employees and managing careers, socialization processes

Skills

Distinctive competencies – what the company does best, ways of developing or shifting competencies

Shared values / Superordinate goals

Guiding concepts, fundamental ideas around which a business is built – simple, usually stated at abstract level, have great meaning inside the organization, although outsiders may not see or understand them

7-S Model – The Soft S’s - 2
organizational structure
Organization Chart

formal reporting relationships

levels in hierarchy

spans of control

departmentalization

Systems to facilitate:

coordination

communication

integration

Organizational Structure
structural designs
Structural Designs
  • Functional Structure
    • Can adapt functional structure with horizontal linkages
  • Divisional Structure
  • Geographical Structure
  • Matrix Structure
  • Horizontal Structure
  • Hybrid Structure
other organizational forms
Joint Ventures

Licensing agreements

Strategic Alliances

Consortia

Virtual organizations

Global (transnational) Work Teams

Other Organizational Forms
virtual teams
Virtual Teams
  • Virtual Teams are characterized by:
    • Distributed locations of team members
    • Use of information technology to accomplish tasks
    • Effective when:
      • Communication & collaboration skills are high.
      • Trust among team members is high
  • Organizations are increasing their use of virtual teams
  • Potential for improvement in virtual team management is huge
information linkages
Information Linkages
  • Vertical Information Linkages
    • Hierarchy
    • Rules and plans (i.e. budget)
  • Horizontal Information Linkages
    • Information systems
    • Liaison role
    • Task force
    • Integrator role (i.e. Project manager)
    • Cross-functional teams
slide14

Teams

H IGH

Full-time Integrators

Task Forces

Amount of Horizontal

Coordination Required

Direct Contact

LOW

Information Systems

LOW

HIGH

Cost of Coordination in

Time and Human Resources

Ladder of Mechanisms for

Horizontal Linkage and Coordination

systems various elements
Systems – various elements
  • Communications practice and system
  • Management reporting system
  • Approval process
  • Planning/budgeting system
  • Rewards system including appraisal
  • “Rules”
from tasks to structure
From Tasks to Structure
  • Tasks define jobs
  • Jobs define skills required
  • Skills (and other considerations) define staff
    • Over time skills change as staff gains knowledge and experience, and as technology and corporate infrastructure mature
  • Collection of jobs basis for structure
job design considerations
Job design considerations
  • Do they have the necessary skills and knowledge to fulfill proposed / expanded job requirements?
  • What are the needs of the incumbent or the rest of your workforce in general?
    • Monetary
    • Growth
    • Socialization
slide20

Shared values / Superordinate goals & Style/Organizational culture

  • Shared values / Superordinate goals
    • Guiding concepts, fundamental ideas around which a business is built – simple, usually stated at abstract level, have great meaning inside the organization, although outsiders may not see or understand them
  • Style / Organizational Culture
    • Organizational culture: the dominant values, beliefs and norms which develop over time and become relatively enduring features of organization life
    • Management style: what managers do rather than what they say (where they spend their time and attention, what they allow, what they reward, etc)
slide21

Organizational Culture

  • Culture is to organizations what personality is to individuals
  • All companies have cultures
    • Culture by default
    • Culture by design – thoughtful choices based on values and core beliefs
  • How does a company consciously create its culture?
slide23

Types of Organizational Cultures

  • Control cultures – Drive for predictability and order
  • Collaboration cultures – Pursue close relationship with customers
  • Competence cultures – Pursue excellence and innovation
  • Cultivation cultures – Pursue life enrichment for customers and employees
slide24

Organizational Culture

  • Observable Evidence:
    • Symbols
    • Ceremonies
    • Stories
    • Behaviors
    • Language
    • Dress
  • Underlying Roots:
    • Values, Assumptions, Beliefs, Attitudes, Feelings
culture in practice
Culture in practice
  • Conflict management
    • Relationship or interpersonal conflict
    • Task / process conflict
    • Functional vs. dysfunctional conflict – conflict can lead to innovation and positive change
    • Some factors: goal incompatibility, limited resources, differences
  • Power and politics
culture in practice26
Culture in Practice
  • Power – the capacity to influence behavior:
    • Positional power: rewards/consequences, control of resources, information and decision control
    • Personal power – expert, referent (based on identification and admiration
  • Politics – the use of power to influence decisions
slide27

Management vs. Leadership

Planning & vs. Setting the budgeting direction

Organizing & vs. Aligning people staffing

Controlling & vs. Motivating people problem solving

Management is about coping with complexity Leadership is about coping with change

management vs leadership
Management vs. Leadership
  • Some managers (but not all) are leaders
  • Some leaders (but not all) are good managers
  • A manager gets work done through the efforts of other people
    • Includes planning, organizing, motivating, and controlling
  • A leader creates and realizes a vision
    • Communicates that vision and moves the organization toward that vision
mckinsey 7 s model29
Strategy

Structure

Systems

Style

Staff

Skills

Superordinate goals

Effective organizations achieve a harmony between these seven elements; if one element changes, then this will affect all the others

McKinsey 7-S Model
mckinsey 7 s model30
The 7-S Model can be a valuable tool to initiate change processes and to give them direction; i.e. determine current state and ideal state of each element, and develop action plans to close the gaps

Strategy

Structure

Systems

Style

Staff

Skills

Superordinate goals

McKinsey 7-S Model
mckinsey 7 s model31
In change processes, many organizations focus their efforts on the hard S’s; however, the soft factors can make or break a successful change process. All factors must be accounted for.

Strategy

Structure

Systems

Style

Staff

Skills

Superordinate goals

McKinsey 7-S Model
mckinsey 7 s model32
Interrelated

Equilibrium

Foundation of corporate culture

Levers available to management

Strategy

Structure

Systems

Style

Staff

Skills

Superordinate goals

McKinsey 7-S Model
assignment
Assignment
  • Read BA 550 class packet:
    • Turning Great Strategy into Great Performance
    • Governance and Strategy Implementation
  • Case brief – Americhem
  • Complete proposal on term project