Ob Mod 8 Org Design

Front 1

What does Org Design accomplish

Back 1

Divides up the work
Ensures work gets done by providing coordination and control of Employee work activities

Front 2

List the four Otganizational design issues

Back 2

Division of Labor
Delegation of Authority
Departmentalization
Span of Control

Front 3

Division of Labor accomplishes

Back 3

Expertise through repetition
Lower cost units

Front 4

Principles of Delegation of Authority

Back 4

Match with responsibility
delegate as low as possible
manage by exception
Tell what AND how
Keep ultimate responsibility

Front 5

Define Departmentalization and give 4 types

Back 5

how work activities are grouped together:
functional
territorial
product
matrix

Front 6

Define Functional departmentalisation

Back 6

around functions. creates specialists - issue of narrow focus

Front 7

Define Territorial Dept

Back 7

Territorial - closer to customer but duplication of effort. Also good training ground

Front 8

Define Product Divisional

Back 8

Product Divisional. Separate SBU's 'compete' with each other. Also duplicate effort.
Trf price issues. Further issue if products need to work together, etc. e.g. HP.

Front 9

Matrix.

Back 9

Overlay a project, product design on a functional layout. Violates unit of
command principle.Blends emphasis on market and technical expertise

Front 10

Define Span of Control (8/11)

Back 10

# subs reporting to given manager
Based on:
Required contact
Degree of Specialization
Ability to communicate

Front 11

Draw Figure 8.1 (8/3) fundamental issues in org design

Back 11

8/3

Front 12

What are the basic pillars of Org Structure

Back 12

Central/Decentralization
Inter-org designs
Co-ordination
Control

Front 13

High centralisation

Back 13

high formalisation = written documentation of rules governing employee behaviour

large number of managers and administrators (to create greater control)

Larger administrative ratios - rising costs as less employees actually
engaged in production and customer service

Standardisation also triggered. Few exceptions must be the norm for this to work

Front 14

Decentralisation

Back 14

Seen as a panacea but has become a requirement just to be in many industries

Outsourcing the ultimate end point of decentralisation

Within decentralised firms along basis of products, regions,etc.
some functions (e.g. purchasing, accounting, etc) could still be centralised

Trend towards modular work forces with large amounts of contract workers

Front 15

Inter-Org Designs

Back 15

Conglomerate
Strategic Alliances

Front 16

Conglomerate definition and Japanese term

Back 16

Conglomerate - unrelated diversification e.g GE, Japanese keiretsu

Front 17

4 types of Strategic Alliances

Back 17

outsourcing
joint product development
technology sharing
marketing arrangements

Front 18

What does coordinatoin do?

Back 18

Integrates the actions of subunits to achieve measurable goal that add value to competitive advantage

Front 19

Describe the relationship between Org Design and Employee needs

Back 19

no simple relationship exists

Front 20

How much coordination is needed?

Back 20

Depends on the amount of information which must be processed during task execution. Unclear tasks and turbulent environments require additional coordination. Stable environments less.

Front 21

What does vertical coordination do?

Back 21

strengthens links between hierarchical org levels by reducing uncertainty and shortening decision cycles.

Front 22

List 6 vertical coordination mechanisms: (8/18)

Back 22

Teams and task forces

direct supervision-traditional and expensive

standardized work processes- ok for routine work, bad for SDTs

standardized outputs
Performance Appraisal
MIS

Front 23

What is a collateral organization?

Back 23

A type vertical coordination that is a parallel arrangement of task forces to supplement the given hierarchy until a given problem is solved.

Front 24

List 3 horizontal coordination mechanisms

Back 24

Direct contact

Liaison positions

Permanent teams-for recurring workflow problems

Front 25

What is control as it pertains to Org Design

Back 25

set of mechanisms used to keep action and outcomes within predetermined limits.

Front 26

What are two forms of control

Back 26

process
results

Front 27

What are external controls, characterize them.

Back 27

Process controls like rules and regs over which employees have no control.

Standardization of task performance
Seen as mindless and Rigid (TheoryX)

Front 28

What is an internally based control

Back 28

Process control like TQM in SDT environment (Toyota)

Front 29

What is a result control, give an example

Back 29

Focused on output, MBO. Needs knowledge of what is expected, knowledge of results and feedback.

Front 30

What are some problems caused by external process controls?8/22

Back 30

lack of patience-sub-optimal decision making

across the board cuts - high costs get cut when business conditions are poor

Confusing documentation - means-end inversion, lots of paperwork and no results.

Vague/unrealistic expectations-emphasis on 'how' work is done lessensconcern for results

Panic- employees resent heavy standards

Escalating standards - raising work standards without uping resources or rewards or headcount.

Front 31

What are motivational Characteristics of MBO

Back 31

knowledge of what expected, results, 'trusted' employees work harder because they like be treated like adults.

Front 32

Principles of the responsive org

Back 32

Simplify and Delayer (reduce vertical complexity)

Reassign supporting staff (reduce bloated HQ)

Widen spans of control-using technology

Empower and engage workforce-(decentralizes decision making)

Create team based work system-decentralizes decision making and boosting product and service quality

Front 33

What are the characteristics of a boundaryless firm?

Back 33

Vertical and horizontal boundaries are mode more permeable. SDTs, ICTs responsiveness to customers, alliances and outsourcing.

Front 34

What are the flexible boundaries in a boundaryless org?

Back 34

Authority
Task
Political
Identity

Front 35

Authority boundary

Back 35

btw leaders and followers. still exists with SDTs. Execs reassert power of chain-of-command in a crisis

Front 36

Task Boundary

Back 36

Someone decides who does what when groups work together.
No 'not my job'

Front 37

Political Boundary

Back 37

differing agendas cause conflict
Need measurement systems and incentives to encourage collaboration.

Front 38

Identity Boundary

Back 38

employees shared experience/beliefs which set them apart from rest of company.
'us vs them' attitude can undermine cross-functional teamwork.
Indicative of many cultures in firm.
Not an issue if customer responsiveness/adaptibility valued by all.

Front 39

What is the horizontal org?

Back 39

Emphasizes adaptability and responsiveness instead of hierarchy and centralized decision making. Organize SDTs around core processes instead of functions.

Front 40

What are four drivers of growth in customer service

Back 40

easier and faster to differentiate on service

customers demand better quality

service improvement strengthen brand loyalty and erect market barriers

bad service quickly drives of customers and lowers profits.

Front 41

6 ways services differ from producing product

Back 41

delivered on demand (-inventory)
produced with no direct supervision
provided WHERE cust wants (strbks)
labor intensive
intangible and hard to measure
customers can co-create

Front 42

What is the moment of truth

Back 42

customer forms opinion about quality of services/products.

Front 43

What are the four pillars that support service driven competitive advantage?

Back 43

moments of truth-customer forms opinion

service driven business model-service concept in mission statement

customer oriented front line people-improves services and barriers to entry

customer friendly systems-built to benefit customers

Front 44

Describe the relationship between sales opportunities and production efficiency

Back 44

Inversely related. As sales opps rise, service production efficiency declines. More sales opps raise frequency AND complexity of customer interactions.

Front 45

Describe the difference between manafacturing improvements and service improvements

Back 45

methods used for man improvements don't work for service. Service improvements must be customer focused, not cost containment or efficiency focused.

Front 46

What are the four principles of service quality?

Back 46

Classifying firm's services on client-customer service spectrum
Organizing to improve service
employee engagement(Empowerment)

Front 47

Draw and explain client-customer service spectrum (8/37)

Back 47

x

Front 48

Desribe Organizing to improve service

Back 48

2nd principle of service quality - top line emphasis, empower employees, subordinate control processes to service enhancement. Grow market share and lower unit cost.

Front 49

Describe using employee engagement(Empowerment)

Back 49

3rd principle of service quality-give employees power to make on the spot decisions to meet/exceed customer expectations. Must train employees first!!

Front 50

Describe the 4th principle of service quality

Back 50

consciously avoiding application of manufacturing assumptions in service quality delivery.

Front 51

Steps to service-driven competitive advantage

Back 51

1-conduct service audit
2-develop comany wide service strategy
3-train ALL employees
4-implement service improvement program
5-make service improvement permanent
5-