Introduction to Management Study Guide Chapter 7 PDF

Dhruv Chaudhari 10/10/2024 Chapter 7: Organization Design Organization Design Supports Getting Work “Done Well”: -Identifying the key tasks of the organization must complete -grouping those tasks into productive and meaningful jobs -Creating organizational structure to coordina...

Dhruv Chaudhari 10/10/2024 Chapter 7: Organization Design Organization Design Supports Getting Work “Done Well”: -Identifying the key tasks of the organization must complete -grouping those tasks into productive and meaningful jobs -Creating organizational structure to coordinate/integrate workflows and to delegate authority and accountability -culture in support of the organization’s core values, goals, and strategies 7.1 Job Design: Define all tasks that need to be done to complete the “Right Work” Some would need to be done by people outside(outsourcing) the company or by people within an organization. Tasks need to be done by employees within the organization who will be responsible for completing those tasks effectively and efficiently. How skills of employees can be achieved? ○ College/trade school ○ Apprenticeship ○ Specialized training Jobs are built around a common set of skills Jobs often become more specialized when a business gets larger and larger The business needs to make sure that as the jobs get more specialized, they are meaningful. ○ If jobs become too tedious or stressful, there is a risk that an organization will experience high turnover rates. ○ Fewer people would want to do jobs for that company Job Design: creating jobs in an organization that can be done effectively and efficiently while providing meaningful work for the employee. A job should be designed so that it is achievable for an individual to perform successfully. Early industrialization focused on simplifying tasks to maximize efficiency and maintain quality through job specialization. This approach could lead to monotony and dissatisfaction for employees due to repetitive tasks. Hackman and Oldham developed the "Job Characteristics Model" to explore the relationship between job design and employee satisfaction and performance.  ○ Skill Variety: is the extent to which a job requires a worker to use a wide range of different skills and abilities ○ Task Identity: is the extent to which the job requires the worker to perform all the tasks needed to fully complete the task ○ Task Significance: is the extent to which the job affects the lives of others ○ Autonomy: is the extent to which the employee is allowed to make choices about scheduling and how best to perform tasks ○ Feedback: the extent to which the employee receives clear and direct information on how well they are performing the task. Topic 7.2 Organizational Structure: Organizational structure: Organizational structure refers to how jobs are grouped into work teams, how authority and responsibility are delegated, and the formal reporting relationships between employees and supervisors within an organization. ○ Functional Structure Group jobs that require similar skills and experience together into small workgroups reporting to the leader of the organization ○ Divisional Strucuture Groups jobs together with people of diverse skills and experience who collectively focus on either providing specific products, serving specific groups of customers, or serving specific geographical areas. ○ Matrix Structure Groups jobs together simultaneously by function and by division. ○ Delegation of Authority Ultimate authority decisions rest with the shareholders of the business organizations that own the company’s stock. Centralized and Decentralized: ○ Centralized: most decisions are made or approved form the senior executives ○ Decentralized: made by the managers that are under the senior managers 7.3 Integrating and Coordinating Workflows Organizational Structure: Organizational structure facilitates coordination and integration by grouping employees who need to work closely together. By placing them in the same sub-groups, they can collaborate more effectively and resolve task-related disagreements with the help of their managers, who are also part of the same group. Liaisons: individuals assigned to coordinate the activities of their group with other groups. By consolidating this responsibility into a single role, liaisons can develop a deeper understanding of the groups they work with and build relationships that facilitate timely communication and coordination. Task Forces: Cross-functional teams are made up of members from multiple groups who come together to address a specific need for coordination. Cross-Functional Teams: made up of members of multiple groups that assembled with ongoing responsibility for managing a key activity of the organization  Integrating Roles: individuals who have their work but in addition are the coordinators of activities with other groups. Topic 7.4 Organization Culture: Set of norms, beliefs, values, and attitudes that are shared by a group of individuals within an organization Understanding an organization's Culture ○ Content: what is deemed important: teamwork, accountability, and innovation ○ Consensus: how widely norms are shared across people in the organization ○ Intensity of feelings: how people feel about the importance of the norm ○ Artifacts: includes things that can be observed in the organization like dress code, and physical layout. ○ Values: espoused and documented norms, ideologies, charters, philosophies, etc. ○ Assumptions: underlying, taken-for-granted, and usually unconscious thoughts of members of the organization that determine perceptions, thought processes, feelings, and behavior. Strong vs Weak Culture: ○ Weak culture: the lack of uniformity around the key aspects of culture Organizations not be able to keep up their values ○ Strong organization Culture: one where the majority of the employees share the same norms, beliefs, values, and attitudes even if they are from different cultures Changing organization’s Culture: ○ Structured vs Flexible: ○ Controlling and delegating ○ Cautious vs Risk Permitting ○ Thinking vs Doing ○ Diplomatic vs direct ○ Individualistic vs collaborative ○ Internal vs External 7.4.3 Task forces are made up of members from multiple groups, assembled with ongoing responsibility for managing a key activity of the organization. ○ BCG recommends conducting workshops with management to establish "Target Organization Culture" goals. ○ Multiple sub-cultures may exist within an organization, differing by department (e.g., research vs. finance) or business unit (e.g., pharmaceutical vs. consumer products). ○ Once a target culture is defined, BCG suggests using seven "critical levers" to influence employee behavior and shape organizational culture. ○ These seven levers help guide the organization in moving towards and implementing the desired culture.