Reviewer - Org Structure PDF

**Organizational structure** - system that outlines how certain activities are **directed in order to achieve the goals of an organization** such as rules, roles, and responsibilities. - determines how information **flows between levels** within the company. **Decentralized systems -** provi...

**Organizational structure** - system that outlines how certain activities are **directed in order to achieve the goals of an organization** such as rules, roles, and responsibilities. - determines how information **flows between levels** within the company. **Decentralized systems -** provide practically every individual a high level of personal agency, whereas centralized structures have a defined chain of command. **Importance of Org Structure** 1. **Delegation of duties** 2. Help with **efficiency** and provide **clarity** for everyone at every level. 3. Result in each department within the organization **becoming more focused and productive.** 4. Allows for **a clear delegation of duties and expectations.** **Centralized Org Structure** - Traditionally defined chain of command. - Very clear responsibilities for each role with defaulting guidance of their superiors. **Decentralized Org Structure** - More people play a role in decision-making, mid-lower managers as well as regular employees have more of a say in what goes on and can help call the shots. - Popular in many technology startups and viewed as enabling them to remain fast, agile, and adaptable with everyone able to throw ideas. **Types of Org Structure** 1. **Functional** - also referred as bureaucratic organizational structure. - Divides the firm into departments consisting of marketing, sales, and operations. 2. **Divisional or Multidivisional (M-Form Structure** - Common among large companies with many business units. - leadership team uses these structures based on their products, projects, or subsidiaries as it operates. 3. **Team-Based Structure** - Segregate into close-knit teams of employees that serves, particular goals and functions, similar to divisional & multidivisional structures. 4. **Flat (Flatarchy)Structure** - Also known as horizontal structure, used among many startups. 5. **Matrix Structure** - The employees under these structures usually have duties in both sales and customer services. 6. **Circular Structure** - Hierarchical yet circular as they place higher-level employees and managers at the center of the organization. 7. **NetworkStructure** - Organizes contractors and third-party vendors to carry out certain key functions. **6 Key Elements of organizational design** 1. **Work specialization** - Allows an employer to focus less on training and redirect its energy and resources to other company needs. 2. **Departmentalization and compartments** - it allows each compartment or department to focus on a specific task **Compartments** - Refers to the teams of professionals who are from different career path and specialty. **Departments** - Refers to group of professionals of a similar skill set within the company. 3. **Formalization of elements** - Specifies the relationships and roles within the company 4. **Centralization and decentralization** - senior levels of employees who can influence company decisions. 5. **Span of control** - Accounts the number of people a leader supervises and the tasks they handle. 6. **Chain of command** - Visually portray each employee's place in the company hierarchy, and the company may have strict or flexible chain of command. \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- **Organizational culture** - is the set of values, beliefs, attitudes, systems, and rules that outline and influence employee behavior within an organization **Types of Org Culture** 1. **Clan cultures** - are about teamwork and collaboration. In such a culture, those in management function as enthusiastic mentors who provide guidance to subordinates. 2. **ADHOCRACY CULTURE** - Adhocracy culture creates an entrepreneurial workplace in which executives and employees function as innovators and risk-takers. 3. **Market culture** - is focused on meeting specific targets and bottom-line goals. - Management is most interested in business results. Employees are encouraged to work hard and \"get the job done\" to enhance a company\'s market presence, profits, and stock price. **Spain on the organizational structure of the Philippines** 1. **Administrative Organization** - The Spanish colonial administration established a centralized bureaucracy, which influenced local governance structures. 2. **Local Governance** - The Spanish introduced the **\"barangay\"** system - implemented the **\"pueblo\"** or town 3. **Legal System** - Spanish colonial rule introduced the Spanish legal codes and systems, including the **\"Código Civil\"** and other laws that influenced the legal framework of the Philippines 4. **Education and Religion** 5. **Economic Structure** - Spanish rule also impacted the economic structure through the implementation of the \"encomienda\" system, - 1. **Government Structure** - BPM is a systematic approach to **improving an organization\'s processes**. Focuses on optimizing business workflows to enhance efficiency and achieve organizational goals. - Focuses on optimizing business workflows to enhance efficiency and achieve organizational goals. - a method that identifies, analyzes, and improves the present existing business processes that lead to optimizing the performance, enhancing company standards, improving system quality, etc. 1. Reducing Cost 2. Improving the income 3. Improving the quality 4. Reducing the processing time 5. Improving accuracy and efficiency **Why BPI?** 1. Productivity 2. Reduced Cost 3. Quality 4. Attracts Customers 5. Reduce Risk **Why do BPI fail?** 1. Lack Responsibility 2. Complicated 3. Inability to modify the plan **How id BPI done? / Process** 1. Identify the problem 2. Map the process 3. Analyze the System 4. Redesign 5. Implement 6. Review **Common BPI Methodologies** 1. Lean 2. TQM 3. 6 Sigma 4. Kaizen 5. Business Process Reengineering (BPR) **Total Quality Management** - Total quality management is a business improvement methodology that is best suited for a constantly changing environment **Six Sigma** - Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in any process from manufacturing to transactional and from product to service. - "Sigma" is a statistical term that measures how far a given process deviates from perfection. **Bill Smith** -- Father of Six sigma **OBJECTIVES** 1. Overall Business Improvement 2. Reduce Cost 3. Increase Customer Satisfaction 4. Improve Time Cycle 5. Remedy Defects/ Variability **METHODOLOGIES** **DMAIC** - Define - Measure - Analyze - Improve - Control **DMADV** - Define - Measure - Analyze - Design - Verify **Six Sigma Belt Colors** White, Yellow, Green, Black, Master **KAIZEN** - Japanese business philosophy that focuses on gradually improving productivity and making a work environment more efficient. - Eliminate - Change - Simplify - Improve **PDCA Cycle --** Continuous improvement - Plan - Do - Check - Act **BUSINESS PROCESS REENGINEERING (BPR)** - Business Process Reengineering (BPR) is the radical redesign of business processes to achieve dramatic improvements in productivity, cycle times, quality, and employee and customer satisfaction. **Key Elements** - Fundamental Rethinking - Radical Design - Dramatic Improvement - Focus on Core Processes **BPR Cycle** 1. Define Business Process 2. Analyze Business Process 3. Identify and Analyze Improve Opportunities 4. Design future processes 5. Develop future state changes 6. Implement future state changes **BENEFITS** - **Cost Reduction:** By eliminating inefficiencies and redundancies, BPR often leads to significant cost savings. - **Improved Productivity:** Streamlined processes can speed up workflows and reduce delays. - **Better Customer Service:** Enhanced processes can lead to faster and more accurate service delivery, improving customer satisfaction. - **Increased Agility:** Organizations become more responsive to market changes, customer needs, and technological advancements. **Role of Information Technology in Process Optimization** - Business process optimization involves analyzing and improving existing workflows to eliminate bottlenecks, reduce costs, and enhance productivity. Technology plays an essential role in driving this **optimization, offering powerful tools and solutions** that streamline operations and unlock new levels of efficiency. **Understanding Business Processes** - A business process is a series **of structured activities or tasks that organizations perform** to achieve a specific goal or deliver a product or service. These processes can be categorized into three main types: 1. Core processes (directly related to delivering products or services). 2. Support processes (enabling core processes). 3. Management Processes (governing the organization). **Business Process Optimization** - is the practice of analyzing and improving existing workflows and processes within an organization to enhance efficiency, reduce costs, and increase productivity. **Why Is Process Optimization Important for Businesses?** - Process optimization is crucial for businesses to stay competitive, reduce operational costs, improve customer satisfaction, and adapt to changing market conditions. By optimizing processes, organizations eliminate bottlenecks, streamline operations, and unlock new levels of efficiency. **What Are the Benefits of Automating Business Processes?** 1. Increased Efficiency and Reduced Costs 2. Improved Quality and Consistency 3. Better Decision-Making Through Real-Time Data 4. Enhanced Customer Satisfactio 5. Increased Agility and Flexibility 6. Reduced Employee Workload 7. Better Compliance and Risk Management 8. Faster Time to Market 9. Scalability for Growth 10. Enhanced Collaboration and Communication **Digital Transformation and their Impact on Organizational Processes** Digital transformation is a broad and complex phenomenon that integrates technology into all areas of an organization, fundamentally changing how businesses operate and deliver value to customers. **Key Technologies in Digital Transformation** Cloud Computing - provides scalable and flexible IT resources over the internet, allowing organizations to access computing power, storage, and applications on a pay-as-you-go basis. **Artificial Intelligence (AI) and Machine Learning (ML)** - AI and ML involve algorithms and models that allow systems to learn from data and make decisions or predictions. **Big Data Analytics** - involves analyzing large and complex data sets to uncover hidden patterns, correlations, and insights. **Internet of Things (IoT)** - IoT connects physical devices to the internet, enabling them to collect and exchange data. **Blockchain Technology** - is a decentralized digital ledger that records transactions across multiple computers to ensure security and transparency. **Robotic Process Automation (RPA)** - RPA uses software robots to automate repetitive and rule-based tasks **5G Technology** - 5G is the fifth generation of mobile network technology, offering faster speeds and more reliable internet connections **Key Processes in Digital Transformation** **Customer Experience Management** - Involves strategies and technologies to enhance customer interactions and satisfaction. **Digital Marketing** - Utilizes digital channels such as social media, email, and search engines to promote products and services. **Agile Methodology** - Manages the process of transitioning individuals, teams, and organizations to a desired future state. **Data Management and Governance** - Involves managing data assets, ensuring data quality, and establishing policies for data usage. **Cybersecurity** - Protects systems, networks, and data from digital attacks and breaches. **Impact On Organizational Processes** **Operational Efficiency** - Digital technologies streamline operations, reduce manual tasks, and optimize workflows. **Business Model Innovation** - Digital transformation enables new business models and revenue streams. **Enhanced Collaboration** - Digital tools facilitate better communication and collaboration among teams. **Data-Driven Decision Making -** Leveraging data analytics for strategic decision-making. **Customer-Centric Approach -** Technologies improve the ability to understand and meet customer needs. **Employee Experience -** Digital tools and processes affect how employees work and interact. **Organizational Development (OD)** - is a systematic, organization-wide effort aimed at increasing an organization\'s effectiveness and health through planned interventions in its processes, systems, and culture. Core Elements Strategy alignment Process Improvement Cultural Change **Importance of OD** **Performance Enhancement** OD helps organizations improve overall efficiency and productivity by identifying areas of inefficiency and implementing process improvements. **Change Management** OD supports managing large-scale changes (e.g., digital transformation, restructuring, mergers) by ensuring employee buy-in and proper communication. **Leadership Development** It plays a critical role in developing leadership capabilities that align with organizational goals. **Cultural Transformation** OD fosters a culture of continuous learning, adaptability, and innovation to meet evolving business challenges. **Employee Engagement** Helps create better work environments by focusing on team-building, motivation, and collaboration. **When do Organizations Implement OD?** 1. Change in business environment 2. Mergers and acquisitions 3. Performance decline 4. Strategic Shifts 5. Cultural Transformation 6. Leadership Transitions 7. Growth Preparation **OD Enhances performance, Manges Change, Continuous Learning is key, Employee Engagement matters, Strategic alignment** **Early Foundations to Contemporary OD** **Early Foundations 1900s-1930s** -- focusing in org development, improving efficiency and productivity through systematic analysis **Frederick Winslow Taylor** -- father of scientific management ** Human Relations Movement (1930s-1950s) Focus on People --** founded by George Elton Mayo in 1930s following a series of experiment known as Hawthorne Studies **Hierarchy of needs** introduced by Abraham Maslow -- "A theory of Human Motivation" **Kurt Lewin** - Psychologist known for his significant contributions to social, organizational, and applied psychology. ** The Emergence of Organizational Development (1950s-1960s) --** formal emergence of OD as a distinct field ** Growth and Formalization (1960s-1980s) -** laid the foundation for modern OD practices. The emphasis on systems thinking, tailored interventions, and continuous learning continues to influence the field today. ** Systems Thinking and the Learning and Organization (1980s-1990s) --** a **holistic approach** to analysis a focuses on the way that a system\'s constituent parts interrelate and how systems work over time and within the context of larger systems. It became a cornerstone of organizational development during this period. ** The Rise of Change Management (1990s-2000s) -** ** Contemporary OD (2000s-Present)** **SWOT Analysis** **Strengths** **Strong Brand Recognition: The organization boasts a well-established brand known for quality and reliability, which drives customer loyalty and market share.** **Skilled Workforce: A diverse and highly skilled employee base enhances innovation and operational efficiency.** **Robust Financial Position: Healthy financial metrics allow for investment in new projects and technologies, fostering growth and stability.** **Weaknesses** **Limited Digital Presence: There is a notable gap in digital marketing and online engagement, which affects market reach and customer interaction.** **Inefficient Processes: Certain operational processes are outdated, leading to inefficiencies and higher costs.** **High Employee Turnover: Attrition rates are above industry averages, indicating potential issues with employee satisfaction and retention.** **Opportunities** **Market Expansion: There is potential for growth in emerging markets, particularly through localized products and services.** **Technological Advancements: Embracing new technologies can enhance efficiency and product offerings.** **Sustainability Initiatives: Increasing consumer demand for sustainable practices presents an opportunity to enhance brand image and attract eco-conscious customers.** **Threats** **Intense Competition: The market is highly competitive, with new entrants and established players vying for market share.** **Regulatory Changes: Potential changes in regulations could impact operational procedures and increase compliance costs.** **Economic Uncertainty: Fluctuations in the economy can affect consumer spending and overall business stability.** **PESTLE Analysis** **Political Factors** **Regulatory Framework:** The organization must navigate complex regulations that can impact operational costs and market entry. **Government Stability:** Political stability in operating regions influences strategic decisions and risk assessments. **Economic Factors** **Market Conditions:** Economic indicators such as inflation and employment rates directly affect consumer purchasing power. **Global Trade Policies:** Tariffs and trade agreements play a crucial role in pricing and supply chain decisions. **Social Factors** **Changing Consumer Preferences:** Increasing demand for personalized and sustainable products is reshaping market strategies. **Workforce Demographics:** A diverse workforce necessitates inclusive practices and adaptations in management strategies. **Technological Factors** **Digital Transformation:** Advancements in technology are essential for staying competitive and improving operational efficiency. **Cybersecurity Threats:** As digital reliance grows, so does the risk of cyber threats, necessitating robust security measures. **Legal Factors** **Compliance Obligations:** Adherence to labor laws, environmental regulations, and industry standards is critical to mitigate legal risks. **Intellectual Property Rights:** Protecting intellectual property is essential for maintaining a competitive advantage. **Environmental Factors** **Sustainability Practices: I**ncreasing focus on environmental sustainability impacts product development and operational practices. **Climate Change:** Adapting to climate change-related challenges is vital for long-term strategic planning. **Organizational Climate Survey** **The Organizational Climate Survey was conducted to gauge employee satisfaction and perceptions of the workplace environment.** **Key findings include:** **Employee Engagement:** While overall engagement levels are moderate, there is a strong desire for more recognition and career development opportunities. **Communication:** Feedback indicated a need for improved internal communication, with employees expressing a desire for clearer information flow from leadership. **Work-Life Balance:** Many employees reported challenges in maintaining work-life balance, highlighting the need for flexible work arrangements. **Team Collaboration:** There is a positive sentiment towards teamwork; however, barriers in inter-departmental collaboration were identified.