NOV. 20, 2019 • GROUP 6
CHAP 14
THE INTERNAL ENVIRONMENT: OECHESTRATING STRUCTURE, SYSTEMS AND RESOURCES
Subject: Managing Organizational Change Lecture: Mr.Khuong Class: Wednesday - Afternoon
OUTLINE
Nov. 20, 2019 • GROUP 6
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The balanced scorecard What is organizational structure? Situational factors Structural forms Organizing for change, creativity and innovation Systems Resources
The balanced scorecard: Why this book was made? performance measurement that has generated substantial interest among academic and practitioners. A holistic view of the organization is used for strategic reflection and implementation. There are 5 perspectives: Financial, customer, internal business, innovation and learning.
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The balanced scorecard is an approach to strategic management and
What organizatinal Why this is book was made?structure? with organizational design to develop organizational structures.
1. Work specialization: The degree to which a task is divided into separate jobs, has been identified as a critical factor in determining employees’ productivity.
2. Departmentalization: Medium- to large-sized organizations group employees together who are working on similar activities, associated with particular products or services and based in a particular location.
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Founders or managers off firm have to deal with challenges associated
What organizatinal Why this is book was made?structure? Formal lines of authority, which span different hierarchical levels, form top management to workplace employees, and aims to clarify who reports to whom in work setting.
4. Span of control As the number of people reporting directly to manager. In designing organizations, there is a choice of whether to adopt a flat structure with few hierarchical levels or a tall structure with many levels.
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3. Chain of command:
What organizatinal Why this is book was made?structure? Centralization: refers to the extent to which decisions are made at a single point in the organization propose that high centralization inhibits the initiation of innovations. Decentralization: occurs in firms where decision-making in devolved and where lower levels of the hierarchy are encouraged to provide input.
6. Formalization: The degree to which jobs within a firm are standardized through formal job descriptions and the degree of discretion available to employees in pursuing activities and tasks.
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5. Centralization and decentralization:
Corporate Strategy:
Structure and strategy are the key factors for the success of the company and the task for a leader is selecting an appropriate strategy which matching with appropriate structure. Organizational Size:
Using the structure optimizes the effectiveness of co-operating and control between the activities and people at high degrees of specialization. Environmental Uncertainty:
The global economy rapidly changing and dynamic competitive environments affect the organizational structure. This is the reason why firms in highvelocity industries tend to adopt the changes from external factors.
Nov. 20, 2019 • GROUP 6
Situation Factors Why this book was made?
Structural Why this bookForm was made? The entrepreneurial structure is very simple with the founder/manager who making decision all the process of company. This will lead to increase the bureaucratic. A functional structure: The company has many departments such as finance, marketing, sales, human resources, ‌ It may achieve efficiency by specialization but the risk in the company main goal. In order to develop and survive, firms must improve or enhance the existing capabilities to find out more opportunities which is called ambidextrous organization. => This building required the CEO or the top Management Team must commit to integrate and coordinate across different functional areas. This form divides the firm into relevant divisions that are managed by a divisional manager who has authority over his/her unit. The company have the responsibility for support each department.
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TRADITIONAL STRUCTURES
Structural Why this bookForm was made?
As the pace of change in business market, firms try to restructure to adapt the customer expectations and the constant evolution of technologies used in the production and delivery of goods and services, there would be 3 kinds of new arrangements which company are looking for.
Nov. 20, 2019 • GROUP 6
CONTEMPORARY ORGANIZATIONAL STRUCTURES
Structural Why this bookForm was made? Team-based structures The whole team is responsible for the best performance. Thus they would empowered to design the workflow as they think best.
Matrix structure This form of structure emphasizes the coordination of specialists into project-oriented teams. Under these arrangements, people who involve in the numbers of project , leading by the project manager.
Boundaryless organization This requires the collaboration between the levels and departments in order to achieve the goals of an organization. Company usually have the partnerships, mergers or outsourcing. These collaborations are often driven by the high cost and risks of innovation.
Nov. 20, 2019 • GROUP 6
CONTEMPORARY ORGANIZATIONAL STRUCTURES
KEY STRUCTURAL FORMS: Which forms of organizational structure facilitate the generation and implementation of new and useful idea? The desired structure
Stimulate employees creativity
Creating an internal environment where ideas will be born
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ORGANIZING FOR CHANGE, CREATIVITY Why this book was made? AND INNOVATION
TWO IDEAL TYPES OF STRUCTURES CHARACTERIZE FIRMS:
Mechanistic: Boost the effectiveness and performance improvement. Be evident in stable environment The communication desired structure Characterize by formal and relationship that operate on hierarchical basis Characterize by strict rule, a chain of guidance of head and very little involvement of employee, often inhibit creativity. DO NOT APPLY: Where high level of change and creative thinking are needed
Nov. 20, 2019 • GROUP 6
ORGANIZING FOR CHANGE, CREATIVITY Why this book was made? AND INNOVATION
TWO IDEAL TYPES OF STRUCTURES CHARACTERIZE FIRMS:
Organic: Contrary of mechanistic, suit to rapidly changing external environment, innovation is paid huge attention, which is sustainable competitive advantage. The desired structure Exist in turbulent condition Informal communication and relationship Higher creativity when head care employee problem and let them make decision Simultaneously trained to resolve problem themselves => The more power, the more employee productivity of idea creativity
Nov. 20, 2019 • GROUP 6
ORGANIZING FOR CHANGE, CREATIVITY Why this book was made? AND INNOVATION
Systems Why this book was made? To enhance performance and productivity. For creative people, superiors should focus on the idea that is generated rather than how it works, because they will deal with it in the best way they think. There are also others who think that they should focus on the strategy instead of the outcomes, and also support them to tackle the problem.
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GOAL SETTING
Systems Why this book was made? To compensate to employee contribution. It is divided into two categories: monetary (financial reward) and nonmonetary (recognition and praise).
REWARD There are two factors that should be considered in rewarding: What are types of behavior rewarded? Because employees will know what they need to do to be rewarded How the reward should be distributed?
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GOAL SETTING
Systems Why this book was made? Good effect Not good effect
Feedback: How can give feedback? Is feedback constructive ?
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EVALUATION
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Resources Barney (1991) with resource based view (RBV) argue that firm develops competitive advantage through its resources base. Four characteristics of resources that are important determinants in sustaining competitive advantage: Durability Transparency Transferability Replicability.
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Resources Organization need to supply employees with to increase creative/ innovation output.
Sufficient resources Effective communication systems Project selection
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Resources SUFFICIENT RESOURCING
What is resources ? 3 main categories: physical, intangible and financial.
How to provide sufficient resource ? Sufficient funds Example: Google case which invest thousand millions on many project for future like self-driving cars or a pill to detect cancer Adequate time Central to innovation Deadline Relevant information and sufficient material resources.
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Resources SYSTEMS OF COMMUNICATION
What is communication ? Communication is an active, dynamic process that aims to facilitate understanding (Hyatt, 1992). Promote int
Nov. 20, 2019 • GROUP 6
Resources SYSTEMS OF COMMUNICATION
How to creative a effective communication system ? Promote internal and external communication 1. Benefits of internal communication a. Exchange knowledge b. Improve innovation through autonomous team 2. Benefits of bringing outsiders into creative environments: a. New knowledge, b. Teaching creative individuals to interact with outsiders c. Breaking down stereotypes. Promote int
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Resources PROJECT SELECTION Selecting work that commercially or creatively interesting, and which offers ample opportunities for exploration (Andriopoulous, 2003; Andriopoulous and Lowe, 2000). Promote int
Nov. 20, 2019 • GROUP 6
Resources PROJECT SELECTION
How to select project ? Role of managers to match employees with suitable position Benefits when employees are involved in highly complex jobs: Perceive the significance and exercise responsibility for the whole their work. Have the discretion to access options about how and when the work gets done using variety of skills. More open to receiving feedback form the work itself in monitoring their own progress.
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Framework
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