MGMT 110 Lecture Notes - Lecture 12: Isomorphism, Adhocracy, Dynamic Capabilities
Week 12 – Managing Organisational Design
Key Concepts
• Organisational design → is oth the ratioal pla/odel for a orgaisatios
structure and way of operating and the process of achieving this
• Rational Artefacts:
- Structure/hierarchy chart
- Policies
• Work design → both the (rational) plan/model for how work is to be completed and
the processes of achieving this
• Rational Artefacts:
- Procedures
- Job descriptions
Historical/Traditional
Context
• Industrial revolution → emergence of large scale organisations (1900s)
• Context: stable conditions, markets protected
• Based on Taylorism
• Universal principles – one best way
• Efficiency and standardised methods (economies of scale), rules and control
• Mostly low and semi-skilled workers
3 Stages of Organisational Design:
1. Pre-contingency
2. Contingency
3. Post-contingency
Organisational Structures: Classical or Traditional
• Classial ie: oe est a ahie
• Fredrik Talors sietifi aageet
• Ma Weers ureaura
- Not designed based on efficiency but on rules and rule making
- Rules themselves would create order and process
- If you follow the rules you are looked after
• Heri Faols adiistratie priiples
- The aagers role ad the a the perfored the role
- Planning
- Organizing
- Leading
- Controlling
- Specialising of labour
- Discipline
- Unity of command → receiving orders from manager
- Subordination of individual interests → organisations interest always first
- Monetary and non-monetary remuneration
find more resources at oneclass.com
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- Scalar chain → clear line of hierarchy
- Equity → everyone treated in the same way
- Stability of tenure → guaranteed work
- Initiative
The Functional Structure – Traditional
• CEO at the top
• Then people below the CEO – executives based on a functional area
- E.g. manufacturing, accounting, human resources, PR
• Within that function, staff that report to that executive
Divisional Structure
• Division → separate area
- Can be based on geography
• Different functions based in divisions
Other Factors Affecting Design of Organisational Structure
• Organisational environment
• Technology
• Strategy
• Human Resources
Universal Factors/Contingencies
• Environment → whether it is predictable or unpredictable
• Routine → is it routine or non-routine?
• Size → is the size big or small?
Contingency Theory
• An environment where there is uncertainty
• Several key contingencies shaping organisations
• All organisations have to deal with a predictable number of contingencies
• Cotigeies ill shape the orgaisatios desig as it adapts to the
Contingency View
• Rapid change and hyper-competition
• No oe est a – managers should work out the situation; est fit orgai
• Adaptation and innovation as primary strategies
• Entrepreneurship
From Traditional to Contingent to Strategic Views
• Organisation form/design depends on:
- Strategy → a range of strategic needs
- Environment (uncertainty)
- Size
- Task/products and services (complexity, interdependence, skills needed etc.)
- Technology
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
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