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LECTURE 5
organizational design:
- strat implementation encompasses company organizational design
- OD: is about selecting syst, structure, management styles that can best
implement strat
ex: valeo
hierarchy as control: Weber’s principles of Bureaucracy:
- rational legal authority
- specialisation of labour
- hierarchical structure
- coordination and control through rules and standard operating procedure
- standardization of employment practices
- separation of position and people
the contingency theory: the org depends on the strat being pursued
structural forms:
- functional organization: benefits because single business, scale of eco,
Klization of know how, capability building
But problem of coordination and cooperation btw functions
- T shaped
based on business unit
orga design:
- defining orga units
units may be defined on the basis of taks products, geographical proximity, or
process
criteria: eco of scale, learning, capitalization of know how…
- choosing the right structure: basic feature of organizations is hierarchy
Trends
limited search
- preference of exploitation over exploration
- limited pool of competences ( ex: Kodak)
- satisfying behaviour limit firms to incremental change and limited perf
complementarities btw strat, structure and systems
- firms create unique configurations of orga: localized changes tend to be
dysfunctional change needs to be systematic
- neW CEO
organization adaptation
- orga ecology based in orga inertia: changes in the indus occur through the
change in the population of firms with new entrants (rather than by adaptation
of firms themselves)
- other fail: evolutionary eco, successful routines are retained and replicated
within the orga (costly and slow) + different stages of the life cycle require diff
skills and capabilites
technological change
managing strat change: dual strat and orga ambidexterity : M. Tushman and
Charles O’REILLY’s
Ambidextrous organization firms need to:
- exploit existing resources and capabilities and market positions
- explore news opportunities for the future
Structural Ambi (exploration and explotation allocated to different orga units)/
Contextual Ambi (same orga units and people perfo both explor and exploit)