Drivers of organizational design

Question 1

Environment

Answer 1

• environmental factors influence organizational design
• -> competition, changing traditions/valve system, new modes of working, technological changes education of employees in advance

(Society, customer, competition, policy)

Question 2

Theoretical background

Answer 2

• boundary between system and environment is called difference
• every single part of an environment is dynamic and touches other parts so environment is never static
• environment is considered as source of uncertainty of organizations

Question 3

Classification of environment

Answer 3

1. Formal: Description along formal dimensions
   - complexity: the more complexity the more uncertain
   - dynamics: changes of environment over the time (evolution);
   - dimensions: stability of elements, intensity and predictability of changes
   - IIliberality: something the organization can not change (e.g. law, intensity of commutation, scare resources); pressure for organization
2. Content: Organizations should focus only on relevant environmental forces
   - goal is the reduction of complexity
   - particular forces: macroeconomics, socio-cultural, ecological, etc.

Question 4

Perspective

Answer 4

• congruence perspective: environment is dominating the organizational structure: organization adapts to changes from the environment
• Interactional perspective: environment and organizational structures are interacting with each other

Question 5

Mechanic vs. organic structures

Answer 5

• the truth is in the middle
• slow changes/stable environment - mechanical
• fast changes/turbulent environment - organic

Question 6

Mechanic structures

Answer 6

1. Strict hierarchy
2. Vertical Interaction
3. Downward trend of communication
4. Final Authority is centralized
5. Strong formalization
6. Loyalty and obedience

Question 7

Organic structures

Answer 7

1. Functional authority
2. Lateral interaction
3. Net structure of communication
4. Many decision-making centers
5. Redefining tasks continuously
6. Task dedication

Question 8

Model of Differentiation and Integration

Answer 8

• Organizations are regarded as „open systems“. With increasing size, organizations differentiate itself into separate sub-systems (differentiation) which are integrated in one big system for seamless work (integration)
• Organizations have to cope with different environmental forces and sub-systems have to deal with corresponding environmental elements
• Environment and organizational design (safe and stable environment leads to mechanic, formalized and centralized structure: complex and dynamic environment leads to flexible, organized easy to adapt structure)

Question 9

Imperative Thesis

Answer 9

• The success of organizational design depends on the congruence between design and its (given) environment.

Question 10

Interactional perspective

Answer 10

• organization and environment are permanently interacting and the output (service or good) depends on the resources which are part of the interacting process
• Resource view base: exchange relationship works if environmental trade condition is stable and safe; challenges arise if one party is depending on certain external resources

–> safeguard themself with long-term contracts: safe against changes

Question 11

Technology

Answer 11

• Production systems determines organizational designs
• number of levels of hierarchy depends on organizational structure: mechanical structure has more levels and makes it more difficult to get to a higher level
• young people are better educated and want to become faster higher but companies don’t work like that, which is demotivating

Question 12

Organizational Structure and Production System

Answer 12

• organization with simple or very complex production system employed organic structure
• organization with medium production system employed mechanic structure
• -> production systems determine the relationship between technological setting and organizational/managerial structures
• technology is, more than just production system; often considerate intangible assets (knowledge & know-how is essential)

Question 13

Dimensions of Technology

Answer 13

• variety: how repatitibe are the tasks?

- analyzability: how well can the tasks execution be understood and mastered?

Question 14

Technology and People

Answer 14

• knowledge is efficiently for the transformation of input into output
• -> people act as intervening factor between technology and organizational design; people transform into output not the organization

Question 15

linking technology and the market

Answer 15

• no new technology can transform an industry unless a business model can link it to an emerging market need

Question 16

Technology and Management Methods: Agile Working

Answer 16

• agile working is a radical alternativ to the command and control style management and increases the team productivity, employee satisfaction, minimizes wasting time, brings the most valuable product up and reduces risks and features to the market faster and more predictable
• -> employees are more motivated and deliver higher value work, because of collaborative peers with multiple disciplines which leads to a Browder organizational experience and builds the feeling of trust and respect

Question 17

Motivation

Answer 17

• -> the effort of attaining a goal which is influenced by intensity, direction and persistence
• theories dealing with motivation are content theories (earlier; emphasizes what motivates people) and process theories (contemporary; emphasizes the actual process of motivation)

Question 18

hierarchy of needs

Answer 18

• interaction between organization and individual needs and expectation
• fulfillment is goal
• Maslow´s hierarchy shows different levels for motivation, people want to achieve, there must be a gap which creates the motivation (if needs a permanently satisfied = no motivation)

Question 19

theory of needs

Answer 19

• separate into 3 parts
  1. need to achievement (setting standards and strive to success)
  2. need of power (bah different than normally)
  3. need of affiliation (desire for friendly relationships)

Question 20

Theory X vs. Y

Answer 20

• theory X assumes that employees are lazy and avoid working, need to be controlled
• -> circle because control and no way for development leads to frustration and this demotivation leads to less work
• Theory of Y assumes that employees like work and seek for responsibility
• -> organizational structure should integrate individual needs and organizational goal, delegation of responsibility, self-control and involvement

Question 21

two factor theory (Herzberg)

Answer 21

• Motivators are factors increasing the motivation and hygiene factors demotivate; work can be enriched to bring about effective utilization of personnel

Question 22

self-determination theory

Answer 22

• intrinsic motivation vs harmful effects of extrinsic motivation
• extrinsic rewards reduce intrinsic interest in a task whereas specific rewards like feedback and verbal praises improve intrinsic motivation
• -> managers should provide both: work should be interesting, support employees etc.
• knowing individual interests

Question 23

Goal setting theory

Answer 23

• Intention to work toward a goal are major sources of work motivation;
• A goal shows employee what needs to be done with how much efforts
• Goals should be easy, specific, difficult only if more rewarding: feedback is important

Question 24

Self-efficiency theory

Answer 24

• belief of that person is capable of performing a specific task, if self efficiency is high the confidence to succeed of that person is higher even in difficult situations
• Managers have to push self-efficiency of employees by inactive mastery (gaining relevant experience / did the job already in the past)
• vicarious modeling (people see someone else doing it/mentoring)
• verbal persuasion (telling people that they are able to do it)
• arousal

Question 25

Equity theory

Answer 25

• employees compare their outcome with their input
• question are you treated fairly
• if no consequences may be leaving the firm or change input/output
• transparency and rules for everyone might help

Question 26

theory of organizational justice

Answer 26

• overall perception of what is fair in the workplace like fairness of outcome, the way of treating each other, fairness of process and determine the outcome, etc.
• -> leads to positive emotion, better performance, etc.

Question 27

Expectancy theory

Answer 27

• react in a motivated way depends on strength of expectation and attractiveness of outcome

Question 28

Job characteristic

Answer 28

(core dimensions): don’t get bored (still variety): see your impact (task identity): recognition (task significance ) Autonomy: feedback

these approaches can be implemented in organizational structure and increases motivation by:

• Job rotation (employee shift from task to another task)
• Job enrichment ( employee expand work)
• Flex time (employee is free to vary his working hours)
• Job sharing (individuals share 40 hour week job)
• Telecommuting (working from home for two days a week)
• Employee involvement (organization involves employee in decision making process)