Lecture 4: Building Innovative Organizations Flashcards
(34 cards)
What are some features of structure?
- Organization design that enables creativity
- balance between organic and mechanistic options
What are some features of key individuals?
- promoters, champions, gatekeepers
What are some features of effective team working?
- appropriate use of teams to solve problems
- investment in team selection
What are some features of high- involvement innovation?
Participation a in continuous improvements
What are some key features of a Creative Climate?
Positive approach to creative ideas supported by relevant motivation systems
What are some key features of external focus?
Internal and external customer orientation
What were the 6 factors that the review of 27 empirical studies of innovation and leadership found leaders should focus on?
1) establish an innovation policy and communicate to employees that innovative behaviour is rewarded
2) heterogeneity of teams but also diversity
3) promote emotional safety, respect and joy
4) give individuals and teams autonomy
5) time limits for idea creation should be set
6) engage closely in evaluation of innovative activities
Three key components of Organization structure:
Vertical:
- formal reporting relationships
- grouping of individuals
Horizontal:
- design of systems
What are key features of shared vision and leadership?
- clearly articulated purpose
- strategic intent
- top management commitment
Discuss the Information-Processing Perspective:
- provide vertical and horizontal info flow
- traditional vs learning organisations (traditional design emphasises vertical) (learning emphasiEs comms and collaboration)
- centralised vs decentralised decision making
Discuss techniques for encouraging technological information:
- switching structures
- creative departments
- venture teams
- corporate entrepreneurship
Horizontal Organozaion is designed for ______
Learning
Vertical Organization is designed for ______
Efficiency
If vertical is dominant:
- Specialized tasks
- strict hierarchy
- vertical communication
- few teams, task forces
- centralised decision making
If horizontal is dominant:
- shared tasks, empowerment
- relaxed hierarchy, few rules
- horizontal comms, face 2 face
- many teams, task force
- decentralised decision making
Discuss Oracle as an example?
- sales managers were cutting individual deals and setting compensation agreements
- CEO focused on vertical control with everything dictated from the top and entered into a database
- system circulates standard rules
- projects suffered lengthy delays
Discuss Horinzontal Information Linkages
The amount of communication. And coordinate activities across organizational departments:
- info systems
- direct contact
- task forces
- film time integrator
- teams
What are three key indicators of Organization design?
- required work activities
- reporting relationships
- departmental grouping options
What are strengths of a FUNCTIONAL STRUCTURE?
- economies of scale
- knowledge management
- functional goals
- good for one or a few products
What are weaknesses of a FUNCTIONAL STRUCTURE?
- slow response time
- decisions pile on top
- poor horizontal coordination
- less innovation
- restricted view of goals
What are strengths of a DIVISIONAL STRUCTURE?
- adaptability
- customer satisfaction
- high coordination
- large organisations with several products
- decentralised decision making
What are weaknesses of a DIVISIONAL STRUCTURE?
- eliminates economies of scale
- leads to poor coordination
- eliminates specialisation
- integration and standardisation difficult
Examples of companies with Divisional Structure:
Nestle
General Electric
Tata
Johnson and Johnson
What has IKEA done?
Moved from centralised, functional to decentralised, divisional to a matrix of functional / project
