Lecture 5 Flashcards
task design is the … level
the lowest level of org design
Woodward (1965)
Unit, mass and process tasks for three different types of technology (primary process)
Unit: craft like (custom made products)
Process: automated work (chemical plants, oil platforms)
Mass: assembly line (consumer electronics, cars)
Inluences 1) complexity of the task and 2) ways to coordinate and control
Thompson (1967): relation between interdependence of activities and coordination mechanisms
Reciprocal - mutual adjustment
Sequential - standardization
Pooled - centralized plan
Scott and Davis (2006): activities and information processing
Complexity: items requiring simultanious attention
Uncertainty: unpredictability of activities in task
Interdependence: between tasks
High on all three, unit work (custom made products)
Task design centers on two main themes
Repetitiveness: task well defined, standardization?
Divisibility: how much coordination between workplaces is needed to perform a task?
Div. High: many workstations can perform parts of the task without much coordination
Div. Low: it is hard to break a big task up into smaller parts, interdependence high, coordination need between workstations high
four types of task design
Orderly: coordination need low, each task assigned to seperate work units (separate clients for individuals)
Complicated: sub tasks done by seperate units but are interdependent, much coordination needed (e.g., sequential tasks)
Fragmented: every sub unit can do work at its own pace, not much coordination needed (pooled tasks)
Knotty: coordnation need high between sub tasks and non repetitive
Bounded rationality
People limited in their capacity to process information
But also:
Employees always have imperfect information
That is interpreted “imperfectly”
And is partly communicated
That is why a form of organization is needed, to reach goals together in spite of bounded rationality
Burton et al continue in defining how to manage people by means of two dimensions:
Number of people and professionalism
metaphors for people
Shop
Factory
Laboratory
Office
Four design options for coordination and control systems
Family
Machine
Market
Clan/ mosaic
information systems types
event driven
data driven
people driven
relationship driven
two important dimensions for task design
repetitiveness and divisibility
orderly task design
high on both repetitiveness and divisibility
- you break up the work into pieces so that you can direct each work unit to perform independently of other units
- When each unit completes its work, the results flow back up to the executive level, and then you assign a new piece of work to that unit
- advantage of this task design is that slowdowns or other difficulties in one unit don’t prevent other units from continuing progress on their tasks
- tasks are standardized as much as possible so that they can be readily repeated
- the individual units gain expertise to do their assigned work in an efficient manner.
- To the extent that workers in each unit are able to develop skills to do the tasks assigned to their unit, the specialization of tasks can yield very high efficiency
- there is almost no coordination required between units performing the subtasks of the organization and no need for them to adjust to one another
- the individual units gain expertise to do their assigned work in an efficient manner
Example: Law firm
complicated task design
high repetitiveness, low divisibility
- require a high degree of coordination due to low divisibility; that is, the subtasks can be performed by different units of the firm, but they are interdependent to get the work done
- The work processes are repetitive and the services remain quite standardized
- suits processing of large volumes of work
- The subtasks of order processing are highly repetitive but not divisible, as the completion of an order for a customer requires that each part of a meal is assembled correctly
- Every order is unique within a limited set of possibilities so that the tasks become very repetitive
- mass production
- processes must be timed to avoid bottlenecks and to meet efficiency goals in which inventories between processes are minimized
- The executive level overseeing the firm’s work focuses on the coordination of the connected processes, which require continuous attention
- a breakdown in any one small task can shut down the whole operation, which can be very costly
- requires a high level of information processing
Example: automobile assembly line, McDonalds
fragmented task design
low repetitiveness, high divisibility
- s require less coordination
- , each subunit can process work at its own pace; it doesn’t have to wait for other units to complete their work in order to proceed
- subunits can take creative approaches to completing their tasks
- bottlenecks are not a concern
- subunits are likely to be more innovative and aggressive
- requires lots of adjustments
- executives does not need to involved in detailed coordination
Example: software development firm
knotty task design
low on both repetitiveness and divisibility
- have to invest in ways to coordinate work among the subtasks and at the same time support the nonrepetitive approach to doing the work
- non-standardized tasks
- encourages those responsible for subtasks to develop innovative ways to do their work, accommodating the unique demands of each customer, while at the same time those performing subtasks must integrate their work with other units in the firm
- likely to lead to the greatest customer satisfaction since production is customized, but they are the most demanding type of task to manage
- often favoured approach when the product is new
- The executive focuses on the coordination of the connected processes, which are continually changing
- a breakdown in any one small task can shut down the whole operation, which can be very costly
- the information-processing demands increase greatly
- the most demanding on management
Professionalization
the skill capability of the individuals in the firm, depending on employees’ education, training, and experience (i.e., knowledge base) accumulated either prior to their hire or on the job.
factory
high number of people, low professionalization
- the assumption is that people have relatively little specialized expertise and the routines are relatively simple, meaning that their work tasks can be executed repetitively following training
- very high coordination requirements
- focused on efficiency, which requires detailed coordination for a large number of individuals
- managers need focused skill sets rather than broad professionalization
Example: assembly line, call centers, large hotels
office
high number of people, high professionalization
- professionalization comes from education, training, and experience
- the need for coordination is very high
- must process lots of information and support extensive communication
- High-level work routines are very important as they help define and manage work for efficiency and effectiveness
- Employees are given autonomy to do their work but they also engage in heavy communication with others as they develop client projects and meet customer needs
- recommended if a firm has large numbers of people with high professionalization
- the communication demands of the office are larger than in the laboratory
- the communication demands of the office are larger than in the laboratory
Example: Large consulting organizations
shop
low number of people, low professionalization
- works well if the individuals have not had specialized training or if their experience has not given them extensive skills
- the information-processing capacity of the employees is low
- Routines must be simple with only a few steps; they must be easily understood and easy to learn.
- manager must be directing people
- low coordination requirements, particularly if the task is fragmented
- not focused on efficientcy or effectiveness
- people are not encouraged to develop skills, make decisions, or advance significant change to improve the organization
- appropriate if tasks are orderly and the available workforce is small and low-skilled
- Difficulties arise, however, if a large number of people or those with professional skills are managed via the shop approach
Example: small stores
laboratory
low number of people, high professionalization
- Professional routines which are obtained through extensive education, training, and experience permit relative independence among the individuals or among small collections of individuals
- facilitates worker autonomy rather than strict supervision, so each one can work alone and the manager’s job is to support the individual
- Motivation and incentives are the important means for coordination.
- focused more on effectiveness and high quality than on efficiency
- Each individual, or subunit of professionals, can work with relative autonomy and achieve the purpose for the organization
- many high-level work routines for the individuals, but these routines are varied and largely under the control of the individuals, not the organization
- Detailed coordination is usually not required. Instead, workers coordinate in small groups for intense information sharing, and these groups then build directed knowledge exchange with the specific clients, subunits, or other sources needed to accomplish their tasks
Example: university faculty, 3M
Coordination and control systems are
methods for linking together the otherwise disparate elements of the organization’s structure and supporting responsiveness to changes in the environment or task demands
Information systems are
are methods for providing meaningful data to decision makers
Information systems provide the data necessary for coordination and control systems to operate.
the distinction between information systems and coordination and control systems is
largely conceptual. The two are (or should be) intricately intertwined to facilitate the work of management. They should be designed together.
two fundamental design dimensions that underlie the design of coordination and control systems
Formalization and decentralization
formalization
is the degree to which the organization specifies a set of rules or codes to govern how work is done.
decentralization
is the degree to which responsibility for coordination and control lies in the subunits of the firm and individual managers, rather than corporate headquarters or one specific level of the hierarchy.
machine
high degree of both formalization and low degree of decentralization.
- authority rests in a central, core place, such as corporate headquarters, the CEO, the auditing department, or some other center of power in the organization
- designed with documentation of rules and procedures in mind
- considerable attention must be given to specifying how work should be done, how it is to be monitored, and how the feedback and correction systems should be designed
- bureaucracy with many rules and procedures to govern work processes
- Just-in-time inventory management, Six Sigma quality control systems, and 360-degree feedback are examples of control systems that are designed with a machine-based model in mind
- the organization makes high use of information to build efficiencies and adapt to changing demands by modifying rules so as to make the organization dynamic, not fixed
- can lack creativity and flexibility
Example: Wal-Mart, hospitals
family
both formalization and decentralization are low
- coordination and control systems are designed to rely on informal and centralized means of control
- few written rules and procedures, and people know what to do based on what they are told by a centralized source, probably the CEO or, in the case of a business unit or department, the head manager
- the organization operates like a family where the head(s) of the household dictate(s) what is to be expected and how work is to be done
- control and coordination are ad hoc, in the sense that rules are developed as needed
- allows flexibility
- troubles arise if new members are added (e.g., the family grows), the head of household changes (e.g., a new CEO is appointed), or other disruptions occur that make reliance on informality and centralization ineffective for managing the work of the organization.
- can be effective if the leader is competent, and the members are cooperative
Example: Walt Disney & Disney Corporation; often start-up ventures use a family model.
market
low formalization and high decentralization
- some coordination and control systems may be formalized, such as budgeting and performance reviews, but overall there is an emphasis on more informal sources of control, such as the value of sharing information or a culture in which people are encouraged to “speak up” and report problems
- Informal approaches to setting expectations and detecting difficulties occur through training, custom, and everyday interaction of people.
- there are variations in coordination and control across different departments or subunits of the organization, because it is difficult in a decentralized, informal approach to develop consistent ways of doing work and monitoring effectiveness.
- Standardized approaches to systems design and use are shunned in favor of letting subunits police themselves and/or work with other subunits as driven by informal norms
- can be an effective approach for managing coordination and control, especially for promoting innovation and customizing coordination and control needs to particular subunits of the enterprise
- risk-taking, tactical, and innovative
- downside of the market approach is that all subunits may not police themselves equally well, and there can be a tendency toward conflict if the various units develop quite different ways of executing work tasks
Example: Nokia
clan
- tends toward somewhat greater formalization and less decentralization than the mosaic. (though its still high on both)
- uses strong norms to guide how work is done, and these norms are deeply embedded in the hearts and minds of employees no matter where they reside in the organization
- Employees are selected based on their likelihood of conforming to norms, which then are communicated through training manuals and other formal means
- rules for coordination and control area are communicated via extensive modeling by both workers and managers and in discussions of “the way we do things” during the everyday life of the organization
- strong expectations and attention is given to designing systems that communicate these norms on an everyday basis
- written rules and procedures establish a minimal set of necessary standards from which people can design work routines on an as-needed basis to meet changing work demands
- tends to be more flexible than the machine model
- the success of a clan depends heavily on having leaders who communicate a strong set of norms and values that underlie how work is to be accomplished, and on selecting and training employees who are versed in those norms.
Example: Southwest Airlines, IKEA
mosaic
somewhat greater decentralization and less formalization than the clan model, although it remains high on formalization and decentralization relative to the other models
- greater tendency for heterogeneity of systems than in the clan model
- coordination and control systems are not identical throughout the organization, instead, they vary as a function of the subunit
- common standards are minimized, and all remaining standards and methods of monitoring are customized to meet the needs of subunits
- the org attempts to keep disparate systems as compatible as possible; the various coordination and control systems are not loose or scattered; instead, they fit together into a meaningful whole, much like a mosaic
- difficult to achieve
- requires a dialogic democracy, that is, extensive two-way communication across subunits of the firm to assure that the needs of the whole are met even as the customized coordination and control systems are developed for subunits
Example: Unilever
event-driven info system
low amount of information processing and low tacit nature of information
- systems are designed to process information associated with specific occasions or results as they occur
- examples of event-driven systems are factual meetings, announcements, and communication of directives from one location in the firm (usually a manager or CEO) to another; Email and telephone calls communication
- require little forethought or planning to implement, except for purchasing and installing the technologies (e.g., an email system) that provide the necessary conduits for passing information and alerting employees to be responsive to information that flows through the system
- Investment in sophisticated search and retrieval systems is not a priority, since the amount of information to be processed is relatively low, and the primary objective of systems design is to pass information on on an as-needed basis
- Use of systems for sophisticated data analysis, interpretation, or long-term planning is not a priority
- event-driven systems make sense in small, reactive organizations.
data-driven
high amount of information to be processed, low tacit nature
- require ongoing capture, analysis, and transfer of vital information
- appropriate for organizations that must process high volumes of information, and do so in a systematic and intelligent manner in order to increase the firm’s information-processing capacity
- assumes that information is codifiable, that is, it can be readily captured and stored
- increase the information processing in the firm by bringing timely, detailed information to decision makers, who can then act quickly and precisely to meet organizational goals
- investment in large transaction-based systems, databases, and enterprise-wide systems such as SAP or PeopleSoft
- goes along with the machine-based model for developing the firm’s coordination and control infrastructure
people-driven
highly tacit information and low amount of information
- emphasizes capture, processing, and transfer of data that is embedded in the minds and actions of people
- presumes that the vital information of the organization is difficult to codify in a routine way, and therefore the priority of systems should be either to bring people together face-to-face so that they can share tacit knowledge, or to use computer- or telecommunications-based systems that readily support subtle, rich knowledge transfer
- Face-to-face meetings are a classic type of information system for sharing of tacit knowledge
- If face-to-face meetings are not possible, then intense phone conversations can suffice, or decision-support systems and other rich online media, such as video conferencing, are options for information systems
- org should do so if the amount of information to be exchanged is not extremely high and the tacit nature of the information to be shared makes structured, routine types of systems inappropriate or impossible to implement
- work well so long as the volume of information to be exchanged is not too high
- appropriate in the formative stages of this new organization
- fits well with the market model
- Example: the recent acquisition of the IBM PC product line by the Lenovo Group; Laboratory organizations and customized consulting;
relationship driven
highly tacit information and high amount of info
- the most complex model for information systems design is also the one with the greatest potential for promoting firm efficiency and effectiveness
- emphasizes capture, processing, and transfer of data that is embedded in the links, or relationships, between people and data
- integrate hard (codifiable) data with soft (interpretational) data to yield rich results for organizational decision-making
- The most well-known relationship-driven systems today are so-called customer relationship management (CRM) systems. CRM systems capture large, quantifiable data about customers but also provide interactive capabilities so that two salespeople, for example, can exchange unstructured observations or comments about their experiences and implications for meeting new customer needs.
- complex to develop because they include both data-driven and people-driven elements
- Well-designed relationship systems include up-to-date transaction and database information as well as softer, interpretive information that arises as people use the quantifiable data
- the systems continually grow in their knowledge capacity as they are used
- Sophisticated searching algorithms and natural language interfaces are important to the ongoing success of relationship-driven systems
- fits well with either the clan or mosaic model for developing the firm’s coordination and control infrastructure. If there is a clan form of governance, then the Relationship-driven information systems will tend to be similar in design throughout the enterprise. If there is a mosaic form of governance, then the relationship-management model should vary to meet particular subunit needs.
fit for when the goal is neither efficiency or effectiveness
reactor strategy, calm environment, simple config blob org complexity, global, orderly task design, shop, family, event-driven
fit for when the goal is efficiency
defender strategy, varied environment, functional config, tall org, international, complicated task design, factory, machine, data-driven
fit for when the goal is effectiveness
prospector strategy, locally stormy env, divisional config, flat, multi-domestic, fragmented task design, laboratory, market, people=driven
fit for when the goal is both efficiency and effectiveness
analyzer with/without innovation, turbulent environment, matrix config, symmetric complexity, transnational, knotty task design, office, clan/mosaic, relationship-driven
