Mechanisms, Parts, and Systems (4) Flashcards
Reminders
- Organizations face conflicting requirements (division of labor/coordination)
- Division of labor leads to separate activities (interdependence increases complexity, complexity increases coordination costs)
- Coordination is achieved by 5 mechanisms (mutual adjustment, direct supervision, standardization of processes, standardization of outputs, standardization of skills)
Interdependence
Pooled- if workers only share resources
Sequential- If they take previous outputs as inputs
Reciprocal- If they iterate and give feedback
Task Complexity
Most organizations use all five coordination mechanisms, but some can be more prominent
they usually appear in sequential order as a function of interdependence
mutual adj–> direct sup. –> standard.–> mutual adj.
Mutual Adjustment
Coordination achieved by informal communication
Simplest mechanisms, but the only one that works for very complex tasks
Ex: canoeing teams, apollo crews
Direct Supervision
Coordination achieved by one individual with formal responsibility
quite simple, necessary if the number of workers becomes too large
ex: football teams, construction crews
Standardization of Processes
Coordination achieved by the programming of work
Analysts’ instructions reduce the need for communication or supervision
Ex: assembly line, telegraph operator
Standardization of Outputs
Coordination achieved by specifying work results
Downstream workers receive what they expect, without communication or supervision
Ex: insurance salesmen, fast food franchises
Standardization of Skills
Coordination achieved by specifying training or qualifications
Most sophisticated, usually at play even before workers are hired
Ex: chemical engineers, diplomatic officials
Vertical Division of Labor
More complexity induces supervision
Even more complexity induces standardisation
A new kind of specialization emerges
- those who perform
- those who supervise
- those who standardize
Five basic parts
- Those who perform: Operating Core
- Those who supervise: Strategic apex, middle line
- Those who standardize: Technostructure
technostructure and support staff stay mostly out of the scalar chain
Operating Core
- Procurement, production, marketing
- purchasing agents secure inputs
- assembly line workers turn inputs into outputs
- salespeople distribute the outputs
- helped by warehouse, repairmen, shippers - Work directly related to products or services
- lawyers in corporate law firms
- welders in car manufacturing - Must be sealed off from the environment
- uncertainty threatens core operations
- usually subject to greatest standardization
Strategic Apex
- Overall responsibility for the organization
- most general and abstract activities
- high discretion, low repetition and standardization - Different and demanding duties
- interfacing with the environment (relating to government and unions, negotiating, ensuring access to external resources)
- formulating high-level strategy
- defining organizational goals
- ensuring progress toward goals
Middle Line
-all the managerial roles but faster, less abstract
-helps ensure flow of info
(downward, upward, and sideways)
Technostructure
- helps the org by regulating behavior (design work, plans it, changes it, trains workers)
- analytic work at all levels of the hierarchy (strategic planning and financial control, operations and departmental planning, production schedules and accounting)
-main vehicle of standardization
engineering workflows to increase productivity
ensuring that activities stay within budget
specifying production and sales goals
training
Support Staff
- Fringe work at all levels of the hierarchy (public relations and legal counsel, industrial relations and R&D, mailroom, reception, payroll, cafeteria)
- Different from technostructure (not concerned with standardisation, its main purpose is not advisory)
- Resembles a set of mini-organizations (own managers, analysits, and core, internalized to reduce transaction costs; coupled with other parts only in a pooled way)
