Organisation Analysis and Design

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Organisation Analysis and Design

• Structural Frame III
• New Organisational Forms
• and
• Human Resource Frame I
• Managing People in New Structures

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Innovation at 3M
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Organizing at 3M
3 short clips
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Success Factors at 3M

• Team Exercise
• What makes 3M such an innovative company?
• How is innovation structurally supported at 3M?
• What is your company doing to remain/become
  successful?
• What new organisational forms and practices do
  you know?

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New Debates
Pressures
Form
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Pressures

• Hyper-competitive environments

External environment
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Hyper-competitive Environment

• Intensified competition
• Global competition
• Customisation
• Shorter product life cycles
• Technological change
• Turbulence
• Corporate responsibility

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Internationalisation

• Global market integrated around the world
• Multinational, decentralised portfolio
• International knowledge transfer

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Old Form - New Form Assumptions

• Old Forms
• Rules regulations (formalisation)
• Centralisation hierarchy
• Vertical integration
• Standardisation
• Diversification

• New Forms
• Flexibility
• Innovation
• High trust
• Collaborative
• Value adding

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New Organisational Forms
Network
Cluster
Spinout
Modular
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Stable Network Form
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Dynamic Network Form
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Internal Network
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The Starburst Organisation
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The Cluster Organisation
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The Spiders Web Organisation
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Problems

• Never-never land of proliferating metaphors
  (Kiedel, 1994)
• Inconsistent language
• Lack parsimony
• Network catch all (Quinn 1996)

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Ians Solution New Practices

• Flexible work groups
• Short-term staffing
• Reducing internal/external boundaries

• Delayering
• Alliancing
• Outsourcing
• Disaggregating
• Empowering staff

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Stop and Think

• Displacement of old practices with new practices?
• Incorporation of new practices into existing
  structures and practices?

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Empirical Observations

• New practices are not significantly replacing
  traditional structures. New practices are being
  incorporated into them, e.g.
• 87 used 4 or more new practices
• 83 still nominated organisation as functional or
  divisional structure
• High level of formalisation
• No association between use of new practices and
  decrease in centralisation

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Survival of Old Forms

• Theorists
• High reliability
• Rules are enabling
• Hierarchies are healthy
• Large organisations facilitate innovation
• Hierarchies are evolving
• What do you think?

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Enabling versus Coercive Rules
Enabling Rules Provide organisational
memory Capture lessons learned from
experience Codify best practice Diffuse new
organisational capabilities More likely to have
employee involvement in their formulation Seen as
sensible by those to whom they apply
Coercive Rules Force reluctant compliance Extract
recalcitrant effort More likely to be designed
top down Do not involve those to whom they
apply Deviation from rules is seen as
intransigence by managers Adherence to rules seen
as repressive, pointless by employees
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Exercise

• Identify three rules from an organisation
• who is affected by each of these rules?
• who is responsible for monitoring these?
• to what extent is each of these enabling or
  coercive?
• which rules facilitate or inhibit innovation?
• how could you turn coercive into enabling rules?
• Discuss the results with your neighbour

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Exercise

• How boundaryless is your organisation?
• Answer the questionnaire in your readings package
• Score your answers
• Why has your organisation achieved/ not achieved
  boundarylessness?

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The Human Resource Frame
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New People Management in Old Forms Old People
Management in New Forms

• Linking forms and people
• HRM - the renewed interest
• HRM as strategic asset

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Linking People and New
Organisational Forms

• One of your scientists has repeatedly helped to
  develop profitable new products. Its his turn to
  be promoted, even though he lacks necessary
  people skills. What do you do?
• One of your employees has come up with a
  breakthrough innovation that may result in
  seven-figure profits for your company. How are
  you going to reward her?
• Discuss within your team.

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HR Techniques
Job redesign
Empowerment
Organisational development
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Two views on HRM

• Harvard Model
• developmental
• soft
• Michigan School
• strategic
• tough love
• Which one dominates in
  your organisation?

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The Renewed Interest Beyond Fit
The Semler experience
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LiveNet

• http//livenet.maths.uts.edu.au
• Click on Enter
• Class login and password
• Individual login and password
• Choose workspace
• Class workspace
• Team workspace

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Screen 1
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Screen 2
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Screen 3
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Screen 4
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Screen 5
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Questions on Assignment?

• Criteria for marking
• Extent to which you show mastery of academic
  material (correct referencing)
• Extent to which you write good English
• Extent to which you answer the questions (scale
  from 1 to 6)

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Next week

• The Human Resource Frame II
• The Political Frame I