Craig Standing

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Changing Organisational Structures Business
Analysis

• Changing organisational strcutures are impacting
  on the options for realistically adding value
  through IT initiatives
• IT and e-commerce cannot work if the organisation
  itself doesnt work!
• Technology is closely interwoven with the fabric
  of the organisation

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• Its operational success depends upon how the
  organisation operates as a whole
• In other words, the organisation form impacts on
  the types of recommendations that are likely to
  be successful and effective
• It also impacts on the process of performing
  business analysis

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Organisational Structures

• A range of organisational forms and associated
  management structures have been documented
• They lie between the extremes of bureaucratic and
  organic

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Bureaucratic

• Characterised by rules and procedures
  hierarchical chain of command
• Division of labour and specialisation emphasis on
  record keeping
• Centralised decision making

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Other Organisational Structures

• Simple
• low degree of departmentalisation
• wide spans of control
• authority centralised in a single person
• and little formalisation
• Matrix -
• dual lines of authority
• combines functional and product
  departmentalisation

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• Team -
• the use of teams as a central device to
  coordinate work activities
• decentralised decision making to the team level
• cross-functional, works within a bureaucratic
  framework

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• Organic -
• low horizontal differentiation
• adaptable duties
• low formalisation
• informal communication
• decentralised decision authority
• These organisational structures are managed by
  equivalent management structures and styles

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Questions

• How are effective management styles influenced by
  organisational structure?
• Go through the organisational structures and
  explain the impact on effective management styles
  and skills

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The Bureaucratic IS Resource

• The IS function in organisations is often managed
  in a bureaucratic manner.
• ) Rules and procedures -
• ) Hierarchies of control and authority -
• ) Division of labour and expertise -
• ) Impersonality -
• ) Competence -
• ) Record keeping -

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(No Transcript)
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Network Structure

• The changing business environment has an impact
  on organisational structures
• Many organisations are beginning to operate as
  loosely connected networks of cooperating units
• This is the network structure which can be
  thought of as a spider's web rather than a
  hierarchy

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• Network organisations develop strategic alliances
• The executives in the organisation guide ideas
  through the network
• Most of the routine functions are out sourced
• Power is an attribute of value-adding capability
  rather than position
• The infrastructure of the organisation, or
  threads of the Web, are servers, client
  computers, faxes and satellites.

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Effective Network Management

• Various reports have identified the essential
  elements of effective network management
• Responsibility of management
• Managers must take the responsibility to make
  things happen and link together with others
• In a flatter organisational structure they cannot
  rely on being given direction from others.

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• Develop boundary roles
• Managers must get involved in boundary
  relationships
• These were once the responsibility of either
  senior managers or people low down in the
  hierarchy responsible for the operations of
  selling and purchasing
• They should be considered to be strategic focal
  points.

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• Develop communication systems
• Effective communication systems between the
  participants in the network structure are
  essential for developing relationships and
  contacts
• The horizontal communication systems are
  especially important and should be facilitated by
  information technology
• This IT communication technology infrastructure
  provides a conduit for
• the integration of the team
• transmitting opportunities
• to disseminate core values
• and control

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• Specialisation
• Managers should work out what they do best and
  farm out the rest
• This can be done by analysing the value chain and
  looking for links which can be completed by
  others
• yet still retaining a profit for the organisation
• Trust is seen as a key value
• Managers cannot monitor their employees
• or for that matter their partners
• all the time, nor should they try to

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• They have to communicate core directions and
  values
• support employees along the way and trust that
  they are responsible enough to do their jobs well
• If employees are empowered rather than monitored
  they will be more innovative and probably work
  harder and longer
• In this model the manager becomes a facilitator
  in the network rather than a custodian of
  resources

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Role of the Individual

• The network organisation requires a distinct
  collaborative individualism
• It is possible to identify a number of key
  characteristics, competencies and skills of
  collaborative individuals
• The organisation does not have a paternal role
  any longer in the relationship with employees
• The employee does not necessarily owe the company
  any loyalty

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• The employee has an autonomous relationship with
  the organisation
• The individual is no longer totally dependent
  upon the organisation
• The strength of the relationship is drawn from
  its perceived value to both parties
• It is an ethos that pervades the organisation.
• The individual is in a position to make decisions
  and deal with the consequences

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• Proactive individuals should flourish in network
  organisations
• They are likely to challenge organisational norms
  and practices and are therefore not at home in
  more traditional organisations
• It requires a shift in attitude
• from the manager as a problem solver to the
  creative manager looking for opportunities

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Questions

• What are the implications of the Network
  structure for performing business analysis?
• How is the changing role of the individual
  employee impacting on appropriate and effective
  methodologies?

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Discussion

• How does your definition of what a company is
  for determine your approach to business
  analysis? (C. Handy)