Organisation Analysis and Design

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Organisation Analysis and Design

• Structural Frame II
• Coordination and Control

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The Story of Ms. Raku
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Overview of this Weeks Class

• Coordinating and Controlling Behaviour
• Contingencies
• Mintzbergs structures
• Case study
• Remaining Paradox

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Essence of Managing

• Organising
• Division of labour (efficiency)
• Coordination of tasks (effectiveness)
• Coordinating people
• Controlling people

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Division of Labour

• Dictated by the job to be done
• Dependent upon the technology available to do the
  job
• interdependence
• production process
• variation/analysability

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Coordination of Tasks

• Modern Times with Charlie Chaplin

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Five Coordinating Mechanisms

• Mutual adjustment
• Direct supervision
• Standardisation of work processes
• Standardisation of work outputs
• Standardisation of worker skills
• Most basic elements of structures
• Glue that holds organisations together

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Continuum of Task Complexity
Not complex
Very Complex
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Environment and Coordination
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Nine Basic Design Parameters

• Job specialisation
• Behaviour formalisation
• Training and indoctrination
• Unit grouping
• Unit size
• Planning and control systems
• Liaison devices
• Vertical decentralisation
• Horizontal decentralisation

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Job Specialisation
The pin maker
The ant colony
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Training and Indoctrination

• Training
• process by which job-related skills and knowledge
  are taught
• Indoctrination
• process by which organisational norms are acquired

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Unit Grouping

• Establishes a system of common supervision among
  positions and units
• Requires positions and units to share common
  resources
• Creates common measures of performance
• Encourages mutual adjustment

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Bases for Grouping

• By knowledge and skill
• By work process and function
• By time
• By output
• By client
• By place

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Criteria for Grouping

• Work-flow interdependencies
• Process interdependencies
• Scale interdependencies
• Social interdependencies

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Basic Parts of an Organisation

• Five Basic Parts
• Operating Core
• Middle Line
• Strategic Apex
• Technostructure
• Support Staff
• Mintzberg (1979)

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Relations among the Basic Parts
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Simple Structure

• Prime coordinating mechanism
• direct supervision
• Key part of the organisation
• strategic apex
• Main design parameters
• centralisation, organic structure
• Contingency factors
• young, small, non-sophisticated technical system,
  dynamic environment, possible extreme hostility
  or strong power needs of top manager

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Machine Bureaucracy

• Standardisation of work processes
• Technostructure
• Behaviour formalisation, vertical and horizontal
  job specialisation, usually functional grouping,
  large operating unit size, vertical
  centralisation, and limited horizontal
  decentralisation

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Professional Bureaucracy

• Standardisation of Skills
• Operating Core
• Training, horizontal job specialisation, vertical
  and horizontal decentralisation
• complex, stable environment, non-regulating,
  non-sophisticated technical system

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Divisionalised Form

• Standardisation of outputs
• Middle line
• Market grouping, performance control system,
  limited vertical decentralisation
• Diversified markets (particularly products or
  services), old, large, power needs of middle
  managers

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Adhocracy

• Mutual adjustment
• Support staff
• Liaison devices, organic structure, selective
  decentralisation, horizontal job specialisation,
  training, functional and market grouping
  concurrently
• Complex, dynamic, (sometimes disparate)
  environment, young, sophisticated and often
  automated technical system

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Case Study

• In small groups of 3-4 people design an
  appropriate structure for Skilled Engineering
  (Book of Readings)
• Answer the questions at the end of the case study
• Time limit 20 minutes

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Structural Issues Dilemmas

• Differentiation vs integration
• Gaps vs overlaps
• Underuse vs overload
• Lack of clarity vs lack of creativity
• Excessive autonomy vs excessive interdependence
• Too loose vs too tight

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Warning Signs
Persistent departmental conflict
Proliferation of committees
Top management overload
Red tape
Customer complaints
Empire building
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The Remaining Paradox

• Mintzbergs Pentagon
• pull by strategic apex to centralise towards
  simple structure
• pull by the technostructure to coordinate by
  standardisation towards machine bureaucracy
• pull by the operators to professionalise towards
  professional buraucracy
• pull by middle managers to Balkanise towards
  divisionalised form
• pull by support staff for collaboration and
  innovation in decision making, to coordinate by
  mutual adjustment, towards adhocracy

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Next Week

• New Organisational Forms