ORGANIZATION MANAGEMENT

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ORGANIZATION MANAGEMENT

• Organizational Design

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McKinsey 7-S Model

• Strategy
• Structure
• Systems
• Style
• Staff
• Skills
• Superordinate goals

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McKinsey 7-S Model

• Strategy
• Structure
• Systems
• Style
• Staff
• Skills
• Superordinate goals

The Hard Ss
The hard elements are factual and easy to
identify. They can be found in strategy
statements, corporate plans, organization charts,
and other documentation
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McKinsey 7-S Model

• Strategy
• Structure
• Systems
• Style
• Staff
• Skills
• Superordinate goals

The Soft Ss
The soft elements are difficult to describe since
they are continuously developing and changing.
They are highly determined by the people at work
in the organization.
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7-S Model The Hard Ss

• Strategy
• Actions a company plans in response to or in
  anticipation of changes in its external
  environment
• Structure
• Basis for specialization and coordination,
  influenced primarily by strategy and by
  organization size and diversity
• Systems
• Formal and informal procedures that support the
  strategy and structure (Systems are more powerful
  than they are given credit)

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Organizational Structure

• Organization Chart
• formal reporting relationships
• levels in hierarchy
• spans of control
• departmentalization
• Systems to facilitate
• coordination
• communication
• integration

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Structural Designs

• Functional Structure
• Can adapt functional structure with horizontal
  linkages
• Divisional Structure
• Geographical Structure
• Matrix Structure
• Horizontal Structure /Product Line Structure
• Hybrid Structure

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Other Organizational Forms

• Joint Ventures
• Licensing agreements
• Strategic Alliances
• Consortia
• Virtual organizations
• Global (transnational) Work Teams

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Virtual Teams

• Virtual Teams are characterized by
• Distributed locations of team members
• Use of information technology to accomplish tasks
• Effective when
• Communication collaboration skills are high.
• Trust among team members is high
• Organizations are increasing their use of virtual
  teams
• Potential for improvement in virtual team
  management is huge

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Information Linkages

• Vertical Information Linkages
• Hierarchy
• Rules and plans (i.e. budget)
• Horizontal Information Linkages
• Information systems
• Liaison role
• Task force
• Integrator role (i.e. Project manager)
• Cross-functional teams

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Ladder of Mechanisms for Horizontal Linkage and
Coordination
Teams
H IGH
Full-time Integrators
Task Forces
Amount of Horizontal Coordination Required
Direct Contact
LOW
Information Systems
HIGH
LOW
Cost of Coordination in Time and Human Resources
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Systems various elements

• Communications practice and system
• Management reporting system
• Approval process
• Planning/budgeting system
• Rewards system including appraisal
• Rules

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From Tasks to Structure

• Tasks define jobs
• Jobs define skills required
• Skills (and other considerations) define staff
• Over time skills change as staff gains knowledge
  and experience, and as technology and corporate
  infrastructure mature
• Collection of jobs basis for structure

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Job design considerations

• Do they have the necessary skills and knowledge
  to fulfill proposed / expanded job requirements?
• What are the needs of the incumbent or the rest
  of your workforce in general?
• Monetary
• Growth
• Socialization

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7-S Model The Soft Ss - 1

• Style / Culture The culture of the
  organization, consisting of
• Organizational culture the dominant values,
  beliefs and norms which develop over time and
  become relatively enduring features of
  organization life
• Management style what managers do rather than
  what they say (where they spend their time and
  attention, what they allow, what they reward,
  etc)
• Staff
• Skills
• Shared values / Superordinate goals

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7-S Model The Soft Ss - 2

• Style / Culture
• Staff
• The people/human resource management ways of
  shaping basic management values, processes used
  to develop managers, ways of introducing new
  employees and managing careers, socialization
  processes
• Skills
• Distinctive competencies what the company does
  best, ways of developing or shifting competencies
• Shared values / Superordinate goals
• Guiding concepts, fundamental ideas around which
  a business is built simple, usually stated at
  abstract level, have great meaning inside the
  organization, although outsiders may not see or
  understand them

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Organizational Culture

• Culture is to organizations what personality is
  to individuals
• All companies have cultures
• Culture by default
• Culture by design thoughtful choices based on
  values and core beliefs
• How does a company consciously create its culture?

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From Gray Larson Project Management The
Managerial Process
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Types of Organizational Cultures

• Control cultures Drive for predictability
  and order
• Collaboration cultures Pursue close
  relationship with customers
• Competence cultures Pursue excellence and
  innovation
• Cultivation cultures Pursue life enrichment
  for customers and employees

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Organizational Culture

• Observable Evidence
• Symbols
• Ceremonies
• Stories
• Behaviors
• Language
• Dress
• Underlying Roots
• Values, Assumptions, Beliefs, Attitudes, Feelings

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Culture in practice

• Conflict management
• Relationship or interpersonal conflict
• Task / process conflict
• Functional vs. dysfunctional conflict
• Factors goal incompatibility, limited resources,
  differences
• Power the capacity to influence behavior
• Positional power rewards/consequences, control
  of resources, information and decision control
• Personal power expert, referent (based on
  identification and admiration)
• Politics the use of power to influence decisions

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Management vs. Leadership

• Planning vs. Setting the
  budgeting direction
  
• Organizing vs. Aligning
  people staffing
• Controlling vs. Motivating
  people problem solving

Management is about coping with complexity
Leadership is about coping with change
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Management vs. Leadership

• Some managers (but not all) are leaders
• Some leaders (but not all) are good managers
• A manager gets work done through the efforts of
  other people
• Includes planning, organizing, motivating, and
  controlling
• A leader creates and realizes a vision
• Communicates that vision and moves the
  organization toward that vision

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McKinsey 7-S Model

• Strategy
• Structure
• Systems
• Style
• Staff
• Skills
• Superordinate goals

• Effective organizations achieve a harmony
  between these seven elements if one element
  changes, then this will affect all the others

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McKinsey 7-S Model

• The 7-S Model can be a valuable tool to
  initiate change processes and to give them
  direction i.e. determine current state and ideal
  state of each element, and develop action plans
  to close the gaps

• Strategy
• Structure
• Systems
• Style
• Staff
• Skills
• Superordinate goals

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McKinsey 7-S Model

• In change processes, many organizations focus
  their efforts on the hard Ss however, the soft
  factors can make or break a successful change
  process. All factors must be accounted for.

• Strategy
• Structure
• Systems
• Style
• Staff
• Skills
• Superordinate goals

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McKinsey 7-S Model

• Strategy
• Structure
• Systems
• Style
• Staff
• Skills
• Superordinate goals

• Interrelated
• Equilibrium
• Foundation of corporate culture
• Levers available to management

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Executing Change Seven Key Considerations

• Strategic Intent
• Substance
• Scale
• Scope/Breadth
• Speed
• Sequence
• Style

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• Strategic Intent
• Substance
• Scale
• Scope/Breadth
• Speed
• Sequence
• Style

Precise Broad
Soft Ss Hard Ss
Small Large
Isolated
Organization-wide
Slow Fast
Hard Soft Soft Hard
Top Down Bottom Up
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Assignment

• Read BA 550 class packet
• Turning Great Strategy into Great Performance
• Governance and Strategy Implementation
• Case brief Americhem Last names beginning
  with A M
• Complete proposal on term project