The

1
The New Organization

• Objectives
• INTRODUCTION OF THE KEY CONCEPTS IN UNDERSTANDING
  ORGANIZATIONS
• TO PUT THOSE CONCEPTS INTO THE CONTEXT OF
  MANAGEMENT CHALLENGES
• TO BUILD THE ABILITIES IN EXPERIENTIAL LEARNING

2
What Are Typical Features of Traditional (Old)
Model of the Organization?

• (Model Organizational Structure)
• Based on
• Specialization
• Division of Work (See F.W. Taylor, M. Weber, H.
  Fayol)
• Specialized individual positions jobs
• Formal hierarchy of these positions jobs
• Formal rules standard operating procedures
• Set boundaries for each department
• Clear boundaries btw. the org. its environment
• Standardized training procedures
• A clear chain of command

3
A Bureaucratic Model

• BASED ON THESE FEATURES THE OLD MODEL OF THE
  ORGANIZATION WE USED TO CALL A BUREAUCRATIC MODEL
  

4
A Bureaucratic Model

• Advantages
• PREDICTABILITY RELIABILITY
• IMPARTIALITY (See Webers Impersonality)
• EXPERTISE (Based on specialization)
• CLEAR LINES OF CONTROL

• Disadvantages
• RIGID
• BARRIERS BETWEEN DEPARTMENTS
• BARRIERS BETWEEN THE ORGANIZATION  ENVIRONMENT
• ALMOST ALL ADVANTAGES CAN TURN INTO
  DISADVANTAGES IF THE ENVIRONMENT CHANGES

5
Changes/Trends in the Environment

• TECHNOLOGY
• WORK FORCE (PEOPLE)
• LEGAL ENVIRONMENT
• ECONOMIC TRENDS
• CUSTOMERS
• COMPETITORS, etc.

6
Typical Features of the New Model of the
Organization

• NETWORKED
• FLAT
• FLEXIBLE
• DIVERSE
• GLOBAL / INTERNATIONAL

7
Flat

• MORE FLEXIBLE (to respond to changes in the
  market)
• CHANGED ROLE OF MIDDLE MANAGERS (information
  technology)
• THE WAY HOW TO CUT COSTS AND IMPROVE PRODUCTIVITY
  (to become more competitive)

8
Flexible

• CAPABILITY TO SATISFY CUSTOMERS NEEDS (tailoring
  products and services according to needs of the
  customer - competitive advantage)
• DIVERSE LABOR FORCE(internal environment)
• UNPREDICTABLE CHANGES IN THE EXTERNAL ENVIRONMENT
  

9
Diverse

• Growing  diversity of the workforce (more women,
  more international, etc.)
• Greater need for innovation
• Need to recognize and tolerate the culture of
  other organizations, WILLINGNESS to value it

10
Global / International

• COSTS REDUCTION(to make and sell the products
  and parts in a particular market country)
• How about low-wage countries?
• GROWING EQUALIZATION(newly industrializing
  societies as new competitors)
• GLOBALIZATION OF MARKETS

11
How to Get to the New Model

• Downsizing
• Team organization
• Building a new strategy (including definition of
  a competitive advantage)

12
Skills Needed in Order to Get to the New Model

• Individual
• Organizational
• Environmental Interaction

13
Skills Needed by Managers
Organizational Challenges Organizational Characteristics Developing Individual Skills Managing the Organization Managing the Environment
Networked Teamwork Team Structure Alliances Cooperation/ Competition
Flat Negotiation Incentives/ Careers Boundaries
Flexible Multitasking Workforce Management Learning
Diverse Listening /Empathy Conflict Resolution Stakeholders
Global Cross-cultural Communication Cross-border Integration Local Responsiveness
EMPATHY THE ABILITY TO UNDERSTAND FEELINGS OF
OTHER PEOPLE
14
Summary Features of the Old New Model of the
Organization

• OLD MODEL
• Individual position/job as basic unit of
  organization
• Relations with environment handled by specialist
  boundary spanners
• Vertical flows of information
• Decisions come down, info flows up
• Tall (many management levels)
• Emphasis on structures
• Emphasis on rules standard procedures
• Fixed hours, long hours
• Career paths upward, linear
• Standardized evaluation reward systems
• Single strong culture with strong expectations of
  behavior
• Individuals specialized focused
• Environment defined in terms of country of
  location, ethnocentric

• NEW MODEL
• Team as a basic unit
• Densely networked with environment
• Horizontal and vertical flows of information
• Decisions made where information resides
• Flat (few layers of management)
• Emphasis on processes
• Emphasis on results outcomes
• Flexible workday, part-time positions common
• Career paths flexible, lateral
• Customized evaluation reward systems
• Diversity of viewpoints behaviors
• Organization specialized focused
• Environment seen as global, international