organizaons, structure, management · organizaonal models • organizaonal theory (founded by max...
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Organiza(ons,Structure,Management
Bo5Chapter4
ORGANIZATIONALMODELS
Organiza(onalModels• Organiza(onalTheory(foundedbyMaxWeberonthetheoryside)
developedthebureaucra5cmodel:– Tasksaresplitintospecialistrolesandpeoplebecomeexpertinthese– Eachruleispreciselyspecifiedsooneexperscanbesubs(tutedforanother– Eachindividualisaccountabletoonemanagerwhodirectstheirwork– Employeesarerequiredtorelatetoeachotherandcustomersinaformaland
impersonalway.– Recruitmentisbasedonqualifica(on,employeesareprotectedfromarbitrary
sacking,promo(onisbasedonseniorityandachievement• OrganicModel(Likert):“…ensureamaximumprobabilitythatinall
interac(onsandinrela(onshipswithintheorganisa(on,eachmember,inthelightoftheirbackground,values,desiresandexpecta(ons,willviewtheexperienceassuppor(veandonewhichbuildsasenseofpersonalworthandimportance”–smallprofessionalcompanies.
MatrixModel
• Acceptsthatbureaucra(cmodelistoorestric(ve
• Workmaybeproject-based• Employeesmaybeworkingonseveralprojectssimultaneously
• Employeesmayanswertoseveralmanagersatonce
Organogram
Organogram
Organogram
Organogram
Organogram
Organogram
Ac(vity• Onyourown:drawupalistofpoten(alorganisa(onalstructuringprinciples.
• Inapair,refineyourlistwithyourpartnerand:– Iden(fytwostructuringprinciplesthatcouldbeusedtogether
– Iden(fytwostructuringprinciplesthatdonotcombinewell
• Inagroupof4refinethelistfurtherandcomeupwithyourbestpairofprinciplesthatworktogetherandthepairthatdonotworktogether.Trytothinkofacompanythatcouldusethepairyousuggestineachcase.
SomeStructuringPrinciples• Func(on• Geography• Ownership• ProductLine• Technology• Opera(onalStructure• DepthofHierarchy• Centralisedversusdecentralised• Whatstructureisappropriatetothesizeofcompany?
GuardianonVWDieselgate
VWResponsetoDieselgate• Keyelementsoftheprocessop(miza(onare:
– Earlydocumenta(onandinterpreta(onoflegisla(onaroundtheworldandalignmentoftheproductpor^oliowiththelegalrequirements
– Guidelinesforthedevelopmentofso_warefordrivecontrolunitswithdocumenta(onofthefeatureswithrelevanceforregistra(on
– Introduc(onofmul(plecontrolsforapprovalsintheproductdevelopmentprocess
– Reorganiza5onwithinDevelopmentforthepurposeofsepara5ngtheresponsibilityforthedevelopmentofdrivesfromofficialapprovals
– Forma5onofnewbodiesforcross-brandmanagementandclarifica5onofcomplianceissues
– Uniformprocessstandardsandworkinstruc(onsthatgivethoseinvolvedlegalcertaintyintheworkprocess
– Trainingprogramsinwhicheveryoneinvolvedintheprocessisrequiredtopar(cipate
– Regularrepor(ngtotheGroupBoardofManagementinordertocreatetransparencyinrela(ontotheimplementa(onstatusofthisprocessop(miza(on
Summary
• Organisa(onalstructureisessen(alforlargerorganisa(ons
• Structureaccordingtobusinesspriori(es• Allbusinessstructuresmakeitdifficultfortheorganisa(ontorespondtosomerisks.
• Structuretofacilitatebusinessandmakeiteasytorespondtothemostlikelyseriousrisks
MANAGERSANDLEADERS
ManagersandLeaders
• Onedayyoumightwanttobeamanageroradirector– Whatdoesthatmeanexactly?– Whatissuesshouldyoubesensi(veto?
• Dependsonyourseniority
PauseforThought• ManagersandLeaders• Inpairs,whatwouldyouexpectof:
– Amanager– Aleader
• Intermsof:– Theac(vitytheycarryout.– Theirpersonalcharacteris(csandskills.
TheManager
• Developsplansand(metables• Organises• Delegatesandmonitors• Exercisescontrol,appliescorrec(veac(on• Communicates• Mo(vates• Delivers(predictable)• Looksinwards
Leadercanemerge…
• Perceivedbygroupasmostcompetentinleadershipfunc(ons-
• Task-orientated:coordina(ng,ini(a(ngcontribu(ons,evalua(ng,informa(onseekingandgiving,opinionseekingandgiving,mo(va(ng
• Socio-emo(onal:reconcilingdifferences,arbitra(ng,encouragingpar(cipa(on,increasingcohesion
TheLeader
• Establishesdirec(on• Developsvision• Communicatesandinspiresvision• Energisesothers• Innovates• Figurehead,Spokesman• Looksoutwards
Summary
• Managersmanage,leaderslead• Managershaveaspecificrolewithintheorganisa(onalstructure:– Replaceable– Trainable
• Leadersprovidedirec(on,mayarisefromanywhere:– Noteasilyreplaceable– Nottrainable
CONTROLLINGORGANIZATIONS
Organisa(on
• Acompanyisaninstrumentformaximisingvaluefortheshareholders
• Drivenbymarkets–lackofunderstandingofmarket=nocustomers=nobusiness
• Drivenbyresources–lackofunderstanding=lackofcontrol
• Themoresenioryoubecomethemorethesewillbeconcerns
Performanceareas(Drucker)
• Marketstanding• Innova(on• Produc(vity• Physicalandfinancialresources• Profitability• Workerperformanceandaetudes• Managerperformanceanddevelopment• Publicresponsibility
MarketsandMarke(ng
• Marke(ngisnotstuffthroughyourle5er-boxorpeoplecold-callingyouat6pm.
• Marke(ngisthebusinessofunderstandingthemarket,yourplaceinit,youropportuni(es,threats,compe((onandyourcustomers
• Thereexistmanytoolsandmodelstohelpunderstandthem
Porter’s5forces
New Entrants
Buyers Suppliers Competitors
Substitutes
Barriers to entry
Examples
• NewEntrant:Ford-Tesla• Subs(tute:Vinylrecord–CD–iTunes-Spo(fy• Controlofsuppliers–Tesco• Controlofbuyers–monopoly• Controlbybuyers–perfectmarket;eBay?
• Barrierstoentry–Semiconductorindustry–mobilephones…
P.E.S.T./S.W.O.T.
• Poli(cal• Economic• Social• Technological
• Strengths• Weaknesses• Opportuni(es• Threats
(internal)
(external)
P.E.S.T.–carmarket
• Poli(cal–emissionsreduc(ontargets– Worksagainstinternalcombus(onengines
• Economic–controlofrareearthproduc(on– Raisesconcernsoverelectricvehicles
• Social–familysize,behaviour– 1-parentfamilies–hatchbacks?– Millenials:Transportasaservice
• Technological–newproducts– Hydrogen,hybrids,recyclablematerials
Marke(ngMix–the4*Ps
• Product– Quality,features,name,packaging,services,guarantee
• Price– Listprice,discounts,credit
• Promo(on– Adver(sing,personalselling
• Place– Distributors,retailers,loca(ons,transport
Compe((on
• Cancompeteoncostordifferen.a.on:– Cost:makethesamethingcheaper– Differen(a(on:makeitdifferent/be5er/here
• Compe((venessbasedoncorecompetencies– AnyonecanmakeCoca-Cola
• Onlytheyhavethenetworkoflicensedmanufacturersanddistributors(andthebrandname)
– Anyonecanputanaircra_inthesky• Onlytheprofitableairlinescanfillitevery(me
• Eachsurvivorisuniquelysuperiortoallothersinsomewayandthusoccupiesaniche
Breakout
Youareahorse-buggywhipmanufacturerca.1910
Considerthemarketyouarein,performaPESTandSWOTanalysisandindicatewhatmarketreposi(oningmightbeadvantageous
S.W.O.T.
Horse-buggywhipmanufacturer,1910seeshorsesmakingwayforcars
• Strength:hassupplychaintoreachbuggyowners/futurecarowners
• Weakness:productishorse-dependent• Threat:carsmakeproductobsolete• Opportunity:reposi(onassupplierofdriveraccessories
Actuallytheydidn’tandwentoutofbusiness
Marketreposi(oning
• McDonalds• RoyalBankofScotland• Burberry• Apple
Data…
Summary
• Successfulorganiza(onsknowtheirmarkets• Successfulorganiza(onsaresensi(vetochangesinmarkets
• Successfulorganisa(onsmeasurewhatisgoingoninmarkets
• Companiesusedatatosupportstrategicdecisions(andthisischangingrapidly).