which of the following is not one of the six key elements of organizational design? This is a topic that many people are looking for. newyorkcityvoices.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, newyorkcityvoices.org would like to introduce to you 7501NSC Lecture 6: Organisational Design . Following along are instructions in the video below:
“Welcome to lecture six organizational design. And this is a synopsis lecture. Again it s s not the full lecture and we re just covering some points. That may be interest to you are for study in reference purposes.
You should refer to the full lecture and again i need to remind myself. And remind you that we re supposed to be enjoying this learning journey learning about airline management. We re up to organizational design lecture. Six and in this lecture.
It ll mainly all it will be focused on organizational development and then after that we ll have a look at the learning points. So let s have a look at the lecture. Firstly. Let s revisit lecture two and we talked about in lecture.
Two that what is an organization what defines it and we said it s a deliberate arrangement of people to accomplish some specific purpose. So it has the distinct purpose. A deliberate structure and people and this is what constitutes an organization and we said that managers are important to organizations for three reasons their management skills and abilities. The they re critical for getting things.
Done. And they also contribute to employees productivity and loyalty the way managers both sort of the way employees are managed can affect the organization s financial performance and managerial ability has been shown to be important in creating organizational value so talking about the importance of managers in the organization. Because that s what this course is about is about being a manager. We talked about the fact.
That managers are responsible for task performance and human resource management. And again that long and sustainable work outcomes. Or work performance. We talked about efficiency and effectiveness in its most important in organizations and we said that if you plot it performance efficiency against performance effectiveness.
There s four general possibilities that you could fall in with looking at those two axes and some places are not very good to be for instance poor and poor neither efficient or effective. Where you need to be is efficient and effective to get the maximum returns for your organization. So now let s look at the role of organizations now that we ve laid or gone across that general background of management and organizations organizations are collections of people working together together in divisions of labor to achieve a common purpose and simply they exist because individuals are limited in their physical and mental capabilities. I can t make a car on my own and the most efficient and effective way to make a car is to use the structure of an organization.
Some of the characteristics of an organization is they produce goods and or services. They need a clear statement of purpose to guide activities. They use a division of labor to achieve outputs. So we allocate people to specific jobs division of labor.
A synergy so putting it all together a synergy is created where the whole is greater than the sum of the parts. And there s a need to manage human resources to serve their purpose. So you need a very definite human resources aspect and we use work teams. Which are task orientated groups to achieve some of the activities in simple very simple language.
This is about the organizational inputs..
We have human resources. That s the handle we put it into the grinder with material resources such as raw materials information equipment technology facilities and finances. We turn the handle and we produce goods and or services. Very simple at at that level organizing is ranging and structuring the work to accomplish the organization s goals.
And there s a large number of purposes of organizing when managers develop or change. An organization structure. They are bold in organizational design. Jay galbraith.
Told. Us that when we re looking at organizational design. We need to look at strategy for the organization. So it s vision governance and comparative advantage.
We need to look at structure the power and authority. The information flow through the organization and the organization s rules. The business processes and lateral links the network s processes teams integrative roles and the matrix structures. The reward systems.
Compensation. Rewards and human resource management. Hiring work. Feedback.
Learning and development. So. Strategy structure. Business.
Processes and lateral links. Reward systems and human resource management. All tell us about how to design our organization. He went on to talk about the fact that there s a number of steps that you need to follow develop your strategy.
First then you develop your structure you need to understand what your key processes are who your key people are their roles and responsibilities you need to understand what information systems you ll be using and you need to define what the performance measures and rewards are you need to understand that training and development will grow your organization s that s a 1 point. A lot of organizations forget about professional development or training and development as its shown here that helps to grow your organization in its capacity and also career paths of the staff and jay galbraith. Said. If you follow these organizational design.
Steps. You in fact will have a very healthy organizational structure there s a proven model of determining structure so let s just talk about not strategy the next one wrong structure are there s a proven model for that and it covers these topics work specialization departmentalization chain of command span of control centralization and formalization. So it s going to talk about each of those very very quickly firstly work specialization is dividing tasks into separate jobs. So the jobs are broken down into.
Small simple and separate operations in which each worker..
Specialized specializes job variety makes it possible for people that choose or be assigned to positions. They will enjoy for which they are well suited and it s an excellent productivity driver in a large workforce departmentalization is where jobs are grouped to accomplish organizational goals you can departmentalized by functions by geographic location by the product that you re producing by the processes that you re using or by the customers that you re serving. So they re all ways of looking at departmentalization and the various approaches you could use chain of command. We spoke about accountability authority and responsibilities before but under chain of command under the organizational design model for structure.
It s about authority. The inherent right to give orders to others and expect them to be carrying out responsibilities. The obligation to perform duties assigned by a superior in the organization who is in the direct line. The direct line of authority and unity of command and one of the problems in especially in organic organizations.
In today s well is often with team based approaches. Someone may be working to multiple bosses. And this can cause conflict of expectations from all the various bosses on the individual who has to carry them out. And that s called unity of command that one person should understand who he s ultimately your accountable ultimately accountable to on a day to day basis.
Span of control. The number of subordinates. A manager can direct and it s proven over over years and by scientific studies. That three direct reports is the optimum number of people to handle.
But up to five can be handled in a focused team arranged there s a trend in modern organizations. And i m thinking of quantities organization at one stage. Where the ceo had about 15 direct reports to him and again under the span of control of the determining structure model of span of control this is much too broad but in a more contemporary world this is happening more and more centralization you can have centralization where all the decisions come in to the upper levels of the organization or decentralization. Where the decisions are sent out to the staff to make on behalf of the organization and sometimes decentralization is important because of location.
An airline for example might have you know. 10 or 15 or so different locations where the airline operates from and they need for decisions to be made in each of those locations. So it s more decentralized model. But when it comes to to the large financial decisions.
Its centralized it needs to be made back at the headquarters level. There s also the what they call the parity principle. When it comes to to determining structure and i spoke in part about this before when responsibility is delegated sufficient authority and resources must also be allocated so if you re told if you re told to this is your task to get on with it as i ve mentioned earlier and you give yeah given the resources. Too.
Well you really haven t been tasked. So you need to say hey. Where are my resources. Formalization and this is the degree to which jobs or to which an organization relies on rules and procedures.
And there s high formalization where the staff are highly controlled through policies and procedures and low formalization. Where staff are allowed to initiate to achieve outcomes and you may remember from bethune with when he was looking at revitalizing continental airlines they at the time when he took over the airline had high formalization. A staff. We re allowed to make any decisions.
It was a centralized system everything had to go to the top or the staff were fully in the sense of formalization..
The staff had had very detailed procedures that they had to follow and they when allowed to show any initiative themselves to make decisions. And he changed it into a low formalization model. Where staff were allowed to show initiative to achieve the organization s outcomes. So that s the determining structure model for organizational design work specialization departmentalization chain of command span of control centralization and formalization.
Let s have a look at organizations. What they might look like this week. Mechanistic organizations from that perspective the traditional wiring diagram approach whereby you have a ceo. Various people are being responsible to him.
And then under that see under those individuals all sorts of different areas reporting back to them so they re called mechanistic organizations. A more contemporary form and used by people like google for example. There s some really good youtube clips on google and how its structures itself. Where this cross functional team says cross hierarchical teams is a free flow of information.
There s wide spans of control. There s decentralized decision making and low formalization and they are called organic organizations. So i guess a question to ask yourself is whether an airline should be mechanistic or organic and the reality is is airlines are better suited in most cases to be mechanistic rather than org inning for example in organic structures. You may give your staff control over what time they come to the office in what time they leave in an airline sense you need people there when the aircraft arrives and to see the aircraft off so from that perspective.
You need a more formalized approach and a more mechanistic organisation. Some of the contingency variables about organizational design and continuously just means depending on the situation. It s about strategy size technology and environmental uncertainty. So basically strategy and structure.
First strategy and structure closely linked structure. Follows. Strategies are really important point. Two for people to understand often an organization changes its strategy.
But it doesn t change its structure. But structure always follow strategy so when the strategies being amended the structure should also be changed to meet the change circumstances there s three generic models for the strategy structure relationship and there s innovation per set of new goods and services cost minimization and imitation and what you see with southwest airlines as a low cost carry the first low cost carrier will a lot of people imitated southwest. Airlines cost minimization model. A lot of people follow the cost minimization.
They try and be the lowest cost producer in the market. And there s other organizations that pursue innovation. What happens sometimes people take a mix of these and a good example is in eurasia airasia. Has imitated southwest airlines low cost carrier model.
But it s doing it using cost minimization as a basis airasia provides airline seats at the lowest price in the world based purely on cost minimization let s talk about structure size and structure. Sorry size and structure. There s considerable evidence that an organization size affects its structure. The larger.
The organization..
The more specialization janene and the relationship isn t linear. If you ve got a small organization. You might need to have some specializations in it and as you grow. They don t need to grow because you have them so so relationships are change as organizations grow or shrink.
And some new entrants into some businesses like the airline industry. It s quite a high cost to come into the airline industry. Because your initial high workforce. Overheads are quite large to the broad range of specializations that are required regardless of whether they re small or whether you re large technology and structured technology will influence structure.
It s a great enabler in converting two outputs and the effect on structural they depend on the level of technology technological complexity and sophistication so if you have a look at the 747 here and the dc 3. Qantas obviously very different organizations are required to run those aircraft times and there s some studies that indicate that unit production that is production of items in small batches will have a minimal effect on structure mass production will greatly affect structure and process production oil industry for example steel mills. The printing industry where it s continuous process production will more than likely dictate the structure of an organization and that s what happens in in airlines. It s a process production business.
There s also environmental uncertainty and if an organization lives in an uncertain environment. It ll tend to have a more flexible structure that it can quickly adapt to changing circumstances and if it s living in a more certain environment. It ll have a more static structure. It ll it ll be it ll be operating from day to day with a more more more hierarchical mechanistic structure to deal with its day to day business.
Generally the nature of the airline business requires airlines to be structured under formal lines of responsibility and the number of layers within the structure depends very much on the nature size and complexity of the organization. Some of the generic business models for airlines that we talked about network airlines and some older texts still refer to them as legacy carriers regional airlines low cost carriers and charter airlines each with specific purposes during the full lecture. I then go into quite a long case study on air asia and bring out some of the teaching points about organizational design. Some of the learning points from this discussion.
Shown here and here. So what if i covered organizational design. Or i ve used development here. Organizational design is a most important aspect.
If you get it wrong. The organization won t have the efficiency in effective you need efficiency and effectiveness you need to achieve the performance outcomes that you want you can t get it wrong. It s a very very specialist area for people that work in and sometimes may need to in fact hire specialists in either short term or long term to help with an organization. So hopefully.
The learning points will bring out some of those somen points that were covered in the synopsis lecture. If you want to do some pre reading in the text next week. We look at human resources and industrial relations so that brings to an end lecture six organizational design. I hope you ve enjoyed this synopsis lecture and i look ” .
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description:
“Organisational DesignnOrganisational inputs. Determining structure. Jay Galbraith s Star Model. A proven model – organisational design. Mechanistic and organic organisations. Contingency variables. Airline organisations.”,
tags:
7501NSC, Airline Management, Aviation
