Chapter 9: Implementing Strategy Through Organizational Design

Organizational Design – The process through which managers select the combination of organizational structure and control systems that they believe will enable the company to create and sustain a competitive advantage. Coordinate and motivate employees To create valueand Obtain a competitive advantage Koontz and O’Donnell The Process School of Management Planning Organizing Staffing Directing Controlling Building blocks of organizational structure Differentiation Vertical – how much authority to delegate Horizontal – how to divide people Into functions and divisions Integration – coordinate people and functions To accomplish organizational goals and tasks Tall structure (7 – 10 levels) Flat structure (2 – 4 levels) Tall Structure Problems Coordination Information distortion Motivation Too many middle managers McKinsey Consulting Company Increased height of company organization structures Presidents Office President of each division Centralization or Decentralization (tending toward) Decentralization 1. Delegate decision making authority to middle and lower level managers 2. Adapt to local conditions. Promotes flexibility 3. Fewer managers needed Centralization 1. Facilitates coordination and planning 2. Decisions fit broad organizational objectives Management Policy – Guidelines for decision making are made at highest levels And passed down to lower levels Horizontal Differentiation – How to group tasks and activities to meet strategies Functional Structure – Grouping by expertise. Most U. S. firms have a functional structure Advantages Good place to learn Easy to control Effective and efficient Disadvantages Geographical diversion causes duplication of people and costs Communication problems Measurement problems Location problems Strategic problems Product Structure – Group by product line. Product Team structure Matrix Management Concurrent Design Methodology Cross-functional teams Geographic Structure Multidivisional Structure Self-contained product line or business unit (Operating responsibility) Corp headquarters staff. Financial Control. (Strategic Responsibility) Advantages of Multidivisional Structure Enhanced corporate financial control Strategic control Growth Internal efficiency Disadvantages of a Multidivisional Structure Establish Division-Corporate authority levels GM and Alfred Sloan Litton Industries Distortion of information Competition for resources Transfer pricing (GE example) Focus on short-term High operating costs All functions are in each division Integration and Organizational Control Forms in Integrating Mechanisms 1. Direct contact 2. Interdepartmental liaison roles 3. Temporary task forces – ad hoc committees 4. Permanent teams – standing committees 5. Integrating roles Differentiation and Integration The Nature of Organizational Control 1. Monitor 2. Evaluate 3. Compare actual to goals 4. Take corrective action Strategic Controls Financial controls Stock Sales Growth ROI Profit Output Controls Set Goals Measure output performance against goals Behavior Control – Rules and Procedures Common controls 1. Operating budgets 2. Standardization 3. Rules and procedures 4. Organizational Culture a. Values – beliefs and goals b. Norms – Expectations for behavior Culture and Strategic Leadership Walt Disney example

Management Evolution Essay

The evolution of management can be traced back to the start of the Industrial Revolution. â€Å"Management and leadership abilities were not thought of as learnable skills but derived from one’s heredity. There did not exist the need for a theory of management: leaders were born, not made. † (Montana & Charnov, 2008, p. 14). This belief ignored the need for a written theory of management and focused on the practice itself. As industrialization increased and spread, problems related to the factory system began to appear. Large numbers of workers were needed to keep up with the rapid economic expansion. Many of these workers were immigrant, unskilled, and non-English speaking. Managers did not know how to train these employees. This led to a scientific study of management and to what is today known as management theory. Classical School of Management The first management theory, Scientific Management, arose because of a need to increase worker efficiency and productivity. Emphasis of this approach was placed on the best way to get the most work accomplished. Focus was on examining the work process and developing the skills of the workforce. The classical school owes its origins to several contributors; including Frederick Taylor, Frank and Lillian Gilbreth, Henry Gantt, and Mary Parker Follet. Frederick Taylor is often referred to as the â€Å"father of scientific management†. He believed that organizations should study and gain an understanding of work and develop precise procedures to complete it. â€Å"Taylor believed that economic prosperity could only be achieved by maximal worker productivity, which in turn, would be the product of making workers more efficient† (Montana & Charnov, 2008, p. 5). By analyzing every job through scientific observations, he felt there was only one best way of doing a job. He believed managers should study each job and determine the minimum necessary steps needed to complete it. Individuals step would be analyzed to determine the most efficient way of performing it. Managers would then total the time of each individual task to determine the optimum amount of time necessary to complete the entire task. Workers would then follow the precise instructions of management. If tasks were not completed in the optimal amount of given, workers were removed from the job. He believed this system gave managers power over workers. Workers could no longer resist management demands. Managers possessed the knowledge and workers performed their detailed steps. Frank and Lillian Gilbreth were a husband and wife team that studied job motions. â€Å"The Gilbreths are considered pioneers in making use of motion studies to improve worker efficiency† (Montana & Charnov, 2008, p. 16). Frank analyzed worker actions to determine the best possible method of performing a given job. When he understood all the motions, he would seek to improve the efficiency of each action and reduce the number of motions required to accomplish the job–a process called job simplification† (Montana & Charnov, 2008, p. 16). Managers would then select, train, and develop workers with devised procedures. Lillian extended this theory into the home in an effort to determine the ideal way to complete household tasks. Henry Gantt developed the Gantt chart; a work scheduling chart that measures planned and completed work along throughout each stage of completion. The Gantt chart is a powerful planning and evaluation tool used by managers. He believed inefficiency was a result of management unrealistic production standards. According to Gantt, â€Å"work standards should be determined by scientific observation and measurement, and only then may realistic work standards be set† (Montana & Charnov, 2008, p. 17). Gantt also believed that workers should be rewarded for good work through a bonus system. He felt that workers would be more productive and achieve higher levels of production if there was an incentive. To motivate workers to go beyond the daily production quotas, he pioneered the use of a production bonus (Montana & Charnov, 2008, p. 18). Gantt also focused on the importance of quality leadership and management skills and their relationship to building effective industrial organizations. Mary Parker Follet is often referred to as the â€Å"mother of conflict resolution†. â€Å"Her research and writings pointed to a collaborative approach to problem solving that advocated compromise† (Montana & Charnov, 2008, p. 17). Follet focused on the importance of establishing and developing common goals within the workplace. She believed workers should be allowed to participate in the decision making process. She believed workers could and would comply and follow management’s logical requests without being given too many orders; workers should not be micromanaged. â€Å"The classical approach to management theory had asserted that the key to worker efficiency and organizational productivity was efficient job design, use of appropriate incentives, and effective managerial functioning† (Montana & Charnov, 2008, p. 23). This approach emphasized the work elements and eliminated the human dimensions. Behavioral School of Management The behavioral approach stresses that effective management will come from an understanding of the worker† (Montana & Charnov, 2008, p. 23). Emphasis of this approach is based on the belief that every human being has social and physiological needs which affect performance and motivation. Focus was on improving the self-esteem and self-confidence of the workforce. Contributors to the behavioral school include Elton Mayo, Chester Barnard, and Douglas McGregor. Elton Mayo was the founder of the human relations movement. â€Å"Mayo concluded that factors other than the physical aspects of work had the power of improving production. These factors related to the interrelationships between workers and individual psychology† (Montana & Charnov, 2008, p. 25). Mayo believed that if workers were treated with respect and their needs were being met, they would be more productive and their work would be more efficient; therefore both the employee and management would benefit. Mayo is known for his work conducted at the Western Electric Company in Chicago; known as the Hawthorne Experiments. He was able to prove that the relationship that employees have with management directly affects productivity. He concluded that management needed to be more directly involved with employees. Chester Barnard developed the acceptance theory of management, which focuses managerial authority. He believed that employees themselves determined if managerial order is legitimate and acceptable. He felt that in order for employees to accept that managers have legitimate authority to act, they must first understand the communication they receive from management. Employees must also feel that the communication that is received is consistent with the organization’s purpose. Bernard believed that managers needed to share a common purpose and express a willingness to cooperate with the employees. â€Å"Douglas McGregor, in distinguishing between the pessimistic Theory X view of employees and the optimistic Theory Y, had a dramatic impact on management theory and practice† (Montana & Charnov, 2008, p. 27). Theory X which characterized the views of Taylor is based on the assumption that the average human being dislikes work and that because of this dislike they must be threatened and controlled before they will work. Theory X also assumes that the average person desires security and prefers being directed. Average people dislike responsibility and have little ambition. Theory Y which characterized the views of Mayo is based on the assumption that if a job is satisfying and the working conditions are good, then the worker will be committed to the organization. Theory Y also assumes that if the average worker is committed, then they will not only accept, but seek responsibility. McGregor believed that managers should operate with the belief that workers will contribute more to an organization if they feel valued and are treated responsibly. The behavioral approach to management theory focused on the workforce and their needs; the human element of the organization. This approach emphasized work as a group activity and aimed at increasing work productivity through collaboration. Production Operations Management (POM) Approach The Production Operation Management Approach to management was developed in response to increasingly difficult operational problems and a rapidly changing environment. The concepts of the POM Approach were based on the belief that the scientific method was the solution to problem solving. Herbert Simon was a major contributor to the POM Approach. â€Å"Herbert Simon is best known for his research in decision-making and information processing but also made contributions to cognitive psychology, computer science, public administration, philosophy of science, and artificial intelligence† (Montana & Charnov, 2008, p. 29). Simon coined the term satisficing which was based on the belief that executives rarely had access to perfect information. They were more apt to accept data acquired early in a search and seek solutions or accept choices that are deemed good enough for their purposes. He believed that seeking the maximal solution or result expended resources. â€Å"Production operations management stresses a systems approach that views the total operating system and analyzes a problem within that system. The problem is seen to exist as it relates to the total system, and any proposed solution is evaluated as it relates to the same system† (Montana & Charnov, 2008, p. 30). The POM approach focused more on production and less on the human factor. Contingency Approach The contingency approach to management is the most recent school of thought about management. It combines the ideas of the other three approaches and states that there is no one universal set of management principles or one best way by which to manage an organization. This approach is based on the belief that to effective, planning, organizing, leading and controlling must be contingent on the circumstances in which an organization operates. Different problems require different solutions. â€Å"This approach arose out of the observation that the three earlier approaches to management–the classical, the behavioral, and productions operations research–did not always lead to an acceptable solution† (Montana & Charnov, 2008, p. 1). The contingency approach applies to all areas of management, not just organizing and leading. This approach takes into consideration both the internal and external environments of the organization. Conclusion â€Å"The foundations of the various approaches to schools of management theory are found in a variety of disciplines, incl uding economics, psychology, sociology, mathematics, philosophy, and industrial engineering. But management theory, even though it makes use of other scholarly areas and the observations of the practicing manager, has emerged as a separate area of study since the 1940’s† (Montana & Charnov, 2008, p. 4). The thoughts and ideas of the classical school have been analyzed and developed over the years; however the basic concepts are still in practice today. Relation to Work Environment I believe that the contingency approach to management is the most effective. The classical, the behavioral, and productions operations research approaches all are based on a universal approach, one best way, of management that applies the same techniques to every organization. As a manager I have come to realize that not all people and every situation should be handled identically. I believe managerial decisions and actions are contingent upon a given situation. Managerial styles and techniques must vary according to the circumstances of the situation. To be effective, managers must determine which factors are relevant in what situation. I believe the most important aspect of the contingency theory is that it accounts for the human factor. As the Dining Services Director at Miles Community College, I am required to make daily decisions concerning both my department and the organization as a whole. I believe that to be an effective manager it is necessary to evaluate each and every situation to come up with the appropriate decisions and actions. I understand that each and every situation is unique and requires a situational analysis. I also believe that every decision I make affects the organization therefore my decisions are based on the goals and values of the organization as a whole. I believe that the contingency theory best fits my management style.

Media Portfolio Assignment Example | Topics and Well Written Essays - 2000 words

Media Portfolio - Assignment Example The three critical issues in this market present the major pillars of human resource in the country. It is important to note that the Saudi Arabian labor market was not celebrated much in the past due to some unwanted practices including alleged mistreatment of employees. Therefore, during this time that the market in undergoing transformation, revitalization and healing, employee safety and the roles of supervisors in the workplace come in handy. That notwithstanding, saudization is also critical to the healing of this market because of its relation to the replacement of foreign employees in the Saudi Arabian labor market with Saudi nationals especially in the private sector. The Saudi Arabian labor market has not been able to achieve its economic competitiveness in the recent past. This situation has been associated with a number of factors including the most recent being saudization. The employees in this market have also experienced unfavorable working conditions that have deterred them from achieving their maximum potentials at their respective workplaces (Avery, 2005). In addition to that, these employees have not been well motivated to offer their best towards achieving organizational goals and it is for this reason that reports have indicated that Saudi Arabia has been declining in its global economic competitiveness over the last few years. However, there have been efforts to thwart the dangers accompanied by these economic conditions in the labor market. For example, Saudi Arabia has formulated and implemented a number of health, safety and security protocols for its employees in a bid to enhance their motivation and satisfaction and subsequently harness the most out of them. The roles of supervisors, who were previously in the limelight for perpetrating employee frustrations, have been completely overhauled. Saudization can be described as the process

SASKATCHEWAN PROVINCIAL NOMINEE PROGRAM (SPNP) Essay

SASKATCHEWAN PROVINCIAL NOMINEE PROGRAM (SPNP) - Essay Example Moreover, for any candidate to qualify for the Express Entry pool, he/she must show proficiency in English or French (the official languages in Canada). The language ability of the candidates is determined by a standardized language test that may either be IELTS or CELPIP to test English proficiency or TEF to test French proficiency. This category also requires the candidates to have a minimum experience of one year in post-secondary education or training that has yielded to a Degree, Diploma or a Certificate. Certificates that are equivalent to trade certificates and comparable to the Canadian Education System are also acceptable; an Educational Credential Assessment is used to verify such certificates (Campbell, 2015). Nevertheless, the Saskatchewan Experience Category outlines more requirements within the Existing Work Permit subcategory than the ones provided on the post. It requires candidates to provide proof of legal status in the country and also proof to ascertain that they are not refugee claimants. The post also omits some requirements that should be met by candidates who have been approved under the Entrepreneur and Farm Category. The candidates should intend to; own at least one-third of the equity of a business in Saskatchewan if they have total investments worth less than $ 1 Million CAD and invest $ 300, 000 CAD in Regina and Saskatchewan, or a minimum of $200, 000 in all other communities in Saskatchewan. CIC News. (2015). Saskatchewan Launches Express Entry Category For Canadian Immigration. CIC News, 1-15. Retrieved from

4Ps of Gap 360 Essay Example | Topics and Well Written Essays - 1000 words

4Ps of Gap 360 - Essay Example any not only provides service by providing tour plans but also does provides many other services to make the trip of the customers very pleasant and also to satisfy the customer’s needs and wishes (Hoffmann, 2008, pp.87-96). The various other services that the company offers to the customers are like providing good accommodations, good transport facilities etc. which are comfortable and also affordable for the customers. It also provides complementary meals to its customer’s on the trip like on Monday it provides a welcome dinner and a drink, on Tuesday it provides the Lunch in the same way different other meals on different days of the weak on the trip to Australia (Leader and Kyritsis, 1994, pp. 94-103). The company’s biggest competitive advantage over other companies is that it provides tour packages in a varied forms and it has the flexibility to change its plans as per the customers’ demands as a result of which the customers get lots of advantage in planning their trips based on their budget and also preference of location. Price plays a big role in this competitive market environment, with huge number of competitors existing in every industry customers have lots of options to choose among the various companies and products available in the market. The price set by the Gap 360 for various trips are basically customised one’s apart from that some of the cost for various trips are been listed below. Looking at the price ranges with the plans given by the company to the customers they are really very reasonable and affordable for the customers. This price of the plans encourages customers to come and take the services from Gap 360. The customer also gets profit by customising their tour plans as per their budget as a result of which it allows the customer to get their wish fulfilled and also this helps the company to achieve full customer satisfaction and also a good brand name in the market (Gap 360, 2014). The location at which the company is

CVS Essay Example | Topics and Well Written Essays - 750 words - 1

CVS - Essay Example To keep growing its elderly client base, the areas that it should emphasize on include, optimal satisfaction, accuracy and speed, helpfulness and courtesy, and improve knowledge of the pharmacists. This way, the elderly population in need of confrontational services from qualified pharmacists can get personal advice with regard to understanding their personal health concerns, get consistent access to appropriate medication, receive customized services, and encounter short wait times. By engaging in these practices, CVS would be in a position to outperform major competing drug stores and address the needs of the elderly appropriately (Smart Retailing, 2014). To encourage older people to visit CVS Pharmacy, it should engage in practices that allow it to market its services actively to attract new clients. The store should lay emphasis on the advantages that its services bring in all the marketing activities it undertakes, mostly mailings, advertisements, and Internet marketing. For instance, allowing senior citizens to question their prevailing drug choice is vital in encouraging them to keep visiting the store. Although costs as well as convenience play a key role in determining the ways that older patients choose a pharmacy, care is a key determinant. Hence, it is vital for CVS to consider embarking on strong marketing through advertisements, mails, and other strategies that are appealing to old people. This way, the store would manage to ask whether clients are getting the care and convenience they need from the pharmacy (Smart Retailing, 2014). Promoting what makes a drug store unique is vital in encouraging senior citizens with medical problems to consume products from the pharmacy. The company can market low prices or 24/7 service provision. The pharmacy needs to play its key strengths as well as implement a messaging initiative to enforce the unique services it offers, such as service delivery

Legalizing marijuana Essay Example | Topics and Well Written Essays - 250 words - 1

Legalizing marijuana - Essay Example Yes, marijuana can make you crazy so legalizing it is wrong. We can cite the country of Jamaica, one of the largest producer of marijuana in the developing world where marijuana is very common. And if we think that authorities approve marijuana there, you are very wrong. Marijuana is one of the main culprit of the countless number of adolescents who committed petty crimes having police records early (Campbell, 2013). Marijuana makes a youngster susceptible to crime because it impairs one’s judgment. Or in short, you cannot think straight when you are in the influence of cannabis. Worst, if you like it too much and you do not have money to buy it because you are only a student, you will either sell things or steal. And worst, if police catches you, you will end up in jail and have police record early affecting your future because it will be hard to find a job if one has a police record. School will also likely to kick you out if you have a criminal record for stealing because of marijuana. Campbell, Dayton. "Legalising Marijuana Would Be Wrong - Columns."Â  Jamaica Observer News. 22 Sept. 2013. Web. 9 Nov. 2014.