# Organisation Design >[!External Links]- >[PPT](x-devonthink-item://3E964BE3-9311-462B-8A73-F3B47EADFC04) ## Intro Firstly, look at the definition of "[[Organisations (definition)]]" Difference between organisation design and organisation development. - Design is about creating something that is fit for purpose. Relates to [[Strategy is the long term direction of an organisation|Strategy]] - [[Organisation Development]] (OD) is about keeping that system fit for purpose and getting the best performance out of it. - But NOT mutually exclusive (Stanford, 2010) ## Organisation Design ### 6 elements: 1. Specialisation 2. Departments 3. Chain of command. 4. Span of control. How many people report to one person. [[Oticon]] CEO says that 20,000 people reporting to him! 5. Centralisation vs decentralisation 6. Formalisation ### Considerations - differentiation vs integration. Specialisation with clear, separate depts and roles vs collaboration, liaison roles, teams/ task forces. - Centralised decision making vs autonomous. Hierarchy of authority, no of levels vs units, teams, more self management - Standardisation vs =='mutual adjustment'.== Rules, SOPs, globalised policies vs more discretion and flexibility to adapt/ innovate) ### Eras of Academic Research - pre-contingency era: identify efficiencies, best practice, measurements. - ==Contingency era==: identified contingencies (factors) that influence the way [[Organisations (definition)|organisations]] are designed. - ==post contingency era- focus on balance between exploiting existing VRIO and exploring new ones== (innovating). Link to [[Industry 4.0]]. This is about [[Dynamic Capabilities]]. ### Questions to ask 1. Do we have the right structure – one that facilitates an efficient, effective, [[Staff engagement|engaging]] way of working? 2. Have we designed roles that are too rigid/too loose? 3. Is authority situated in the right place – people who understand the business needs, employee and customer needs? Links to [[Peter Principle]] as people push to get somewhere and this moves them from their expertise. 4. What do we want going forward? 5. What are our options, given the [[PESTLE]] factors, and our own position? ### 2 broad categories of a traditional [[Organisations (definition)]] Burns and Stalker (1961). 1. Mechanistic structures. Good in stable environments. 2. Organic structures Issue if try to do both of these things. Or its not clear about how decisions are made. ## 5 Types and 5 Aspects of Organisations- Mintzberg ![[Pasted image 20211126114405.png]] ### Mintzberg 1989: - Simple. Requires direct superivision and relies on the strategic apex. - Machine Bureaucracy. Requires standardised work and relies on the technostructure. - Professional bureaucracy. Requires standardisation of skills and a strong operating core. - Divisionalised form. Requires standardisation of outputs and relies on the middle line. - [[Adhocracy]]. Requires mutual adjustment and support staff. ![[Pasted image 20220807104540.png]] ## Divisional large organisations - Divisions by Geography/ location, function, product - Matrix: functional, organised around cross-functional working groups - M-form. Decentralised decision making. MNE's broken up into autonomous units. - U-form. centralised decision making e.g. Just Eat. - Various combinations of the above. ==Does larger= more bureaucratic? Weber (1978) thought so.== Larger organisations have: - Emphasis on hierarchy. - Roles and responsibilities clearly defined. - Formal rules and procedures that guide behaviour. - Command and control processes. - Lengthy chain of command, and narrow span of control. ## Alternative Organisational Arrangements - Shamrock organisation (professional core, flexible labour force, contractural fringe, and customers and employees). Example IKEA. Amazon Self-service supermarkets. - Networked organisations (M&S) - Subcontracting/ outsourcing (delivery/ logistics companies) - Partnerships (LLP) - Self-managing teams. ([[Morning Star Case Study|Morning Star]] Tomatoes, [[Matt Black Systems]], [[Buurtzorg]], Sencorp?) ## The Informal organisation ==Informal organisation exists side by side with the formal one. == - System of personal and political relationships in an organisation that are outside of the normal 'formal' hierarchy - Formal structures can be ignored, informal structures can emerge. Informal goals pursued. - Problems? ## Deficient organisational structures - Late or inappropriate decisions - Conflict and lack of co-operation - Probable low [[Motivation]] and morale - Rising overhead costs - Poor response to problems, new opportunities and change. - opportunities for fraud and illicit activities ## Impact of organisational design - on the strategy - on the culture, and subcultures, both formal and informal. - Roles and relationships - Resourcing - Operation/ implementation. How well we can measure achievements - Stakeholder satisfaction. ==Need to do stakeholder mapping to ensure that structures meet the goals of the University. == ## Links - [[Drucker on Organisational Structure]] - [[Lewin's Equation]] - [[Flow]] - [CIPD factsheet](x-devonthink-item://618EB4F8-28F4-4C1A-9744-2D159B2AF84F?page=0) - [[Burke-Litwin Model]] - [[Source - Maverick by Ricardo Semler|Maverick]] and [[Semco]] -