BMG 320/03
Organisational Theory and Design
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Unit 4
Internal Design Elements
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4.1 Manufacturing and Service Technologies
Manufacturing technologies include traditional manufacturing processes and contemporary applications, such as flexible manufacturing and lean manufacturing
Service organisations accomplish their primary purpose through the production and provision of services, such as education, health care, transportation, banking, and hospitality
A service is an intangible product that does not exist until it is requested by the customer. It cannot be stored, inventoried, or viewed as a finished good. If a service is not consumed immediately upon production, it will disappear.
Strategy, structure and technology need to be aligned when competitive conditions change.
Todays increased global competition means more volatile markets, shorter product life cycles, and more sophisticated and knowledgeable consumers
Manufacturing companies can adopt new technologies to support the strategy of flexibility
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4.2 Impact of Technology on Job Design
Job design includes the assignment of goals and tasks to be accomplished by employees.
Research has indicated that mass production technologies tend to produce job simplification, which means that the variety and difficulty of tasks performed by a single person are reduced. The consequence is boring, repetitive jobs that generally provide little satisfaction.
Job rotation -Means moving employees from job to job to give them a greater variety of tasks
Job enrichment -The job provides greater responsibility, recognition, and opportunities for growth and development
Job enlargement – An expansion of the number of different tasks performed by an employee. Fewer workers are needed with the new technology, and each employee has to be able to perform a greater number and varietyof tasks.
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4.3 Organisation Size, Lifecycle and Decline
LARGE ORGANISATION
Economies of scale
Global reach
Vertical hierarchy
Mechanistic structure
Complex
Stable market
Organisation can provide longevity, benefits and promotions
SMALL ORGANISATION
Responsive
Flexible
Flat structure
Organic structure
Simple
Niche Market
Encourages entrepreneurship & innovation
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Organisational Life Cycle
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Organisational Life Cycle
Entrepreneurial stage :
– Emphasis is on creating a product or service and surviving
– Organisation is informal and non-bureaucratic
– Growth comes from new product or service
– Control is based on the owners personal supervision.
Leadership Crisis As the organization starts to grow, the large number of emplNext oyees start to cause problems and management issues. Solution:
Adjust the structure of the organization to accommodate continued growth or
Hire strong managers to manage the organization.
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Collectivity stage:
– Clear goals and direction developed
– Departments are established with hierarchy of authority, job assignments
– Communication and control are mostly informal
– employees start to identify with the mission of the organization and spend
hours helping the company grow.
Crisis: Need for Delegation
A crisis can take place when top management who were successful because of their strong leadership and vision, do not want to give up responsibility.
Solution: The organization needs to find mechanisms to control and co-ordinate departments without direct supervision from the top,
Organisational Life Cycle
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Formalisation stage:
– implementation of rules, procedures and control systems
– communication is more formal
– top management is concerned with strategy issues and middle mgt handles operations
Crisis: Too much red tape (bureaucracy) and innovation may be restricted.
Organisational Life Cycle
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Elaboration stage:
– managers develop skills solving problems and working together to solve the red-tape issues
– Social control & self-discipline reduces the need for formal control
– cross-functional teams are formed.
Crisis: Need for re-vitalization or re-energising
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Organisational Life Cycle
Decline stage:
Organisations that do not successfully resolve problems associated with these transitions are restricted in their growth and may even fail.
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End of Slide
Thank you for your attention!
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