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ORGANIZATION MANAGEMENT

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ORGANIZATION MANAGEMENT Organizational Design McKinsey 7-S Model Strategy Structure Systems Style Staff Skills Superordinate goals McKinsey 7-S Model Strategy ... – PowerPoint PPT presentation

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Title: ORGANIZATION MANAGEMENT


1
ORGANIZATION MANAGEMENT
  • Organizational Design

2
McKinsey 7-S Model
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills
  • Superordinate goals

3
McKinsey 7-S Model
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills
  • Superordinate goals

The Hard Ss
The hard elements are factual and easy to
identify. They can be found in strategy
statements, corporate plans, organization charts,
and other documentation
4
McKinsey 7-S Model
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills
  • Superordinate goals

The Soft Ss
The soft elements are difficult to describe since
they are continuously developing and changing.
They are highly determined by the people at work
in the organization.
5
7-S Model The Hard Ss
  • Strategy
  • Actions a company plans in response to or in
    anticipation of changes in its external
    environment
  • Structure
  • Basis for specialization and coordination,
    influenced primarily by strategy and by
    organization size and diversity
  • Systems
  • Formal and informal procedures that support the
    strategy and structure (Systems are more powerful
    than they are given credit)

6
Organizational Structure
  • Organization Chart
  • formal reporting relationships
  • levels in hierarchy
  • spans of control
  • departmentalization
  • Systems to facilitate
  • coordination
  • communication
  • integration

7
Structural Designs
  • Functional Structure
  • Can adapt functional structure with horizontal
    linkages
  • Divisional Structure
  • Geographical Structure
  • Matrix Structure
  • Horizontal Structure /Product Line Structure
  • Hybrid Structure

8
Other Organizational Forms
  • Joint Ventures
  • Licensing agreements
  • Strategic Alliances
  • Consortia
  • Virtual organizations
  • Global (transnational) Work Teams

9
Virtual Teams
  • Virtual Teams are characterized by
  • Distributed locations of team members
  • Use of information technology to accomplish tasks
  • Effective when
  • Communication collaboration skills are high.
  • Trust among team members is high
  • Organizations are increasing their use of virtual
    teams
  • Potential for improvement in virtual team
    management is huge

10
Information Linkages
  • Vertical Information Linkages
  • Hierarchy
  • Rules and plans (i.e. budget)
  • Horizontal Information Linkages
  • Information systems
  • Liaison role
  • Task force
  • Integrator role (i.e. Project manager)
  • Cross-functional teams

11
Ladder of Mechanisms for Horizontal Linkage and
Coordination
Teams
H IGH
Full-time Integrators
Task Forces
Amount of Horizontal Coordination Required
Direct Contact
LOW
Information Systems
HIGH
LOW
Cost of Coordination in Time and Human Resources
12
Systems various elements
  • Communications practice and system
  • Management reporting system
  • Approval process
  • Planning/budgeting system
  • Rewards system including appraisal
  • Rules

13
From Tasks to Structure
  • Tasks define jobs
  • Jobs define skills required
  • Skills (and other considerations) define staff
  • Over time skills change as staff gains knowledge
    and experience, and as technology and corporate
    infrastructure mature
  • Collection of jobs basis for structure

14
Job design considerations
  • Do they have the necessary skills and knowledge
    to fulfill proposed / expanded job requirements?
  • What are the needs of the incumbent or the rest
    of your workforce in general?
  • Monetary
  • Growth
  • Socialization

15
7-S Model The Soft Ss - 1
  • Style / Culture The culture of the
    organization, consisting of
  • Organizational culture the dominant values,
    beliefs and norms which develop over time and
    become relatively enduring features of
    organization life
  • Management style what managers do rather than
    what they say (where they spend their time and
    attention, what they allow, what they reward,
    etc)
  • Staff
  • Skills
  • Shared values / Superordinate goals

16
7-S Model The Soft Ss - 2
  • Style / Culture
  • Staff
  • The people/human resource management ways of
    shaping basic management values, processes used
    to develop managers, ways of introducing new
    employees and managing careers, socialization
    processes
  • Skills
  • Distinctive competencies what the company does
    best, ways of developing or shifting competencies
  • Shared values / Superordinate goals
  • Guiding concepts, fundamental ideas around which
    a business is built simple, usually stated at
    abstract level, have great meaning inside the
    organization, although outsiders may not see or
    understand them

17
Organizational Culture
  • Culture is to organizations what personality is
    to individuals
  • All companies have cultures
  • Culture by default
  • Culture by design thoughtful choices based on
    values and core beliefs
  • How does a company consciously create its culture?

18
From Gray Larson Project Management The
Managerial Process
19
Types of Organizational Cultures
  • Control cultures Drive for predictability
    and order
  • Collaboration cultures Pursue close
    relationship with customers
  • Competence cultures Pursue excellence and
    innovation
  • Cultivation cultures Pursue life enrichment
    for customers and employees

20
Organizational Culture
  • Observable Evidence
  • Symbols
  • Ceremonies
  • Stories
  • Behaviors
  • Language
  • Dress
  • Underlying Roots
  • Values, Assumptions, Beliefs, Attitudes, Feelings

21
Culture in practice
  • Conflict management
  • Relationship or interpersonal conflict
  • Task / process conflict
  • Functional vs. dysfunctional conflict
  • Factors goal incompatibility, limited resources,
    differences
  • Power the capacity to influence behavior
  • Positional power rewards/consequences, control
    of resources, information and decision control
  • Personal power expert, referent (based on
    identification and admiration)
  • Politics the use of power to influence decisions

22
Management vs. Leadership
  • Planning vs. Setting the
    budgeting direction
  • Organizing vs. Aligning
    people staffing
  • Controlling vs. Motivating
    people problem solving

Management is about coping with complexity
Leadership is about coping with change
23
Management vs. Leadership
  • Some managers (but not all) are leaders
  • Some leaders (but not all) are good managers
  • A manager gets work done through the efforts of
    other people
  • Includes planning, organizing, motivating, and
    controlling
  • A leader creates and realizes a vision
  • Communicates that vision and moves the
    organization toward that vision

24
McKinsey 7-S Model
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills
  • Superordinate goals
  • Effective organizations achieve a harmony
    between these seven elements if one element
    changes, then this will affect all the others

25
McKinsey 7-S Model
  • The 7-S Model can be a valuable tool to
    initiate change processes and to give them
    direction i.e. determine current state and ideal
    state of each element, and develop action plans
    to close the gaps
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills
  • Superordinate goals

26
McKinsey 7-S Model
  • In change processes, many organizations focus
    their efforts on the hard Ss however, the soft
    factors can make or break a successful change
    process. All factors must be accounted for.
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills
  • Superordinate goals

27
McKinsey 7-S Model
  • Strategy
  • Structure
  • Systems
  • Style
  • Staff
  • Skills
  • Superordinate goals
  • Interrelated
  • Equilibrium
  • Foundation of corporate culture
  • Levers available to management

28
Executing Change Seven Key Considerations
  • Strategic Intent
  • Substance
  • Scale
  • Scope/Breadth
  • Speed
  • Sequence
  • Style

29
  • Strategic Intent
  • Substance
  • Scale
  • Scope/Breadth
  • Speed
  • Sequence
  • Style

Precise Broad
Soft Ss Hard Ss
Small Large
Isolated
Organization-wide
Slow Fast
Hard Soft Soft Hard
Top Down Bottom Up
30
  • Strategic Intent
  • Substance
  • Scale
  • Scope/Breadth
  • Speed
  • Sequence
  • Style

Precise Broad
Obsolete Confusion
Soft Ss Hard
Ss
Long term Quick
Small Large
Low risk High risk
Coherent Robust
Isolated
Organization-wide
Not absorbed Can distract
Slow Fast
Low momentum Sustainable?
Hard Soft Soft
Hard
Big bang
Inflexible?
Top Down Bottom Up
Coercive
Participation
31
Assignment
  • Read BA 550 class packet
  • Turning Great Strategy into Great Performance
  • Governance and Strategy Implementation
  • Case brief Americhem Last names beginning
    with A M
  • Complete proposal on term project
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