Diseño organizacional

ORGANIZATIONAL STRUCTURE AND BUSSINES DESIGN

Main source
ORGANIZATIONAL DESIGN A step by step approach
Richard M. Burton Geraldine DeSanctis Borge Obel Cambridge University Press 2006

Previous questions

Previous questions
What are our goals? What are our basic tasks? Who makes which decisions? What is the structure of communication? What is the incentive structure?Multidimensional context
Structural: Goals. Strategy (including environment). Structure (Configuration, complexity, geographic distribution and knowledge exchange). Human: Work processes (task design). People (leadership and climate). Coordination. Control (information systems, incentives).

Two complementary problems
How to partition a big task of the whole organization into smaller tasks of thesubunits. How to coordinate these smaller subunit tasks so that they fit together to efficiently realize the bigger task or organizational goals.

Fundamental assumption
The work of an organization can be seen as information processing, observing, transmitting, analyzing, understanding, deciding, storing and taking action for implementation.

“The greater the uncertainity of the task, the greaterthe information that has to be precessed between decision makers.” John Kenneth Galbraith, econonist

Information procesing requirements
LOW: Exception based hierachical decision making. HIGH: Targets or goals.

“Organization is a conciously coordinated social entity, with a relatively identifiable boundary, which functions on a relatively contonous basis to achieve a common goal or set ofgoals.” S. P. Robbins

Goals

Fundamental goal orientations
Efficiency: primary focus on inputs, use of resources and costs. Effectiveness: focus on outputs, products or services and revenues.

KAIZEN

CALIDAD TOTAL

= KAI = Change

= ZEN = To the best

= KAIZEN = Continous improvment

KAIZEN
Do things well first time and better the second. Cost management, not costreduction. Easy techniques Everyone has to improve his or her job. Small steps. Process orientation. No investments. Examples: NISSAN, BMW vs. KAWASAKI

Innovation (KAIRYO)

Big improvements. High investment level. Results oriented.

Mantenance
It is not possible to improve something that is made in a different way everytime. Standards mantenance is essencial point before Kaizen. Two possiblereasons for mistakes:
Rules not followed Discipline Rules and norms are not correct Change norms

Not Kaizen oriented company
CEO

Management

INNOVATION
Supervisor

Workers

MANTENANCE

Kaizen oriented organization
CEO

INNOVATION
Management

KAIZEN
Supervisor

MANTENANCE
Workers

Deming cicle
Plan: decide what to do (data) and fix targets (mesurable) for a definedperiod of time. Do: execute planification. Check: analyse gap between planification and results. Act: corrective actions to elimite gap.

P

PDCA C

A

D

Steps

Requirements
STANDARD 3 STANDARD 2

Goal

STANDARD 1

Steps

4.- Improvement 3.- Mantenance 2.- Apply 1.- Stabilize

Time

Deming cicle

P
¡Beware of “DIABOLICAL DIAGONAL”!

PDCA C

A

D

Goals
E ncicie ff y

Low cost. KAIZEN. Stable environment.

Competitive complex and volatile environments . Product innovation and low cost.
ss ne tivi ec Eff

Monopoly.

Focus on goals. High volatile environments. Cost is not important.

Where are them?

Corresponding quadrant in organizational design space

B A

D C

¿Where are them?

A. L. Estrella

Strategy

“Structure followsstrategy.” Alfred Dupont Chandler, economist

Five forces (Porter)
Threat of new entrants

Bargaining power of suppliers

Existing players

Bargaining power of customers

Threat of substitute products

Four Ps (Kottler / McCarthy)
Product. Price. Promotion. Place.

Exploitation
Refinement. Efficiency. Selection. Implementation.

Exploration
Search. Variation. Risk...