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New Organisational FormsNew Organisational Formsand CSCW (part 1)and CSCW (part 1)
New Organisational FormsNew Organisational Formsand CSCW (part 1)and CSCW (part 1)
M. Baptista NunesM. Baptista Nunes14/03/200014/03/2000
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Aims of this lectureAims of this lectureAims of this lectureAims of this lecture
to investigate the impacts of the explosive developments of ICT on organisational StructureStructure and DesignDesign;
to provide an overview and discuss new emergent forms of organisation:• Networked Organisation;• Boundary-less Organisation;• Virtual Organisation.
To provide an overview of CSCW and its role and importance in the new organisation.
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Organisation Organisation StructureStructure
Organisation Organisation StructureStructure
“Structure is a means for attaining the objectives and goals of an organisation” (Drucker, 1974)
“Organisation Structure is the system of arrangements, the pattern or network of relations, between the various positions and their holders.”
(Buchanan and Huczynski, 1997:297)
“Organisation structure is more than boxes on a chart; it is a pattern of interactions and co-ordination that links the technology, tasks and human components of the organisation to ensure that the organisation accomplishes its purpose” (Duncan, 1979:59)
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Organisation Organisation StructureStructure
Organisation Organisation StructureStructure
Organisation Structure is a framework for dividing, assigning and co-ordinating work.
Key elements of structure:
• Work specialisation and definition;
• Departmentalisation;
• Type and Levels of authority (hierarchy and chain of command);
• Concentration of authority and span-of-control.
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Organisation Organisation StructureStructure
Organisation Organisation StructureStructure
Expression of structure:• Organisation Chart;
• Job Descriptions;
• Hierarchy;
• Rules, Policies and Procedures;
• Culture and Behaviour.
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Organisational FormOrganisational FormOrganisational FormOrganisational Form
“The design of an organisation is an exercise in matching structures, systems and style of management, and the people employed, to the various activities of the organisation.”
(Mullins, 1997:566)
Organisational Design
Organisational Form
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Traditional Traditional Organisational FormsOrganisational Forms
Traditional Traditional Organisational FormsOrganisational Forms
Self-contained, integrated structures operating in stable environments.
• Physically located in office buildings and production plants, in which the organisation’s members work and where the required machines, equipment, materials and information can be found;
• Functional Structure;
• Boundaries defined by the physical structures and contractual relations;
• Rigidly centralised bureaucracy;
• Traditional pyramidal span-of-control.
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Challenges for the Challenges for the OrganisationOrganisation
Challenges for the Challenges for the OrganisationOrganisation
Changes in the Competitive
Situation
Innovation Potential of
ICT
Value Changes with Labour, in Markets, and Society
Challenges for the Firm
New Organisational Forms
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Changes in the Changes in the Competitive SituationCompetitive Situation
Changes in the Changes in the Competitive SituationCompetitive Situation
Internationalisation of Markets; Innovation Dynamics with Products and
Processes; Globalisation Buyer Markets; Globalisation of Purchasing; Demographic Developments; Resource Decreases.
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Value Changes with Value Changes with Labour, in Markets, Labour, in Markets,
and Society and Society
Value Changes with Value Changes with Labour, in Markets, Labour, in Markets,
and Society and Society
Attitude toward Environment; Age Demographics of Employees; Quality Demands on the Work Place; Market Behaviour; Globalisation of Standards; Globalisation of Legislation; Internationalisation of Customer, Buyer and
Supplier awareness.
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Information Information TechnologyTechnologyInformation Information TechnologyTechnology
Falling costs of SW and HW and the advent of the PC Most knowledge, data and service workers (see last week) and managers now a have a PC on their desks;
Availability of user-friendly SW that allows easy, fast and efficient use of the IT infra-structures;
Increasing availability of of business information from both internal and external databases providing information essential to maintain a competitive market position;
The explosive development in communication technology and the increasing convergence of telecommunications and computing (ICT) which led to the Information Society.
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Innovation Potential Innovation Potential of ICTof ICT
Innovation Potential Innovation Potential of ICTof ICT
gradual elimination of:• bureaucracy and manual processing of information;
• individual functions;
• layers of middle management;
internal integration of departments; diluting of organisational boundaries:
• Removal of geographical barriers and time limitations;
• external integration with suppliers and customers;
• creation and strengthening external links with complementary organisations.
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Innovation Potential Innovation Potential of ICTof ICT
Innovation Potential Innovation Potential of ICTof ICT
gradual elimination of:• bureaucracy and manual processing of information;
Centralised Decentralised
• individual functions;
• layers of middle management;
“Tall” “Flat” hierarchies
internal integration of departments;Functional Networked structures
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Innovation Potential Innovation Potential of ICTof ICT
Innovation Potential Innovation Potential of ICTof ICT
diluting of organisational boundaries:• Removal of geographical barriers and time limitations;
Physical Virtual organisation
• external integration with suppliers and customers;
• creation and strengthening external links with complementary organisations.
Strict Boundary Boundary-less
Organisation
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Decentralised Decentralised OrganisationOrganisation
Decentralised Decentralised OrganisationOrganisation
Centralisation - refers to the concentration of authority and responsibility for decision making in the hands of managers at the top of an organisation.
Decentralisation - refers to authority and responsibility for decision making being dispersed more widely downwards and given the to operating units, branches and lower-level managers.
Decentralisation Empowering, Democratisation
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Decentralised Decentralised OrganisationOrganisation
Decentralised Decentralised OrganisationOrganisation
Centralised• greater uniformity in
decisions;• more control;• fewer skilled
managers required;• Less extensive plan
and reporting procedures;
• Faster decision process.
Decentralised• Lower-level decisions are
easier;• Lower-level management
problems can be dealt on the spot;
• Greater motivation and better opportunities for lower-level managers;
• Top-level managers have more time for strategic planning.
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“Flat” Hierarchies“Flat” Hierarchies
The combination of span of control and chain of command determines the overall pyramid shape and whether the hierarchical structure is “flat” or “tall” (Mullins, 1997:536).
“Flat” hierarchies broader span of control, few levels of authority.
“Tall” hierarchies narrower span of control, more levels of authority.
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“Flat” Hierarchies“Flat” Hierarchies
Advantages• Savings on managerial
costs;• Improved
communication;• More participative
styles of management;• Greater involvement
of staff;• Improved
organisational efficiency.
Disadvantages• Inhibit the flow of
effective communications between top management and the workforce;
• Reduce commitment and motivation levels;
• Lower-level managers face increased load;
• Deterioration of productivity;
• More vulnerable to fraud.
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Networked Structure
Networked Structure
Networked organisation is a combination of:• functional departments provide stable base for specialised
activities;• project teams that form and disband as required and are set up as
temporary units for the attainment of a particular task. • reliance on links between individuals, sub-units and outside
organisations;
• “command-and-control” “information-based”
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Networked StructureNetworked Structure
Advantages sharing of resources; more than one critical
orientation to the operations of the organisation;
organisational systems & processes capable of rapid response to changing conditions
integration and effective utilisation of diverse cultures, people, and talents
organisational involvement across organisational boundary
Disadvantages• Results in more complex
organisational structure;• Problems of co-ordination;• Political and authority
problems;• Functional groups may tend to
neglect their duties;• Reduce commitment and
motivation levels;• Loss of accountability;• Increased working load for
designated staff;• Deterioration of productivity.
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Boundary-less OrganisationsBoundary-less Organisations
Boundary-less Organisations represent “the dissolution of traditional organisational structures and boundaries in favour of the establishment of symbiotic arrangements with external partners” (Wigand et al., 1998:209).
Initially employees joined teams to work on specific projects regardless of their physical location or organisational membership - once the project is over, the team disbands.
Nowadays ...
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Boundary-less OrganisationsBoundary-less Organisations
Advantages sharing of resources is more
open, accurate and timely; strong leadership by shared
vision, collaboration and commitment.
organisational systems & processes capable of rapid response to changing conditions
integration and effective utilisation of diverse cultures, people, and talents;
Disadvantages• Results in more complex
organisational structure;• Problems of co-ordination;• Political and authority
problems;• Difficult to define boundaries
resulting in security risks to the firm;
• Dissolution of organisational culture and sense of community;
• Reduce commitment and motivation levels;
• Loss of accountability.
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Virtual OrganisationsVirtual Organisations
“Virtual Organisations represent a task and competence oriented approach in the design of an organisation”
(Wigand et al., 1998:364).Static and long-term
boundaries of:
responsibility
physical location
functional allocation
Task specific and contingency allocation of Competence.
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Virtual OrganisationsVirtual Organisations
Advantages location independent
organisations; sharing of resources is more
open, accurate and timely; changing the time and spatial
dimensions of performance; increasing speed of
performance; rapid response to changing
conditions; integration and effective
utilisation of diverse cultures, people, and talents;
Disadvantages• Results in more complex
organisational structure;• Problems of management and
co-ordination;• Political and authority
problems;• Difficult to define boundaries
resulting in security risks to the firm;
• Dissolution of organisational culture and sense of community;
• Reduce commitment and motivation levels.
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Worth thinking about Worth thinking about … :-)))… :-)))Worth thinking about Worth thinking about … :-)))… :-)))
“All this constant talk about technology is so boring. It is only another tool and besides it is the management and performance of people that really matters.”
YES, but ... Technology is the tool which enables people to perform and
managers must have the skills and understanding to know how to make the best of technology within organisations.”
Different technologies determine different organisational structures and behaviours Technological determinism.Technological determinism.
This course follows a moderate technological determinism view , but … this is not the only approach !
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In Sum . . .In Sum . . .In Sum . . .In Sum . . .
Structure
Objectives
People
Technology
Environment
Organisations are complex systems ...