Aus: Thommen/Grösser: Organization and Change Management, · handling complaints, appreciation of the customer, etc. Spatial and design icons: appearance, condition and equipment

Aus: Thommen/Grösser: Organization and Change Management, 2013 1

© Versus Verlag 2019

� Fig. 1 Problem-solving process of an organization

Environment Organization

2. Setting the objectives of the organization

6. Evaluating the results

5. Implementing the decisions

3. Defining the organizational measures

1. Analyzing the initial situation

Problem-solving process Management functions

4. Defining the organizational resources

Structural organization Process organization

Manage-

Planning

Delegating

Con- Deci-sionmaking

trolling ment



� Fig. 2 Department and subdivisions

Department

Subdivision

Company



� Fig. 3 Congruence of tasks, competences, and responsibility

Tasks

Responsibility

Competences

Amount of tasks,competences, and responsibility



� Fig. 4 Connecting paths or channels between jobs (Hill/Fehlbaum/Ulrich 1994, p. 138)

Transport pathsCommunication channels

(Information channels)

Pure communicationchannels

Decision-making

Participation Referral Command

Connecting paths

channels

or channels

channels channels channels



Personality profiles of executives

� Resumes: social origin, professional career, seniority, time spent in a function, etc. � Values and attitudes: ideals, ability to foresee future problems, visions, innovative

readiness, resist or open to change, assertiveness and perseverance, endurance, willingness to learn, risk-readiness, frustration tolerance, etc.

Rituals and symbols

� Ritual behavior of executives: promotion practices, selection of junior and senior management, meeting behavior, decision-making behavior, relationship behavior, mentors, role models, etc.

� Ritualistic behavior of employees: visitor reception, welcome by receptionist, handling complaints, appreciation of the customer, etc.

� Spatial and design icons: appearance, condition and equipment of buildings, shape of a company turnaround, arrangement, configuration, and location of offices, work wear, company cars, etc.

� Institutionalized rituals and conventions: reception rituals of guests, clothing standards, meeting rituals, parking lot rules, etc.

Communication � Communication style: information and communication behavior, consensus and compromise readiness, etc.

� Communication both internally and externally: employee suggestion system, quality circles, and other forms of participation, official channels, public relations, etc.

� Fig. 5 Important factors of organizational culture (Pümpin/Kobi/Wüthrich 1985, p. 12)



� Fig. 6 Types of culture according to Deal/Kennedy

Degree of risk

High

Low

Speed of performance feedback

Bet-the-companyculture

Processculture

Tough-guy machoculture

Work-hard, play-hardculture

Slow Fast



� Fig. 7 Process to form a structural organization

Overall task of the organization

Task analysis

Subtasks (elementary tasks)

Task synthesis

Job/unit/position (complex of tasks)

Synthesis of jobs/units/positions

Department

Synthesis of departments

Overall structure of the organization



� Fig. 8 Examples for work elements and work processes (Spitschka 1975, p. 47)

Work process(= work elements

Sale of goods to

Process sublevel(= work elements

Receive order

Create invoice

Send invoice

Receive invoice payment

Check invoice payment

Enter sales of

Process element(= work elements

Read order

Write order confirmation

Assemble goods

Write delivery receipt

Pack goods

Execute delivery

Check invoice

Deliver letters to post office

Receive check

Bring check to bank

Compare payment

Recalculate deductions

Enter invoice

Enter invoice payment

Execute shipment

goods in system

and invoice

(salesperson)a customer

Payment of invoice(accountant)

on highest level) on medium level) on lowest level)



� Fig. 9 Relation between structural and process organization (Bleicher 1991, p. 45)

Task

Org

aniz

atio

n of

Stru

ctur

al

Depa

rtmen

tor

gro

upJo

b/un

it/po

sitio

nPa

rtial

task

Task

ana

lysi

sTa

sk s

ynth

esis

Pers

onal

wor

k sy

nthe

sis

Loca

l wor

k sy

nthe

sis

Tem

pora

l wor

k sy

nthe

sis

Wor

k el

emen

ts

Wor

k an

alys

isW

ork

synt

hesi

s

orga

niza

tion

the

com

pany

Proc

ess

orga

niza

tion



� Fig. 10 Scope of action of an employee

Scope for decisions

Scope for contacts

Scope for activity

and control



� Fig. 11 Forms of an organigram

Vertical organigram

Horizontal organigram Column organigram



� Fig. 12 Organigram of the United Nations Organization

Source: www.un.org/en/aboutun/structure/org_chart.shtml



� Fig. 13 Organigram of the company ABB

Source: www02.abb.com/global/chabb/chabb119.nsf/0/77d6e8f77d7b3f93c1257a6b00271c76/$file/Organisation-ABB-Schweiz-e_2012-09-01.pdf



Company:Mode of employment:

I. Description of instancesa) Job label

1. Job title: 2. Job number: 3. Department: 4. Jobholder: 5. Rank: 6. Wage group:

b) Hierarchical classification 7. The jobholder receives substantive directives from: 8. The jobholder provides substantive directives to: 9. Right of representation

� Representation of the jobholder: � Representation for other jobs:

10. Number of disciplinary subordinate employees (E.g., head of division, group manager, person in charge, master craftsman, foreman):

11. Competences (e.g., commercial procuration, power to act): c) Communication relations

12. The jobholder delivers the following reports: 13. The jobholder receives the following reports: 14. Participation at conferences: 15. The collaboration with the following jobs (internal/external) is required:

II. Description of tasks 16. Description of activities

� Repetitive substantive tasks: � Irregular substantive tasks:

17. Equipment: 18. Terms of reference, regulations:

III. Description of performance a) Performance requirements

19. Knowledge, skills, experiences: 20. Work-related traits (e.g., correctness and accuracy, interpersonal skills): 21. Work attitude (e.g., leadership qualities, assertiveness):

b) Performance standards 22. Quantitative performance standards (e.g., revenues): 23. Qualitative performance standards (e.g., work atmosphere):

Signatures with date: Head of personnel department Jobholder Supervisor

� Fig. 14 Template of a job description (cf. Hentze/Kammel 2001, pp. 230)



Supe

rvis

ory

boar

d

Man

agem

ent

boar

d

Functions

Notes

R&

D

Prod

uc-

tion

Mar

ket-

ing

Adm

inis

-tra

tion

Definition of the company policy Dm P Pd Pd Pd Pd

Creation of 5-year strategic plans� Sales trend� Trend of costs and earnings� Investments

DmDmDm

P P PPP P

Develop annual budget� Sales� Operational costs� Investments

DmDmDm

P PP

PP P until 10th Nov.

Formating and controlling of the annual action plans

E

Elaboration of key performance indicators

E

P = Planning, Dm = Decision-making, Pd = Right to participate in discussions, E = Executing

� Fig. 15 Example of a function chart (Nauer 1993, p. 171)

Jobs

Tasks



Jobs Work process: Equipment ACTUAL

Man

agem

ent

Prod

uctio

n

Purc

hasi

ng

Sale

s

Adm

inis

tratio

n

No.

Tasks, activities Notes

1 � Checks inventory weekly� Calculates the products and quantities to be

ordered� Creates a list of requirements

Purchasing department has supplier register

2 � Complements the list of requirements with prices and conditions of delivery

� Enters the number of the cost center� Enters of order

Production

3 � Checks orders, signing� Enters the ordered quantity in the inventory

register� Forwards information to administration

Inventory register could be managed by purchasing department

4 � Notices and controls the order� Ships and distributes the ordered copies

Why is this not done by the purchasing department?

5 � Receives order confirmation� Notices and forwards information

6 � Checks data� Enters delivery dates� Informs production

7 � Cecks data� Enters delivery dates

Redundancy!

8 � Receives shipments� Checks the delivered products with the

confirmation of order� Creates product receipt slip� Enters products in inventory register� Forwards copies

� Fig. 16 Example of a flow chart (Nauer 1993, p. 211)



Operation Content

Department/division

Recorded by Controlled by

on on

No.

Activities

Transaction Involved jobs/units

Obje

ct p

roce

ssin

g

Insp

ectio

n

Tran

spor

t

Dow

ntim

e

Plan

ning

dep

artm

ent

Prod

uctio

n m

anag

er

Inve

ntor

y fo

r spa

re p

arts

Purc

hasi

ng

Saw

mill

Plan

ing

Grin

ding

sho

p

Asse

mbl

y

Pain

t spr

ayin

g sh

op

Dryi

ng ro

om

Atta

chin

g of

met

al fi

tting

s

Chec

king

Sale

s in

vent

ory

1 Production order x 1

2 Order processing by the production manager x 2

3 Material provision x 3

4 Purchasing of metal fittings x 4

5 Cutting of raw materials x 5

6 Planing of raw materials x 6

7 Grinding and preparing for painting x 7

8 Assembly x 8

9 Painting of frame x 9

10 Drying x 10

11 Incoming of ordered metal fittings x 11

12 Attaching of metal fittings x 12

13 Checking x 13

14 Warehousing x 14

� Fig. 17 Example of a sequence map (Kuepper 1981, p. 63)



� Fig. 18 Example of a directed graph



ProcessDuration (hours)

Direct predecessor

ABcdefg123456789

32168064484832162016324848164816

c, 1g, 2, 7d, 2, 8, 9e, 1, 6f, 53, 45, 6–––––––––

� Fig. 19 List of activities including their duration



� Fig. 20 Network diagram

fSt

art

End

ed

3 4

298

1 6

5

c

A

7 g

B



� Fig. 21 Network diagram with dummy activities

Purchase material Cut leatherConnect

parts of a shoe

Produceruber sole

Example 1

Dummy activity

Close lease contractfor new apartment

Dissolve lease contractfor old apartment

Plan new furnishing Purchase new furnishing

Example 2

Dummy activity



� Fig. 22 Network diagram with critical path (16 hours/work day, incl. Saturday/Sunday)

fSt

art

End

ed

3 4

298

1 6

5

c

A

7 g

B

1.4.

1.4.

1.4.

1.4.

2.4.

1.4.

2.4.

8.4.

9.4.

20.4

.

20.4

.20

.4.

20.4

.

3.4.

6.4.

6.4.

9.4.

9.4.

13.4

.

1.4.

3.4.

18.4

.20

.4.

18.4

.20

.4.

13.4

.18

.4.

13.4

.18

.4.

11.4

.13

.4.

1.4.

2.4.

12.4

.13

.4.

2.4.

3.4.

1.4.

3.4.

3.4.

6.4.

6.4.

9.4.

9.4.

13.4

.

1.4.

2.4.

12.4

.13

.4.

1.4.

3.4.

7.4.

9.4.

1.4.

4.4.

3.4.

6.4.

6.4.

7.4.

19.4

.20

.4.

1.4.

2.4.

18.4

.19

.4.

4.4.

6.4.

17.4

.19

.4.

FAZ

FEZ

SAZ

SEZ

1.4.

1.4.

3.4.



� Fig. 23 Example of a bar chart

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Start4

35

16

8

2

97

fg

e

Bd

c

A

EndBuffer timeOccupation time

April



� Fig. 24 Principle of substitution in organizational theory (Kieser 1981, p. 71)

Degree of variabilityof organizationalsituations

Generalizabilityof organizationalpolicies



� Fig. 25 Optimal degree of organizing (Kieser 1981, p. 72)

Successful organizationalpolicies

Excess of Lack of

Degree of organizationaleconomizationEopt

OptimumSmax

organizing organizing



� Fig. 26 Structuration principles

Job design principle

Management principles

Allocation ofdecision-making competences

Object

Function

Region

Multiple-line management

Single-line management

Dece

ntra

lizat

ion

ofde

cisi

on-m

akin

g

Cent

raliz

atio

n of

deci

sion

-mak

ing

system

system (unity of command)



� Fig. 27 Principles of job formation

Top-management

Raw materialprocurement

Production Marketing Accounting Human

Execution- or function-focused organization

Top-management

Motorbikes Passenger Trucks Boats

Object- or product-focused organization

Top-management

Switzerland Europe USA Remaining coun-

Regional- or market-focused organization

resources

tries or markets

cars



� Fig. 28 Criteria for the design of jobs for the case of three hierarchical levels

Top-

man

agem

ent

Prod

uctio

nM

arke

ting

Adm

inis

trat

ion

Raw

mat

eria

lpr

ocur

emen

t

Mot

orbi

kes

Pass

enge

r car

sTr

ucks

Pro-

Mar

ke-

duct

ion

ting

Adm

inis

-tra

tion

Top-

man

agem

ent

Mot

or-

Pass

en-

Tuck

sge

r car

sbi

kes

Pro-

Mar

ke-

duct

ion

ting

Adm

inis

-tra

tion

Raw

ma-

Pro-

Mar

ke-

teria

l pro

-du

ctio

ntin

gAd

min

is-

tratio

n

Mot

or-

Pass

en-

Tuck

sge

r car

sbi

kes

Mot

or-

Pass

en-

Tuck

sge

r car

sbi

kes

Mot

or-

Pass

en-

Tuck

sge

r car

sbi

kes

cure

men

t

Raw

ma-

teria

l pro

-cu

rem

ent

Raw

ma-

teria

l pro

-cu

rem

ent



� Fig. 29 Different organization criteria at the same hierarchical level

Top-management

CentralRaw material

CentralProduct 1 Product 2 Product 3

Functions

procurementadminis-

Production

Product line Region

USAtration



� Fig. 30 Single-line management system (unity of command)

Fayol’sbridge



� Fig. 31 Multiple-line management system



� Fig. 32 Degree of involvement in decision-making of an implementing unit

Degree of partici- 100

0

Centralization ofdecision-making

Decentralization ofdecision-making

pation in decision-making (in %)



� Fig. 33 Pure functional organization

Top-management

Researchand Production Marketing

Financial and Human Adminis-managerialaccounting trationresourcesdevelopment



� Fig. 34 Schema of a staff-and-line organization

Marketresearch

Top-management

Raw materialprocurement

Production Finances Marketing

Corporate planningand -organization

Manu- Manu- Machines &Advertising Sales Delivery

Planningprocess

Staff unit

Line unit

Adminis-tration

equipmentfacturing IIfacturing I



� Fig. 35 Schema of a divisional organization

Marketing

FinanceAccounting

Top-management

Division 1

Human

Central unit

Line unit

Division 2 Division 3

Raw ma-Productionterial pro- Production Marketing Production Marketing

curement

Raw ma-terial pro-curement

Raw ma-terial pro-curement

resources



� Fig. 36 Example of a financial holding

AZ Holding

AZ BankAZ Computer

Pharmaceutical Industrial Energy Option writer

100% 20%

75% 60% 50% 70%

Company X Company Y Company Z of Company C

sciences



� Fig. 37 Example of a management holding

S&OZPharma PLC

S&OZNutrition PLC

S&OZTechnology PLC

S&OZInternational PLC

S&OZ

S&OZ PLC

Agro-Chemicals

S&OZAgro PLC

S&OZ MTB Holding PLC(Construction &Seeds PLC Environment)



� Fig. 38 Schema of a matrix organization

Procurement

Research

Production

Top-managementDivisions

Func

tions

Motor vehicles Electronics ShipsAirplanes

Marketing

ProductionVehicles

MarketingShips



� Fig. 39 Forms of a network organization

Development/ Production

Supplier Marketing/sales

construction

Management

Leader

Internal network

Stable network

Dynamic network Development/ Production

Supplier Marketing/sales

construction

Broker

Supplier Supplier

Supplier Supplier



� Fig. 40 Staff-project organization (according to Frese 2005, p. 507)

Project ProjectA B

Top-management

Raw materialProduction Marketing Administrationprocurement



� Fig. 41 Simple project organization (according to Frese 2005, p. 510)

Top-management

Project area A

Projectmanager A

Project area B

Projectmanager B



� Fig. 42 Matrix-project organization (according to Frese 2005, p. 508)

Project B

Project A

Project C

Top-management

Production MarketingRaw materialprocurement

Proj

ect-r

elat

ed s

yste

mfo

r dec

isio

n-m

akin

g

Function-related system for decision-making



Func

tiona

l or

gani

zatio

n

Divi

sion

alor

gani

zatio

n

Man

agem

ent

hold

ing

Mat

rix

orga

niza

tion

Net

wor

k an

d vi

rtual

or

gani

zatio

n

Proj

ect

orga

niza

tion

Team

orga

niza

tion

Job formation Object • • • • •

Function • • • •

Region • • • • •

Management principles

Single-line man-agement system (unity of com-mand)

• • • • •

Multiple-line management sys-tem

• • • •

Decision-mak-ing compe-tences

Centralization • •

Decentralization (Delegation) • • • • • •

� Fig. 43 Comparison of the different organizational structures

Structure of an organization

Structuration principle



� Fig. 44 Overview of the types of manufacturing organization (Production approaches)

Types of manufacturing organization(Production approaches)

Workshop principle Batch production Continuous production

Manual production

Workshop production

Building site production

Line production

Work cycle production

principle



� Fig. 45 Example of a workshop production site

A1

B1

B5

A2

B2

A3

B4

A6

B3

A5 A4

C1 C2

C4 C3

Workshop 1 Workshop 2 Workshop 3

Workshop 4 Workshop 5 Workshop 6

Interim storage



� Fig. 46 Example for the continuous production principle

Receiving store Cutting Drilling Bonding

ScrewingGrinding/polishingPaintingShipment storage



� Fig. 47 Production of the Smart car (Bilanz No. 9, 1997, p. 64)

1 Engagement stationAuto body assembly with cockpit module

2 Marriage stationAssembly of chassis frame, drive unit, and autobody

3 Furnishing houseCasing, cribbing, glazing, seating system

4 Accessory StudioInterior and design-features

5 Design-ShopExternal synthetic material, exterior equipment

6 GymTest runs, accelerated test, quality checks

7 Quality circleQuality audit, Quality control, Quality-Award

8 Market place BistroMeeting point for employees and partners



� Fig. 48 Example of a batch production

Fina

l ass

embl

y

Manufacturing group A

Milling Drilling Grinding

Manufacturing group B

Turning Grinding Extruding

Manufacturing group C

Rece

ivin

g st

ore

Parti

al a

ssem

bly

Pressing Grinding

Ship

men

t sto

rage

sem

i-fin

ishe

d



� Fig. 49 Top five reasons for change management (Capgemini Consulting 2012)

69

54

33

31

30

71

42

41

37

30

49

38

33

32

32

57

47

37

35

25

52

38

37

37

36

1

2

3

4

5

2003 2005 2008 2010 2012

External changes (e.g., new laws)

Cost cutting programs/rightsizing

Restructuring/reorganization

Changed market strategy/customers

Altered corporate strategy

Growth initiatives

Mergers & Acquisitions/Demerger



� Fig. 50 Activities in the organizational design process

Monitoring and further Recognizing organizational

Introducing a selected organizational concept

Initiating and fostering

Prestudy Major study Partial studies

1. Recognition and analysis of relevant problems2. Diagnosing problems and specifying design objectives3. Generating of design alternatives4. Evaluating and selecting of a design alternative

Phase 1:

Phase 2:

Phase: 3

Phase 4:

Phase 5:

Planning reorganization

1 2 3 41 2 3 41 2 3 4

development of new challenges

reorganization

organizational concepts



� Fig. 51 Success factors for change management projects (Capgemini Consulting 2012)

Define and communicate the vision for the change management project

Comprehend current situation and define the change strategy

Ensure the commitment and support of the top-management

Mobilize and actively engage stakeholders

Recognize resistance and account for it

Align structural and process organization to new requirements

Communicate and anchor successes

Further develop organizational culture

Execute qualification and

Continuously measure the change progress

further education

1

2

3

4

5

6

7



� Fig. 52 Value creation chain with core processes

Marketing R&D Production Distribution Sales

Development of new products

Customers

Core process

Core function

Suppliers

Services

Accounting

Top-management

Finance Human IT Legal

Integrated logistics

Support function

Acquisition and fulfillment of orders

resources Advisory



� Fig. 53 Phases of a successful organizational change (Greiner 1967, p. 126, modified by Schreyögg 2008,p. 419)

Interventingby externalconsultant

Approving of newproblemsolutions

Pressure ontop-mana-

Recognizingof specificchallenges

Developing new problemsolutions

Experimen- tinig withnewsolutions

Determiningresults

Reinforce-ment bypositiveresults

Acceptanceof newpractices

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Phase 6

Willingnessto act

New orien-

respect to

challengesinternal

Diagnosing challenging areas

Stimulus on the power structure

Reaction of power structure

gement

tation with



� Fig. 54 Three-stage model of the change management process (Kiechl 1995, p. 291)

1. UnfreezingUnfreezing of the current situation; motivating for change

2. MovingTransition to the newequilibrium;new behaviors are formed

3. RefreezingRefreezing of the newequilibrium;stabilizing and integratingof the changesN

ew s

ituat

ion

Time

Old

situ

atio

n



� Fig. 55 Cycle of organizational learning (Wahren 1996, p. 98)

(3) Actual learning process

Definingchallenges

Defining root cau-ses and objectives

Definingmeasures

Integratingknowledge

(5) Knowledge base of the organization

Individualknowledge

Collectiveknowledge

Documented

Mental

(4)Testing and

storingof new

knowledge

(2)Interpreting information

(1) Selecting information

Environment of the organization

knowledge

knowledge

Intra-organizational context



� Fig. 56 Basic model of learning processes

Deep structure of an organization which

consists of values, norms, and attitudes.

Surface structure of an organization which con-sists of routines, proce-dures and processes.

Organizational activities

Results of activities (success or failure)

Organizational learningSingle-loop learning

Double-loop learning



Criteria Business Reengineering Organizational development

Origin of theapproaches

� Engineering/consulting practice (management-oriented)

� Social psychology/consulting practice (social-oriented)

General idea

� Fundamental reconsideration and radical redesign of companies and processes (revolutionary change)

� Long-term, organization-wide change and development process of organizations and their employees (evolutionary change)

Normative basis (selection)

� Discontinuous thinking� Ask why� Get convinced people involved

� Helping people so they can help themselves

� Get concerned people involved� Democratization and reduction of

hierarchies

Idea of man � Theory X � Theory Y

Character-ization of change

� Profound and comprehensive change� Discontinuity� Radical changes

� Continuous learning and development process

� Continuity� Changes in small steps

Time horizon

� Perennial with pressure for fast success (in quantitative terms)

� Long-term with patience and openness (e.g., for momentum)

Change object

� Complete company and core processes respectively

� Complete or parts of a company

Objectives � Increase of the profitability � Increase of profitability (economic effi-ciency) and humanity (social efficiency)

� Fig. 57 Comparison of business reengineering and organizational development



Business Reengineering Organizational development

Strengths � Clear distinction of the change phases� Chances for recommencement� Chance to significantly increase the

profitability� Rapidness of the change� Conceptional integrity of the change

� Social compatibility� Natural change� Accounting for the ability to develop

of the members of the system� Long-term perspective� Promotion of self-management and

self-organization respectively� Avoiding/reducing of resistance to

change

Weaknesses � Instability in the phase of change� Time pressure and need for action� Pressure to improve short-term

results� Exclusion of alternative change

strategies� Lack of social compatibility

� Reaction rate� Participants in the organizational

development process require highly developed social competences

� Force to search for compromises� Insufficient possibilities to implement

unpopular but necessary decisions (underestimation of power)

� Fig. 58 Evaluation of business reengineering and organizational development (Thom 1995, p. 876))

Evaluation

Method

Documents

Aus: Thommen/Grösser: Organization and Change Management, · handling complaints, appreciation of the customer, etc. Spatial and design icons: appearance, condition and equipment