COMMUNICATION AND COMMUNICATION AND ORGANIZATIONSORGANIZATIONS

FROM SIMPLE TO MACHINE TO FROM SIMPLE TO MACHINE TO DIVERSIFIED: DEEPER,TALLER AND DIVERSIFIED: DEEPER,TALLER AND

WIDER ORGANIZATIONSWIDER ORGANIZATIONS

LECTURE 6a-bLECTURE 6a-b

SUMMARY: FUNCTIONS AND SUMMARY: FUNCTIONS AND ORGANIZATION SIZE AND AGEORGANIZATION SIZE AND AGE

• IN LARGER, MATURE ORGS. FUNCTIONS ARE SEPARATED AND HIGHLY SPECIALIZED INTO DEPARTMENTS (DIFFERENT PEOPLE GROUPED TOGETHER BY FUNCTION)

• DELEGATION OF AUTHORITY COMES WITH NEW STRUCTURE

THE MACHINE ORGANIZATION THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOWAUTHORITY-COMMUNICATION FLOW

Vp. SalesVp. Mfg.Vp. Mfg. Vp. Fin.Vp. Fin.

MgrMgr.. MgrMgr..MgrMgr..

SS SS SS - - - - - = FUNCTIONAL D.O.L. - - - - - = FUNCTIONAL D.O.L. SPECIALIZ’ TION FORMAL JOB DESCRIPS.SPECIALIZ’ TION FORMAL JOB DESCRIPS.ADDING LAYERS FORMAL COMMUNIC.ADDING LAYERS FORMAL COMMUNIC.

PRESPRES..

ENVIRONMENTAL OVERVIEW: BOX 2ENVIRONMENTAL OVERVIEW: BOX 2

• SIMPLE, STABLE: LOW PERCEIVED SIMPLE, STABLE: LOW PERCEIVED UNCERTAINTYUNCERTAINTY

• ENVIRONMENT:ENVIRONMENT: • SMALL NUMBER OF COMPONENTSSMALL NUMBER OF COMPONENTS• COMPONENTS SOMEWHAT SIMILARCOMPONENTS SOMEWHAT SIMILAR• REMAIN BASICALLY THE SAMEREMAIN BASICALLY THE SAME• SO, STANDARDIZATION OF WORKSO, STANDARDIZATION OF WORK

• APPROPRIATE STRUCTURE:APPROPRIATE STRUCTURE:• HIGH DIVISION OF LABOR (DOL) - HIGH JOB SPEC.’ZATION HIGH DIVISION OF LABOR (DOL) - HIGH JOB SPEC.’ZATION

(MANY PEOPLE DO DIFF. WORK)(MANY PEOPLE DO DIFF. WORK)• HIGH FORMALIZATION HIGH FORMALIZATION (DEPEND ON WRITTEN RULES)(DEPEND ON WRITTEN RULES)• HIGH CENTRALIZATION (AUTHORITY AT TOP)HIGH CENTRALIZATION (AUTHORITY AT TOP)

THE MACHINE ORGANIZATIONTHE MACHINE ORGANIZATION Communication Flow: Vertical Communication Flow: Vertical

THE MACHINE ORGANIZATIONTHE MACHINE ORGANIZATIONCommunication Flow: VerticalCommunication Flow: Vertical

$ Mfg Mktg

5 FUNCTIONS SEPARATED5 FUNCTIONS SEPARATEDCOMMUNICATION FORMALCOMMUNICATION FORMAL

PRESPRES..

THE MACHINE ORGANIZATIONTHE MACHINE ORGANIZATION (MINTZBERG MODEL)(MINTZBERG MODEL)

THE MACHINE ORGANIZATIONTHE MACHINE ORGANIZATIONMintzberg’s ModelMintzberg’s Model

STRATEGIC APEX

OPERATING CORE

MIDDLE LINE

TECHNO-STRUCTURE

SUPPORT

THE MACHINE ORGANIZATION THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW IN SALESAUTHORITY-COMMUNICATION FLOW IN SALES

Mgr. SalesMgr. Mfg.Mgr. Mfg. Mgr. Fin.Mgr. Fin.

PRESPRES..

EASTEAST CENTRALCENTRAL WESTWEST

THE MACHINE ORGANIZATION THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOWAUTHORITY-COMMUNICATION FLOW

Mgr. Sales Mfg.Mfg. Fin.Fin.

PRESPRES..

EASTEAST CENTRALCENTRAL WESTWEST

M & SM & S Alta.Alta.

B.C.B.C.

Regional SalesRegional SalesDirectorDirector

THE MACHINE ORGANIZATION THE MACHINE ORGANIZATION DEEPENING THEDEEPENING THE AUTHORITY-COMMUNICATION FLOWAUTHORITY-COMMUNICATION FLOW

Vp. SalesVp. Mfg.Vp. Mfg. Vp. Fin.Vp. Fin.

PRESPRES..

EASTEAST CENTRALCENTRAL WESTWEST

Other B.C.Other B.C.

B.C. Director of SalesB.C. Director of Sales

Gen’l Mgr. SalesGen’l Mgr. SalesWestern CanadaWestern Canada

Sales ManagerSales ManagerVancouverVancouver

MACHINE ORGANIZATIONMACHINE ORGANIZATION

• ISSUES ISSUES (INTERNAL ENVIRONMENT):(INTERNAL ENVIRONMENT):• EFFICIENT, RELIABLE, PRECISE, BUTEFFICIENT, RELIABLE, PRECISE, BUT• OBSESSION WITH OBSESSION WITH CONTROL LEADS TO CONTROL LEADS TO

COORDINATION PROBLEMCOORDINATION PROBLEM• FOCUS ON RULES: FOCUS ON RULES: (STANDARDIZATION OF (STANDARDIZATION OF

WORK)WORK)• WHAT TO DOWHAT TO DO• WHO TO TALK TOWHO TO TALK TO• RULES CAN’T COVER EVERY SITUATIONRULES CAN’T COVER EVERY SITUATION• CONSTANT STRUGGLE BETWEEN CONSTANT STRUGGLE BETWEEN TAKING TAKING

INITIATIVE AND FOLLOWING RULESINITIATIVE AND FOLLOWING RULES

MACHINE ORGANIZATIONMACHINE ORGANIZATION

• ISSUES ISSUES (INTERNAL ENVIRONMENT) (INTERNAL ENVIRONMENT) ::• OBSESSION WITH CONTROL OBSESSION WITH CONTROL LEADS TO LEADS TO

COORDINATIONCOORDINATION PROBLEMS, PROBLEMS, CONFLICT BETWEEN CONFLICT BETWEEN DEPARTMENTSDEPARTMENTS

• AS EACH FUNCTION TRIES TO CONTROL ITS AS EACH FUNCTION TRIES TO CONTROL ITS PROCESSES IT COMPETES WITH OTHER UNITSPROCESSES IT COMPETES WITH OTHER UNITS

• ORG. SUCCESS LEADS TO ISSUES IN ORG. SUCCESS LEADS TO ISSUES IN EXTERNAL EXTERNAL ENVIRONMENTENVIRONMENT

- NEED MORE CONTROL OF ENVIRONMENT NEED MORE CONTROL OF ENVIRONMENT

- BOUNDARY SUPPORT FUNCTION ISSUESBOUNDARY SUPPORT FUNCTION ISSUES

- CONTROL COSTS OF PROCURING INPUTS AND DISPOSING OF CONTROL COSTS OF PROCURING INPUTS AND DISPOSING OF OUTPUTSOUTPUTS