Henk W. Volberda
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198295952
- eISBN:
- 9780191685163
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198295952.003.0055
- Subject:
- Business and Management, Strategy, Organization Studies
The management challenge of flexibility may be observed through looking into the managerial repertoire of flexible capabilities. Since increasing the speed and variety of managerial capabilities ...
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The management challenge of flexibility may be observed through looking into the managerial repertoire of flexible capabilities. Since increasing the speed and variety of managerial capabilities proves to be a challenging goal, the firm will not be able to fully utilize its flexible capabilities without an appropriate organizational design. We thus examine flexibility's organization design challenge through identifying the organizational conditions that are necessary for utilizing the flexibility mix. Since the potential for flexibility is determined by the existing organization design, there is a need to determine whether redesigning the organizational conditions is required. The focus of this chapter is thus rooted on examining the organizational barriers to flexibility.Less
The management challenge of flexibility may be observed through looking into the managerial repertoire of flexible capabilities. Since increasing the speed and variety of managerial capabilities proves to be a challenging goal, the firm will not be able to fully utilize its flexible capabilities without an appropriate organizational design. We thus examine flexibility's organization design challenge through identifying the organizational conditions that are necessary for utilizing the flexibility mix. Since the potential for flexibility is determined by the existing organization design, there is a need to determine whether redesigning the organizational conditions is required. The focus of this chapter is thus rooted on examining the organizational barriers to flexibility.
Chris Argyris
- Published in print:
- 2010
- Published Online:
- October 2011
- ISBN:
- 9780199586165
- eISBN:
- 9780191702426
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199586165.003.0008
- Subject:
- Business and Management, Organization Studies, Strategy
This introductory chapter begins with brief a discussion of how we are trapped by behaviour patterns that exist at all levels of organizations. Traps are created when the problems to be solved are ...
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This introductory chapter begins with brief a discussion of how we are trapped by behaviour patterns that exist at all levels of organizations. Traps are created when the problems to be solved are likely to be upsetting and threatening to all concerned. These Traps inhibit effective problem solving and inhibit the detection and correction of errors. It then sets out the purpose of the book, which is to examine the advice of thought leaders writing about organizations and their management. It focuses on three topics: leadership, culture, and organization design. An overview of the subsequent chapters is presented.Less
This introductory chapter begins with brief a discussion of how we are trapped by behaviour patterns that exist at all levels of organizations. Traps are created when the problems to be solved are likely to be upsetting and threatening to all concerned. These Traps inhibit effective problem solving and inhibit the detection and correction of errors. It then sets out the purpose of the book, which is to examine the advice of thought leaders writing about organizations and their management. It focuses on three topics: leadership, culture, and organization design. An overview of the subsequent chapters is presented.
DAVID A. NADLER, michael l. tushman, and mark b. nadler
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780195099171
- eISBN:
- 9780199854868
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195099171.003.0001
- Subject:
- Business and Management, Organization Studies
As shown through the narrative about BOC's Industrial Gases Division, companies have to adjust to changing environments by being open to innovation, new technology, and collaborating enterprises ...
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As shown through the narrative about BOC's Industrial Gases Division, companies have to adjust to changing environments by being open to innovation, new technology, and collaborating enterprises through undermining geographic boundaries. While competition has evidently become more intense across all industries and business sectors, the need for companies to work on their competitive advantage arises. However, it is also important to note that the methods of attaining such competitive advantage also changes and organizations cannot merely rely on traditional procedures. This chapter introduces how “organizational capabilities”—the ways in which organizations structure and motivate—has proved to be one of the most fundamental sources of competitive advantage. Managers have to understand how to effectively utilize their competitive strengths and that designing organizations is a continuous process.Less
As shown through the narrative about BOC's Industrial Gases Division, companies have to adjust to changing environments by being open to innovation, new technology, and collaborating enterprises through undermining geographic boundaries. While competition has evidently become more intense across all industries and business sectors, the need for companies to work on their competitive advantage arises. However, it is also important to note that the methods of attaining such competitive advantage also changes and organizations cannot merely rely on traditional procedures. This chapter introduces how “organizational capabilities”—the ways in which organizations structure and motivate—has proved to be one of the most fundamental sources of competitive advantage. Managers have to understand how to effectively utilize their competitive strengths and that designing organizations is a continuous process.
Graham M. Winch
- Published in print:
- 1994
- Published Online:
- October 2011
- ISBN:
- 9780198288411
- eISBN:
- 9780191684593
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198288411.003.0006
- Subject:
- Business and Management, Organization Studies
Developing from the analysis of context in Chapter 5, this chapter analyzes the various organization designs found amongst the cases. First, it reviews the overall design of the companies and shows ...
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Developing from the analysis of context in Chapter 5, this chapter analyzes the various organization designs found amongst the cases. First, it reviews the overall design of the companies and shows the stability of functional organization. It then presents the evidence for the relative instability of deviations from this form, such as matrix and product orientated organization designs. The argument moves on to suggest that this level of analysis is incomplete, and the discussion reviews the organization designs of manufacturing and engineering separately. Here, a considerable dynamism is found, with major changes in organization design being implemented in most cases within recent years. Matrix organization within the engineering function is the predominant form. Within manufacturing, very different organization designs are reported, with the manufacturing led companies favouring a vertical division of labour between planning and operational functions, while the engineering led companies favour attaching the manufacturing engineering department to the part of the factory that it serves.Less
Developing from the analysis of context in Chapter 5, this chapter analyzes the various organization designs found amongst the cases. First, it reviews the overall design of the companies and shows the stability of functional organization. It then presents the evidence for the relative instability of deviations from this form, such as matrix and product orientated organization designs. The argument moves on to suggest that this level of analysis is incomplete, and the discussion reviews the organization designs of manufacturing and engineering separately. Here, a considerable dynamism is found, with major changes in organization design being implemented in most cases within recent years. Matrix organization within the engineering function is the predominant form. Within manufacturing, very different organization designs are reported, with the manufacturing led companies favouring a vertical division of labour between planning and operational functions, while the engineering led companies favour attaching the manufacturing engineering department to the part of the factory that it serves.
DAVID A. NADLER, michael l. tushman, and mark b. nadler
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780195099171
- eISBN:
- 9780199854868
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195099171.003.0010
- Subject:
- Business and Management, Organization Studies
In the early 1980s, General Motors attempted to implement the GM-10 program, which entailed gathering resources from various aspects of the corporation and establishing a single unit concerned with ...
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In the early 1980s, General Motors attempted to implement the GM-10 program, which entailed gathering resources from various aspects of the corporation and establishing a single unit concerned with the entire process of producing new mid-sized cars to address the increasing competition in the market. However, the company seemingly proved to be incapable of pulling off such a setup since those that comprise GM are protective of its own bounds and resources. Chaos resulted from the attempts that GM made at reconstructing the company into two major groups. As this chapter identifies the mistakes made by GM, it examines the implementation of organization designs, specifically those that address the issue of managing organizational culture.Less
In the early 1980s, General Motors attempted to implement the GM-10 program, which entailed gathering resources from various aspects of the corporation and establishing a single unit concerned with the entire process of producing new mid-sized cars to address the increasing competition in the market. However, the company seemingly proved to be incapable of pulling off such a setup since those that comprise GM are protective of its own bounds and resources. Chaos resulted from the attempts that GM made at reconstructing the company into two major groups. As this chapter identifies the mistakes made by GM, it examines the implementation of organization designs, specifically those that address the issue of managing organizational culture.
NEIL M. KAY
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780199242115
- eISBN:
- 9780191697005
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199242115.003.0012
- Subject:
- Business and Management, Strategy, Organization Studies
This chapter discusses an approach to issues of organization design that helps to develop an integrated perspective dealing with a variety of organizational forms. These include hybrid structures ...
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This chapter discusses an approach to issues of organization design that helps to develop an integrated perspective dealing with a variety of organizational forms. These include hybrid structures such as matrix organization, as well as standard functional and divisional forms of organization. The chapter first examines the role of synergy and complementarity in coordinating resources. It then looks at the problems involved in the decomposition of various strategies into different organization designs. The chapter also reviews some problems posed by the multinational enterprise for organizational design and examines the matrix solution in this context.Less
This chapter discusses an approach to issues of organization design that helps to develop an integrated perspective dealing with a variety of organizational forms. These include hybrid structures such as matrix organization, as well as standard functional and divisional forms of organization. The chapter first examines the role of synergy and complementarity in coordinating resources. It then looks at the problems involved in the decomposition of various strategies into different organization designs. The chapter also reviews some problems posed by the multinational enterprise for organizational design and examines the matrix solution in this context.
Graham M. Winch
- Published in print:
- 1994
- Published Online:
- October 2011
- ISBN:
- 9780198288411
- eISBN:
- 9780191684593
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198288411.003.0004
- Subject:
- Business and Management, Organization Studies
The organization provides the context of change within which implementation occurs. The ‘Greenfield’ site is very much a special case in the diffusion of APM; the vast majority of implementations ...
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The organization provides the context of change within which implementation occurs. The ‘Greenfield’ site is very much a special case in the diffusion of APM; the vast majority of implementations occur within existing organizations. It is, therefore, helpful to have a conceptual framework for understanding those organizations in terms of their structures and processes. This chapter tries to specify a model for understanding the organizational context of implementation. First, the way in which the organization relates to its outer context through the process of strategy formulation is reviewed. As the concern is for the core of the organization dealing with production, concepts derived from the manufacturing and product strategy literatures are deployed to aid understanding of how organizations enact their environments. Then, the main elements of internal process in organizations — flows of information and materials — are analysed to show the ways in which they, too, shape the inner context. These two contingencies are then brought together in an heuristic of the organization of production operations to form the basis for the development of specific measures of contingency deployed in the case analyses that follow.Less
The organization provides the context of change within which implementation occurs. The ‘Greenfield’ site is very much a special case in the diffusion of APM; the vast majority of implementations occur within existing organizations. It is, therefore, helpful to have a conceptual framework for understanding those organizations in terms of their structures and processes. This chapter tries to specify a model for understanding the organizational context of implementation. First, the way in which the organization relates to its outer context through the process of strategy formulation is reviewed. As the concern is for the core of the organization dealing with production, concepts derived from the manufacturing and product strategy literatures are deployed to aid understanding of how organizations enact their environments. Then, the main elements of internal process in organizations — flows of information and materials — are analysed to show the ways in which they, too, shape the inner context. These two contingencies are then brought together in an heuristic of the organization of production operations to form the basis for the development of specific measures of contingency deployed in the case analyses that follow.
Henk W. Volberda
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198295952
- eISBN:
- 9780191685163
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198295952.003.0096
- Subject:
- Business and Management, Strategy, Organization Studies
Significant changes that redefine the competitive environment have driven various organizations to re-examine their organization designs and flexible capabilities. Since an ideal flexible form has ...
More
Significant changes that redefine the competitive environment have driven various organizations to re-examine their organization designs and flexible capabilities. Since an ideal flexible form has yet to be determined and described, managers in contemporary firms have proceeded with different organizational experiments even without models or theories. However, firms in today's hypercompetitive environments have continued to develop and identify new advantages that result in a temporary disequilibrium. New organizational forms are needed so that opportunities may be explored and utilized effectively, strategic focus must be easily changed, and values and norms have to be considered. From the framework illustrated in the previous chapter, we identify three optimal organizational forms that link the competitive environments with effective organization designs and flexibility types.Less
Significant changes that redefine the competitive environment have driven various organizations to re-examine their organization designs and flexible capabilities. Since an ideal flexible form has yet to be determined and described, managers in contemporary firms have proceeded with different organizational experiments even without models or theories. However, firms in today's hypercompetitive environments have continued to develop and identify new advantages that result in a temporary disequilibrium. New organizational forms are needed so that opportunities may be explored and utilized effectively, strategic focus must be easily changed, and values and norms have to be considered. From the framework illustrated in the previous chapter, we identify three optimal organizational forms that link the competitive environments with effective organization designs and flexibility types.
Phanish Puranam
- Published in print:
- 2018
- Published Online:
- July 2018
- ISBN:
- 9780199672363
- eISBN:
- 9780191864292
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780199672363.003.0001
- Subject:
- Business and Management, Organization Studies
Organization design research is a branch of organization science that is concerned with understanding how organizations work in terms of aggregating the actions of their members towards ...
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Organization design research is a branch of organization science that is concerned with understanding how organizations work in terms of aggregating the actions of their members towards organizational goals, and how to make organizations work better. The microstructural approach to organization design abstracts away from the variety and complexity of organizations to a few fundamental and universal problems of organizing (that relate to how they aggregate their members’ efforts), as well as a few reusable building blocks, called microstructures (which capture common patterns of interaction between members of an organization). The complexity and variety of organization designs, this approach claims, can be understood in terms of these simpler elements. I give an overview of the basic ideas of the microstructural approach, and its implications for theory, methodology and practice.Less
Organization design research is a branch of organization science that is concerned with understanding how organizations work in terms of aggregating the actions of their members towards organizational goals, and how to make organizations work better. The microstructural approach to organization design abstracts away from the variety and complexity of organizations to a few fundamental and universal problems of organizing (that relate to how they aggregate their members’ efforts), as well as a few reusable building blocks, called microstructures (which capture common patterns of interaction between members of an organization). The complexity and variety of organization designs, this approach claims, can be understood in terms of these simpler elements. I give an overview of the basic ideas of the microstructural approach, and its implications for theory, methodology and practice.
Phanish Puranam
- Published in print:
- 2018
- Published Online:
- July 2018
- ISBN:
- 9780199672363
- eISBN:
- 9780191864292
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780199672363.001.0001
- Subject:
- Business and Management, Organization Studies
This book synthesizes a decade of research by the author into fundamental issues in organization design. The result is a novel micro-structural perspective on organizations, which aims to both expand ...
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This book synthesizes a decade of research by the author into fundamental issues in organization design. The result is a novel micro-structural perspective on organizations, which aims to both expand and narrow current thinking. The new perspective takes an expansive view on the kinds of phenomena that can be studied in terms of organization design- such as cross–functional teams, strategic partnerships, buyer-supplier relations, alliance networks, mega-projects, post-merger integration, business groups, open source communities, and crowdsourcing, besides traditional concerns with bureaucratic organizations. At the same time, this approach narrows focus by abstracting away from the variety and complexity of organizations to a few fundamental and universal problems of organizing (that relate to how they aggregate their members’ efforts), as well as a few reusable building blocks microstructures (which capture common patterns of interaction between members of an organization). The microstructural approach to organizations will be of interest to researchers and PhD students in management, organization science, and strategyLess
This book synthesizes a decade of research by the author into fundamental issues in organization design. The result is a novel micro-structural perspective on organizations, which aims to both expand and narrow current thinking. The new perspective takes an expansive view on the kinds of phenomena that can be studied in terms of organization design- such as cross–functional teams, strategic partnerships, buyer-supplier relations, alliance networks, mega-projects, post-merger integration, business groups, open source communities, and crowdsourcing, besides traditional concerns with bureaucratic organizations. At the same time, this approach narrows focus by abstracting away from the variety and complexity of organizations to a few fundamental and universal problems of organizing (that relate to how they aggregate their members’ efforts), as well as a few reusable building blocks microstructures (which capture common patterns of interaction between members of an organization). The microstructural approach to organizations will be of interest to researchers and PhD students in management, organization science, and strategy
Phanish Puranam
- Published in print:
- 2018
- Published Online:
- July 2018
- ISBN:
- 9780199672363
- eISBN:
- 9780191864292
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780199672363.003.0004
- Subject:
- Business and Management, Organization Studies
For a given division of labor, (potential) breakdowns of integration can be traced to either motivational or knowledge-related sources (or both). Integration failures arising from coordination ...
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For a given division of labor, (potential) breakdowns of integration can be traced to either motivational or knowledge-related sources (or both). Integration failures arising from coordination problems require managing the need for and/or the extent of predictive knowledge; those arising from cooperation problems require managing the valence of interdependence. A fruitful area for further enquiry awaits the student of organization design at the intersection of these sources of integration failure. I outlined two possible approaches: a closer look at the interactions between knowledge and motivation-related issues, or a coarser bundling of both into the construct of integration. In particular, given the behavioral assumptions of adaptive rationality, thinking of integration of effort as a search problem may be an area of high research potential. It can help understand organizations as “marvels but not miracles”—how boundedly rational designers can nevertheless organize boundedly rational agents towards accomplishing goals.Less
For a given division of labor, (potential) breakdowns of integration can be traced to either motivational or knowledge-related sources (or both). Integration failures arising from coordination problems require managing the need for and/or the extent of predictive knowledge; those arising from cooperation problems require managing the valence of interdependence. A fruitful area for further enquiry awaits the student of organization design at the intersection of these sources of integration failure. I outlined two possible approaches: a closer look at the interactions between knowledge and motivation-related issues, or a coarser bundling of both into the construct of integration. In particular, given the behavioral assumptions of adaptive rationality, thinking of integration of effort as a search problem may be an area of high research potential. It can help understand organizations as “marvels but not miracles”—how boundedly rational designers can nevertheless organize boundedly rational agents towards accomplishing goals.
Nicolai J. Foss and Tina Saebi
- Published in print:
- 2015
- Published Online:
- April 2015
- ISBN:
- 9780198701873
- eISBN:
- 9780191771606
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198701873.003.0001
- Subject:
- Business and Management, Innovation, Strategy
The notions that companies have “business models” that may need to be “innovated” for sustained superior performance have become highly influential in the business world as well as in management ...
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The notions that companies have “business models” that may need to be “innovated” for sustained superior performance have become highly influential in the business world as well as in management research in the strategy and entrepreneurship fields in particular. And yet, issues of organizational design, informal organization, leadership, etc. have not been systematically linked to these discourses, although the business model construct is shot through with such fundamentally “organizational” concerns. This introductory chapter discusses why it is important to link business models and business model innovation to the “organizational dimension,” and discusses the role of organization as an antecedent and moderator of business model innovation, before ending by surveying the various ways in which the chapters in this volume meet the imperative of adding organizational content to our understanding of business model innovation.Less
The notions that companies have “business models” that may need to be “innovated” for sustained superior performance have become highly influential in the business world as well as in management research in the strategy and entrepreneurship fields in particular. And yet, issues of organizational design, informal organization, leadership, etc. have not been systematically linked to these discourses, although the business model construct is shot through with such fundamentally “organizational” concerns. This introductory chapter discusses why it is important to link business models and business model innovation to the “organizational dimension,” and discusses the role of organization as an antecedent and moderator of business model innovation, before ending by surveying the various ways in which the chapters in this volume meet the imperative of adding organizational content to our understanding of business model innovation.
Thomas C. Lawton, Jonathan P. Doh, and Tazeeb Rajwani
- Published in print:
- 2014
- Published Online:
- April 2014
- ISBN:
- 9780199604746
- eISBN:
- 9780191773952
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199604746.003.0006
- Subject:
- Business and Management, Strategy
Chapter 6 draws on organization design literature to inform questions and decisions about the organizational architecture for advancing different nonmarket strategies and suggests that firms with ...
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Chapter 6 draws on organization design literature to inform questions and decisions about the organizational architecture for advancing different nonmarket strategies and suggests that firms with diverse strategic orientations (for instance, low cost or differentiation) may justifiably pursue different approaches. It starts by looking at the managerial function of external affairs and where it sits in an organization. It then describes how newer issues in the nonmarket environment—notably the increasing pressure on firms to engage in corporate social responsibility and sustainability activities—have broadened and changed the structural approach to nonmarket strategy. Finally, it explores the development of internal structures for nonmarket strategy and managerial responsibility for successful political and social strategy, synthesizing the overall discussion to propose an optimal managerial structure and policy and communications functions.Less
Chapter 6 draws on organization design literature to inform questions and decisions about the organizational architecture for advancing different nonmarket strategies and suggests that firms with diverse strategic orientations (for instance, low cost or differentiation) may justifiably pursue different approaches. It starts by looking at the managerial function of external affairs and where it sits in an organization. It then describes how newer issues in the nonmarket environment—notably the increasing pressure on firms to engage in corporate social responsibility and sustainability activities—have broadened and changed the structural approach to nonmarket strategy. Finally, it explores the development of internal structures for nonmarket strategy and managerial responsibility for successful political and social strategy, synthesizing the overall discussion to propose an optimal managerial structure and policy and communications functions.
Daniel Kindström and Christian Kowalkowski
- Published in print:
- 2015
- Published Online:
- April 2015
- ISBN:
- 9780198701873
- eISBN:
- 9780191771606
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198701873.003.0010
- Subject:
- Business and Management, Innovation, Strategy
This chapter examines business model innovation driven by increased service focus. The chapter discusses the external drivers and organizational implications of shifting toward service-based business ...
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This chapter examines business model innovation driven by increased service focus. The chapter discusses the external drivers and organizational implications of shifting toward service-based business models. Driven both by competition and by new customer demands, many firms find themselves moving from their traditional business models based on, primarily, product sales toward business models based on services. As business success in this setting depends as much on such organizational rearrangements (including business model redesign) as it does on new service development, examining the organizational implications of this shift becomes crucial. Hence, the chapter discusses how firms can approach and understand this change to their business models, and also how their organization can become more service-oriented in order to take advantage of the emergent opportunities inherent in this shift.Less
This chapter examines business model innovation driven by increased service focus. The chapter discusses the external drivers and organizational implications of shifting toward service-based business models. Driven both by competition and by new customer demands, many firms find themselves moving from their traditional business models based on, primarily, product sales toward business models based on services. As business success in this setting depends as much on such organizational rearrangements (including business model redesign) as it does on new service development, examining the organizational implications of this shift becomes crucial. Hence, the chapter discusses how firms can approach and understand this change to their business models, and also how their organization can become more service-oriented in order to take advantage of the emergent opportunities inherent in this shift.
