Summary Designing effective organizations : how to create structured networks Book cover image

Summary Designing Effective Organizations : How To Create Structured Networks

- Michael Goold, et al
ISBN-10 0787960640 ISBN-13 9780787960643
352 Flashcards & Notes
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A snapshot of the summary - Designing effective organizations : how to create structured networks Author: Michael Goold Andrew Campbell ISBN: 9780787960643

  • 1 Structured Networks

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  • What is according to G&C a 'structured network'?
    An organization with the maximum of self-management, but with sufficient structure and hierarchy to work well.
  • To develop a structured network, G&C have an approach to corporate organization design. Which 3 components does this approach includes?
    1 Nine tests of good design: to highlight the weaknesses of, and refines the design
    2 A taxonomy thats help to describe and discuss different design options with more clarity. And to develop alternatives.
    3 A process that can be followed when managers are facing a design challenge. This helps them to achieve the structured network.
  • 1.1 Nine design tests

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  • On which basics is G&C's framework grounded?
    1 The fit concept, with 4 drivers of fit: product-market strategies, corporate strategies, people and constraints
    2 5 good design principles, for optimal org. design: specialization, co-ordination, knowledge and competence, control and commitment, and innovation and adaptation principle.
  • 1.1.1 The fit test

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  • The 4 fit drivers (product-market strategie, corporate strategie, people, constraints) lead to 4 fit tests, which 4?
    1 The market-advantage test: does the design allocate sufficient management attention to the operating priorities and intended sources of advantage in each product-market area?
    2 The parenting advantage test: does the design allocate sufficient attention to the intended sources of added value and strategic initiatives of the corporate parent?
    3 The people test: Does the design adequately reflect the motivations, strengths, and weaknesses of the available people?
    4 The feasibility test: does the design take account of the constraints that may make the proposal unworkable?
  • 1.1.2 The good design tests

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  • The knowledge and competence principle is concerned with delegation: responsibilities should be allocated to the person/team best placed to assemble the knowledge/competence. Which practical tests follows from this principle?
    The redundant hierarchy test: are all levels in the hierarchy and all responsibilities retained by higher levels based on a knowledge and competence advantage?
  • The control and commitment principle concerns 2 challenges: how to maintain appropriate control and how to insure high levels of motivation? Units should feel strong pressured to self-correct, and parent-level management should be able to identify problems easily. To which test does this leads?
    The accountability test: does the design facilitate the creation of a control process for each unit that is appropriate to the unit's responsibilities, economical to implement, and motivating for the managers in the unit?
    >> Helps managers to design units and establish performance measures that produce effective, low-cost controls that are highly motivating.
  • The innovation and adaptation principle states that structures should be designed to innovate and adapt as uncertainities become clarified and environments change. It has to cope with the conditions of tomorrow. Which leads to the test:
    The flexibility test: will the design help to the development of new strategies and be flexible enough to adapt to future changes?
  • 1.1.3 Using the tests

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  • What are the reasons for using the tests?
    -Test which advantages the different designs have
    -Clarifie the issues of an organization
    -Pointing out Trade offs and weak points in a design
    -Way pros/cons and provide a rigorous analytical structure for making design choices
  • 1.3 The design process

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  • Which 3 essential steps need to be addressed in the design process of G&C?
    1 One or more proposed designs or design concepts need to be developed
    2 The preferred option(s) need to be tested and refined
    3 The chosen design then needs to be finalized to aid communication and implementation
  • 1.3.3 Communicating the design

  • Once a design option has been tested, refined and chosen, the design process is alsmost complete. But the following step is ' communication', describe this step:
    Are the role definitions, policies, processes, and mechanisms described in a way that will allow unit managers to start work without further guidance? The previous steps were 'just enough'. This stept helps managers to understand what is intented. 

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