Summary Designing effective organizations : how to create structured networks

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ISBN-10 0787960640 ISBN-13 9780787960643
352 Flashcards & Notes
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This is the summary of the book "Designing effective organizations : how to create structured networks". The author(s) of the book is/are Michael Goold Andrew Campbell. The ISBN of the book is 9780787960643 or 0787960640. This summary is written by students who study efficient with the Study Tool of Study Smart With Chris.

Summary - Designing effective organizations : how to create structured networks

  • 1 Structured Networks

  • De auteurs benaderen organisationeel design vanuit drie componenten;
    1. Nine tests of good design
    2. Taal in de vorm van een taxonomie die verschillende rollen en relaties duidt
    3. Voorstel voor een procedure die managers kunnen volgen wanneer zij een design challenge tegenkomen. 

  • Een stuctured network heeft de kenmerken van een netwerk - units die zichzelf managen, zowel in belsuitvorming als in hun relatie met andere units. Maar wel met net genoeg structuur en hierarchie om er voor te zorgen dat verantwoordelijkheden en relaties duidelijk zijn en managers succesvol kunnen samenwerken. Mogelijkerwijs kan hierdoor de strategie op een doelmatige wijze worden doorgevoerd. 

    Het doel van de auteurs is om de managers hun organisatie zo te ontwerpen dat deze lijkt op de markt, maar wel meer waarde creert dan de markt. Dus een structured network is een design waarin waarde creatie centraal staat en waardeverlies wordt gemininmaliseerd. 
  • 1.1 Nine design tests

  • Wat zijn de belangrijke elementen voor organisationeel design?
    Verantwoordelijkheid voor het positioneren van de units
    Rapportage en laterale relaties
    Verantwoordelijkheden voor units
    Sleutel-rapportage en coordinatieprocessen
  • Auteurs beschrijven vier drijfveren achter fit. 
    1. Product-marketstrategies
    2. Corporate strategy
    3. People
    4. Constraints
    Daarnaast beschrijven ze vijf design principles van goed design. 
    1. Specialization principle
    2. Co-ordination principle
    3. Knowledge and competence principle
    4. Control and commitment principle
    5. Innovation and adaptation principle
  • 1.1.1 The fit test

  • Er worden vier fit tests besproken, noem deze.
    1. Market advantage test
    Heeft het design voldoende oog voor prioriteit m.b.t operations en de mogelijke bronnen van voordeel in een product-markt gebied.
    2. The parenting advantage test
    Heeft het design voldoende oog voor de mogelijke bronnen van toegevoegde waarde en strategische initiatieven van de corporate parent
    3. The people test
    Reflecteert het deisgn adequaat de motivaties, sterktes en zwaktes van de beschikbare mensen
    4. The feasibility test
    Heeft het design oog voor de beperkingen die het voorstel onwerkbaar maken?
  • 1.1.2 The good design tests

  • Het specialisatie en coordinatie principe hebben beide te maken met de grenzen tussen units. De eerste pleit voro grenzen ter ontwikkeling van gespecialiseerde vaardigheden. Het tweede principe geeft aan dat activiteiten die moeten worden gecoordineerd bij elkaar moeten zitten in een unit. Er zijn vaak wel trade -offs tussen beide. 
  • Noem de verschillende tests die zijn verbonden aan de good design priciples
    1. Specialists cultures test
    2. Difficult links test
    3. Redundant hierarchy test
    4. Accountability test
    5. Flexibility test
  • 1.1.3 Using the tests

  • Wat zijn de redenen voor het gebruik van de tests?
    Bekijken van voordelen tav verschillende typen design
    Opbrengen van issues binnen de organisatie
    Trade offs 
    Maken van keuzen mbt design
  • 1.2 A language for describing organization designs

  • Terminologie in design vaak ambigue. Het is het best als de naam van de unit de intentie achter het design onthult. Noem de verschillende begrippen die de unit tyoes aanduiden en leg uit wat ze inhouden 
    1. Business Unit
    Market focused, profit responsible with relatively high decision making autonomy
    2. Business functions
    Operating functions, such as manufacturing that report to a business unit general manager
    3. Overlay Units
    Market focused units serving segments defined along dimensions that cut across the business units
    4. Sub-businesses
    Market focused units that serve segments defined at more disaggregated level than the business units
    5. Core resource units
    units that develop and nurture scare resources
    6. Shared service units
    Units which provide services that are needed by several other units in the company
    7. Project units
    Units which carry out tasks or projects that cut across other units, normally for a finite time period
    8 .Parent units
    Upper level units that carry out obligatory corporate tasks, and influence and add value to other units

  • 1.3 Creating and selecting design concepts

  • De auteur stellen drie stappen voor tbv het proces ter ontwikkeling van een design. Noem deze.
    Vaak vinden CE's het lastig aan te geven waarom de structuur is zoals is hij is. Ze kunnen vaak wel aangeven hoe ze tot de structuur gekomen zijn. 
    1. Er moeten een of meer design opties worden geformuleerd
    2. De opties moeten worden getest een eventueel worden bijgeslepen
    3. het gekozen design moet worden gefinaliseerd om vervolgens te worden gecommuniceerd en geïmplementeerd. 
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Describe the relevance of parenting concepts:
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Describe the (dis)advantages of interdependent structures
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Name the (dis)advantages of the SBU-based structure.
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The taxonomy of G&C embraces 8 different unit types. Describe them
1 Business-units: market-focused, profit-responsible units with relatively high decision-making autonomy
2 Business functions: operating functions, such as sales, that report to a business unit general manager
3 Overlay units: market-focused units serving segments defined along dimensions that cut across the business units
4 Sub-businesses: market-focused units serve segments defined at a more disaggregated level than the business units.
5 Core resource units: units that develop and nurture scarce resources, such as R&D, that are key to competitive advantage for several business units
6 Shared service units: units which provide services that are needed by several other units in the company
7 Project units: units which carry out tasks or projects that cut across other units, normally for a finite (beperkte) time period
8 Parent units: upper-level units that carry out obligatory corporate tasks, and influence and add value to other units.
Bundling resources is the process by which capabilities are formed. Resources within the portfolio are bundled to create capabilities. With each capability being a unique combination of resources allowing the firm to take specific actions that are intended to create value for customers. Which 3 actions can they take (S,H&I):
1 Stabilizing: minor incremental improvements in existing capabilities. Creating value under low environmental uncertainty and high environmental munificence (vrijgevigheid).
2 Enriching: extend/elaborate current capability: create new value or maintain current value created in high uncertain environments.
3 Pioneering: integration of completely new resources or recombination of existing resources. The need of new capabilities is more pronounced in uncertain environments, to exploit opportunities that fleet in dynamic environments.
The notion of boundaries based on assumptions is critical because it sets the limitations in applying the theory and restrict the generalizability. These assumptions are about values, time and space. Describe those 3 assumptions:
1 Values: can often be revealed by psychoanalytic/historical/ideological studies of the theorist
2 Spatial (space) boundaries restrict the use of the theory to specific units of analysis (e.g. specific types of organizations)
3 Temporal (time) boundaries specify the applicability of a theoretical system.
What is the danger of not knowing the transacting partner, thus asymmetrical information? (W&Z)
The firm faces a greater risk of opportunistic behavior by its partner. Whereas repeated interaction allow two firms to better know each other, what reduces information asymmetry. This also developed trust and repeated transaction will also develop relational-specific absorptive capacity. They are able to identify critical knowledge to be learned from each other and even develop interfirm knowledge-transfer routines to facilitate the learning process.
When joining in all the activities seems the best option, why do firms isolate R&D activities from other aspects of the process? (O&S)
The risk of partner opportunism limits the knowledge-sharing what will reduce the alliance scope. When the alliance purely is R&D, partners are able to partition (afscheiden) the activities such that the exposure of a firm's (tacit) knowledge/skills/routines is relatively small. Contractual safeguards can control the exposed knowledge.
Establishing a company's dedicated alliance function contributes of making alliance management more professional and improve alliance management capabilities. What are, according to Hoffmann, the tasks of the center of competence of alliance management?
To formalize core alliance management processes, to standardize alliance management tools critical for success, and to create an infrastructure (e.g. IT platforms) so that experiences in managing alliances can be collected, shared and diffused systematically throughout the organization. A center of competence can improve internal coordination and resource support of alliances as well as monitor and evaluate alliance performance.
By defining features of IJV's that are unique to this organizational form, the tension already rises. This influences the extent of involvement of their boards. What is this tension? (RK&L)
1 IJV's are JV's: organisations owned by 2 or more independent firms working together under an incomplete contract. IJV's can be subject to exchange hazards in collaborations, so board involvement is valuable in controlling and coordinating IJV activities for parent firms.
2 The international aspect of IJV's indicates that the JV operates in a different host country and joins parents firms from different nations. International collaboration can make it the board difficult to monitor performance and its causes and to make appropriate policy/staffing etc. It can be efficient to delegate authority to local management.

Tension between: need for administrative control to monitor and coordinate vs value of delegating to local management.