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. 

  • 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.
  • 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. 
  • 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

  • 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
  • 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.
  • 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?
  • 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

  • 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. 
  • The specialization (boundaries should exist to encourage development of skills) and co-ordination (activities need to be located within  a single unit) principle both concern the boundaries between units. Describe the 2 tests which make those principles more precise and useful:
    1 Specialist cultures test: do any 'specialist cultures', units with cultures that need to be different from the sister units and above, have sufficient protection from the influence of the dominant culture?
    >> Attention on the dangers of suppressing/damaging activities that fall outside the mainstream corporate culture.
    2 Difficulty links test: does the organization design call for any difficult links, co-ordination benefits that will be hard to achieve on a networking basis, and does it include solutions that will eas the difficulty?
    >> Assess which coordination benefits will be difficult to achieve if left to the network: whether and how can difficulties be overcome (bijv. ene wordt gemakkelijk overdragen via netwerk, ander moet gestructureerd worden).
  • 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
  • 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?
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