5 EFFECTIVENESS Definitions GOALEFFECTIVENESSEFFICIENCYEx. Volumen of output, profit, costumer satisfaction, dividends...The degree to which an organization realises its goals.Meeting outputs schedules.The capacity to adapt to changing environments.Quantitative dimensionThe ratio of inputs to outputs in a process or organisation.
6 APPROACHES TO EFECTIVENESS THE SYSTEMS RESOURCE APPROACHTHE INTERNAL PROCESS APPROACHCOORDINATIONTHE GOAL APPROACHTHE STAKEHOLDER APPROACHINTEREST GROUPS IN THE ORGANISATIONTHE INTEGRATIVE APPROACH
7 THE SYSTEM APPROACH External Environment vs. Internal Environment Sub-Environments:Social ; Technical; Political ; EconomicFunctional Systems:Financial, Marketing, Operations, Human Resource....OrganizationalSystemINPUTSOUTPUTS
8 ORGANIZATIONAL BEHAVIOR THE INTERNAL APPROACHORGANIZATION DESIGNSUPERVISORS & STRUCTUREGOOD TEAM SPIRITCONFIDENCE AND TRUSTLOCAL DECISION MAKINGCOMMUNICATIONCONFLICT RESOLUTIONINTEGRATIONORGANIZATIONAL BEHAVIOR
10 THE STAKEHOLDER APPROACH LocalAuthorityGOVERNMENTMediaCOMMUNITYOther firmsEmployeesORGANIZATIONClientsBanksConsumersUniversitiesOWNERSSuppliersInsuaranceCompanies
11 AN INTEGRATIVE MODEL OF EFFECTIVENESS ENVIRONMENTThe economyCompetitionResourcesINTERNAL EFFECTIVENESSCapacityTechnologyPhysical conditionsSystems and structureGroups and intra-group relationsLeadershipINDIVIDUAL EFFECTIVENESSAbilityExpectations, outcomesRewardsOrganizationalEffectiveness
13 INNOVATION Innovation Invent + Commercialization Open innovation: the use of purposive inflows and outflows of knowledge to accelerate internal innovation and to expand the markets for external use of innovation, respectively”. (Chesbrought 2003)
15 INNOVATION Types of innovation, OCDE- Oslo Manual-2005: PRODUCT INNOVATIONSPROCCESS INNOVATIONSORGANIZATIONAL INNOVATIONSMARKETING INNOVATIONS
16 EXPLORING AND EXPLOITING INNOVATION The Roman god Janus had two sets of eyes—one pair focusing on what lay behind, the other on what lay ahead.TOMORROW VS. TODAY BUSINESSEXPLORING AND EXPLOITINGINNOVATION AND EFFECTIVENESAmbidextrous Organizations:
17 The Innovation Paradox Sometimes organizational "support" kills good new ideas. Entrenched ways of doing things and bureaucratic caution can and do discourage innovation in organizations, but even organizational support for new ideas can be a mixed blessing.How should the designed the organizations to promote INNOVATION?
19 ORGANISATIONAL STRUCTURE The fundamental and relatively unchanging features of an organisation which are officially sanctioned by those who control it and consist of the way activities and component parts are grouped, controlled and coordinated in order to achieve specific aims and outcomes.
21 MACRO AND MICRO STRUCTURE MACRO STRUCTUREExpresses the general form of structure and what is expected of organisational members.Organizational Chart, Board Committes, Planning & Control Procedures, Departmentation, Coordination-MechanismMICRO STRUCTURE: OPERATING MECHANISMSIndicates in greater detail what is expected of individuals in a structure.Job Descriptions, Training & Development, Staff Appraisal, Control & Operating Procedures
22 ORGANISATIONAL DESIGN It consists of a body of knowledge that provides guidelines for designing appropriate structures.
24 ORGANISATIONAL DESIGN THEORY CLASSICAL APPROACHTAYLORFAYOLMAX WEBER AND BURAUCRACYCONTINGENCY THEORYORGANISATIONAL SIZETECHNOLOGYENVIRONMENTCULTURE, STRATEGYSTRUCTURALCONFIGURATION:ORGANIC vs.MECHANICORGANIZATION
25 CLASSICAL APPROACH TAYLOR THE FATHER OF THE SCIENTIFIC MANAGEMENT CONSULTING ENGINEERINCREASING EFFICIENCY IN PRODUCTIONNOT ONLY TO LOWER COSTS AND RAISE PROFITS, BUT ALSO TO MAKE POSSIBLE INCREASED PAY FOR WORKERS THROUGH HIGHER PRODUCTIVITY.THE PRINCIPLES OF SCIENTIFIC MANAGEMENTREPLACING RULES OF THUMB WITH SCIENCE (ORGANIZED KNOWLEDGE)OBTAINING HARMONONY IN GROUP ACTION, RATHER THAN DISCORDACHIEVING COOPERATION OF HUMAN BEINGS, RATHER THAN CHAOTIC INDIVIDUALISMWORKING FOR MAXIMUM OUTPUTDEVELOPING ALL WORKERS TO THE FULLEST EXTENT POSSIBLE FOR THEIR OWN AND THEIR COMPANY’S HIGHEST PROSPERITY!!! DESIGN WORK SYSTEM. SPECIALIZATIONOTHER AUTHORS: GANTT, GILBRETH
26 CLASSICAL APPROACH FAYOL ( MODERN MANAGEMENT THEORY) ACTIVITIES OF A FIRM:THECNICAL: PRODUCTIONCOMMERCIAL: SELLING AND EXCHANGEFINANCIAL: SEARCH FOR OPTIMUM USE OF CAPITALSECURITY: PROTECTION OF PROPERTY AND PERSONSACCOUNTING: INCLUDING STATISTICSMANAGERIAL: PLANNING, ORGANIZATION, COMMAND, COORDINATION AND CONTROL.
27 FAYOL’S PERSPECTIVEDivision of work: Specialization of managerial as well as technical workAuthority and responsibility: He sees both of them as a combination of official (position) and personal ( intelligence, experience, moral growth, past service, etc.) factors.Discipline: Discipline as “respect for agreements which are directed at achieving obedience, application, energy, and the outward marks of respect.Unity of command and direction: Employees should receive orders from one superior only. Each group of activities have the same objetive and the same plan.Subordination of individual to general interestRemuneration : Fair and to satisfay employees and employers.CentralizationScalar chain: Chain of superiorsOrder: Material and social order. “A place for everything and everyone”-Equity: Justice when dealing with subordinatesStability of tenureInitiative: It is one of the “keenest satisfaction for an intelligent man”Esprit of corps: “In union there is strenght”. The need for teamwork and the importance of communications in obtaining it.
28 CLASSICAL APPROACH MAX WEBER AND BUREAUCRACY THREE BASIC FORMS OF AUTHORITY:CHARISMATIC:TRADITIONALRATIONAL-LEGALIDEAL TYPE BUREACRACYSPECIALISATIONHIERARCHYRULESIMPERSONALITYAPPOINTMENTPROGRESSIONEXCLUSIVITYSEGREGATIONACCURATE WRITTEN RECORDSCRITICS: GOAL DISPLACEMENT, FRUSTRATION
29 THE CONTINGENCY APPROACH THE MOST APPROPRIATE STRUCTURE FOR AN ORGANISATION IS ONE THAT MATCHES ITS PARTICULAR CIRCUMSTANCE.CONTINGENCY FACTORS:ORGANIZATIONAL SIZE, ORG. AGETECHNOLOGYENVIRONMENTOTHERS: STRATEGY, CULTURE, POWER, KNOWLEDGE SYSTEM.
30 THE CONTINGENCY APPROACH MECHANISTIC ORG.BUREAUCRACYRigid structureEnvironment : StableSpecializationHierarchic structuresPrecise definitions of rights, obligations and technical methodsKnowledge is located at the top of the organization.LoyaltyGoverned by superiorsVertical relationshipsEFFICIENCYORGANIC ORG.Fluid sets of arrangementsEnvironment: TurbulentSpecial knowlege is valued.Continual redifinition of individual taskSpread of commitmentNetwork structure of control authority.Communication consists of information and advice rather than instructions and decisionsFLATTER ORG. AND LOWER DEGREES OF SPECIALISATION, CENTRALISATION OF AUTHORITY AND STANDARDISATION.INNOVATION
31 ORGANIC vs. MECHANISTIC InnovationFormalizationSmall close knit groupsInformal organizationLarge specialized groupsHierarchical organization
34 CONTEMPORARY TRENDS GLOBALISATION: CUSTOMER RELATIONS AND ADAPTABILITY:FLEXIBLE SPECIALISATIONADVANCED TECHNOLOGY: COMPUTER INTEGRATED MANUFACTUREHUMAN RESOURCES: TQM, JIT. FEWER ROUTINE JOBS.TEAMWORKDOWNSIZING, RIGHTSIZING AND DELAYERING: FLATTER HIERARCHIESBUSINESS PROCESS RE-ENGINEERING: New radical approaches to organisational designsWORKPLACE CHALLENGES: Heteregeneous and diverse working population and working arrangementsTHE CHALLENGE OF ETHICS: ROLE REQUIREMENTS: Personality and role of the jobLEARNING ORGANISATIONS: Every experience is regarded as a learning opportunity. Thus experimentatios is encouraged