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©2001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-1 1 Chapter Thirteen Contemporary Trends in Organization.

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Presentation on theme: "©2001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-1 1 Chapter Thirteen Contemporary Trends in Organization."— Presentation transcript:

1 ©2001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e Chapter Thirteen Contemporary Trends in Organization Design ©2001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e

2 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-2 Factors Associated with Organizational Excellence Strategic Orientation Close to the customer Fast response Clear business focus and goals Establishing inter-organizational linkages Top Management Leadership vision Bias toward action/ change/learning Foundation of core values Facilitating knowledge management Corporate Culture Climate of trust Sharing information Productivity through people Long-term view Valuing adaptation and learning Organization Design Simple form, lean staff Empowerment to increase entrepreneurship Horizontal structure and collaboration Electronic technology, e-commerce Balanced measurement and control

3 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-3 Four Stages of International Evolution I.DomesticII.InternationalIII.MultinationalIV.Global StrategicOrientation Domesticall y oriented Export- oriented, multidomestic MultinationalGlobal Stage of Development Initial foreign involvement Competitive positioning ExplosionGlobal Structure Domestic structure plus export department Domestic structure plus international division Worldwide geographic, product Matrix, trans- national MarketPotential Moderate, mostly domestic Large, multidomestic Very large, multinational Whole world Sources: Based on Nancy J. Adler, International Dimensions of Organizational Behavior (Boston: PWS-KENT, 1991), 7-8; and Theodore T. Herbert, Strategy and Multinational Organization Structure: An Interorganizational Relationships Perspective, Academy of Management Review 9 (1984):

4 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-4 Matching Organizational Structure to International Advantage When Forces for Global Integration are... And Forces for National Responsiveness are... StrategyStructure LowLowExport International Division HighLowGlobalization Global Product Structure LowHighMultidomestic Global Geographic Structure HighHigh Globalization and Multidomestic Global Matrix Structure

5 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-5 Domestic Hybrid Structure with International Division Scientific Products Division Research & Development Human Resources Medical Products Division Europe (Sales) Electrical Products Division Corporate Finance CEO International Division Brazil (Subsidiary) Mid East (Sales) Staff (Legal, Licensing)

6 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-6 Partial Global Product Structure Used by Eaton Corporation EngineeringPresidentInternational Law & Corporate Relations Chairman Finance & Administration Regional Coordinators Global Automotive Components Group Global Industrial Group Global Instruments Product Group Global Materials Handling Group Global Truck Components Group Source: Based on New Directions in Multinational Corporate Organization (New York: Business International Corp., 1981).

7 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-7 Global Geographic Division Structure CEO Pacific Division European Division Latin American Division Canadian Division Corporate Staff Long-term Planning Product Coordinators

8 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-8 Global Matrix Structure International Executive Committee Power Transformers GermanyNorway Argentina/ Brazil Spain/ Portugal Transportation Industry Business Areas Country Managers Local Companies

9 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e 13-9 The Empowerment Continuum High Low Degree of Empowerment Employee Skills Required Many and ComplexFew Participate In Decisions Have no Decision Discretion Give Input Make Decisions Responsible For Decision Process and Strategy Mini-Enterprise Units Job Redesign/ Enrichment Quality Circles Self-Directed Teams Cross- functional Teams Participation Groups Suggestion Programs Sources: Based on Robert C. Ford and Myron D. Fottler, Empowerment: A Matter of Degree, Academy of Management Executive 9, no. 3 (1995): 21-31; Lawrence Holpp, Applied Empowerment, Training (February 1994): 39-44; and David P. McCaffrey, Sue R. Faerman, and David W. Hart, The Appeal and Difficulties of Participative Systems, Organization Science 6, no. 6 (November-December 1995):

10 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e Stages of Organizational Decline BlindedBlinded InactionInaction Faulty ActionFaulty Action CrisisCrisis DissolutionDissolution

11 ©20001 South-Western College Publishing Cincinnati, Ohio Daft, Organizational Theory and Design, 7/e Creating a Learning Organization Aspects of the ideal learning organization Typical behaviors of this aspect Results of these behaviors Blocks to achieving these results Measures of progress EXAMPLE: Employees feel the work they do has meaning They display energy and enthusiasm when they work The team is more motivated and new ideas are generated There is a lack of clarity on how tasks help fulfill mission Employees talk about how they are fulfilling an important mission Workbook Activity


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