The “New” Organization Objectives: INTRODUCTION OF THE KEY CONCEPTS IN UNDERSTANDING ORGANIZATIONS TO PUT THOSE CONCEPTS INTO THE CONTEXT OF MANAGEMENT CHALLENGES TO BUILD THE ABILITIES IN EXPERIENTIAL LEARNING

What Are Typical Features of Traditional (Old) Model of the Organization? (Model = Organizational Structure) Based on: Specialization Division of Work (See F.W. Taylor, M. Weber, H. Fayol) Specialized individual positions & jobs Formal hierarchy of these positions & jobs Formal rules & standard operating procedures Set boundaries for each department Clear boundaries btw. the org. & its environment Standardized training procedures A clear chain of command

…A Bureaucratic Model BASED ON THESE FEATURES THE OLD MODEL OF THE ORGANIZATION WE USED TO CALL A BUREAUCRATIC MODEL

A Bureaucratic Model Advantages: PREDICTABILITY & RELIABILITY IMPARTIALITY (See Weber’s Impersonality) EXPERTISE (Based on specialization) CLEAR LINES OF CONTROL Disadvantages: RIGID BARRIERS BETWEEN DEPARTMENTS BARRIERS BETWEEN THE ORGANIZATION & ENVIRONMENT ALMOST ALL ADVANTAGES CAN TURN INTO DISADVANTAGES IF THE ENVIRONMENT CHANGES

Changes/Trends in the Environment TECHNOLOGY WORK FORCE (PEOPLE) LEGAL ENVIRONMENT ECONOMIC TRENDS CUSTOMERS COMPETITORS, etc.

Typical Features of the New Model of the Organization NETWORKED FLAT FLEXIBLE DIVERSE GLOBAL / INTERNATIONAL

Flat MORE FLEXIBLE (to respond to changes in the market) CHANGED ROLE OF MIDDLE MANAGERS (information technology) THE WAY HOW TO CUT COSTS AND IMPROVE PRODUCTIVITY (to become more competitive)

Flexible CAPABILITY TO SATISFY CUSTOMERS’ NEEDS (tailoring products and services according to needs of the customer - competitive advantage) DIVERSE LABOR FORCE (internal environment) UNPREDICTABLE CHANGES IN THE EXTERNAL ENVIRONMENT

Diverse Growing  diversity of the workforce (more women, more international, etc.) Greater need for innovation Need to recognize and tolerate the culture of other organizations, WILLINGNESS to value it

Global / International COSTS REDUCTION (to make and sell the products and parts in a particular market ­country) How about low-wage countries? GROWING EQUALIZATION (newly industrializing societies as new competitors) GLOBALIZATION OF MARKETS

How to Get to the New Model Downsizing Team organization Building a new strategy (including definition of a competitive advantage)

Skills Needed in Order to Get to the New Model Individual Organizational Environmental Interaction

Skills Needed by Managers Organizational Challenges Organizational Characteristics Developing Individual Skills Managing the Organization Managing the Environment Networked Teamwork Team Structure Alliances Cooperation/ Competition Flat Negotiation Incentives/ Careers Boundaries Flexible Multitasking Workforce Management Learning Diverse Listening /Empathy* Conflict Resolution Stakeholders Global Cross-cultural Communication Cross-border Integration Local Responsiveness *EMPATHY = THE ABILITY TO UNDERSTAND FEELINGS OF OTHER PEOPLE

Summary: Features of the Old & New Model of the Organization OLD MODEL Individual position/job as basic unit of organization Relations with environment handled by specialist boundary spanners Vertical flows of information Decisions come down, info flows up Tall (many management levels) Emphasis on structures Emphasis on rules & standard procedures Fixed hours, long hours Career paths upward, linear Standardized evaluation & reward systems Single strong culture with strong expectations of behavior Individuals specialized & focused Environment defined in terms of country of location, ethnocentric NEW MODEL Team as a basic unit Densely networked with environment Horizontal and vertical flows of information Decisions made where information resides Flat (few layers of management) Emphasis on processes Emphasis on results & outcomes Flexible workday, part-time positions common Career paths flexible, lateral Customized evaluation & reward systems Diversity of viewpoints & behaviors Organization specialized & focused Environment seen as global, international