1. 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

2. 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

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

4. 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

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

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

7. 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)

8. 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

9. 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

10. 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

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

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

13. 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

14. 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