1. Ch. 9: Organizational Agility: The Responsive Organization
Organic structure
An organizational form that emphasizes flexibility
Mechanistic organization
A form of organization that seeks to maximize internal efficiency.

2. Organic Structure
Jobholders have broader responsibilities that change as need arises.
Communication occurs through advice & information rather than orders & instructions.
Decision making and influence are decentralized and informal.
Expertise highly valued.

3. Organic Structure (cont.)
Jobholders rely more on judgment than rules
Obedience to authority less important than commitment to the org. goals
Employees more interdependent, relate more informally & personally

4. Formal Organization Chart
Figure 9.1(a)

5. Advice Network = Knowledge Flow
Figure 9.1(b)

6. Organizing around Core Competencies
Identify existing core competencies
Acquire/build core competencies important for future
Invest in competencies so company stays competitive
Extend competencies to find new applications and opportunities for future

7. Strategic Alliances
A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.

8. Best Alliances
Table 9.1

9. The Learning Organization
An organization skilled at creating, acquiring, transferring knowledge, and at modifying its behavior to reflect new knowledge/insights.

10. Becoming a Learning Organization
Disciplined thinking
Attention to details
Decisions based on data and evidence rather than guesswork and assumptions
Search for new knowledge and ways to apply it
Review successes and failures to find lessons
Benchmark--identify & adopt best practices
Share ideas throughout organization

11. The High-Involvement Organization
A type of organization in which top management ensures that there is consensus about the direction in which the business is heading

12. Organizational Size and Agility
Large organizations tend to be less organic and more bureaucratic
Jobs tend to become more specialized in large organizations
With size comes greater complexity and a need for increased control
Organizations can still find ways to remain agile despite these challenges

13. The Case for Big Larger size helps create economies of scale
Larger size helps develop economies of scope
Economies in which materials and processes employed in one product can be used to make other related products

14. The Case for Small
Large organizations can have difficulty managing relationships with customers and among its own units
Large organizations are more difficult to coordinate and control
Smaller organizations can:
Move fast
Provide quality goods and services to targeted market niches
Inspire greater involvement from their people
Being small can avoid diseconomies of scale

15. Being Big and Small Downsizing Rightsizing
The planned elimination of positions or jobs
Rightsizing
A successful effort to achieve an appropriate size at which the company performs most effectively

16. Downsizing Survivor’s syndrome
Loss of productivity and morale in employees who remain after a downsizing.

17. Customers and the Responsive Organization
The point of structuring a responsive, agile organization lies in enabling it to meet and exceed the expectations of its customers
Managers must stay focused in three key ingredients - the strategic triangle
The company itself
Competition
The customer

18. The Strategy Triangle
Figure 9.2

19. Customer Relationship Management
CRM
A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns.

20. Customer Relationship Management
Value chain
The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.

21. Generic Value Chain
Figure 9.3

22. Total Quality Management
Total quality management (TQM)
An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services.

23. ISO 9001 A series of quality standards
Developed by committee under International Organization for Standardization
To improve total quality in all businesses
For the benefit of producers and consumers.

24. Reengineering Reengineering
Revolutionizing key organizational systems and processes to answer the question: “If you were the customer, how would you like us to operate?”
Processes are designed from scratch as if the organization was just starting out

25. Types of Technology Configurations
Small batch
Technologies that produce goods and services in low volume.
Large batch
Technologies that produce goods and services in high volume.
Continuous process
A process that is highly automated and has a continuous production flow.

26. Organizing for Flexible Manufacturing
Mass customization
The production of varied, individually customized products at the low cost of standardized, mass-produced products.

27. Key Features in Mass Customization
Table 9.2

28. Computer-Integrated Manufacturing
CIM
Use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes.

29. Flexible Factories Manufacturing plants With short production runs,
Organized around products,
Use decentralized scheduling.

30. Lean Manufacturing
An operation that strives to achieve highest possible productivity and total quality, cost effectively,
By eliminating unnecessary steps in production process and continually striving for improvement.

31. Organizing for Speed Time-based competition (TBC)
Strategies aimed at reducing total time needed to deliver a good or service.

32. Time-Based Competition
Logistics
The movement of the right goods in the right amount to the right place at the right time

33. Time-Based Competition
Just-in-time (JIT)
A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.

34. Just-in-time (JIT) Elimination of waste Perfect quality.
Reduced cycle times.
Employee involvement
Value-added manufacturing
Discovery of problems and prevention of recurrence

35. Time-Based Competition
Simultaneous engineering
Design approach
All relevant functions cooperate jointly and continually in max effort
Aimed at producing high-quality products that meet customers’ needs.