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INTRODUCTORY SESSION:
Organizational Structure, Theory, & Practice
Dr. Jennifer A. HARRISON Assistant Professor
Human Resources & Organization
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lundi 21 septembre 2015 2
About Me?
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Where can you find me?
Contact Details Jennifer.Harrison@neoma-bs.fr s. Jennifer.harrison79 t. @HarrisonJAA Office: A-236 Office Hours: By appointment; Tuesday 10-12pm
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lundi 21 septembre 2015 4
Course Expectations and Structure
Course Outline -- components
Style Formality
Interactive – expect questions
Email etiquette; Questions about welcome correspondence
Classes 2 parts: 1. Lecture 2. Group, project-coaching
Questions about previous week at beginning of each lecture – questions important to address for the class
Text book – do you need to purchase the text book?
Lecture slides, at the end of each class
At the end of the lecture …
Weekly media comments sign up
Attendance , name and email
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lundi 21 septembre 2015 5
Programme Week 1: Organisation Structure & Theory
Week 2: Organisation Structure & Theory
Week 3: Power in Organisations
Week 8: HR Week 9: Performance evaluation +
Group Presentations Week 10: International HRM +
Group Presentations
Week 4: Leaders & Managers
Week 5: Motivation in the workplace
Week 6: Team Dynamics
Week 7: Change Management
Macro
Micro
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lundi 21 septembre 2015 6
You will be evaluated in 3 ways
10% 40%
50%
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What is your name, year and program?
Why are you taking this course?
Have you worked before? Where?
What do you hope to achieve?
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Why study Human Resources & Organization?
• Because it will help you in your professional life
HR function increasingly headed by non-specialists
• Because you have no choice
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lundi 21 septembre 2015 10
Today…
• Organizations and Organization Theory
1. Organizations
a) Organizations as systems
b) Organizations as structures
- Different components
- Coordination mechanisms
- Social Structures
- Organizational Design
- Physical Structures
- Organizational cultures
2. Organization Theory
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ORGANISATIONS AS SYSTEMS
The individual in (large) organisations
Limited rationality and the need for investigation
Observation and management
• Definitions
• Organisational Complexity
• Coordination Imperatives
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Definitional issues
• Why study organizations?
Because we live in an “organsation society”
Purposeful systems characterised by coordinated action towards an objective
•Organizations => rules => regularity of behaviour
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Looking inside & outside
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lundi 21 septembre 2015 14
Organizations: complex systems
• An organization is complex
– Because lot of people work together
– Lots of elements in interaction
Framework
Clock
Plant Low level organism
The Human factor
Greater complexity…
Organization
Degree of complexity
of the system
Boulding, 1956; Bertalanffy, 1968
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lundi 21 septembre 2015 15
Humans & non-Humans
•Need to combine and harmonize workflow and human/social aspects
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Organizational Environment
economic
legal
Socio-cultural
ecological
Technological
political
Demographic
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Organizations: Complex & Open Systems
• Because…
they operate in diverse environments and are constrained by these (laws )
need to get away from closed system thinking
they are dependent on the environment
the environment is unstable and rapidly changing
they work with multiple actors whose interests diverge but are legitimate.
• Is organization-environment interaction a one-way process?
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Your own Experiences ?
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Organizations: A Stratified Entity
• Four types of segmentation
M
entation
It creates distinct personal and professional interests
• Segmentation neither neutral nor technical
• positive and negative dimensions.
• Examples
Social
Categorial
Functional
Organizational
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Competing rationalities
• An organization = an arena of confrontation between several distinct professional legitimacies
• Conflicting professional goals create coordination problems
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Learning to Coordinate
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https://www.youtube.com/watch?v=o-mI7RTf_R4
https://www.youtube.com/watch?v=o-mI7RTf_R4
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Let us summarize
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ORGANISATIONS AS STRUCTURES
The individual in (large) organisations
Limited rationality and the need for investigation
https://www.youtube.com/watch?v=4rcI1u4cxGEon and management
• Different components
• Coordination Mechanisms
• Social Structures
• Organizational Design
• Physical Structures
• Organizational cultures
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lundi 21 septembre 2015 25
ORGANIZATIONAL
COMPONENTS
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What can you find in an organization?
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6 components of an organisation
Support staff
Middle line
Operating center/core
Strategic summit/apex Responsable for : firm’s mission strategic development resource allocation relationships with environment
Provide support
services and information necessary for organization’s
activities
Analysts situated outside the formal reporting system
Responsible for standardization of operational, and intellectual work
planning systems
Work directly on the production of goods and services
Intermediary managers (formal
reporting system)
Top down transmission :
policies, directives
Bottom up : reports,
claims
Techno- structure
Ideology or company culture
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Authority relations
Work flows
Information flows
Performance control &
Organisational structures
Making connections
The six components are interconnected by
Steering modes
(De)Centralization
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Why have a structure?
1. To share out authority among members
2. To share out responsibilities among members
3. To share out rules, procedures, information among members
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• Six coordination mechanisms
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Getting things done
1
2
3
Mintzberg
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Getting things done
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4
5
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SOCIAL STRUCTURES &
ORGANIZATIONAL DESIGN
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Organigramme
• Higlights social structure of an organisation
Distribution of authority
• Functions of an organization chart
1 know who does what in the organization
2 who they can speak to when there is a problem
3 enables the employee to find her way in the organization (ex. new employee welcome guide)
4 enables you to position yourself in the hierarchy, and in relation with other departments
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lundi 21 septembre 2015 34
What does an organigramme not tell us
What does an organigramme not tell us about an organisation?
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• Organization chart reflects three types of internal structures (departmentalization)
1. Divisional structures:
a. Based on products /markets / brands (ex. LVMH)
b. Based on type of clientele (ex. Orange)
c. Based on geographic area (ex. temporary work firms,
bank branches)
d. Based on discipline or activity (ex. hospitals)
2. Functional structures
• function or production system logic (ex. sailing club)
3. Matrix structures
• cross divisional logic and functional logic
(ex. consultancy cabinet)
Organizational Design
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Divisional Structure
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Divisional geographic structure
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Functional Structure
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Functional Structure
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• Strategy
• Operational performance improvement
• Project/program management
Matrix structure
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Advantages Drawbacks
Functional - Favors economies of scale and work division; - Specialization : concentration of resources/competencies
- Less reactive to customer needs - Difficult to identify how each unit contributes to efficiency -Problem of setting objectives -Heavy control by management to follow the activity closely
Divisional - Better ability to react to changes in the environment - Greater autonomy possible ( responsibility centers/MBO)
- Higher costs ; does not allow to best exploit economies of scale. -Does not facilitate the transmission of knowledge (specialists disseminated in the units) - Threats of rivalry between the departments
Matrix - Makes adaptation to an unstable environment possible - Favors innovation
- Generates complexity in relationships/communication/coordinat° - Requires a company culture which recognizes negotiation as a mode of inter-personal relationship
Advantages and drawbacks
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PHYSICAL STRUCTURES
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Physical structures influence social structures
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…but
“We shape our buildings and
afterwards our buildings shape us”
Architecture, Interiors, Product design, Logos,
Brochures, Uniforms…
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Trappings of office
Parking sace too
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Interplay of physical-social structures
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ORGANIZATIONAL
CULTURE(S)
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“The pattern of basic assumptions that a given group has invented…developed in learning to cope with its problems of external adaptation and internal integration; that have worked well enough to be considered valid; and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” (Schein, 1985)
Organizational Culture
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lundi 21 septembre 2015 49 Schein’s 3 levels of culture
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Why is organizational culture important?
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Why do culture change
initiatives fail? 1. Resistance
2. Lack of management ownership
3. Competing change initiatives
4. Top management divergences
5. Unrealistic time lines
6. Poor implementation
7. Top-down approach
8. No rewards and no sanctions
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https://www.youtube.com/watch?v=V7P0T9IbYKU
https://www.youtube.com/watch?v=O24ZD9WluW8
https://www.youtube.com/watch?v=3RI08CwiLjw
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Let us summarize
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lundi 21 septembre 2015 54
Weekly media comments sign up
Group formation
Attendance
Next week….
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lundi 21 septembre 2015 55
Next class… Organizational structure and theory continued
Group Assignment and in-class Group Time
Think about and bring your artifact Student Artifact Exercise
Aim: Build positive and dynamic learning community
Importance of getting to know one another
During next class I will ask you to spend some time getting to know one another
Please bring an object to our session that you can use as the centerpiece for telling us a story about who you are as a person. Please, no photographs. I will ask you to discuss the following questions in relation to your artifact: What is important to you?
What motivates you?
What is exciting to you?
What is meaningful to you?